EPL Ltd Management Discussions

Management Discussion and Analysis

1. ABOUT EPL

EPL Limited ("EPL" or "the Company"), is a global specialty packaging company and the worlds leading manufacturer of laminated tubes. For over four decades, the Company has partnered with leading global and regional FMCG brands to deliver innovative, high-quality and sustainable packaging solutions across Oral Care, Beauty & Cosmetics, Pharmaceuticals, Food & Nutrition and Home Care. With a global manufacturing footprint spanning more than 21 facilities across 11 countries and a workforce of over 6,000 employees, EPL serves customers across more than 80 countries through a network that combines global scale with strong local execution. This diversified presence enables the Company to remain close to customers, respond quickly to changing market needs and deliver consistent quality and service across geographies.

Innovation and sustainability remain central to EPLs long-term strategy. The Company is investing in advanced packaging technologies, differentiated product offerings and sustainable solutions that help customers meet evolving consumer preferences and regulatory requirements. During FY26, these efforts were recognised with an EcoVadis Platinum rating, placing EPL among the top 1% of companies assessed globally for ESG performance.

FY26 also marked an important strategic milestone with the announcement of the proposed merger with Indovida India Private Limited backed by Indorama Ventures. Subject to the necessary shareholder, regulatory and other approvals, the proposed combination is expected to create a diversified consumer packaging platform with an expanded product portfolio, broader geographic reach and enhanced growth opportunities across emerging markets. The proposed transaction is discussed in greater detail in Section 8 of this MD&A.

Management Discussion and Analysis

The Directors are pleased to present the Management Discussion and Analysis for the financial year ended on March 31, 2026 ("Financial Year 2025-26"/"FY26"/"year under review").

1. ABOUT EPL (repeated content — same as above)

2. ECONOMIC OVERVIEW AND OUTLOOK

FY26 was characterised by a resilient but evolving global economic environment. Global GDP growth remained at approximately 3.3% during calendar year 2025, supported by easing inflation, resilient consumer demand and improving financial conditions across several major economies. However, geopolitical tensions in the Middle East during the latter part of the year heightened uncertainty, leading the IMF to revise its 2026 global growth forecast to approximately 3.1%, while highlighting risks from higher energy prices, supply chain disruptions and tighter financial conditions.

Growth trends varied across regions. India continued to be the fastest-growing major economy, with GDP growth projected at 6.3–6.5%, supported by strong domestic demand and manufacturing activity. Consumption trends also improved during the latter part of the year, aided by easing inflation, supportive government measures and a gradual recovery in rural demand. China remained resilient with growth of around 4.4–4.5%, aided by continued policy support, while Europe continued to witness a subdued recovery amid weak industrial activity and moderating inflation. The impact of the ongoing geopolitical uncertainty is expected to be more pronounced across the Middle East and other energy-importing emerging economies, where elevated energy and logistics costs may weigh on growth and inflation.

Despite these near-term uncertainties, the long-term fundamentals of the packaging industry remain favourable. Demand is supported by resilient consumption across essential categories such as Oral Care, Pharmaceuticals and Food, while sustainability, premiumisation and innovation continue to reshape customer requirements and create new growth opportunities in categories like Beauty and Cosmetics.

Against this backdrop, EPLs diversified manufacturing footprint, regional operating model and disciplined execution provide the agility to respond to changing market conditions while maintaining supply continuity and protecting profitability.

3. INDUSTRY OVERVIEW

According to Mordor Intelligence, the global packaging industry is expected to grow at a CAGR of approximately 3–4% over the next five years. Growth continues to be supported by rising consumption across personal care, pharmaceuticals, food and home care categories, increasing urbanisation and the expansion of organised retail and e-commerce. As consumer preferences evolve, packaging is increasingly viewed not only as a protective medium but also as a key enabler of brand differentiation, convenience and sustainability.

Sustainability remains the most significant structural trend shaping the industry. Mordor Intelligence estimates the global sustainable packaging market to grow at a CAGR of approximately 7–8%, significantly outpacing the broader packaging industry. Increasing regulatory focus on recyclability, Extended Producer Responsibility (EPR) frameworks and brand commitments towards circular packaging are accelerating the adoption of recyclable, mono-material and post-consumer recycled packaging solutions.

