Ladies and gentlemen, on behalf of Captify Consulting investor relations team, I welcome you all to the Q2 and H1 FY26 post-earnings conference call of Control Print Limited. Today on the call from the management team, we have with us Mr.

Shiva Kabra, Joint Managing Director, and Mr. Jaideep Barve, Chief Financial Officer.

As a disclaimer, I would like to inform all of you that this call may contain forward-looking statements, which may involve risk and uncertainties. Also, a reminder that this call is being recorded.

I would now request the management to brief us about the business and performance highlights for the period ended September 2025, the growth plan and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.

Hi, good afternoon, everybody. I am Jaideep Barve, the Chief Financial Officer of Control Print Limited.

Welcome you all to the earnings conference call for the second quarter or the first half of the financial year 2025-2026. We appreciate that you have taken out your time from your busy schedule to attend to this.

Thanks for being in this call. Mr.

Shiva Kabra, the Joint Managing Director of Control Print Limited, also joins me on this call. For the first-time joiners on the earnings call, more information about our company can be obtained by visiting our website.

For your information, the detailed presentation has already been put up on the website as well as in the investor presentation notification on the exchanges for this call. Let me provide you some highlights on the performance of CPL for the H1 of FY25-26.

On a stand-alone basis, the total revenue for H1 is approximately 210 crores. This represents a good growth from approximately 185 crores previous year.

Just for information, the total revenue for financial year '24-25, '23-24, and '22-23 is 395 crores, 347 crores, and 295 crores respectively. Regarding the operating revenue, the H1 shows operating revenue of 202 crores in FY25-26.

The corresponding revenue for the previous period was 181 crores. Coding and marking continue to be the dominant share in the revenue.

Almost 89% of the revenue comes from coding and marking. This particular segment has seen a steady growth.

Pipes, food, healthcare, dairy, steel and metal, cable and wire are our top-performing business verticals. We continue to be one of the market leaders in cement, plywood, sugar, and dairy.

The TNT business outlook remains good for the division in FY25-26. In the first half H1 year, we have already implemented two new solutions.

We've started sales of packaging machines in the first quarter. Pipelines are being generated for new machines, laminates, and co-packing activities.

In the second quarter, we've undertaken several co-packing activities. For the Masklab, along with the masks, we are also engaging in the trading of hard hats, helmets, gloves, blankets, etc.

The outlook remains good and positive for the remainder of the year. Exceptional income in the Q1 was approximately 4 crores.

This related to the capital subsidy for the 30% investment in parent machinery. On the costs, the cost of goods sold is around 42% and 43% for Q2 and Q1 respectively.

On an annual basis for the last year, it was around 42%. That said, we remain committed to optimize the procurement costs and also look closely into the economy, efficiency, and effectiveness of operations.

This we feel should definitely lead to reduction in the operating costs. Manufacturing costs remain approximately at 3% of the operating revenue.

This is similar to the earlier periods. Employee costs are 16% and 18% of the operating revenue in Q2 and Q1.

Depreciation remains consistent at 4% of the operating revenue. EBITDA, the PAT, and the PBT excluding exceptional items have grown at 14.1%, 18.5%, and 11.7% on a YoY basis.

Regarding the consolidated revenue, in H1, the operating revenue is 223 crores. The corresponding figures for the last year was 200 crores.

The way forward is we want to consolidate the existing coding and marking business. We would like to increase the installed base, provide robust solutions.

There is also a price increase which has been announced by management recently. We would like to capitalize opportunities in the track-and-trace segment.

We expect increase in the revenue in the packaging business both in India and overseas through machine sales, co-packing, and laminate sales. Our overseas subsidiaries will continue to be monitored with focus for targets.

Business plans have already been made and signed off for the execution. The floor is now open for questions.

We'll be happy to address them.

We'll take the first question from Vineet Thakur. Vineet, you can go ahead, please.

Hello. I just wanted to know what would be the revenue breakup that you estimate going forward for this year and for the future years?

Shiva, would you like to address this question? Shiva, hi?

No, no, I think better you answer. I'm not sure what revenue breakup exactly is the question, but I think you can answer this.

Okay. We've done 200 crores in operating revenue for the H1--

Is it okay now?

Jaideep, your volume is very low. If you can increase the volume on your mic, that would be the best.

It's highest I can do. Maybe closer.

Hi, Vineet. To answer your question, we've already done 210 crores of operating revenue in the H1 on a standalone basis.

The revenue outlook remains good. The previous year, the revenue was about 395 crores, and we definitely expect to cross that and show improved performance by '25-26 year end.

Actually, sir, I wanted to know more about the breakup. For example, how much percentage of revenue do you expect consumables, printers, spares?

Vineet. I can tell you the numbers for the Q1 and Q2.

