EPLNSEApril 7, 2026

EPL Limited

8,525words
118turns
17analyst exchanges
5executives
Management on call
Hemant Bakshi
MANAGING DIRECTOR AND GLOBAL CHIEF EXECUTIVE OFFICER, EPL LIMITED
M. R. Ramasamy
CHIEF OPERATING OFFICER, EPL LIMITED
Deepak Goyal
CHIEF FINANCIAL OFFICER, EPL LIMITED
Onkar Ghangurde
HEAD - LEGAL, COMPANY SECRETARY OFFICER, EPL LIMITED COMPLIANCE AND
Pratik Oza
SYSTEMATIX SHARES & STOCKS INDIA LIMITED
Key numbers — 40 extracted
20%
recap, we have delivered double-digit revenue growth over the last three consecutive quarters at 20% plus EBITDA margin. Also, we have delivered 500 basis points of EBITDA margin improvement over th
500 basis point
wth over the last three consecutive quarters at 20% plus EBITDA margin. Also, we have delivered 500 basis points of EBITDA margin improvement over the last 15 quarters. We operate across 21 manufacturing sites
1 billion
ida to create a consumer packaging leader focused on emerging markets. This merger will create a $1 billion revenue packaging powerhouse with expanded product portfolio and capabilities, wider global prese
13.6 billion
r in rigid packaging, is a subsidiary of Indorama Ventures Group, which is a global group with US$13.6 billion revenue, specializing in polymer value chain integration with a deep understanding of operating i
INR3,800 crore
a deep understanding of operating in emerging markets. In the year 2025, Indovida delivered over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 yea
21.3%
markets. In the year 2025, Indovida delivered over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years, including organic and inorganic
23.7%
year 2025, Indovida delivered over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years, including organic and inorganic expansions, which
8%
ed over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years, including organic and inorganic expansions, which are an integral part of
rs,
s in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years, including organic and inorganic expansions, which are an integral part of the core business model.
90%
business model. It operates in 19 production facilities across nine countries with approximately 90% of revenue coming from high-growth emerging markets in Southeast Asia and Africa. Indovida hold
INR8,300 crore
we are creating a diversified multiformat packaging platform that doubles our combined revenue to INR8,300 crores and EBITDA to approximately INR1,750 crores. The combined platform will be an emerging market le
INR1,750 crore
ckaging platform that doubles our combined revenue to INR8,300 crores and EBITDA to approximately INR1,750 crores. The combined platform will be an emerging market leader with 75% of revenue coming from emerg
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Guidance — 20 items
Hemant Bakshi
opening
“In the year 2025, Indovida delivered over INR3,800 crores in revenue, EBITDA margin of 21.3% and ROCE of 23.7% and a volume CAGR of 8% over the last 5 years, including organic and inorganic expansions, which are an integral part of the core business model.”
Hemant Bakshi
opening
“The merger is much more than the sum of two organizations, and we expect it to be highly synergistic for both EPL and Indovida.”
Hemant Bakshi
opening
“The combined platform will be an emerging market leader with 75% of revenue coming from emerging markets in Asia, Africa and Latin America, which are growth oriented in nature.”
Hemant Bakshi
opening
“Post-merger, IVL will hold 51.8% of MergeCo and will be promoter of EPL.”
Sanjesh Jain
qa
“Number two, now that this company will generate a lot more cash flow than what we were generating and from a net debt-to-EBITDA situation will be significantly better for EPL post the acquisition, what will be the capital allocation and dividend distribution policy?”
Sanjesh Jain
qa
“Just on the operation itself, post the merger, how do we plan to leverage?”
Hemant Bakshi
qa
“Blackstone will retain a single Board seat and rest of the independent directors, etc, will be based on the regulations and the laws of the country.”
Hemant Bakshi
qa
“And capital allocation is something which will be determined by the Board.”
Hemant Bakshi
qa
“And therefore there will be an opportunity to do so in the future.”
Hemant Bakshi
qa
“But India will be an attractive opportunity for us.”
Risks & concerns — 2 flagged
The other valuable thing is that they have access to raw material and they built the ability to operate in difficult frontier markets.