Within the packaging industry, flexible packaging continues to outpace overall market growth, driven by lower material consumption, a reduced carbon footprint and greater design flexibility. The Beauty & Cosmetics segment continues to witness strong momentum as brands increasingly seek premium, aesthetically differentiated and sustainable packaging solutions. These trends are well aligned with EPLs strategic focus on expanding its presence in Beauty & Cosmetics while strengthening its leadership in Oral Care and other Personal Care categories.

At the same time, customers increasingly value partners that can combine innovation, global manufacturing capabilities and reliable supply with local responsiveness. With its diversified manufacturing footprint, continued investments in technology and sustainability, and long-standing customer relationships, EPL is well positioned to capitalise on these structural growth opportunities.

4. BUSINESS OVERVIEW: FY26

FY26 marked an important milestone in EPLs growth journey, with the Company delivering its strongest operating performance in recent years. Investments made over the past several years in capacity expansion, innovation, commercial capabilities and product portfolio diversification translated into broad-based growth across geographies, improved profitability and a stronger business mix.

The Company delivered consolidated revenue growth of ~13.0% during the year, while EBITDA grew ~15.8% with EBITDA margin improving to ~20.4%. This performance was driven by strong execution across regions, an improving product mix, strong operational discipline and sustained customer demand across key end markets.

A key highlight of FY26 was the ongoing transformation of EPLs portfolio. Beauty & Cosmetics delivered record growth of approximately 30%, while Oral Care returned to healthy growth of around 3.4%. As a result, Personal Care & Beyond now accounts for 53% of the Companys tube revenue, reflecting the success of EPLs strategic focus on diversifying beyond its traditional Oral Care business and broadening its presence in faster-growing categories.

The Companys investments in manufacturing capacity and innovation translated into stronger regional capabilities and supported future growth. During the year, EPL commissioned its new manufacturing facility in Thailand, strengthening its presence in the EAP region, while the Brazil facility continued to scale up and emerged as a meaningful contributor to growth in the Americas. These investments further enhance the Companys ability to serve customers through a diversified manufacturing footprint and support future growth opportunities.

The Company also delivered consistent operational performance through the year, recording four consecutive quarters of double-digit revenue growth, culminating in ~17.6% revenue growth in the fourth quarter — the highest quarterly growth achieved in the last five years. This performance reflects the resilience of EPLs business model, strong customer trust and the Companys ability to translate long-term strategic investments into sustainable and profitable growth.

5. FINANCIAL AND OPERATIONAL PERFORMANCE: FY26

The Companys financial performance during FY26 reflected the successful execution of its growth strategy, with broad-based revenue growth translating into improved profitability and stronger returns. Consolidated revenue from operations increased by ~13.0% to 47,631 Million in FY26, while EBITDA grew by ~15.8% to 9,724 Million, resulting in an EBITDA margin of ~20.4%, an improvement of 49 basis points over the previous year.

The improvement in profitability was supported by a favourable product mix, led by continued growth in the higher-value Beauty & Cosmetics segment, operating leverage from increased volumes, disciplined cost management and ongoing productivity initiatives across manufacturing operations. EBITDA margins remained above 20% for seven consecutive quarters, reflecting the Companys sustained focus on profitable growth.

Profit After Tax (excluding exceptional items) increased by ~15.0% to 4,171 Million, while reported PAT stood at 3,889 Million. The Companys financial position improved during the year, with the net debt-to-EBITDA ratio improving to 0.52x, reflecting disciplined capital allocation and healthy cash generation. Return on Capital Employed (ROCE) improved to ~19.0%, demonstrating the Companys continued focus on enhancing capital efficiency while investing for future growth.

6. SEGMENT-WISE PERFORMANCE HIGHLIGHTS

EPL operates through four geographic regions — AMESA, EAP, Americas and Europe, providing a diversified revenue base and enabling the Company to serve customers through local manufacturing, regional agility and strong customer partnerships. FY26 witnessed broad-based growth across all regions, reflecting the benefits of portfolio diversification, capacity investments and disciplined execution.

AMESA

The AMESA region delivered a resilient performance during FY26, with revenue growing ~5.1% and EBITDA margin improving to ~18.7%. Growth was supported by steady demand in Oral Care, improving momentum in Personal Care & Beyond and continued focus on operational efficiency. The region also strengthened its export footprint while continuing to deepen relationships with key customers across India, the Middle East and Africa.