Between printers, consumables, spares, and services, which are the four verticals under the coding and marking business, for Q2, we did a business of 14%, 60%, 9%, 16% respectively. Vineet, was I audible?

You did cut out a bit, but could you just repeat again?

Yeah. Between printers, consumables, spares, and services, the proportion is for the Q2, it is 14%, 60%, 9%, and 16%.

The comparable for Q1 of current year was 11, 62, 12, and 14.

Do you expect any changes in that, or are you expecting this year-round?

It all depends upon the mix of the sales, honestly, because what happens is that the sale of consumables is depending on the momentum in the production in the market. Too early to predict about the Q3 and Q4.

Giving this continues to stand, you could calculate what kind of revenue you'll be generating by '25-26.

Sir. Are we looking to sort of explore any other business opportunities other than coding, marking, and V-Shapes?

No, we are not doing that. Our focus right now is growing the coding and marking.

We are also in the track-and-trace business, and we are also in the digital printing business, more like an advancement of the current coding and marking business. Not like in digital printing presses, but more for in-line type of a solution.

We are in the coding and marking space/digital printing at a certain level, which is more the in-line packaging solutions. We are in the track-and-trace business, and then we are, of course, in the packaging business through V-Shapes, and those are the only four verticals that we're going to be focusing on.

There has been some expansion geographically in one or two sectors and maybe we will be looking especially at the V-Shapes business more on that aspect.

Sir. Perfect.

When do you expect the turnaround in your Europe operations? When do you expect the margin expansion to sort of start?

Okay. In our last con call, I had said we had lost about 2.5 something million euros last year, 25 crores or something.

This year, we had predicted somewhere between 1 to 1.2 million euros. Now in the second quarter, we lost about 700 670,000 something like that, I can't remember approximately.

Like I said, all other businesses besides the V-Shapes business are profitable, that is Codeology and Markprint are already profitable. Only V-Shapes is making a loss.

It's partly because we have come out with a more modern model. Some slight issues in the performance being just some fine-tuning needs to be done.

We couldn't deliver some of the machines that we were supposed to in Q2. Hopefully, it will happen in Q3 or if not, and then they will catch up with the backlog what's been before.

We're still sticking to that 1 to 1.2 million euro loss in the Italian operations overall. Like I said, Markprint and Codeology are already profitable, so that's not a big operation issue for us.

Although we're expanding both. I think so this is one change as that's also partly because we've also been developing a lot of new products and been increasing certain other types of expenses not in terms of manpower so much, but in terms of R&D and certain other costs in Italy, some stuff that was ignored the last few years.

I think, hopefully next year, next financial year, that is, we should be at least break even, if not profitable. We should hopefully at least be break-even.

Like I said, 2.5 to more between 1.1 1 to 1.2 this year, and hopefully break even next year, if not more.

The decrease in EBITDA and gross margin in H1 over H1 consolidated and standalone, is it because of the Italian operations, or is there any other reason for that?

Can you repeat that again, please?

The decrease in EBITDA and gross margins over last year in H1, is the decrease because of the Italian operations?

I'm not sure if it's a decrease compared to last year because is it compared to last year? I think there is no decrease compared to last year.

There's no decrease compared to last year, huh? It's similar, 60 Last year was 60.2% consol.

This time, it's 59.9%.

Right.

I think what happened is depending on the situation, fundamentally, I don't think there's any gap between the two in the consolidated. What's happened is, of course, if you look at the loss in the last year versus this year, it's up somewhat similar.

In fact, I think it's slightly higher. There are some other fluctuations in forex and certain other things, not like Jaideep will have all the numbers on his fingers.

Fundamentally, our standalone business is increasing, our profitability is increasing, and we should comfortably cross the 100 crore standalone P&L in my opinion, in talking about profit before exceptional items and tax, the profit before tax rather, we should cross 100 quite comfortably in our opinion this year in standalone business in India. Then, of course, depending on how the consolidation works out, there would be some plus minus.

Then there's all some issues in terms of foreign exchange type things up and down, which Jaideep can explain. Fundamentally, our standalone coding and marking and the Indian business is doing fine, even the track-and-trace business has picked up, and yeah, I think not sure exactly what the consolidated versus this margin is.

Jaideep, maybe you can just take a look at this about the consolidated results versus the standalone results and the margins and that sort of thing. What I'm seeing is that we did 39.56 in the consolidated in the first half if everyone can see 0.5

You are right, Shiva.

Oh, and we did 33.04. If I go one step up, what is this 4.06 exceptional items?

35.49 versus 33.04. be one of those two.

Either way, we are up, but I think part of it is certain expenses that have occurred, which, like I said, I think our standalone business is doing well. If you can maybe get this back, Jaideep, I think this is where the question is from everyone.

