TCPL Packaging Ltd Management Discussions

INDUSTRY OVERVIEW

Over the last few years, India has maintained its position as one of the fastest growing economies in the world. This has also supported steady growth in the consumption of packaging products. The global packaging industry continues to undergo a structural transformation, driven by the expansion of e-commerce, evolving consumer lifestyles, and stricter circular economy mandates. The sector remains highly resilient, with manufacturers increasingly balancing material costs with investments in automation and eco-friendly innovations to meet both operational and regulatory demands. Most manufacturers are actively exploring opportunities to innovate and develop more sustainable packaging products. This continues to be a key area of focus for TCPL.

COMPANY OVERVIEW

TCPL is one of Indias leading producers of sustainable and innovative packaging solutions, catering to a diverse range of industries. The Company works closely with customers to deliver both paperboard-based packaging products, including folding cartons, printed blanks and outers, and litho-laminated cartons, as well as flexible packaging products such as printed multi-layer laminates, pouches, wrap-around labels, and shrink sleeves. Headquartered in Mumbai, TCPL has a strong pan-India presence, with ten state-of-the-art manufacturing facilities supported by marketing offices in key metropolitan regions. The Company has a growing international presence, exporting its products to several countries across key global markets. This enables TCPL to serve a diverse customer base and participate in opportunities across the global packaging value chain.

KEY DEVELOPMENTS IN FY 2025-26 milestone

FY 2025-26 was a year of resilience and operational progress for

TCPL, despite a challenging global environment characterized by subdued international demand, elevated input costs, and geopolitical disruptions in the Middle East towards the end of the financial steady growth, with consolidated revenue fromoperations reduce increasing by 2.26% year-on-year to 1,810.21 crore, while standalone revenue from operations grew by 2.34% to 1,736.15 crore. Robust domestic demand, healthy volume growth across key customer segments, and continued market share gains helped offset the impact of export market disruptions during the year

The Company continued to demonstrate strong operational discipline, achieving a consolidated EBITDA of 317.74 crore, representing an EBITDA margin of 17.31%, compared to 307.43 crore and a margin of 17.23% in the previous year. On a standalone basis, EBITDA increased to 310.87 crore, compared to 301.82 crore in the previous year, with margins remaining stable at 17.63%. Profitability during the year was impacted by higher employee benefit obligations arising from the implementation of new labour codes, which resulted in increased statutory contributions. In addition, elevated logistics costs and supply chain disruptions during the fourth quarter exerted pressure on margins. Despite these headwinds, the Company maintained healthy operating performance and remains well positioned to benefit from the long-term growth potential of the

Indian packaging industry.

The flexible packaging business continued to deliver a performance during the year, supported by healthy demand, improved capacity utilisation, and sustained customer traction across key end-user industries. In the paperboard packaging segment, the Chennai Greenfield facility continued to scale up successfully, driven by encouraging customer traction and increasing business volumes. These investments have strengthened the Companys manufacturing footprint and enhanced its ability to serve a growinganddiversifiedcustomer base across FMCG, food & beverages, pharmaceuticals, consumer products, and other end-user industries.

During the year, Creative Offset Printers Private Limited (COPPL), the Companys rigid box packaging subsidiary, delivered a healthier operational performance and continued to expand its market presence. COPPL remains well positioned to drive domestic volume growth while also capitalising on emerging export opportunities. Its reputation for producing premium-quality rigid boxes has enabled it to attract marquee customers across a wide range of industries. To support future growth, COPPL continues to undertake strategic capital expenditure aimed at broadening its portfolio of high-end rigid box and gift packaging solutions.

Anothersignificant during FY 2025-26 was achieved by

Accura Technik Private Limited (ATPL), which commissioned a state-of-the-art gravure cylinder manufacturing facility in Silvassa in November 2025. With an installed capacity of approximately

1,000 cylinders per month, the facility is now fully operational and represents an important step in strengthening the Companys backward integration capabilities. The new plant is year.Againstthisbackdrop,theCompanydelivered expected toimproveoperational times, enhance quality control, and support faster response to customer requirements. Management is optimistic about the growth prospects of this business and intends to leverage its technical expertise and manufacturing capabilities to drive sustainable . expansion in the years ahead.