EAP

The EAP region delivered another year of strong performance, with revenue growing ~15.7% and EBITDA increasing ~20.9%, resulting in an EBITDA margin of ~22.1%. Despite macroeconomic headwinds in certain markets, the region benefited from continued customer additions, a favourable product mix and strong momentum in Beauty & Cosmetics and extruded tubes.

A key milestone during the year was the commissioning of EPLs manufacturing facility in Thailand, strengthening the Companys presence in the ASEAN region. Together with continued investments in innovation and customer engagement, this further enhances EPLs ability to serve customers with greater agility and positions the region for long-term growth.

Americas

The Americas was one of the strongest-performing regions during the year, delivering revenue growth of ~21.1% and EBITDA growth of ~37.1%, with EBITDA margin improving to ~20.5%. The strong performance reflected broad-based growth across the countries, supported by disciplined execution, new customer additions and an improving product mix.

A defining feature of the year was the evolving tariff environment in the United States. Leveraging its local manufacturing footprint and agile supply chain, the Company successfully navigated these challenges while ensuring uninterrupted customer service and supply continuity, without compromising profitability. The region, in fact, delivered significant margin expansion during the year, reflecting the strength of its operating model and disciplined cost management.

The Brazil facility continued its successful ramp-up and emerged as an important contributor to regional growth, while the United States, Mexico and Colombia also delivered healthy business performance. Together, these market-specific successes reinforced the Americas position as EPLs strongest-performing region during FY26.

Europe

Europe delivered revenue growth of ~10.4% during FY26. However, EBITDA declined by ~3.2%, with EBITDA margin at ~14.5% reflecting a challenging operating environment for the region.

The Company remained focused on improving the regions operating performance through productivity initiatives, disciplined cost management and stronger commercial execution. Continued emphasis on customer engagement, operational excellence and growth in higher-value categories is expected to support a gradual improvement in profitability over the medium term.

7. BUSINESS STRATEGY

EPLs long-term strategy is anchored in its 4X4 framework, comprising four strategic pillars—Category, Customers, Country and Cost—supported by four key enablers: Innovation, Agile Sales & Marketing, Digital Transformation and One EPL Culture. Consistent execution of this strategy enabled the Company to deliver ~13.0% revenue growth, ~15.8% EBITDA growth and an EBITDA margin of ~20.4% during FY26, while strengthening its long-term competitive position.

Category

EPL strengthened its leadership in Oral Care while accelerating growth in faster-growing categories. During FY26, Beauty & Cosmetics delivered record growth of approximately 30%, while Oral Care returned to healthy growth of around 3.4%. Over the past few years, the Company has invested in manufacturing capacity and front-end commercial capabilities to build differentiated offerings for this segment, including expanding its extruded tube portfolio, Neo Seam technology and other value-added packaging solutions. These investments have broadened EPLs ability to address the growing Beauty & Cosmetics market and contributed to the continued transformation of its portfolio, with Personal Care & Beyond now accounting for 53% of tube revenue.

Customers

The Company continued to strengthen relationships with both global and regional customers by delivering differentiated packaging solutions, reliable service and greater responsiveness. During the year, EPL expanded its customer base across regions, with a particular focus on regional and emerging Beauty & Cosmetics brands. Investments in front-end capabilities, commercial agility and customer service have enhanced the Companys ability to cater to smaller and mid-sized customers while deepening engagement with existing strategic accounts.

Country

EPL pursues opportunities to expand its presence in high-growth geographies that offer attractive long-term potential and align with its customers growth ambitions. During FY26, the Company commissioned its manufacturing facility in Thailand, strengthening its presence in Southeast Asia, while the Brazil facility continued its successful ramp-up and emerged as a significant contributor to growth in the Americas. Today, EPL operates a diversified manufacturing network of more than 21 facilities across 11 countries, enabling it to serve customers closer to their markets while strengthening supply chain resilience.

Cost

The Company maintained a disciplined focus on operational excellence and cost optimisation across procurement, manufacturing and overheads. Continued productivity initiatives, operating leverage and an improving product mix enabled EPL to sustain EBITDA margins above 20% for seven consecutive quarters, with FY26 EBITDA margin improving to ~20.4%. This disciplined approach has enabled the Company to continue investing behind future growth opportunities while consistently improving profitability.

