TCPL Packaging Ltd (NSE: TCPLPACK) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Jenny Rose — Moderator
Akshay Kanoria — Executive Director
Analysts:
Rohan Kalle — Analyst
Unidentified Participant
Pulkit Singhal — Analyst
Presentation:
Operator
Recorded Ladies and gentlemen, good day, And welcome to DCPL Packaging Limited’s Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms Jenny Rose from CDR India. Thank you, and over to you, Ms Rose.
Jenny Rose — Moderator
Thank you. Good afternoon, everyone, and thank you for joining us on TCPL Packaging’s Q1 FY ’26 earnings conference call. We have with us today Mr Akshay and Vidur, Executive Directors; and Mr Vivek Dave, GM Finance of the company. We would like to begin the call with brief opening remarks from the management, following which we will open the forum for an interactive question-and-answer session.
Before we start, I would like to point out that some statements made in today’s call may be forward-looking in nature and a disclaimer to this effect has been included in the results present presentation shared with you earlier. I would now like to invite Mr to make his opening remarks. Over to you.
Akshay Kanoria — Executive Director
Thank you. Good afternoon, everyone, and thank you for joining us today on TCPL Packaging’s earnings call for the first-quarter of FY ’26. I will begin the call by taking you through the business highlights for the period under review, after which we will open the forum to a Q&A session.
FY ’26 has commenced on a steady note with Q1 delivering consolidated revenues of INR424.7 crore, reflecting almost 5% year-on-year growth. This performance achieved amid subdued domestic demand and continued uncertainty in international markets, highlights the resilience of our operating model, the strength of our customer partnerships and the stability of our diversified portfolio. EBITDA for the quarter remained steady at INR72.6 crores with margins of 17.1%, which were marginally lower by 50 basis-points year-on-year due to higher fixed and variable costs and lower revenue growth.
PBT was impacted by a INR10 crore forex loss arising from mark-to-market adjustments on euro-denominated term loans. One of the significant strategic developments recently was the successful operate operationalization of our new greenfield manufacturing facility in Chennai. This state-of-the-art unit has achieved production stability this quarter and is seeing encouraging engagement from customers across South India.
The plant enhances our pan-India manufacturing footprint, strengthens our capabilities in high-performance and sustainable paperboard cartons and is designed to scale quickly in response to growing demand. We believe this facility will become a key driver of future growth and a catalyst for deeper regional penetration.
Looking ahead, our strategic agenda is built around the following priorities, enhancing operational efficiency through digitalization and lean manufacturing, accelerating innovation to deliver differentiated high-value solutions, driving growth through diversification by identifying and capitalizing on new growth avenues, leading our sustainability by embedding circularity and reducing environmental impact across the value chain, expanding markets by deepening domestic presence and tapping global opportunities.
While we remain mindful of macroeconomic volatility and geopolitical developments, we are confident in our strategic direction and the strength of our fundamentals. Our robust balance sheet, disciplined capital allocation and sustained investments in capability building provide the flexibility to navigate near-term challenges while positioning the business for long-term opportunities.
We remain committed to creating value by building a purpose-driven innovation-led organization that is well-prepared for the future. On that note, I would now request the moderator to open the forum for any questions or suggestions that you may have. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask the question may have start in one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press R&2. All participants are requested to use handsets while asking your question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
For participants, you may press R&1 to ask the question. First question is from the line of Rohan Kale from Incred. Please go-ahead. Yeah, I hope I’m audible. I have three questions. First, on the export portion, we’ve been doing well here for the last few years and there was some weakness this quarter.
Rohan Kalle
Can you talk on how the trend was this quarter and specifically in exports and where the weakness could have come from? And if it’s temporary in nature and we expect this deferred demand to materialize in the next few quarters.