The Companys overseas subsidiary, TCPL Middle East FZE (TME), experienced a challenging year due to continued geopolitical uncertainty and regional conflicts across the Middle East. Revenue and profitability were impacted as demand for packaging softened and overall business momentum was affected by market disruptions. Management remains confident in the subsidiarys long-term prospects and its ability to benefit from improved market conditions as stability returns to the region.

INNOVATION, DESIGN AND

CUSTOMER-CENTRIC SOLUTIONS

Innovation is a cornerstone of TCPLs business philosophy, driving the Companys ability to deliver packaging solutions that address the evolving needs of customers and consumers. By combining deep packaging expertise with a strong focus on design, functionality, and customer collaboration, TCPL develops solutions that enhance product protection, strengthen brand identity, improve shelf visibility, and elevate the consumer experience. The

Companys customer-centric approach enables it to work closely with leading brands to create packaging formats that are tailored to specific product requirements, market positioning strategies, and operational needs. During the year, TCPL continued to expand its portfolio of innovative packaging solutions.

In the flexible packaging segment, TCPL leverages its technical and manufacturing capabilities to design precision-engineered packaging solutions tailored to customer requirements, including barrier performance, product protection, convenience, aesthetics, and operational efficiency. Through continued investment in advanced technologies, product development, and design capabilities across both paperboard and flexible packaging businesses, TCPL remains committed to strengthening customer relationships, supporting brand growth, and reinforcing its position as a leading packaging solutions provider.

FINANCIAL PERFORMANCE

During the financial year 2025-26, the Company has achieved a revenue from operations 1810.21 crores on a consolidated basis, an increase of 2.26%; and revenue from operations of 1736.15 crores on a standalone basis, an increase of 2.34% on year- on-year basis. On a consolidated basis, the EBIDTA margin stood at 17.31%, and on a standalone basis it is 17.63% as against 17.23% and 17.63% respectively in the previous year.

SUSTAINABILITY INITIATIVES

TCPL remains committed to becoming Indias most sustainable packaging company, with sustainability embedded across its products, operations, and long-term growth strategy. The Companys approach focuses on responsible sourcing, circular packaging innovation, climate action, resource efficiency, social impact.

During FY 2025-26, TCPL strengthened its ESG credentials by receiving the EcoVadis Bronze Medal in its debut sustainability assessment, placing it among the top 35% of companies assessed globally. The Company also became a participant of the United

Nations GlobalCompact,reaffirmingits commitment to ethical business practices, environmental stewardship, human rights, labour standards, and anti-corruption principles.

Sustainability remains central to TCPLs portfolio. Paperboard, a core material in the Companys product mix, is recyclable and largely sourced from recycled or responsibly forested pulp. In the flexible packaging business, TCPL hasmadesignificantprogress in developing high-barrier, fully recyclable alternatives to existing packaging structures, supported by its in-house polyethylene film capabilities and focus on mono-polymer packaging solutions.

TCPL continues to invest in green manufacturing and environmental stewardship. The Company has committed to achieving carbon neutrality for Scope 1 and Scope 2 emissions by 2040, supported by renewable energy adoption, energy-efficient technologies, and operational optimisation. During the year, renewable energy adoption increased by 50%, solar installations reached approximately 4,516 kWp, and water intensity reduced by 7.5%.

The Company also strengthened its resource efficiency and social impact initiatives during the year. Around 95.65% of the waste generated was non-hazardous, paperboard scrap was fully recycled through authorised partners, 5.10 crore was invested in sustainability-focused R&D, 57.71% of raw materials were sourced from biodegradable sources, over 25,000 people benefited through CSR initiatives, and 100% of employees were covered under skill-upgradation training.