Enablers

Innovation

Innovation remains central to EPLs growth strategy and spans the full breadth of the Companys portfolio—including tubes, applicators, printing and materials—rather than being limited to any single format. The Companys Creativity & Innovation Lab combines polymer science with engineering and process expertise to co-create differentiated packaging solutions with customers, from concept through commercialisation, spanning advanced aesthetics, functional enhancements such as UV protection and improved barrier performance, and next-generation applicator and dispensing formats.

During FY26, the Company expanded its range of applicator tubes and dispensing systems, showcased at industry events such as CMPL 2026, alongside investments in digital and specialty printing capabilities that support premiumisation in Beauty & Cosmetics and differentiation in Oral Care. Sustainability remains integral to EPLs innovation approach, with the recyclable mix increasing to 39% during the year, supported by solutions such as Platina and r-Platina tubes that meet evolving global recyclability requirements without compromising performance or aesthetics.

Agile Sales & Marketing

EPL strengthened its front-end commercial capabilities to deepen customer engagement and accelerate growth across strategic categories. During FY26, the Company further expanded its Business Development capabilities, particularly in Beauty & Cosmetics, enabling greater customer coverage, faster response times and improved speed-to-market. Continued participation in leading global exhibitions and industry forums reinforced EPLs market leadership, showcased its differentiated portfolio and provided valuable insights into emerging consumer and packaging trends.

Digital Transformation

Digital Transformation enhances operational excellence across EPLs global manufacturing network. During FY26, the Company invested in advanced manufacturing technologies, automation and digital tools to enhance productivity, quality and decision-making across operations. Cybersecurity and data governance remained a key priority while the Company also advanced the use of emerging technologies, including Generative AI and machine learning, to improve operational efficiency and support data-driven decision-making.

Leveraging the Power of One EPL

The One EPL culture is a key differentiator, fostering collaboration, knowledge sharing and the adoption of best practices across the Companys global operations. By leveraging its global expertise while remaining locally agile, the Company responds faster to customer needs. This collaborative approach enables the Company to respond faster to customer needs, scale successful initiatives across regions and build organisational capabilities that support long-term sustainable growth.

8. CORPORATE DEVELOPMENT: PROPOSED MERGER WITH INDOVIDA

The proposed merger with Indovida India Private Limited ("Indovida") marks a transformational milestone in EPLs journey to build a diversified consumer packaging platform for emerging markets.

Announced in March 2026, the transaction combines EPLs leadership in laminated and tube packaging with Indovidas scale in rigid PET packaging through a scheme of amalgamation under which EPL will remain the listed entity. The combined business is expected to generate annual revenues of ~US$1 billion, with nearly 75% of revenues derived from emerging markets. Upon completion, Indorama Ventures is expected to become a co-promoter of the Company with a ~51.8% shareholding, while Blackstone will hold ~16.6% shareholding.

The proposed combination advances EPLs ambition of building a leading consumer packaging platform for emerging markets by bringing together complementary product portfolios, customer relationships and manufacturing footprints. The merger expands EPLs presence across multiple packaging formats, creating opportunities for cross-selling, deeper customer engagement and accelerated geographic expansion, particularly across South-east Asia and Africa. Procurement, supply chain and sustainability synergies are also expected to strengthen the combined platform, while building on EPLs successful experience of commissioning and scaling new manufacturing facilities.

Beyond the strategic benefits, the transaction is expected to further strengthen EPLs financial profile. Indovida is a net-cash business and the combined entity is expected to benefit from a stronger balance sheet, improved financial flexibility and enhanced capacity to pursue future organic and inorganic growth opportunities. The transaction is expected to be earnings accretive, while also improving profitability and return ratios through procurement, supply chain and operational synergies. The combined organisation will also benefit from Indorama Ventures global scale, manufacturing expertise and proven acquisition track record, providing a strong platform for long-term value creation.

Subject to the requisite shareholder, regulatory and judicial approvals, the proposed merger is expected to position EPL as a leading consumer packaging platform focused on emerging markets, with a broader product portfolio, stronger geographic presence and enhanced capabilities to deliver sustainable long-term growth.

8. CORPORATE DEVELOPMENT: PROPOSED MERGER WITH INDOVIDA

The proposed merger with Indovida India Private Limited ("Indovida") marks a transformational milestone in EPLs journey to build a diversified consumer packaging platform for emerging markets.

