| TCPL Packaging Limited | ||||||
| Ratings reaffirmed at 'Crisil A+ / Stable / Crisil A1 '; Rated amount enhanced for Bank Debt | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil A+/Stable/Crisil A1’ ratings on the bank facilities of TCPL Packaging Limited (TCPL, part of TCPL Group).
The rating reflects TCPL group’s strong market position in the packaging industry, its established customer relationships and wide end user industry base and healthy financial risk profile. These strengths are partially offset by the exposure of the group to the intense competition and its large working capital requirements. |
Analytical Approach For arriving at the ratings, Crisil Ratings has consolidated the business and financial risk profiles of TCPL and its three subsidiaries- Accura Technik Pvt. Ltd, TCPL Middle East FZE and Creative Offset Printers Private Limited, which are strategically important to, and have a significant degree of operational integration with TCPL. Crisil Ratings considers these entities as being strategic to TCPL in view of their strong integration with TCPL’s operations
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation. |
Key Rating Drivers - Strengths Strong market position of TCPL in packaging industry: TCPL credit profile is supported by its established market position in the domestic packaging industry, and healthy experience of the promoter of over three decades in the packaging industry who are further supported by well experienced professionals. TCPL Group has established itself as one of the larger organized players in paperboard packaging, with a broad product portfolio spanning folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, shelf-ready packaging and flexible packaging. The company has a healthy operating scale, serves a diversified set of end-user industries such as FMCG, tobacco, food and beverages, pharmaceuticals and consumer goods, and benefits from long-standing relationships with reputed customers, which provides operating stability and helps sustain scale of operations even in a competitive and fragmented industry environment. This is reflected in steady growth in its scale of operations with CAGR growth in revenues of 17% for the last three fiscal ending FY 2025. In 9M FY 2026, company achieved revenues of Rs 1370 Crores and is expected to continue the growth momentum with revenues estimated to grow by ~5% driven by mix of volume as well as realization growth. Operating under cost plus model, the operating margins of the group has also remained healthy and has improved over the years to ~17% in FY 2025, estimated to remain in the similar range in FY 2026 as well as over the medium term. Crisil ratings believes that business risk profile of TCPL group will continue to benefit from its strong market position, diverse product portfolio and its healthy experience of the promoters in the industry.
Established customer relationships and diversified end user industry: The promoters long operating history and deep industry understanding has helped the company to establish healthy relationships with clientele and its suppliers, which has supported steady growth and repeat business. TCPL has a diversified customer base and broad end-user industry exposure, which reduces dependence on any single client or sector and supports business resilience. The company caters to a well-spread mix of customers across FMCG, food and beverages, pharmaceuticals, tobacco, personal care, consumer durables and other industrial applications, allowing it to benefit from demand trends across multiple consumption-led segments with top 5 customers contributing to ~40% of overall sales with no single customer contributing more than 15% of overall sales. This diversification improves revenue stability, enhances the group’s ability to cross-sell a wider product portfolio, and reduces revenue volatility arising from sector-specific slowdowns or customer concentration risks.
Strong financial risk profile: Group’s financial risk profile remains strong supported by healthy networth of Rs 627 Crores as on March 2025 (Rs 649 Crores as on September 2025) estimated to be around Rs 690-710 Crores as on March 2026. Despite continued debt funded capex, capital structure has remained comfortable marked by gearing and total outside liabilities to adjusted networth (TOLANW) at around 0.94 time and 1.5 times respectively as on March 31, 2025, estimated to be around 0.8-0.9 and 1.3-1.5 times as on March 2026. Debt protection metrics are also robust as reflected in interest coverage ratio and net cash accrual to total debt ratio of around 5.3 times and 0.3 times respectively for fiscal 2025, estimated to be over 3.5 times and 0.2-0.3 times for fiscal 2026. Overall financial risk profile of the group is expected to improve over the medium term supported by steady growth in scale of operations and its healthy profitability ensuring steady accretion to the reserves amidst moderate debt funded capex and dividend plans. |
Key Rating Drivers - Weaknesses Exposure to intense competition: The packaging industry has many players in the market leading to intense competition. While large, organized players offer products at competitive rates because of economies of scale and access to advanced technology, small players cater to local, price-sensitive customers. Although high customization partially limits threat from imports, intense competition may continue to constrain scalability, pricing power and profitability.
Large working capital requirements: Working capital requirement of the company is large as reflected in expected gross current assets (GCA) of 151 days as on March 31, 2025 and is expected to remain at similar range over the medium term. This is driven by debtors and inventory of around 98 days and 53 days as on March 31, 2025. The working capital requirement is partially supported by creditors of around 71 days while the rest through reliance on external debt leading to moderate bank limit utilization. Working capital cycle is expected to remain large over the medium term. |
Liquidity Strong Liquidity is supported by strong cash accruals of over Rs 200 crores against over the medium term which are sufficient against the repayment obligations of Rs 80-100 crores during the same period. Utilization on the fund based working capital limits averaged at around 67% for the past 12 months ending April 2026. Unencumbered cash and bank balance stood at Rs 15-16 Crores as on September 2025. Current ratio stood moderate at around 1.2 times as on March 2025, estimated in similar range as on March 2026. Crisil Ratings believe that internal accrual, unutilized bank limit and moderate cash and bank balance will be sufficient to meet debt obligation as well as incremental working capital and capex requirements of the group |
Outlook Stable TCPL will continue to benefit from its strong market position, established client relationship and diversified end user industry along with its strong financial risk profile over the medium term |
Rating sensitivity factors Upward Factors
Downward Factors
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About the Group TCPL was incorporated as Twenty First Century Printers Ltd in 1987 by Kanoria family and was renamed TCPL in 2008. It manufactures folding cartons, printed blanks and outers, litho lamination, blister packs and flexible packaging products used in the food, FMCG, cigarette, liquor, pharmaceutical, pesticide and stationery segments. It has four manufacturing units in Silvassa, two in Haridwar (Uttarakhand), and one each in Goa, Guwahati (Assam) and Chennai. The company is listed on the Bombay Stock Exchange and the National Stock Exchange.
Incorporated in 2002, COPPL was initially promoted by Mr Rohit Khanna and Mr Gazal Dhillon. On December 4, 2021, TCPL bought majority stake in COPPL and currently owns 100% stake in the company, while the remaining is with erstwhile promoters. COPPL manufactures printed rigid boxes and leaflets for the mobile phone and consumer electronics as well as other industries. It has a unit in Noida, Uttar Pradesh.
Incorporated in 2025, Accura Technik Private Limited is engaged in manufacturing plant for engraved printing and embossing cylinders in Silvassa. The commercial production has commenced from fiscal 2026 |
Key Financial Indicators: Consolidated
*Not Applicable |
Any other information: Not applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure – List of entities consolidated
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| All amounts are in Rs.Cr. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Annexure: List of instruments and names of regulators of the instruments As required by SEBI CRA Circular dated Feb 10, 2026, a list of activities or instruments falling under the purview of various FSRs, along with the names of respective FSRs, is being disclosed below:
* Includes securitisation transactions involving assignee payout, acquirer's payout. ~ The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In PRs subsequent to issuance(s), Crisil Ratings Limited shall separately capture the rated quantum details along with names of respective regulators. ^ Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions. # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. @ These ratings were assigned during regulatory regime prior to introduction of SEBI CRA Circular dated Feb 10, 2026 and the investor side regulators have accordingly been included.
Note: Kindly note that for activities or instruments falling under the purview of FSRs other than SEBI, the grievance/dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available. |
Criteria Details
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