— Hemant Bakshi
With Indovida merging with EPL, any new approvals will be required for the current existing supplies that they are doing and any impact of this is expected on the back of that?
— Mihir Shah
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Q&A — 17 exchanges
Q
I have a couple of questions. First on the Board composition with IVL becoming the promoter, what are the changes in the Board composition that is expected or agreed upon? That's number one. Number two, now that this company will generate a lot more cash flow than what we were generating and from a net debt-to-EBITDA situation will be significantly better for EPL post the acquisition, what will be the capital allocation and dividend distribution policy? That's the second one. Just on the operation itself, post the merger, how do we plan to leverage? Because geographically, both EPL and Indovid
Hemant Bakshi
Yes, so thank you very much for those questions. I think firstly, on the Board composition, this obviously has to wait for the regulatory approval, but what's been agreed is that Indorama will have at least three Board seats. Blackstone will retain a single Board seat and rest of the independent directors, etc, will be based on the regulations and the laws of the country. So that's how the Board will be set up. I think your second question is on the balance sheet and the ability for us to really leverage it. I think firstly, what is really, really positive is that Indovida is a net cash positi
Q
Hi, sir. Thank you for taking my question. Congrats on the merger. It seems to be an interesting one. First question is on, can you talk a bit more on the current preform business of Indo and the moats around it, what are the USPs, the competitive intensity in that space, the market, the market shares? And secondly, I believe you highlighted some potential entry into new product categories. So in continuation of that, what are the other new product categories that you're thinking about? So that's my first question.
Hemant Bakshi
Yes, thank you very much, Mihir, for your questions. Yes, sorry for the interruption, Mihir. To continue with your question on Indovida's business, firstly they operate in rigid plastics. Within that they have three sub-segments. Preform is 75% of their business, bottles and caps and closures are the balance 25% equally divided across the two of them. So that's the formats they are in. They are in nine key countries: Thailand, Vietnam, Philippines, Egypt, Nigeria, Ghana, Tanzania and Myanmar. And in each of these countries they are either number one or number two supplier. And they work with r
Q
Good morning, sir, and congratulations for the deal. Sir, my question -- firstly was with regard to the proforma profits of the Indovida Limited. What is the proforma PAT for the company?
Hemant Bakshi
Yes, Kirthi, just give me a second. I will hand over to Deepak Goyal, our CFO, to respond to the specific numbers for you. Yes, so Indovida generates, as Hemant mentioned, a revenue of INR3,800 crores and EBITDA margin of 21.3%. So, their EBITDA is INR800 crores plus. If you look at the combined entity, in the last 12 months, EPL has delivered a profit of or EBITDA of about INR940 crores. So combined entity will have an EBITDA of about INR1,750 crores. And what about PAT, sir? Just one second, give me a minute. Kirthi, if you have another question, just go ahead with that and I will come back
Q
Yes. Thanks for the opportunity. I just joined the call a bit late. What is the combined EV post- merger if you can share that number and also the total number of shares post the merger for the combined entity?
Deepak Goyal
So, the total valuation of the combined entity is about $2 billion. In this transaction EPL is being valued at 12.5x EBITDA and Indovida is being valued at 8.1x EBITDA. EPL pricing as per the valuation is at about INR339 per share, which is about 70% premium to the current pricing. And the number of shares. And the number of shares, we currently have INR32.5 crores shares. As part of the transactions, we will issue INR18.5 crores additional shares and hence the total number of shares would be around INR51 crores. Any reason for valuing Indovida at a lower multiple compared to EPL? Yes, let me
Q
Sure.
Management
Q
Hi, good morning, sir and congratulations on the merger. I will just take it up from the last participant and I have one more question of my own. So let me look at it this way. Fair, EPL deserves the premium, but let's look at Indovida's valuation. It is a higher margin, better ROCE, net cash company and PET rigid is an attractive category. Emerging market portfolio is larger than EPL. So just wondering why such a low valuation which is being given or attributed to Indovida? Is it like the historic track record of growth if you strip out acquisitions is not that great? Any nuances which we are
Hemant Bakshi
Yes, I think Sameer the valuation has been done based on the past track record as well as what they foresee as the future opportunities this business has. Obviously, I think the valuation and the way the experts have looked at it is premium on account of very good performance of EPL and a significantly higher potential. I think our move into B&C has really helped us get that premium. At this point in time, the Indovida business is focused on beverages. I am sure there are opportunities beyond that. And maybe the valuers thought that the potential we had in B&C is much higher than the formats t
Q
Sure. No worries. Thanks.