Yeah.

The gap between the consolidated and the standalone numbers is basically some losses what we've incurred in the Italian operations. Barring that, both Codeology, even that is doing well, Markprint has also turned out to be profitable, and the smaller Indian companies, even they are into profits now.

The gap is purely as a result of the Italian losses.

Okay, [unclear] taxation to be lesser?

Hello, yes?

I asked since there's no MAT anymore, do you expect the taxation to be lesser?

Vineet, I could not get your question.

Hi, am I audible?

You are audible now, yeah.

Since there's no MAT anymore, do you expect the taxation to be lesser?

No, it would be at the rate what is about 17.5% what we've been carrying on. The MAT benefit we had till 25th 26th of March 26th of May 2025, and now we'll go back to the normal regime.

That would be all from my side. Thank you very much.

Yeah.

Hello. Am I audible?

Yeah. Sir, we have seen your revenue crossing 100 CR in India this time, which is a new threshold.

Can you explain the percentage break-up between printers and spares since your margin excluding forex has improved?

Preeti, to answer your question, see, we've got four different types of revenues under the coding and marking. One is printers, consumables, spares, and services.

For the Q2, it is 14%, 60%, 9%, and 16%, 16%, yeah.

Okay. Thank you, sir.

Preeti. You could get what I meant?

Yes, sir.

It is, yeah, 14, 60, 9, and 16 for printers, consumables, spares, and services.

Okay. Thank you, sir.

Thank you.

Hi, am I audible?

Tushar, you are.

Thank you. Sir, my question was mainly around the Italian operations, V-Shapes.

The question is that in terms of how we see this business plan panning out in the future, are we following a similar model as we have in India, where we're going to sell the machine and then also have consumable sales on top of that?

Absolutely. I don't know how much you guys have read about the machine, but it's a patented technology of ours.

Previously, they were selling machines, and you were required to buy materials from them, but it was not enforced. We have locked the machine with certain sort of electronic countermeasures so that when you buy the packaging material, it is connected to our machine.

You cannot use anyone else's packaging material on our machine, the lock is enforced. Anyways, we have the patent.

Just in case, we also have the electronic locks. Once you buy our machine, you have to use our packaging materials.

Does that answer your question?

It does. We'll be following a similar blueprint as we have done in India over the past few years, right?

They're two different models, of course. One is a coding and marking business, and this is more like a Tetra Pak type of business, which is close.

You can't say both of them have an after-market business, which is significant. Of course, one is a pack industry business and one...

That's fine. That's what I wanted to understand.

Second and last question, you mentioned that there were some deliveries and all that were a little delayed. Are we making a margin on these initial machines that we're selling, or are we just trying to drive adoption at this point in time?

No, no, we make a margin on the machines similar to other packaging OEM machinery companies also.

All right. Thank you.

Thank you so much. That's all from my side.

I don't think anyone has recoded the pricing or anything from at least my knowledge. It would be too troublesome to take material that you've already manufactured and reprint the price, the MRP on it.

I'm not sure how exactly it was managed. If you've taken your whatever, say, your biscuits, you've packed it in a bag, you've packed that in a carton, you've taped it, you put it in your warehouse, it's going to cost you more to get that material back to reduce the price by whatever, Rs 1 or something then to treat the GST.

I think I don't know how the government has handled it, but to my knowledge, I cannot see any impact or customer requests for this specific thing. I don't know how it's been handled by the customers, but I don't see it being a impactful issue.

What I do see is that the reduction in GST has somewhat definitely given a boost to the packaging segment. I feel there's a bit of bullishness in that space, in the FMCG or the pharma space, or whichever guys who've gone from 12% to 5% or however they were positively affected in terms of GST rates.

Good afternoon, sir. Sir, when you talk about V-Shapes turning around, clearly when you're saying a 12 crore loss for the full year, for second half, we expect the V-Shapes to be in profit, no, because in H1 only it has done a 12 crore loss?

CP Italy has done a loss of less than 12 crores, about 9.5 to 10 crores. What I said is about $950,000 approximately, Jaideep, is that correct?

I think it's about $950,000 approximately. According to us, it will do between 1 to 1.2, that's what we predicted.

Like I said, we expected this quarter to be a lower loss, but it's also because we're not able to execute some machine orders because we're having some technical issues, which are about to be resolved, if not already resolved. We should be doing the FAT, the factory acceptance test, pretty soon, if not already begun.

Yeah.

Okay. Sir, in terms of order book for V-Shapes, how are we getting the orders, and how is that placed?

How are we getting the orders

as in As in which sector is giving order, and how is the order book, how much orders have we received, and how much is there for the future, near future? Yeah.

I can't tell you about the order book specifically. Where we are seeing more traction is in the nutraceutical segment, in honey specifically, stuff like honey, shilajit, some pharmaceuticals like Viagra, Kamagra-type things.