Announced in March 2026, the transaction combines EPLs leadership in laminated and tube packaging with Indovidas scale in rigid PET packaging through a scheme of amalgamation under which EPL will remain the listed entity. The combined business is expected to generate annual revenues of ~US$ 1 billion, with nearly 75% of revenues derived from emerging markets. Upon completion, Indorama Ventures is expected to become a co-promoter of the Company with a ~51.8% shareholding, while Blackstone will hold ~16.6% shareholding.

The proposed combination advances EPLs ambition of building a leading consumer packaging platform for emerging markets by bringing together complementary product portfolios, customer relationships and manufacturing footprints. The merger expands EPLs presence across multiple packaging formats, creating opportunities for cross-selling, deeper customer engagement and accelerated geographic expansion, particularly across South-east Asia and Africa. Procurement, supply chain and sustainability synergies are also expected to strengthen the combined platform, while building on EPLs successful experience of commissioning and scaling new manufacturing facilities.

Beyond the strategic benefits, the transaction is expected to further strengthen EPLs financial profile. Indovida is a net-cash business and the combined entity is expected to benefit from a stronger balance sheet, improved financial flexibility and enhanced capacity to pursue future organic and inorganic growth opportunities. The transaction is expected to be earnings accretive, while also improving profitability and return ratios through procurement, supply chain and operational synergies. The combined organisation will also benefit from Indorama Ventures global scale, manufacturing expertise and proven acquisition track record, providing a strong platform for long-term value creation.

Subject to the requisite shareholder, regulatory and judicial approvals, the proposed merger is expected to position EPL as a leading consumer packaging platform focused on emerging markets, with a broader product portfolio, stronger geographic presence and enhanced capabilities to deliver sustainable long-term growth.

9. OPPORTUNITIES

EPL is well positioned to capitalise on the structural shifts reshaping the global packaging industry. The Companys diversified manufacturing footprint, differentiated product portfolio and long-standing customer relationships provide a strong foundation to capture growth opportunities across categories, geographies and packaging formats.

Beauty & Cosmetics continues to represent the largest growth opportunity for the Company. Rising consumer preference for premium, functional and aesthetically differentiated packaging, coupled with increasing demand from regional and emerging brands, is driving strong growth across this segment. EPLs investments in extruded tubes, applicator solutions, advanced printing capabilities and specialised commercial teams position the Company to further strengthen its leadership in this high-growth category.

Sustainable packaging presents significant long-term opportunities as customers accelerate the transition towards recyclable and circular packaging solutions. With recyclable formats accounting for 39% of tube sales during FY26 and a portfolio of innovative solutions such as Platina and r-Platina, EPL is well positioned to support customers in meeting evolving regulatory requirements and sustainability commitments.

The Company also sees significant opportunities to expand its presence across high-growth emerging markets, supported by its diversified manufacturing footprint and investments in regional capacity. The commissioning of the Thailand facility and the continued ramp-up of the Brazil facility further strengthen EPLs ability to serve customers closer to their markets while supporting future expansion across Southeast Asia, Latin America and other attractive growth markets.

As the business scales, EPL expects to further strengthen profitability through a combination of favourable product mix, higher capacity utilisation and sustained operational excellence initiatives. The growing contribution of higher-value categories such as Beauty & Cosmetics, coupled with ongoing investments in manufacturing efficiency, procurement and automation, provides a strong foundation for sustained margin expansion. Having consistently improved profitability over the past several years, EPL remains focused on ensuring that earnings growth continues to outpace revenue growth while maintaining disciplined investments behind future expansion.

Subject to the necessary approvals, the proposed merger with Indovida has the potential to significantly enhance EPLs long-term growth prospects by expanding its product portfolio into rigid PET packaging, broadening its customer offering and creating a diversified consumer packaging platform for emerging markets. The combined entity is expected to benefit from complementary capabilities, greater scale and enhanced opportunities for cross-selling, innovation and geographic expansion.

9. OPPORTUNITIES

EPL is well positioned to capitalise on the structural shifts reshaping the global packaging industry. The Companys diversified manufacturing footprint, differentiated product portfolio and long-standing customer relationships provide a strong foundation to capture growth opportunities across categories, geographies and packaging formats.

Beauty & Cosmetics continues to represent the largest growth opportunity for the Company. Rising consumer preference for premium, functional and aesthetically differentiated packaging, coupled with increasing demand from regional and emerging brands, is driving strong growth across this segment. EPLs investments in extruded tubes, applicator solutions, advanced printing capabilities and specialised commercial teams position the Company to further strengthen its leadership in this high-growth category.