Management
Q
Hello sir, thank you for the call. A question from my end was in terms of the long-term free cash flow of the business now as EPL, as you highlighted earlier point that IVL has been acquisitive. So, does this make EPL now a lot more acquisitive in terms of growth now going forward? And how do you think about on a $100 million kind of a profit base in terms of your free cash flow generation, including growth capex?
Hemant Bakshi
So, let me try and respond to the question on inorganic growth or acquisition, and then I will request Deepak to talk about the free cash flow. So, as we mentioned earlier, we have set clear guidelines on how we will approach inorganic opportunities. We want to look at opportunities which will take us into new geographies or help us build new capabilities in new formats. So those are the two criteria we'll use. In addition to that, anything new we do must be margin accretive to the business. As you can see, this merger meets all three of those criteria. But we will keep looking at that in the
Q
Sir, just one thing. So now our promoter changing to Indorama and the parent is still debt heavy. So how do you think about this? So like will there be increase in dividends to service that debt because still they're looking at multiple credit lines for liquidity and all those things. So what is the plan of action here?
Hemant Bakshi
Yes. So firstly I must say that Indovida, the business that's merging with EPL is net cash positive. So they are debt free. In fact, as a result of this merger, our debt-to-EBITDA ratio will fall from 0.65 to 0.25. So therefore we feel strongly about the fact that the balance sheet will become even healthier than it was earlier. As far as the dividend policy is concerned, we have been a dividend paying stock in the past, as you are well aware of. Any future dividend policy will be decided by the Board of the combined company post the merger is completed. So that's something which the Board wil
Q
My two questions, sir. If I look at Indovida's numbers for last let's say three years, in at least Thai Baht terms they have been declining including the production there which used to be about 0.33 million tons coming down to about 0.3 million tons. And secondly, when we look at the EBIT or EBITDA of that company today, what kind of growth then we would be assuming in the valuations? And connected question is also that if I look at THB2.9 billion kind of EBITDA there, I mean the number of INR813 in INR terms is actually based on the closing of exchange rate. But if I look at overall exchange
Deepak Goyal
So first of all the EBITDA conversion. So we don't expect the FX exchange rate to kind of move dramatically and it's calculated and we represented of exchange rate. And the INR813 crores is the representative number. From a growth point of view, Indovida has grown at about 8% CAGR over the last five years. It includes both the organic and inorganic growth opportunities which is part of the core model. The growth opportunities even going forward continue to be very attractive given their market footprint is emerging market focus. On top of that, Indovida is planning to enter new markets as well
Q
My questions have actually been answered, but congratulations on your role and congratulations on the transaction. My questions were with regards to the open offer potential and the valuation which have been answered?
Management
Q
So one was the specific thing we wanted to understand is that what was the reason for the weaker numbers year-on-year for Indovida on CY25 over CY24? Has there been any client loss and what led to the impact on their growth and margin in CY25? Also on this front only, Indorama Ventures was preparing Indovida for a standalone IPO, but today it is being merged into EPL. So what drove that choice for them?
Hemant Bakshi
Yes. So I think we've spent some time trying to understand the Indovida business. And '25 was quite a distinct unique year in Southeast Asia because of the weather pattern and it's also linked to the previous year 2024 which had a very high tourism boom in Thailand. So there were two factors which impacted the business. One was the base was high because of a higher degree of tourism. And then again '25 the weather patterns were not very strong. Equally in Vietnam there was a significant change in the tax policy which led to almost 8,000 stores shutting down during that period which had an impa
Q
Hello.
Management
Q
Yes, congratulations on the positive development. You talked a lot about the synergy benefits. I just have one follow-up on the same. In the first year or after the merger completion, what kind of synergy benefits can we foresee and what would be your top priorities in the first year?
