Control Print Q2 Revenue Climbs 31% YoY to INR 131 Crore

Standalone operating revenue reached INR 131 crore, up from INR 100 crore in Q2 FY26. Consolidated revenue grew to INR 144 crore compared to INR 112 crore in the previous year's corresponding quarter.

Reader Takeaway: Strong core growth is driving top-line expansion, but success hinges on turning around loss-making subsidiary operations.

What just happened

Control Print delivered a strong financial performance for the second quarter of FY27, characterized by significant double-digit revenue growth. The company’s core business—coding and marking—continues to be the primary engine, contributing 94-95% of total operating revenue. Management is maintaining a target of 60% gross profit margins and 30% EBIT margins for this segment.

Why this matters

While the core business remains stable, the company is aggressively attempting to scale its high-moat 'Track & Trace' and 'V-Shapes' segments. These are currently in an investment phase. Management has acknowledged past execution failures in these areas, confirming that they have replaced 65-70% of the relevant operational staff to reduce costs and improve performance. Costs in these segments have already declined by roughly 25% due to these organizational changes.

Risks to watch

Investors should monitor the ongoing losses in international subsidiaries, although these are showing a downward trend. A critical watch point is the 'Unnati' project in Guwahati, which is currently suspended due to incentive-related challenges. Execution capability remains a primary concern, as management works to prove that recent structural changes will lead to sustained profitability in non-core units.

What to track next

Management anticipates improved performance in the second half (H2) of the fiscal year compared to H1, provided there are no unforeseen external disruptions. The focus remains on optimizing procurement costs and scaling technological innovations in printers and inks.