Akshay Kanoria
Yeah. So thank you for your question. So we have been seeing some slack in the export the last few months. We don’t see any fundamental issue or any share of business laws. I think it is just to do with overall economic factors at our end consumers end. As far as where that would be coming from and the breakup of that, I think we can’t give that kind of information, but we would say that there seems to have been a slight slowdown in the last few months, which has impacted us and we don’t have any outlook as such, but there’s no fundamental reason why there should be a contraction. So this should come back eventually.
Rohan Kalle
Thank you. Sure. Second question on the domestic part. Considering weak export momentum this quarter, is it fair to assume a mid-teen kind of a growth in the domestic segment this quarter and is it sustainable?
Akshay Kanoria
Yeah. So again, we can’t give you specifics, but the domestic has grown quite well this quarter and we feel the — we see the domestic demand improving over coming months. Now we are entering into our festive season and there is certainly a good demand growth at present. Of course, there is still way more room for the domestic demand to increase to come up to the levels that one would expect from a country with our kind of per-capita consumption.
That being said, there is an improvement compared to the last one or two years kind of sluggishness that we’ve seen.
Rohan Kalle
Sure. Last one from my end on the Chennai facility, location-wise, it seems well-placed considering a lot of the large players are running a lot of go-to-market pilots, specifically in Tamil Nadu, and we have one-line here currently. Do you expect any more lines this year? And do you also see potential to go into flexible packaging lines here considering your categories in-home care specifically like liquids have been doing well in Southern India, especially semni.
So do we plan to add any flexible lines as well in this facility going-forward?
Akshay Kanoria
Yeah. Thanks. So yes, in Chennai, we are seeing a good uptick and we’re quite satisfied with the progress. Obviously, it’s long way to go. What happens is these customer approvals and onboarding and everything take several months after which it takes a few months-to then ramp-up with particularly — with individual customers.
Obviously, some are quicker than others we don’t foresee any further capex this year, but our goal is to fill this up in this financial year, ideally. As far as further opportunities in Chennai, yes, we have a lot of opportunities in that region. There are a lot of complementary packaging opportunities there, which we are exploring one-by-one. Our flexible packaging, of course, there is a demand in South India for sure, and it’s a growing market.
However, we still have a lot of room for our growth in the existing flexible packaging plant and flexible packaging as a business requires very large-scale. So we would rather, I think, be more prudent and grow the existing facility to its maximum potential and then look for opportunities. So as of now, I don’t think we have any plan, but you know, let’s see.
Rohan Kalle
Sure. Thank you. I’ll fall-back in queue.
Operator
Thank you. Thank you. Next question is from the line of Rajesh Joshi from Crest Capital. Please go-ahead.
Unidentified Participant
Hi, good afternoon. Am I audible? Yes. Yeah. Sir, my first question was regarding the domestic demand. You said it was healthy. Could you give some color on the volume and pricing split in terms of the domestic demand.
Akshay Kanoria
Typically when we grow, it’s a mixture of volume and price. So the volume growth is encouraging, I would say. Got it, got it. And secondly, your creative offset facility that we had acquired a couple of years
Unidentified Participant
Back, any — any color on how the trajectory for that is moving forward?
Akshay Kanoria
Yeah. So we are quite encouraged by the increase in-demand over there as well. And we’ve had a very good growth in the turnover from a very low-base and that — meaning last year, we had a very-high double-digit growth and this year we see that continuing. And so-far things are going positively.
So we are seeing an improvement and the unit will hopefully turn positive this year. It’s very encouraging and we have a good improvement in the job mix over there as well. So overall, we’re quite happy with the progress, but of course, we have some way to go. So — but it’s a positive trajectory.
Unidentified Participant
Thank you and all the best.
Akshay Kanoria
Thank you.
Operator
Thank you. Thank you. Next question is from the line of Pawan Kumar from Ratnatra Capital. Please go-ahead.
Unidentified Participant
Hi, Akshay. Bye. Yeah, I wanted to understand, so that finance cost increase of around INR10 crores on your P&L this quarter. That is what you are referring to as ForEx loss, right correct?
