TCPL Packaging’s Q2 profit rose 13.22% qoq as margin slipped
Revenue grew 13.80% qoq, but expenses grew faster and the tax rate rose 2.59 percentage points.
Filed 05 Nov 2026, 18:44 IST · after market close · TCPL Packaging Ltd (TCPLPACK)
Key takeaways
- Consolidated net profit rose 13.22% quarter on quarter to Rs 45.30 cr, despite a 0.23 percentage-point decline in operating margin.
- Expenses grew 14.12% qoq against 13.80% revenue growth, while the tax rate increased 2.59 percentage points to 26.66%.
- TCPL Packaging’s 17.20% operating margin was 5.69 percentage points above the 11.51% median for 167 Industrials peers.
Price around the results
Q2 growth came with a small margin trade-off
Consolidated revenue grew 13.80% qoq to Rs 561.01 cr, while operating profit increased 12.30% to Rs 96.52 cr. Expenses grew slightly faster than revenue, narrowing operating margin by 0.23 percentage points to 17.20%. Net profit still rose 13.22% to Rs 45.30 cr, helped by the higher operating profit and increased other income.
Higher costs, interest and tax restrained profit conversion
The cost base rose 14.12% qoq, outpacing revenue growth and explaining the sequential margin decline. Interest expense increased 23.86% to Rs 15.21 cr, while the tax rate rose 2.59 percentage points to 26.66%. Other income accounted for 5.83% of pre-tax profit, so it supported earnings but was not the main profit driver.
Margin remains above the Industrials peer median
TCPL Packaging’s 17.20% operating margin was 5.69 percentage points above the 11.51% median among 167 Industrials companies that had reported the quarter. The available quarter-on-quarter trend shows margin easing from 17.43% in Q1FY27 to 17.20% in Q2FY27. There is no year-on-year comparison in the reported set.
Management cites demand and cost actions as key factors
Management said healthy demand across packaging segments supported Q2 growth and that pricing actions, operational efficiencies and cost optimisation improved margins. It also said higher raw-material and logistics expenses continue to pressure the operating environment. The presentation said TCPL has installed approximately 4,516 kWp of renewable capacity and is building infrastructure for its battery-separator-films venture through its wholly owned subsidiary.
Results were filed after market close
The consolidated results were filed after market close on 5 November 2026. A market reaction is therefore not covered for this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹561 cr | ₹493 cr | +13.80% |
| Other income | ₹4 cr | ₹2 cr | +83.67% |
| Expenses | ₹464 cr | ₹407 cr | +14.12% |
| Operating profit | ₹97 cr | ₹86 cr | +12.30% |
| Operating margin (%) | 17.20% | 17.43% | — |
| Interest | ₹15 cr | ₹12 cr | +23.86% |
| Depreciation | ₹23 cr | ₹23 cr | +0.87% |
| Profit before tax | ₹62 cr | ₹53 cr | +17.23% |
| Tax | ₹16 cr | ₹13 cr | +29.89% |
| Net profit | ₹45 cr | ₹40 cr | +13.22% |
| EPS (₹) | ₹49.78 | ₹43.96 | +13.24% |
Operating margin of 17.20% compares with a Industrials sector median of 11.51% across 167 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Healthy customer demand supported Q2 FY27 growth across packaging segments.
Guidance & outlook
- Management remains positive about growth opportunities across its businesses.
Expansion
- The company has installed approximately 4,516 kWp of renewable energy capacity.
- The company is establishing manufacturing infrastructure and capabilities for its battery separator films venture.
- The company plans a progressive increase in its renewable energy share.
New initiatives
- TCPL has incorporated a wholly owned subsidiary for its lithium-ion battery separator films business.
- The company improved margins through pricing actions, operational efficiencies and cost optimisation initiatives.
- The company is evaluating biomass and cleaner fuel alternatives.
Problems & risks
- The operating environment remains challenging because of higher raw material and logistics expenses.
- The company continues to face input cost pressures despite margin expansion.
What to watch
- Whether operating margin holds above 17.20% in the next reported quarter.
- Whether expense growth stays below the current 14.12% qoq pace.
- Updates on the battery-separator-films venture and renewable capacity from the approximately 4,516 kWp installed base.