This article first appeared on GuruFocus .
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Total Revenue:INR 322 crores till Q3 FY25-'26, up from INR 280 crores in Q3 FY24-'25.
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Operating Revenue:INR 109 crores for Q3 FY25-'26, compared to INR 94 crores in Q3 FY24-'25.
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Cost of Goods Sold (COGS):41%-43% of operating revenues in Q3, Q2, and Q1 FY25-'26.
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Manufacturing Costs:Approximately 2% of operating revenue in Q3 FY25-'26.
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Employee Costs:19% of operating revenue in Q3 FY25-'26.
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Depreciation:4% of operating revenue, consistent with previous periods.
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Other Expenses:14% of operating revenue in Q3 FY25-'26.
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EBITDA Growth:21% year-over-year.
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PBT Growth (excluding exceptional items):35% year-over-year.
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PAT Growth:19% year-over-year, impacted by higher tax provision.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:522295.
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Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Control Print Ltd ( BOM:522295 ) reported a significant increase in total revenue, reaching approximately INR322 crores for Q3 FY26, up from INR280 crores in the same period last year.
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The company experienced steady growth in its coding and marking segment, which represents 92% of its business, with strong performance in verticals such as pipes, food, healthcare, dairy, steel and metal, cable, and wire.
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Control Print Ltd ( BOM:522295 ) is a market leader in sectors like cement, plywood, sugar, and dairy, and the business outlook remains strong for its track and trace division.
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The company has developed new solutions and successfully acquired new customers, contributing positively to its growth trajectory.
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EBITDA growth was reported at 21% year-over-year, indicating improved operational efficiency and profitability.
Negative Points
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The company's PAT growth was lower at 19% due to higher tax provisions in the quarter, impacting net profitability.
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Control Print Ltd ( BOM:522295 ) faced challenges with its foreign subsidiaries, particularly in Italy, where execution issues led to lower profits on consolidation.
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There was a significant increase in employee costs and other expenses, which affected the overall profitability and raised concerns about cost management.
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The packaging business, both in India and overseas, is currently loss-making, with delays in machine dispatches and technical issues impacting performance.
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The company is facing competition from Chinese suppliers in the packaging solutions market, which could pose a threat to its market share and pricing strategy.
Q & A Highlights
Q: How have the foreign subsidiaries performed, and what factors have led to lower profits on consolidation? A: Shiva Kabra, Joint Managing Director, explained that the Italian subsidiary is nearing breakeven, with new packaging machines being developed. Execution issues have delayed order fulfillment, impacting profits. However, improvements are expected in Q4 and the next fiscal year as these issues are resolved.
Q: What is the impact of higher raw material costs on gross margins, and when can improvements be expected? A: Shiva Kabra noted that the development of single polymer recyclable material is underway, which will improve margins once implemented in about four months. Current margins have not changed significantly, but improvements are anticipated with local manufacturing.
Q: Does the rise of laser printers pose a threat to the consumables business? A: Shiva Kabra stated that while laser printers have been around for decades, they have limitations such as material compatibility and safety issues. The business model for lasers differs, focusing more on service and spares. Overall, lasers are not seen as a significant threat to the consumables business.
Q: Can you explain the increase in employee costs and other expenses? A: Jaideep Barve, CFO, attributed the rise in employee costs to adjustments for gratuity provisions due to new labor codes and staff incentives. Other expenses increased due to business promotion and travel, with plans to optimize costs in the future.
Q: What is the outlook for the coding and marking business and the track and trace segment? A: Shiva Kabra expects the coding and marking business to grow at 10-15% annually, driven by product advantages. The track and trace segment is compliance-driven, with potential for growth if additional customer benefits are realized. The company is focusing on integrating business intelligence with compliance solutions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