Akshay Kanoria
Yes. So basis the India’s accounting standard, we have to mark-to-market the ForEx loan basis the currency fluctuation and there was a substantial correction in the euro INR rate which has necessitated this correction in the loan value, which we have to reflect in the interest cost portion of our P&L.
So therefore, we had this correction.
Unidentified Participant
Understood, understood. So what — so this should be largely my first of all, what would be the value of euro-denominated loan on our balance sheet right now?
Akshay Kanoria
We don’t give the exact breakup, but you know yeah. It’s not some very large impact from the total loan book. But — and this is a notional sort of thing. It’s not a cash-out. So it’s a mark-to-market.
Unidentified Participant
Yeah. And we don’t expect of course, this is a kind of an exceptional item, right? Or am I wrong and this is the it is yeah, I mean, yeah, basically okay and currently correct, correct. And can I — can you just give us an idea of what is the kind of fixed costs and fixed-cost that is — that is there on the Chennai plant. And at what level of revenues would this plant actually breakeven?
Our understanding currently would be like the capex that you have done for this plant is INR100 crores. So the depreciation would be somewhere in the range of INR7 crore crores. So correct me if I’m wrong?
Akshay Kanoria
Yeah. So the exact investment value we don’t give, but it’s not close to INR100 crore at all. It’s much lower than that because this is on leased premises. So we didn’t incur the land and building cost. We feel that if we can fill-up this first-line, then at least from a cash-flow point-of-view, we’d be okay.
And then the real returns will come once you have two lines running at a healthy utilization. And then beyond that, it really — it should be much better return. So we need to basically get to that full utilization of one-line and then the second-line should follow and get utilized quickly. So that’s the idea.
Unidentified Participant
And when we are talking about filling up one-line, my understanding would be that would be around somewhere around INR100 crores INR120 crores, correct?
Akshay Kanoria
Maybe less than that.
Unidentified Participant
Yeah. Okay, less than that. Okay. And the depreciation for the new plant is totally into the system right now, right, correct? Yeah. In Q1 FY ’26. Okay. And domestic, have we seen some change, Akshay because the numbers look pretty good. So I was just wondering, have we won some new customers or what has happened this particular quarter because the growth seems to have picked-up, which is pretty positive.
Akshay Kanoria
Basically the dead man is walking now. So everything looks positive, but we are the — we have to start running. So we have long way to go. I’m not happy, although it looks very nice compared to a few years of poor performance. So our standard is low, that doesn’t mean that we should be happy.
Unidentified Participant
Okay. And one last question. Exports do — so we think this lump is temporary, correct? As of now?
Akshay Kanoria
Yeah. I mean, we certainly hope so.
Unidentified Participant
Okay. And we believe we can still grow in the high-teens our margins.
Akshay Kanoria
Yeah. I mean there is the scope, obviously, you know, yesterday, day before announcements are not positive, but hopefully we can still arrive at some good conclusion and India is negotiating FTAs now with EU when we have successfully concluded with the UK. So such a pro-trade agenda is very much favorable for India. But of course, we do need to manage the US and all. So then I think there’s a lot of scope.
Unidentified Participant
But I thought our exposure to US was not much as of now. I mean, no, not much.
Akshay Kanoria
So therefore, the immediate impact on us is not much. But of course, we were banking on US as a good growth area in future. So there is a huge scope there which we as long as the tariff differential is not substantial we can still tap it. So let’s see what happens. I think this is more like a negotiating tactic kind of thing and eventually things will settle at a — at a more reasonable level, but the uncertainty is not helpful for anyone.
Unidentified Participant
Thanks, I’ll come back-in the queue.
Operator
Thank you. Thank you. Next question is from the line of Sameer Mukshi from AssetC Mehta. Please go-ahead.