Sustainable packaging presents significant long-term opportunities as customers accelerate the transition towards recyclable and circular packaging solutions. With recyclable formats accounting for 39% of tube sales during FY26 and a portfolio of innovative solutions such as Platina and r-Platina, EPL is well positioned to support customers in meeting evolving regulatory requirements and sustainability commitments.

The Company also sees significant opportunities to expand its presence across high-growth emerging markets, supported by its diversified manufacturing footprint and investments in regional capacity. The commissioning of the Thailand facility and the continued ramp-up of the Brazil facility further strengthen EPLs ability to serve customers closer to their markets while supporting future expansion across Southeast Asia, Latin America and other attractive growth markets.

As the business scales, EPL expects to further strengthen profitability through a combination of favourable product mix, higher capacity utilisation and sustained operational excellence initiatives. The growing contribution of higher-value categories such as Beauty & Cosmetics, coupled with ongoing investments in manufacturing efficiency, procurement and automation, provides a strong foundation for sustained margin expansion. Having consistently improved profitability over the past several years, EPL remains focused on ensuring that earnings growth continues to outpace revenue growth while maintaining disciplined investments behind future expansion.

Subject to the necessary approvals, the proposed merger with Indovida has the potential to significantly enhance EPLs long-term growth prospects by expanding its product portfolio into rigid PET packaging, broadening its customer offering and creating a diversified consumer packaging platform for emerging markets. The combined entity is expected to benefit from complementary capabilities, greater scale and enhanced opportunities for cross-selling, innovation and geographic expansion.

10. SUSTAINABILITY

Sustainability is embedded in EPLs strategy and is integral to the way the Company innovates, manufactures and partners with customers. As sustainability becomes a defining priority for global consumer brands and regulators alike, EPL strengthens its capabilities to deliver packaging solutions that combine recyclability, performance and aesthetics, helping customers advance their own sustainability commitments.

FY26 marked a significant milestone in the Companys sustainability agenda with the achievement of an EcoVadis Platinum rating, placing EPL among the top 1% of more than 150,000 companies assessed globally on ESG performance. This recognition reflects the Companys continued commitment to embedding sustainability across its operations, products and governance, while reinforcing its position as a trusted partner for customers seeking more sustainable packaging solutions.

Building on this foundation, EPL expanded its portfolio of sustainable packaging solutions. During FY26, recyclable tubes accounted for 39% of tube sales, up from 33% in FY25, supported by investments in manufacturing capabilities and product innovation. Solutions such as Platina and r-Platina meet the recyclability requirements of the European Unions Packaging and Packaging Waste Regulation (PPWR), enabling customers to transition towards more circular packaging without compromising performance or aesthetics.

The Company also advanced its broader sustainability commitments through its Science Based Targets initiative (SBTi), continued recognition by the Ellen MacArthur Foundation and sustained focus on reducing the environmental footprint of its operations. Sustainability has evolved from a compliance imperative into a source of competitive advantage, strengthening customer partnerships, driving innovation-led growth and creating long-term value for all stakeholders.

11. HUMAN RESOURCES

People remain at the heart of EPLs long-term success and competitive advantage. The Company is committed to fostering a high-performance, purpose-driven and inclusive workplace where employees are empowered to innovate, collaborate and grow. Its people strategy is anchored around five pillars—organization structures enabling growth, new capabilities building, culture and engagement, diversity and inclusion, and talent development—ensuring that the organisation remains equipped to support its long-term growth ambitions. With 6000+ workforce, with 23 nationalities, our teams across the world are taking our vision forward everyday.

During FY26, EPL strengthened its position as an employer of choice, earning Great Place to Work* certification across seven countries. Women represented 32% of the Companys global workforce, while EPL accelerated inclusion efforts by employing over 150 persons with disabilities globally, reinforcing its commitment to building a diverse and inclusive workplace.

The Company invested in capability building through structured learning and development programmes, cross-functional collaboration and leadership development initiatives. Employee wellbeing framework is well established across markets, which enables wellbeing across financial, emotional, physical and social wellbeing. This strengthens organisational culture, while a merit-based performance management system supported high performance and career growth. As the Company continues to invest in innovation, digital capabilities and sustainability, it remains focused on building a future-ready workforce equipped to support the next phase of growth.