It's a bit broad-based. A lot of people are co-packing.

We were not doing co-packing much. Now we've started that in the last few months.

I think there's a lot of orders coming in that space now. There's smaller orders because a lot of customers are not comfortable buying a machine, even the small machine is 1.8 crores and the big machine is close to 5.

A lot of people are not comfortable plonking down 2 crores without testing the market first. By opening the option for co-packing small volumes for them, we are opening the market.

In our Nalagarh factory, we started a food packaging, it's like a Unit 2, to say, Nalagarh Unit 2, which is basically for food co-packing. If some people come to us for small orders for packaging food and kind of honey and mayonnaise or whatever it is, then we can execute that order from there.

Also, one tie-up for the cosmetics space. We're doing some of those packagings here and a lot of orders coming in where people want 50,000 pieces, 100,000, 200,000 pieces.

It's more about seeding the market. For us, it's more for marketing strategy, but it's to grow the business.

Sure.

In terms of the first part of the question. I can't give you the order book, of course, but in terms of the orders, of course, we've got a sales team and we've customers in digital marketing strategies and LinkedIn ads and there's some different tools are being used to create the demand for this.

Okay. Sir, in terms of Codeology and Markprint, the QR tracing which pharma company has done mandatory, in that, how are we gaining traction?

Can you brief us on that, please? How much would be the revenue from that in the standalone business?

Yeah. We don't actually give any breakup as yet of our revenues.

Jaideep, is this correct?

Correct. The divisional revenue we don't give.

Fundamentally, the coding and marking business is by far the largest business, I can say that. This has picked up.

I think it's hit a break-even point, if not profitable. We're working on two very large projects, so that's occupying all our mind space.

Hopefully, if this is successful, then automatically we would be on a different trajectory. Both these cases are more on a technology platform, the big two types of projects that we're trying to prove.

If it's something they're not trying to just the essential track-and-trace requirement from a compliance perspective, but doing something additional. If that chick happens, then I think it could have a positive impact for us throughout the industry.

Oh, sure.

Good to hear that. Sir, last question, we grew around 12% for H1.

For coming 3 years, how much growth do we see because we have already sold our printers, we can easily calculate the consumable sales. At what rate do you plan to grow the company FY26 and going forward 3 years?

12% we have grown H1, that's why.

I'm sorry, you're talking about the consolidated results or the standalone? Once again, it's just for clarity.

I think it was 202 crores in the standalone operations and 3.48 was the other income, and it was 181 and 3.4, about similar, 185 and 206, if I'm correct. Then in the consolidate, it was about 20 crores additional, if I'm very approximately.

Yes, on a standalone basis, we still expect, like I said, if the market is going 10 or 11%, we expect to grow faster than that in the coding and marking business and depending on how the pick up of the track-and-trace business happens. These are the two primary businesses housed under Control Print.

The digital printing part is sort of integrated into the track-and-trace and especially into the coding and marking, it's not really separate. We would like to grow faster than the market.

We would expect that if the market is going at that 10, 11% range, we should be at about, I think in the past we've said our target is 15%, but yeah, at least at the market growth rate. We would expect to be about that rate on an annual basis.

On a consolidated basis, like I said, it's a different type of a situation because of course, we've got the Markprint business and the Codeology business, which is more similar to the Indian business in terms of coding and marking and digital printing. The packaging business, which is a bigger part of the business, is a very different business.

It's very difficult for us to predict how that's going to happen because it's moving along. It's not exploded as yet, but we're making progress.

That's the situation. I would not lie and say that we would expect to have done better than what we're doing.

There's a lot of interest, but converting that interest into sales has been a bit more difficult than what we envisaged. There's sales, there is progress.

Sure. Sir, just a last clarification.

Last question. Sir, the Codeology and Markprint is in a subsidiary, and track-and-trace is in standalone, am I right?

No. See, track-and-trace is a division of Control Print Limited.

There's no standalone entity for track-and-trace.

That is a part of standalone results.

It's a part of standalone results, correct. Codeology is a subsidiary as well as Markprint is a subsidiary.

Great, sir. Plus V-Shapes.

Thank you, sir.

Correct.

Thank you. That's it from my side.

Sir, thank you for the opportunity. Sir, I wanted to understand regarding the GST benefits.

Sir, as it seems that we were earlier a dominant player in the industrial segment. Sir, can we expect to grow further just because the FMCG segment can provide us a good opportunity, and we have less presence versus the industrial segment, how should we expect about our growth going forward?

I'm a bit confused because there was something about GST in there.

No, actually, what he wanted to ask Yeah, sorry. He's he went he went actually the change in the GST rates, would that impact our, like sales?