Unidentified Participant
Hi, there, good afternoon and thanks for taking up. So I have a few questions. First question is basically your revenue growth. What are your target CAGR for the next two or three years? Can you help us out with that?
Akshay Kanoria
Yeah. What’s your firm name again? A matter okay. Yeah. So we have been growing at a mid-teens to high-teens growth rate for the last many years. So our objective primarily is to continue that trajectory, if not exceeded. So long-term, we are quite positive that we should be able to manage those rates and if not exceed them. So that’s our target.
Unidentified Participant
Okay. My second question comes out with your debt allocation for the year, any? And do you have any specific capex guidance for the same?
Akshay Kanoria
Yeah. So we don’t have a specific number to give you because that number changes very quickly based on the current demand and opportunities that may come up. But typically, we are doing 100 to 150 of capex in a year last several years, one or two years may be higher, one or two years maybe much lower, but on average, about INR150 crore capex is being incurred.
And typically the debt levels are growing in an absolute basis, but on a ratio basis, it is quite stable at a one is to one or sub-1 is to one-level. So we hope to continue that. Obviously, that is dependent year-to-year it can change, but the trajectory should be similar.
Unidentified Participant
Understood. So following-up to this, are there any plans to reduce or/increase any leverage within the market? Considering the falling interest rates yeah. No, do you want to increase your debt or reduce any debt? I mean, how are you envisioning this because we were looking at an entire rate cut scenario within India, US not so much anymore.
So that is not going to be a of AC, look out over there, but, but in India at least, are you looking out something in those lines or no, that would be very much helpful to us.
Akshay Kanoria
See, we are not looking at it like from a quarter-to-quarter and based on the RBI interest-rate, we are looking at it more in terms of is there a good opportunity for us to invest, then we invest. So — and that is constrained by two things. Number-one is, you know, our return on capital criteria . And the second is on, of course, our balance sheet. So we don’t want to stretch the balance sheet. But yeah, of course, we do have headroom where we can take on more debt. We are quite comfortable today. So if there’s a very good opportunity and we have to seize that opportunity and invest more. We are open to it. And if the ratios get skewed little bit in that year or for one or two years, it’s okay. We have that ability to bear it. So we are not taking advantage of opportunities because of the debt, if that’s what you’re asking.
Unidentified Participant
Okay, understood. And I think we’ve already answered this, but I’ll just keep the question ahead. So any particular tariff headwinds which you guys are looking at for the time-being that, yeah, this is this entire opportunity may get compromises in the later future, anything as such?
Akshay Kanoria
No. So we do have a lot of opportunity, as I said, in the US last few conference calls, we have been talking about that as an area of growth. So it was looking quite positive until two days ago. So hopefully, we can sort things out in the next coming weeks and months. And then there is a huge opportunity for India.
There’s a lot of opportunity for domestic demand growth based on customers exporting their production. So this whole China plus one trend was something which started eight years ago but it really caught steam in the last six months where a lot of people were moving more actively to India so that is of course a setback if we can’t figure things out but I think we are reasonably positive and most of the people we are speaking to are also feeling that this is more like a temporary thing which will get sorted-out.
So understood. We are quite positive still, but yeah, of course, we have to sort things out.
Unidentified Participant
That’s it from my side. Thank you so much for your questions and I’ll go back-in the queue.
Operator
Thank you. Thank you. Next question is from the line of Param Vora from Asset Managers. Please go-ahead.
Unidentified Participant
Hello. Thank you for taking my question. So what I wanted to ask was beyond the existing segments, so can the management give more clarity regarding the new specific product lines or market segments that are being explored as a part of growth through diversification strategy.
Akshay Kanoria
So we have many things which we are exploring actively. We don’t like to talk about it prematurely, but as a company, we feel that our asset is our strong name and recognition in the market, our strong relationships with customers as well as our ability to run a good operation. So synergistic businesses and are obviously number-one priority, but we are also looking at various other opportunities that will come to us in related or slightly underrated fields also.