Hemant Bakshi
So, I think our opportunity post the merger getting approved will be on leveraging the synergies. We feel the geographical synergy is really very, very significant. We will work towards that and see how much of it can be realized immediately. You can imagine entering a new country is not straightforward, but we'll start working on it, both from an EPL's perspective, but also from an Indovida's perspective. So that's something which we will look towards. But we are also very focused on doing a very robust and rigorous post-merger integration to ensure that our businesses hit the ground running
Q
Am I audible sir?
Hemant Bakshi
Yes. Thank you for the opportunity. Sir, my question is regarding Indovida's working capital and the FCF to EBITDA conversion. Like, how much is it, sir, if you can give a number? Yes, just give us a minute, we'll pull out the data. Working capital of Indovida? Working capital and cash flow conversion. So, cash flow as I said, Indovida generates about 60% of its EBITDA as free cash flow. Operating cash flow, how much operating? I'm sorry. EBITDA to operating cash flow, not free cash flow. So, we are just pulling out the data and we'll share with you. In the meanwhile, if you have any other que
Q
Hi. Thanks for the opportunity. I just wanted to understand that given the current geopolitical conflict and everything, is EPL business in the laminated packaging part more susceptible to the commodity inflation or the rigid packaging one on the Indovida's side? And can we quantify the impact to some extent for foreseeable future?
Hemant Bakshi
Yes. So, I think as far as the EPL business is concerned, clearly this is a significant event and we have to manage it very sensitively and have to be agile and adaptable. As far as our model is concerned, we've been working with our customers and the first priority for us is to make sure we can secure supply. We have long-standing relationships with our petrochemical suppliers and we are working closely with them to make sure that supply is ensured and our scale really helps us in this situation. I think the second is there is cost inflation which is obvious. Our model is clearly one of pass-
Q
Yes. Hi. Thanks for the opportunity. Just wanted to understand, I mean, instead of paying dividends, any thoughts on buyback since EPL is being valued at almost $1.2 billion versus current market price? So any thoughts over there? And what would be the size of RPD business in the merged entity?
Deepak Goyal
On the buyback, it's about the capital allocation, Bhavya. We believe that we have very exciting opportunities to invest this money in growth. Also as part of the merged entity, what we are creating is a growth-oriented company. So far the management and Board have been pro-growth and that's where our investments are growing. However, if we realize that there is a better opportunity in buyback, we will consider that. In terms of, so I was asking, say, instead of dividends, why don't we do buyback because the valuation that we are baking in, it's much higher. It makes logical sense to go for bu
Speaking time
Hemant Bakshi
32
Moderator
19
Deepak Goyal
15
Bhavya Gandhi
7
Majid Ahamed
7
Sameer Gupta
6
Mihir Shah
5
Sagar Jethwani
5
Kirthi K. Jain
4
Pratham Kankariya
4
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Opening remarks
Pratik Oza
Thank you. Good morning, everyone. Thank you for joining us for this conference call to discuss the strategic merger between EPL and Indovida. Joining us today from EPL's management team are Mr. Hemant Bakshi, Managing Director and Global CEO; Mr. M. R. Ramasamy, Chief Operating Officer; Mr. Deepak Goyal, Chief Financial Officer; and Mr. Onkar Ghangurde, Head of Legal, Company Secretary and Compliance Officer. We will begin with opening remarks from the management to provide context on transaction, followed by an interactive question-and-answer session. We kindly request to limit your question on the merger itself. I would now like to invite Bakshi sir, to share his opening remarks. Over to you sir.
Hemant Bakshi
Good morning, everyone. I'm truly delighted to be here today and share with you what we believe is one of the most exciting and transformational chapters in our company's journey. EPL today is a leading global flexible packaging company that has consistently delivered strong financial performance. As a recap, we have delivered double-digit revenue growth over the last three consecutive quarters at 20% plus EBITDA margin. Also, we have delivered 500 basis points of EBITDA margin improvement over the last 15 quarters. We operate across 21 manufacturing sites in 11 countries as the trusted partner for leading oral care and beauty and cosmetic brands globally and holds EcoVadis Platinum sustainability rating, a distinction that very few in our industry can claim. Last time we spoke, I had shared that we are working on the strategy for the next phase of EPL's growth journey. Our vision is to become a leader in consumer packaging for the emerging markets. This means we would enter new emergi
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