Would we be going for another

No, it's 18% in both cases, I don't think it makes an impact to us. What has happened is recently, because of the cut of GST rates, a few of the segments where the it's been a price cut as a result because the GST is reduced from 12% to 5% or so on.

I think that those sectors are a bit bullish is what we feel. The customer a little bit bullish and we feel that there's a bit of a demand pick-up.

The second how that translates into our sales, of course, that's like a bit down the line, it's if if their product sales increases, then, hopefully the number of prints increases and that would result in some revenue growth for us. The second part is that, yeah, the industrial sales segment is still definitely the bigger segment for us, and and we're still working on the packaging segment, and we're still growing our sales in the packaging segment.

We're growing in both segments, and yeah, we see growth in both segments. Like I said, if the market is growing at 10, 11%, we're expecting to grow at 15% or so in the we would that's what our target is in standalone business, 15% plus, and 15% like 15% for the coding and marking, and then something extra because of the track-and-trace and and whatever it is.

That's sort of where we hope to be.

Sir, are we able to acquire more customers on the FMCG side, that was a lower portion of our machine portfolio? Have we been able to acquire customers, because, sir, growing at a faster rate than market would require us to at least gain market share in some segments.

I'm trying to understand on that front.

I think we're gaining customers, but yeah, obviously, if you're growing faster than the market, then we're gaining customers. Some on the packaging side, I think in specific areas of the packaging side, definitely, we are gaining faster.

Not across the board, but in very specific applications for some industries, yes.

Sir, when we say packaging customers, we mean FMCG packaging customers for the coding and marking segment, right?

Packaging is defined as food, which would include everything under food, dairy, biscuits, ready-to-eat, staples, and so on and so forth. Then it would be beverages, which again would be aerated beverages, alcohol, beer, and then so on and so forth.

The third segment would be personal care and home care, which would be what the traditional FMCG companies are, like Unilever and the like. The fourth segment would be pharmaceutical.

For us, these are the four broad industries which comprise the packaging sector.

Got it. Sir, I also wanted to understand

I'll do that. Thanks.

Actually, the

Overall, I don't think it's any specific thing, but yeah it's maybe because of the operational leverage that we're getting in terms of the SG&A growing at a slower rate than the business. Jaideep, I think maybe you can explain this better.

Yeah. Quite frankly, what happens is that the mix of the sales actually is a determining factor because the quality of the revenue improves.

Like consumables, obviously give us continuous sales. An increase in the printer business also leads to a better product in printers, like if we sell more of laser printers, obviously the margins are going to be higher.

Yes, we are definitely keeping a track on not just the procurement costs, but we are also keeping a track on the selling and general and administrative costs. That's the reason why we have a increase in the margin.

That said, we definitely want to outdo ourselves and do a better show and make sure that we are very lean in our operations going forward.

Yeah. To answer your call, see, for the current existing coding and marking business, we are well within the capacity utilization.

Another 1 or 2 years, we don't foresee any major capital expenditure plans for the coding and marking business.

It seems that your market share and your competitor market share

Is it better now?

Yeah. It seems that your market share and your competitor market share is constant from a long period of time.

I have seen that usually when each competitor has some kind of moat or monopoly or a niche, if that's the case, what's your moat and niche that none of the competitors are able to make major dent in each other's market share?

Could not hear anything clearly.

Anuj, while you sort out your mic issues, let us first take a few questions from the chat. First, Neelu Singh would like to ask some questions.

Neelu, you can unmute and ask.

Thank you. Am I audible?

Yes.

I had two questions. One, Shiva just informed that we are seeding the market in small lots of 50,000 to 1 lakh for the V-Shapes pouches, right?

I just wanted to understand is that a good revenue stream until we actually scale up the machinery business of V-Shapes? This was the first question.

I think, of course, it's a big revenue stream potentially. The main issue we were reluctant to do it is just because, mentally, we were not geared towards servicing a lot of small orders and taking the responsibility of all that stuff rather than the customer buying the machine, taking the responsibility.

It is a good revenue stream to be honest, it's not bad at all. There are customers who want to make even lakhs a month and stuff like that, it's not a simple thing.

It's just that, for us, taking the licenses, doing the other stuff, doing things personally, we didn't want the distractions, but we have no choice. We have to do what we have to do.

Is that revenue income being booked in the Indian entity or V-Shapes Italy? How is that being accounted for?

No,

we're doing co-packing here now. We've just started, and even in Italy, we have started.

Before, they didn't have the permission to do beyond sampling. Now we've Obviously, we could not even do it in India because we didn't have the licenses.

We can also even right now only do specific products which don't require very high compliance. Definitely in India, we've taken something for the food, but we don't do pharmaceutical or nutraceutical-type products here or there.

