Control Print slowdown persists as core revenue growth drops

Control Print Limited (

) reported weak Q1 performance, with core domestic coding and marking revenue growth slowing down to 4% year on year. Sequential margin pressure and ongoing losses in its international packaging business continue to weigh on the company. The company faced dual pressures during the quarter. The domestic business, comprising roughly 95% of total revenue, saw sluggish growth due to seasonality, order deferrals in consumables, and broader industry slowdowns linked to West Asia disruptions. Higher raw material costs further compressed gross margins. Control Print is the sole domestic player competing against major multinational corporations in India's ₹2,200 crore coding and marking market, maintaining a 19% to 20% market share. With an active installed base exceeding 23,000 printers, high-margin consumables and service contracts typically generate steady recurring revenue. The domestic core business remains structurally sound, backed by an expanding footprint in Track & Trace solutions (QRiousCodes). Mandates requiring QR codes on top pharmaceutical products expand the addressable market from ₹600 crore to ₹1,500 crore, creating long-run volume potential where Control Print already generated ₹20 crore in FY26. The primary drag on valuation is international packaging. Management projects a turnaround and breakeven for V Shapes by H1FY28 using local co-packaging strategies, material lamination, and recyclable packaging development. Until these international initiatives stop eroding capital, the stock will likely remain rangebound despite its cash-rich, low-debt balance sheet and reasonable valuation. What to watch next Breakeven milestones and margin recovery in the V Shapes packaging segment. Conversion rates for ongoing Track & Trace pilots with top Indian pharmaceutical firms. Stabilisation of raw material costs and sequential gross margin expansion in core coding and marking.