12. FINANCE

EPL maintained a disciplined financial approach during FY26, balancing investments in growth with a continued focus on cash generation, capital efficiency and balance sheet strength. This prudent approach enabled the Company to fund strategic capacity expansion, invest in innovation and further strengthen its financial position while maintaining a conservative leverage profile.

As at March 31, 2026, consolidated net debt stood at 5,017 million, an increase of 449 million over the previous year, reflecting disciplined investments in strategic growth initiatives. Despite this, the Company maintained a healthy debt-to-equity ratio of 0.25 (0.29 in FY25), while the Debt Service Coverage Ratio (DSCR) improved significantly to 3.98 (2.62 in FY25), demonstrating the Companys strong debt servicing capability and healthy operating cash flows. Return on Capital Employed (ROCE) improved to ~19.0% from ~18.0% in FY25, supported by higher profitability and improved asset utilisation.

The Companys strong financial profile was recognised by leading rating agencies. During the year, CARE Ratings reaffirmed EPLs long-term and short-term credit ratings at CARE AA+ (Stable) and CARE A1+, respectively. India Ratings & Research (Fitch Group) also reaffirmed the Companys issuer rating at IND AA+ (Stable) and its short-term rating at IND A1+. These reaffirmations reflect confidence in the Companys financial strength, prudent capital allocation and resilient operating performance.

Looking ahead, the Company remains focused on maintaining a strong balance sheet, improving return ratios and deploying capital prudently to support both organic growth and strategic opportunities. This disciplined financial framework provides the flexibility to invest behind long-term growth while maintaining resilience in a dynamic operating environment.

13. RISK MANAGEMENT

The Company operates in a dynamic and globally integrated industry, making it susceptible to a range of strategic, operational and external risks. EPLs risk management framework is designed to proactively identify, assess and mitigate these risks, embedding risk management into business planning, decision-making and day-to-day operations. The Companys diversified manufacturing footprint, disciplined operating model and strong governance framework enhance its ability to navigate an increasingly complex business environment.

External Risks

Macroeconomic Volatility: Inflationary pressures, foreign exchange fluctuations, changing consumer demand and slower economic growth across key markets could impact demand for packaged products and influence input costs. The Company closely monitors macroeconomic developments while maintaining a disciplined approach to pricing, cost management and capital allocation.

Geopolitical and Trade Risks: Ongoing geopolitical conflicts, evolving trade policies and tariff-related developments have increased uncertainty across global supply chains. EPLs diversified manufacturing network across more than 21 facilities in 11 countries enables regional production and supply flexibility, strengthening business continuity and helping the Company respond effectively to changing trade dynamics while maintaining high customer service levels.

Climate and Sustainability Risks: Increasing regulatory focus on sustainability, Extended Producer Responsibility (EPR) regulations and evolving customer expectations shape the packaging industry. EPL remains well positioned through its investments in sustainable packaging solutions, with the Companys recyclable product mix increasing to 39% during FY26, while continuing to advance innovation in materials and manufacturing processes.

Competitive and Market Dynamics: Consumer preferences, packaging formats and customer requirements have evolved rapidly, particularly in Beauty & Cosmetics and sustainable packaging. Maintaining leadership requires continuous investment in innovation, differentiated products, commercial capabilities and manufacturing technologies. EPL addresses these evolving market dynamics through sustained investments in product innovation, customer partnerships and expansion into higher-growth categories.

Operational Risks

Customer Concentration: While the Company enjoys long-standing relationships with leading global FMCG companies, a significant portion of revenue continues to be derived from key customers. EPL mitigates this risk by expanding its presence across Beauty & Cosmetics and other Personal Care categories, increasing engagement with regional and emerging brands, and broadening its customer base across geographies and end-use segments.

Raw Material Availability and Cost: The availability and pricing of key raw materials, particularly polymers, remain influenced by crude oil prices, supply-demand dynamics and global logistics. The Company mitigates these risks through strategic supplier partnerships, multi-source procurement, disciplined inventory management, productivity initiatives and commercial actions to minimise the impact of raw material volatility.

Cybersecurity and Data Privacy: As EPL strengthens its digital capabilities, cybersecurity and data privacy remain key priorities. The Company maintains a robust information security framework, supported by ISO 27001 standards, regular risk assessments, employee awareness programmes and continued investments in cybersecurity and digital resilience.