It would be booked inside the companies. I think that the major whatever we've done is now going to come more in the revenue in probably Q3, Q4 because something that we were not entertaining, now we've gone back to customers and said that, okay, we can try to do it once for you.

There's an amount of work-in-progress of 764 lakhs. What is this amount for in the standalone numbers, capital work-in-progress?

Hello? Can you hear me?

Yeah. Can you hear me?

I can hear you.

See,

that actually relates to some of the softwares development things what we are doing in the company, some enhancements to the SAP and the BIVIO projects. It also includes some portions of money which we have paid as advance lease for some facility.

We are taking a close stock of that, and yeah, by the next quarter, we'll update you on the developments.

Thank you. Best of luck.

Thank you. Yeah.

We'll take the next question in the chat from Avanindra Singh. The first question is, 'What is the status of developing domestically manufactured consumables for V-Shapes machine?'

That project is very much on. Like I said in the earlier meetings, one of the big issues for us, especially in the European sales, has been the lack of recyclability of our current packaging materials.

We've been working on developing a recyclable material. We've got think we've got something that's working at a certain level.

Like I said, it's, of course, it's all a pilot, nobody can predict what's going to happen. I just want to be very clear about that, you know.

It looks promising. It's looking like initially that it's working, but you know till everything is not proven, nothing is proven.

We wanted to go in India straight for the manufacturing, straight for the recyclable material, rather than really invest in the current packaging material, which is not recyclable. If our trials are successful over the next, I don't know, this quarter maybe, then if everything is through, then then we'll be moving ahead on we'll be locked into the current So we're doing a variety of structures around a base structure which we think is working, fine-tune exactly the final the exact final formulation and product.

Once we do that and we lock that in, then we'll be starting to manufacture the same in India. That should hopefully get the cost of the material down significantly.

His second question is, 'Where are we with'

Also, we are patenting the formulation that we are developing for our recyclable pack. It will also be another lock on top of the system.

Our existing patent, which is expiring in 2036 for the machine, but the material, the recyclable material patent will also go from 2024 to 2044, so that'll be another patent.

Okay. His second question is, 'Where are we with track-and-trace adoption since last time you were talking about some pharma companies working on the implementation, and are we offering the service to other pharma companies as well?'

No, we are offering it across the board. We're doing two intense cases, with two of the top five pharmaceutical companies in India.

Those are two high-potential cases because they're not conventional implementations, but this is more of a system solution. I think if it works, it will be not necessarily a game-changer, but it will definitely be something significant, which will give us traction across the pharmaceutical industry.

Right now, all our resources are focused on ensuring that these pilot projects are implemented perfectly. Of course, we've been going back and forth with some technical ups and downs on that area.

I think hopefully we should have adoption. If everything goes well, again, there's always a risk, but if everything goes well, hopefully we should have adoption, and that'll be the best marketing tool for the rest of the industry, and in fact globally also.

Sure. We'll take the next question from Saket.

Saket, you're requested to keep your questions down to two in the first round. Thank you.

Yeah. Namaskar, sir.

I joined at the fag end only just to put a very small question or perspective, sir. With the type of investment that we have made, and as Shiva sir has always communicated to us that we are in the midst of creating a very different organization from the traditional and the conventional coding business.

How satisfied firstly you are with the progress that we have achieved? How soon, sir, we will be reaching this critical mass post which the aspect or the recognition will come into play?

This is my question for Shiva sir, and for Jaideep sir, we have done some

Just one question. Let's just take one question then you can hold on for the next question.

As we discussed, we're an Indian-focused coding and marking business, and obviously, there's a ceiling in terms of what we can do. For example, our estimate of the market, this is about 2,200 crores or something.

If you're already doing a certain business, last year, we did 375 or 385 crores, about 300 something, 70, 75 crores of our turnover was coding and marking out of a 2,100, 2,200 crore market. There's a ceiling in terms of how big we can just grow because A, the customers are sticky.

We are gaining market share and we are growing faster than the market, but yeah, there's a market size limitation and there's a stickiness limitation. You cannot grow fast enough.

Therefore, we entered more into the digital printing area for innovation and, of course, also in terms of the track-and-trace and the packaging business. Also, we had a couple of foreign acquisitions and subsidiaries for the same.

What's happening is that in terms of coding and marking, quite happy. The second half of the previous year and the first 2, 3 months of this year were a bit slow.

We've given everyone a kick up their ass, frankly speaking. I think some of the bigger cases and the other things are now really coming through.

We're expecting hopefully an accelerated run rate in the second half. As you can see from our standalone results, it's also showing in terms of the financials.

I think it seems that on a standalone basis, we should comfortably cross 100 crores plus this year. Of course, it seems is my point.

We should continue that growth rate. Even looking at the pipeline, hopefully that should continue over the next year also.