Through continued innovation, green manufacturing initiatives, responsible sourcing, and focused decarbonisation efforts, TCPL is strengthening its sustainability performance while advancing its vision of becoming Indias most sustainable packaging company.

OPPORTUNITIES

Indias macroeconomic outlook remains favourable, supported by political stability, rising consumption, and growing demand across end-user industries. With its broad geographic presence, diversified product portfolio, and established customer relationships, TCPL is well-positioned to benefit from the continued demand.

TCPL is recognised as one of Indias leading players in the paperboard packaging segment, with a strong track record, long-standing customer relationships,andadiversifiedproduct portfolio. The Company remains confidentof leveraging these strengths, while also expanding into new customer segments, to sustain its growth momentum.

The paperboard packaging business is well-positioned to benefit from growing demand across FMCG, Food and Beverages, Electricals, Electronics, Pharmaceuticals, and other end-user industries, supported by TCPLs manufacturing scale, product capabilities, and pan-India presence. In the flexible packaging business, the Company continues to focus on value-added products and sustainable packaging solutions. TCPLs high-barrier, recyclable mono-polymer PE pouch solutions, now being used by leading brands, position the Company as an innovation-led player in this space. With adequate in-house capacity already in place, this segment offers meaningful growth potential over the medium to long term.

The global shift towards supply chain diversification also presents meaningful export opportunities for TCPL. The Company is actively targeting new international markets and has witnessed higher shipments to Europe and the US compared to the previous year. Management sees these markets as important growth drivers going forward across both paperboard and flexible packaging businesses.

THREATS

Global supply chains continue to face disruptions due to geopolitical conflicts, regional instability, and evolving trade dynamics. These factors can create operational, financial, and logistical challenges, including volatility in raw material availability, higher freight costs, fuel price fluctuations, and container availability constraints.

Packaging companies also continue to incur additional costs to meet evolving sustainability and environmental regulations.

Volatility in raw material prices, including paper, polymers, aluminium, and key chemicals, remains a key challenge for the industry. Logistics and freight costs have also remained erratic, impacting export markets, particularly the Gulf region. While partial cost pass-through and productivity improvement initiatives help mitigate the impact, margin pressure arising from time lags in price adjustments remains a risk across the Companys business segments.

SEGMENT WISE OR PRODUCT-WISE

PERFORMANCE

The Company currently has only one segment of business i.e., Printing and Packaging.

DIVIDEND POLICY AND AMOUNT

The Board of Directors of the Company has adopted the policy of paying out 20% of retained profit, as Dividend each year. Accordingly, it is recommended by the Board of Directors to continue the same percentage for adoption in the ensuing Annual

General Meeting. The dividend of 25.00 per equity share would amount to a pay-out of 2,275.00 Lakhs, subject to deduction of tax at source as per provisions of prevailing of Tax Rules. The dividend distribution policy is available on the weblink: https://www.tcpl.in/wp- content/ uploads/2021/05/Dividend-Distribution-Policy.pdf

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The Company has adequate internal control system and a defined organizational structure besides, internal rules and regulations for conducting the business. The Management reviews actual performance with reference to budgets periodically. The Company has an Audit Committee, Independent Statutory Auditors, Internal

Auditors and Risk Management Committee who submit reports periodically which are reviewed and acted upon.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Industrial relations continue to remain cordial during the year and total 2464 employees are on the Companys payroll as on

March 31, 2026 as compared to 2419 employees on the Companys payroll as on March 31, 2025.

DISCLOSURE OF ACCOUNTING

TREATMENT

In preparation of financial statements, the Company has not followed a treatment different from that prescribed in the

Accounting Standards. There are no significant changes in key financial ratios viz Debtors Turnover, Inventory Turnover, Interest Coverage Ratio, Current Ratio, Debt Equity Ratio, Operating Profit Margin, Net Profit Margin.