Risk management at EPL is embedded within the Companys strategy and operating model, enabling informed decision-making across all levels of the organisation. Through continuous monitoring, strong governance, disciplined execution and proactive mitigation, the Company remains well positioned to navigate an increasingly dynamic business environment while delivering sustainable, profitable growth.

14. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has implemented a robust internal control framework and a structured internal audit process to ensure the integrity of its financial reporting, strengthen operational controls, safeguard its assets and ensure compliance with applicable laws and regulations. These controls are embedded across key business and accounting processes and are periodically reviewed to enhance their effectiveness and support the Companys evolving business requirements.

The Audit Committee of the Board plays a pivotal role in overseeing the Companys internal control framework. During the year, the Audit Committee, in consultation with the Internal Auditor, reviewed and approved the scope and coverage of the internal audit programme. Comprehensive internal audits were conducted across the Companys global operations, along with focused reviews of application controls and other critical business processes. The findings from these audits are regularly reviewed by Management, with the Audit Committee and Statutory Auditors being periodically apprised of key observations and the progress of corrective actions, ensuring continuous improvement and accountability.

The Company also maintains a structured process of monthly business reviews across all regions, providing a robust mechanism to monitor business performance and address operational issues in a timely manner. A disciplined capital expenditure governance framework ensures that investments in new assets and projects are appropriately evaluated, approved and monitored against defined milestones and expected outcomes. In addition, IT-enabled workflows support the standardisation of processes across global operations, strengthening data integrity, process controls and information security while enabling timely analysis and informed decision-making.

During the year, the Company also undertook a comprehensive review of internal financial controls across its India operations, covering both the design and operating effectiveness of key controls. Risk and Control Matrices (RCMs) were reviewed and updated to reflect evolving business requirements and leading practices. The review concluded that the internal control systems were operating effectively and continued to provide an appropriate level of assurance.

The Audit Committee, comprising a majority of Independent Directors, reviews the Companys quarterly, half-yearly and annual financial statements to ensure the integrity of financial reporting and compliance with statutory requirements. A detailed note on the functioning of the Audit Committee and other Board Committees forms part of the Corporate Governance Report included in this Integrated Annual Report.

The Company believes that its robust internal control framework, supported by effective governance, regular internal audits and technology-enabled processes, provides a strong foundation for sustainable growth while reinforcing accountability, operational excellence and regulatory compliance.

15. OUTLOOK

EPL enters Financial Year 2026-27 ("FY27") from a position of strength, having delivered broad-based growth, improved profitability and further strengthening of its business fundamentals. The Company believes that the structural trends shaping the packaging industry—including premiumisation, sustainability, the increasing relevance of Beauty & Cosmetics and the shift towards differentiated packaging solutions—continue to provide a favourable backdrop for long-term growth.

Against this backdrop, EPL will remain focused on executing its strategic priorities. The Company will strengthen its presence in higher-growth categories, deepen customer relationships, expand in attractive geographies and invest in innovation, manufacturing capabilities and commercial excellence. Alongside growth, continued emphasis on operational excellence, productivity initiatives and disciplined capital allocation will remain central to enhancing competitiveness and creating long-term value.

The Company also remains conscious of the evolving global operating environment. Geopolitical developments, including the ongoing conflict in the Middle East, together with evolving trade policies and macroeconomic uncertainty, continue to present challenges for global supply chains and input costs. EPLs diversified manufacturing footprint, regional operating model and disciplined risk management framework provide the resilience and flexibility to respond to these developments while ensuring supply continuity and maintaining high levels of customer service.

Subject to the requisite shareholder, regulatory and judicial approvals, the proposed merger with Indovida is expected to be the Companys most significant strategic milestone in FY27 and beyond. The proposed combination will create a diversified consumer packaging platform with complementary product portfolios, a broader geographic footprint and enhanced capabilities, positioning the Company for its next phase of growth.

Looking ahead, EPL remains committed to consistently delivering sustained double-digit growth while maintaining EBITDA margins above 20% and steadily improving returns on capital. As it continues to expand its capabilities, deepen customer partnerships and execute with discipline, the Company remains well positioned to shape the future of sustainable consumer packaging and create lasting value for all stakeholders.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the objectives, projections, estimates and expectations of the Company, may be forward-looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.