So we are looking and exploring at multiple opportunities, but we are very picky when it comes to the sort of growth or strategic imperative. So if it fulfills that only then we go-ahead. But we don’t talk about it prematurely.
Unidentified Participant
Okay, got it. And my next question is that it’s regarding the export segment. So are we exploring any new geographies or are we planning to penetrate more into the existing countries, which we are serving right now?
Akshay Kanoria
No, we are constantly exploring new geographies and we are tapping new markets. So that is an ongoing process, but it’s a long-term development to develop export markets. It’s not so easy and it takes a lot of time. Sampling development, pricing approval, all these things take not weeks, but months.
And one has to patiently work at it for a long-time before one gets a return. So it’s ongoing and there are opportunities coming up. Of course, the US is a big opportunity, which we can tap. And apart from that, there are many other markets, whether it is Southeast Asia, Middle-East, Africa, Europe.
And in all these markets, we have a very small penetration in the larger scheme of things. So there’s enough room for growth in all markets.
Unidentified Participant
Okay, so can we expect the export share in the revenue to grow for this year or we expect it to remain the same I don’t know, it depends really on how things pan-out. We don’t have it okay. Okay. Thank you. I’ll get back-in queue.
Operator
Thank you. Next question is from the line of Yum Daga from Capital. Please go-ahead.
Unidentified Participant
Hello, sir. I just have one question. Can you provide the customer industry-wise sales breakup for FY ’25? Like what percentage of revenue is from FMCG, tobacco, food and beverage, electronics, liquor, pharma,
Akshay Kanoria
Yeah. So we don’t provide exact breakup. That being said, of course, the FMCG, the food and beverage combined is our biggest segment and then tobacco is a very big segment for us as well and then all these other guys follow like pharma, electrical, electronics. Smaller segment. Because used to be a very big.
Operator
Sorry to interrupt you. Can you please mute your line from your segment?
Akshay Kanoria
Yeah. Yeah. So I would say FMCG and food and beverage are the biggest — combined are the biggest segment, followed by the tobacco business, but we don’t give you the breakup, unfortunately.
Unidentified Participant
Yeah. Sir, to follow-up, is it possible to get an idea how much would tobacco and liquor be?
Akshay Kanoria
Yes. Yeah. So as I said, we don’t give the breakup. Liquor is a very small percent now because that business doesn’t buy-in carton much anymore. So that is a very small percent now.
Unidentified Participant
Okay, sir. Got it. Thank you so much.
Operator
Thank you. Next question is from the line of Vipul Shah from RW Equity. Please go-ahead.
Unidentified Participant
Hi, Akshay. Just wanted to get a clarification. Obviously, we’ve mentioned the details of the euro loan on our balance sheet in for the March ’25. So just one question from the reading of the balance sheet, it appears that this loan is unhedged and typically because of our export receivables, it’s a natural hedge, but most of our receivables are actually in dollars, whereas this loan is in use. So you correct that this loan is unhedged?
Akshay Kanoria
Yeah, you’re absolutely correct. And hence the mark-to-market loss, of course, if it was hedged, then this wouldn’t have been there. And the idea was that typically the euro to INR moves in sync with the USD to INR. However, in the last six months, thanks to all the whatever is going on in the world, the euro has shot way ahead of the dollar.
So that is the basic point, which you have hit on absolutely correctly. But that being said, now even the dollar has started to rally ahead of the INR. So it’s catching-up. So that natural hedge gets more natural, I suppose. And we do have good euro export. So that does help as well. So it’s okay.
We’re not too concerned about this. It’s more like a P&L reporting item that we have to do based on the India. And also the loans are drawn tenure. So it basically — it compensates, it’s just that the loss we have to take-in 1/4, the gain will be over many quarters.
Unidentified Participant
No, but that is assuming the rupee comes back. If the rupee is static where it is, then I think pretty much the P&L states what is states, right?