That's the positive part. In terms of the track-and-trace, like I said, we've got two big things going on.

They're very exciting. Now what's the final outcome, whether like I said, we've got some key patents out here, whether those customers are valuing those patents.

Obviously, they're doing this project at the very highest level. Till everything doesn't happen, nothing has happened.

Again, like I'm saying, we will see. I think maybe in 6 months, everyone will have a much better idea of what is happening out here.

We're very positive about what we've done. The third thing, which is in the packaging business, definitely, like I said, there's a lot of interest still whether for different reasons in Europe, maybe some of the older V-Shapes machines which was sold, they didn't get the service support, especially in the breakups, when they went under liquidation, people are not happy with them.

Definitely, the lack of a recyclable option, in a lot of cases in Asian countries, especially India, the cost per pack. Different issues that different people are facing, and but there's interest.

Like I said, a lot of customers just aren't that keen to go straight into the machine because they've got an existing investment either thermoform or sachet machines rather than going for our monodose or something else. Now we've pivoted towards, okay, we will do some co-packing for those customers so we can get more visibility in the market, put the product in the market and then prove the concept, and that will be a sort of self-sufficing growth.

The customer, if he's getting a success in the market, he's getting a better traction with our monodose compared to whatever the conventional packaging is, then automatically he would be more inclined to purchase machinery from us and do the packing in his own factory, which is the best thing for everybody. I think that's still a challenge.

It's still got a bunch of work to do. I think in terms of the fact that we've gone from a coding and marking company who's licensing the technology mainly for their stuff to the fact that we've got a whole bunch of developed technology we've developed or acquired, and we own, and most of our stuff what we're looking forward is patented and has significant IP barrier.

I think in terms of that journey, I'm very happy. Personally, I'm very relaxed.

Whether we get the rewards sooner or later, I know as a shareholder, it's a very different thing. We definitely feel that if we have high-quality, innovative solutions combined with the reliability and the service that Control Print provides, we're going to be successful.

Right, sir. Sir, I will ask my next question afterwards.

Let the other person

Please go ahead. Vinay ji, aap Yes.

Haan.

Am I audible?

Hi. Hi, Shiva.

Jaideep, congratulations on a good result. This is just a small clarification from discussion we had last quarter on the GST benefit at the Guwahati facility.

You mentioned there was some 10 crore per annum benefit which has gotten over, and it's already reflecting in the current financials. I just wanted to confirm which line item in the P&L was that GST benefit coming?

Jaideep, did you get the question? This is relating to the Guwahati GST benefit.

I think Jaideep got disconnected.

Okay. Hardik, can you come back to that question later, please?

Can we move on further? Is he back, by the way?

Not yet, not yet. We will answer the question once he's back.

No issues, Shiva. If he's on call, I'll take it from him, otherwise I'll take it offline.

No worries.

Thank you.

It was also again to Jaideep sir only, I will also wait till he comes up. Shiva sir, just to conclude to what the very very elaborate answer you gave that for our core business of coding domestically, we are now on a very, very strong footing with the type of sale of printers and now also the consumable sales and the gross margin inching up for the balance part of the year.

In terms of the other ventures, if I may use the word quote-unquote, we are on verge of gaining good business to reach the critical mass in times to come. This should be the good understanding of what you narrated to us currently?

I think that, like I said, the current coding and marking India business is doing well, and it is definitely generating a certain amount of profitability, which is paying for everything else, and still delivering shareholder results and the rest of it. Obviously, we've been investing that money and our time and bandwidth in the last 2 to 3, in fact in the last many years in R&D and other types of things.

That was to like I said, to grow the other businesses. Now my point which I've made earlier is when you're doing something that's different, we expect that the India coding and marking/digital printing, which is almost like an add-on for coding and marking business, we know that well.

That's not a problem. We have the technology for that.

We've been developing it for years. We're happy with that part.

Specifically regarding the track-and-trace business, and the packaging business, and then obviously the international subsidiary, it's a longer-term play, and it's a innovation-based business. We hope that people will be successful.

Like I said, there's always a risk because in terms of execution, in terms of competition, and stuff like that. Right now, it's looking positive, and I see nearer-term results in the Qurious Codes division.

In the packaging business, of course, it's got a even much bigger potential, but it may take a bit more time because you're going step by step. It's seeming that, yeah, that's what it is.

I think Jaideep is back on, and now everyone can put their questions to Jaideep.

Jaideep sir, for this quarter, we have done this reclassification for foreign income exchange fluctuation, foreign exchange fluctuation, and then again in the cash flow, there is one mention of about transfer from exchange fluctuation translation reserve. Could you just explain these two line items, and where would we see this reserve line item in the balance sheet, sir?

Yeah.

Correct. The reason why we have done this is to make or to ensure a better presentation of the foreign exchange fluctuations.

Normally, it goes and sits as part of the other income. What has happened is that the dollar has actually depreciated vis-a-vis the euro in the Q2, as a result of which the fluctuations were very severe, and we did not want to club it either into the other income or the other expenses figure so as to distort them.

Just for the sake of a better presentation, what we've done is that we have disclosed it as a separate line item in figures which we have disclosed. Because what happens is that in the next quarter, the trend might get reversed.

We did not want our operating revenue or our operating expenses to get distorted by virtue of this particular fluctuations, and that's why we have inserted a separate line item over here.

Sir. I will take it offline, sir.

That difference, sir, standalone and the consol one. Sure.

Sure.

Sure. Thank you,

and all the best,

sir. Sure.

Thank you, Saket.

Yeah. Hi, Jaideep.

Actually, the question was that there was some GST benefit on our Guwahati facility, I believe for 5 years probably, and that got expired and it's not there anymore. Last quarter's call, you guys had mentioned it was about 10 crores per year.

My question was which line item in the income statement was that benefit coming through so which we can understand when we do the YoY comparison that it's not there?

I tell you, this benefit got over on the 26th of May 2025, and the yearly benefit was about 8.5 crores. What we used to do is that we used to include it as part of the sales, you would find that in the revenue from operations.

Okay. To that extent, the year-on-year comparisons would look a little weaker because there is no GST benefit in our revenue going forward, at least till the time that is in the base.

Actually it would look better because we would not have the GST benefit in this year. That would be a fair comparison.

The performance in this year would be better because last year's performance did include that GST benefit.

No, I understood. Got it.

That was to the tune of 8.5, 8

to 8.5 crores? Yeah,

8.5 crores, yeah. It's fair to say that would completely be flowing down to the profit level because there's no associated cost with it, so that's the

You're right. We did not have any associated cost, you're right.

Okay. That's it from my side.

Thank you for the call and the commentaries. Yeah.

Hello, team. Congratulations on the good set of numbers.

I had earlier asked the question regarding the EBITDA margin. The answer what I got was it is due to maybe operating leverage and not one segment is responsible for the record EBITDA.

This standalone, we have done around 28% EBITDA, that's what I saw in the presentation. My question would be if going forward our run rate is around similar 200 crores, right, would our EBITDA be on the similar level going forward?

Fundamentally, if the revenue levels are maintained, we should see a similar EBITDA. It's very difficult to completely predict.

I don't think the EBITDA has risen as much as compared to last year. I think that it's just that some part of it is also the fact that we were funding losses for one or two other divisions, like the Qurious Codes and the other stuff, and like I said, we don't give a exact break-up division by division.

We also invest in the Indian packaging business for the Indian part of the V-Shapes and so on. If those things aren't in a loss, then fundamentally, right now they're not making money, I can tell you that, but I don't think they're losing money.

I think fundamentally, this is, yeah, what we're seeing is the coding and marking business.

Because if you look at our history, right, on a standalone, we are always around 23 to 25% EBITDA, right? We always have done around that.

I don't think so we have crossed 25, maybe we reached 27, but 28 I have never seen. I have been invested in your company from last almost 8 years.

I have been tracking your numbers from long back, I have never seen 28.5% EBITDA. That's why I was curious on knowing that.

In future, right, maybe in next 12 months, we would be crossing beyond 100 crores on a standalone basis quarterly. Would that operating leverage kick in and EBITDA would be even higher, any guidance, any ballpark what you guys are working with, any number you guys are targeting going forward?

I think that our revenue would grow, like I said, in our coding and marking business. I don't know if you were there earlier on the call, but we said that we should continue growing at about 15-ish percent.

In this year at least. We don't know what's going to happen in the future, and the market is growing at about 10 to 11%.

We would hope that the operating leverage continues to improve. Like I said, part of it is an operating leverage effect, and part of it is the fact that we were funding losses for the last couple of years.

Maybe the numbers were actually better last year and the year before that. I think I've mentioned quite clearly in our investor con calls that some of the divisions and some of the other things were at a loss, and we were more investing in it.

Even if the Qurious Codes businesses break even, and we don't have to fund it, it's not negative, it would have shown up as negative. I think it's a bit of both.

Fundamentally, what you're saying is it sustainable, and I think that, yeah, unless some other things slip back into some issue in terms of the packaging or the Qurious Codes or whatever, I think that it's sustainable.

Okay. That's what I wanted to know whether this is sustainable because these are record numbers from your end, and yeah, great to see those numbers back.

Thank you. That's

I'd just like to thank

everyone for taking time to attend our call and very happy to answer these questions and your best wishes for everyone.

Yeah. Thank you, everybody.

Thanks a lot.