Akshay Kanoria
Yeah, yeah, yeah. I’m saying that the gain which we get from the euro strengthening against the rupee is something which we realize over period of time, whereas the loss on account of the loan is something which we realized in 1/4 based on the accounting standard.
Unidentified Participant
Secondly, on this liquor thing, I, you know, recollect you know, a few quarters ahead when MD used to, you know, take calls that it’s — it was a very distressing thing for our company
Unidentified Participant
Company where a lot of liquor our clients used — who earlier used to buy from us, topped, you know buying this cartons because of their cost-control. But you know, ongoing premiumization story, which most of these liquor companies say. So doesn’t that — doesn’t that mean that there will be at some point a need for differentiated packaging and hence, they will turn back to us. What’s your sense in that
Akshay Kanoria
Difficult one because sometimes one hopes for something and then projects one’s hopes onto the reality of the situation and gives the wrong answer. So I don’t want to give a wrong answer, but I will say that when this decartonization trend started was a time of acute inflation in paperboard prices as well as in a lot of the primary raw materials for the liquor business like ethyl alcohol and stuff and these people were not able to pass that on in the market because the controlled nature of the industry and the carton was a low-hanging fruit, which they could remove because the market is basically very consolidated at the top.
So a couple of people coming together and deciding to remove the cartid means the entire market removes the cartid. So that was what happened and what — and it also happened that those years were years of very-high demand growth for the liquor business. So there is no negative impact felt by the customer at that time.
Now that very robust growth has settled down. So of course, now the hope is that in order to push that growth along further and push that premiumization, the customer ideally should look at carton packaging because when before this decartonization announcement happened, the, the signal coming to us from customers was that we need to increase the investment in packaging and to increase the investment in the carton and that the carton is not decorative enough, it’s not sturdy enough, it’s not flashy enough. So not anything to the contrary.
In fact, our expectation was that the liquor cartons should get more-and-more premiumized and higher and higher-value. So therefore, the shock when the announcement was made. So I do feel fundamentally, it helps and adds value to them because they’re not able to advertise, they’re not able to have any other way to sell their brand and story.
So the logical thing is for the carton to stay and if you see many of the Indian companies are still selling a large-volume in carton so they clearly see some value from it and I suppose as those brands give more competition to the MNC brand then the push may comes. But these things are not up to us. So we don’t want to plan for it because there’s no point. But hopefully it comes and then it is a huge impetus to the demand.
Unidentified Participant
Got it. So if I may, a couple of questions. One was earlier you had made an announcement for the facility to be on-track for in the December quarter this year. So you know, is there any change in that direction or we are still firmly on-track there?
Akshay Kanoria
Yeah, yeah, that’s going on. There’s nothing to update. So then we didn’t update, but it’s going on.
Unidentified Participant
Got it. Got it. Thank you. If there is anything else, I’ll further join the queue. Thanks.
Akshay Kanoria
Okay. Thank you.
Operator
Thank you very much. Next question is from the line of Pulkit Singal Dalmus Capital. Please go-ahead.
Pulkit Singhal
Hi, thank you for the opportunity. My first question is around the plant. What percentage of that capacity broadly do you think you’ll be able to fulfill purely by shifting from your other plants and how much of it do you think is broadly you’ll be able to just cater to certain demand, which you probably weren’t being able to cater to earlier.
Akshay Kanoria
So most of it will be the latter and the shifting from other plants will be like maybe 10% 20% or something. But yeah, mostly it’s customers who we — who are existing customers or like small customers whose major requirements were in South, which we are now tapping.
Pulkit Singhal
Understood. What is the broad like on an average logistic cost as a percentage of sales in India when you are delivering? I mean, is it roughly 2%?
Akshay Kanoria
You know, if we’re delivering local, then yeah, if we’re delivering little far, then it can go up to 5%, 7% also. So — but it’s more than the cost. Cost is a factor. Of course, in the bulkier, thicker cartons, it’s a bigger factor. But more than the cost, it’s also the just-in-time and all of that. So the lead-time is also a big factor and customer comfort from having the supplier nearby is a big factor.
There are many times where we have to do a proofing and the customer wants to come to the factory and approve the quality. So being nearby helps a lot.
Pulkit Singhal
So this probably is market-share gain, which is probably going to ensue in the future.
Akshay Kanoria
Sorry, I could — I didn’t get
Pulkit Singhal
Probably result market-share gain is the primary result of opening a plant in January. And secondly, on the raw-material pricing, I mean, can you talk about where-is it currently? What are the trends that you’re seeing?
Akshay Kanoria
So not much fluctuation. There is a slight increase in the prices in this last quarter, a few percent on paperboard. Yeah, not anything very significant?
Pulkit Singhal
Understood. And lastly, to cater to the export demand, have you evaluated some opportunities to open plants outside because a lot of companies are opening in UAE, they get tax benefits and there is a domestic demand also to cater to, but to a certain extent. So anything out there
Akshay Kanoria
That we have done that this in the past and we keep looking at it, but never able to decide one-way or the other because we feel that the advantage is to make in India and export, whereas if you’re local then you incur all the cost and disadvantage of being local so never able to square that circle.
We are — yeah, so we are constantly looking at that and there is a business case for that. So, but it has to really make a lot of sense and we have to be able to run that operation in a — in a manner that justifies.
Pulkit Singhal
So understood. Lastly, what about the new opportunities that we are evaluating in terms of new segments, categories, areas? Are we largely looking at a sizing which is — which we are able to cater from our existing balance sheet by leveraging our cash flows or you are also open to the idea of what is required for an opportunity to raise equity as well? I mean, what is the level at which we are kind of — that’s my idea of trying to figure out that.
Akshay Kanoria
Sorry, I missed that last bit, sorry.
Pulkit Singhal
So I’m just trying to figure out that the sizing of these opportunities, I mean, is it more manageable from your existing balance sheet or may require external funding at some point
Akshay Kanoria
I mean we’re not averse to that if that’s the point. I mean, let’s say there’s a reasonably substantial opportunity, then we’re not averse to looking at that. So that’s not a limiting factor, I would say for us.
Pulkit Singhal
Thanks. Great. Thank you and all the best.
Akshay Kanoria
Thank you.
Operator
Thank you. Next question is from the line of Heita from Monarch AIF. Please go-ahead.
Unidentified Participant
Hello. Am I audible?
Operator
Yeah.
Unidentified Participant
Hello. Thank you. So I have two questions. My first question was, could you share the capacity utilization percentage for this quarter? Yeah, it’s something like 70% okay. And secondly, I wanted to understand in FY ’25, I understand from the annual report that the sale of material to TCPL Middle-East has increased some 30% year-on-year to now around INR450 odd crores.
Could you — could you just throw some light on the Middle-East segment, you know what sectors do we cater to over there and what margins do we sell our packaging products in UAE
Unidentified Participant
UAE?
Akshay Kanoria
No, we can’t give that information and that breakup and detail is not something which we can provide, but it’s basically a trading company for just ease of transaction. There’s no.
Unidentified Participant
Is there any — is there any specific sector from which this growth is coming in?
Akshay Kanoria
We can’t give that information on this forum.
Unidentified Participant
Okay. All right. Thank you so much.
Akshay Kanoria
Thank you.
Operator
Thank you very much. With this, I now hand the conference over to the management for closing comments. Thank you.
Akshay Kanoria
Thank you. I hope we have been able to answer all your questions. Should you need any further clarifications or like to know more about the company, please feel free-to contact us or CDR India. Thank you again for taking the time to join us on this call. We look-forward to interacting with you in the next quarter.
Operator
Thank you very much. On behalf of TCPL Packaging Limited, that concludes this conference. Thank you for joining us and you may now disconnect your line. Thank you