Not much discussed, but one sector is steadily growing in sync with the rise in urbanisation, consumption, and organised retail and e-commerce: the packaging industry.
According to estimates for 2024, the Indian packaging industry stood at around USD 102.4 billion, and with a 5% CAGR, it is expected to cross USD 149.8 billion by 2032.
If we break down the numbers, the e-commerce packaging market in India stood at USD 3.8 billion in 2025 and is projected to reach USD 7.6 billion by 2031.
Of these, corrugated boxes and paper-based packaging, due to their durability, low cost, and recyclability, held over a 50% share by material in 2025. When it comes to packaging formats, boxes and cartons accounted for about 61% and are central to the shipment of electronics, apparel, and consumer goods.
Flexible packaging formats such as mailers, pouches, and protective wraps are also growing rapidly, especially for lightweight and fashion products. Additionally, protective packaging, which includes void-fill and cushioning, is expanding at nearly a 16% CAGR.
In a world where growth is hard to find, this sector clearly stands out. Which are the companies that stand to benefit from the tailwinds this sector is witnessing?
Among the various companies in this sector, we focus on two – Jindal Poly Films and TCPL Packaging.
The Packaging Dichotomy: Analyzing Jindal Poly vs. TCPL
Jindal Poly Films Private Limited
Jindal Poly Films Private Limited, or JPFL, is the listed subsidiary of the BC Jindal Group. Its product lineup includes Biaxially Oriented Polypropylene (BOPP) films, PET films, metallised films, coated films, Cast Polypropylene (CPP) films, thermal films, and Non-Tearable Paper (NTR). These packaging materials have a wide range of applications, including:
- Flexible Packaging
- Tape & Textile
- Lidding
- Print Lamination
- Industrial
- Labels
- Overwrap
To be more precise, the company’s BOPP and CPP films are used for courier bags and protective layers, bubble wrap laminations, and tamper-proof packaging, as they are tear-resistant and offer lightweight protection. Beyond packaging, JPFL products are also used in industrial areas:
- Electrical insulation films, such as capacitors and cables
- Adhesive tapes, such as BOPP tape films
- Textile applications, including metalised yarn and decorative materials
CPP and coated films are also used in medicine blister packs and medical product packaging. JPFL also supplies niche products for retort packaging of high-temperature food packs and high-barrier packaging for exports. They also offer digital print media films.
At present, the company exports to over 80 countries. However, the majority of its revenue is concentrated in India.
Moving to the company’s manufacturing capacity, in terms of BOPP is 2,94,200 Tonnes Per Annum (TPA), around 1,70,000 TPA for Biaxially Oriented Polyethylene Terephthalate (BOPET), and 33,600 TPA for CPP. In terms of BOPET, the company is the eighth largest worldwide.
In Q3 FY26, the company reported total sales of ₹372 crores, which is down by 9.7% on a sequential basis and 68.6% on an annual basis. The same is the case with operating profit, where the company posted a loss of ₹97 crores, widening from the September quarter loss of ₹18 crores.
There are multiple reasons behind the poor financials. In May 2025, the company reported a major fire at the Nashik facility, which disrupted production capacity and supply chains. The incident also resulted in major insurance claims and restoration costs that have weighed on consolidated results.
The introduction of new labour codes, which require companies in this segment to have stricter provisions on wages, social security, and working conditions, has increased compliance costs and restructuring expenses, adding pressure on the company’s margins.
On the positives, the company has maintained a healthy dividend payout of 21.0%. Its working capital requirements have also reduced from 72.9 days to 48.7 days.
Jindal Poly Films Private Limited 5-Year Financial Performance
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (₹ in crores) | 4,082 | 5,878 | 4,697 | 3,926 | 5,335 |
| Operating Profit (₹ in crores) | 1,108 | 1,435 | 362 | 0 | 271 |
| Net Profit (₹ in crores) | 791 | 1,196 | 319 | 72 | 110 |
| EPS (₹) | 180.6 | 273.1 | 72.8 | 16.3 | 25.1 |
Despite average sequential quarterly performance, JPFL’s share price surged by 66% in the last one month, whereas six- and twelve-month returns stood at over 40% and 13%, respectively.
While fundamentals are obviously not the reason behind the price performance, what’s supporting the surge? A few months back, the company announced the demerger of its nonwoven fabrics business into a separate entity, which could help remove low-margin or unrelated segments to unlock value.
Another reason is the technical breakout, with moving averages largely bullish and the stock hitting a new 52-week high of ₹1,026. When such breakouts happen, they attract algorithmic buying and breakout traders.
TCPL Packaging
Established in 1987, the company is one of the largest manufacturers of folding cartons and a paperboard converter. The company’s product lineup also includes monocartons, shelf-ready packs, and packaging solutions for food and pharma. It also manufactures BOPP/PET- and foil-based laminates, shrink sleeves, and pouches.
What sets this company apart in its segment is its impressive client roster, featuring over 100 well-known names. A few of them include:
| Samsung | Bosch | Tata Consumer Products | Mamaearth | Boult Audio |
| Polycab | Crompton | Nestle | Astral | Nivea |
| Havells | Jockey | Procter & Gamble | Milton | Colgate Palmolive |
| Westside | Raymond | Emami | Ajanta Pharma | Zydus Cadila |
| Titan | ITC | Abbott | Cipla | Sun Pharma |
Another key point to mention is that TCPL Packaging has long-standing relationships of over 30 years with most of its customers.
TCPL Packaging is also focusing aggressively on sustainable packaging practices and has committed to achieving carbon neutrality by 2040, with FY23–24 as the baseline year. In line with this commitment, the company has replaced plastic film lamination and plastic extrusion in food and other barrier packaging.
Moving to the financials, in Q3FY26, the company posted a revenue of ₹453 crore, an increase of ₹15 crore on a sequential basis but a decline of 1.1% on a year-on-year basis. Net profit for the December quarter stood at ₹25 crore, down by 10.71% on a quarterly basis and a decline of 34.21% on a year-on-year basis.
Taking the positives from the financials, the company has maintained a healthy dividend payout of 18.2%. While the consolidated results of FY26 will be out in the next 1–2 months, over the last five years till FY25, the company’s net profit grew at a CAGR of 31%.
TCPL Packaging 5-Year Financial Performance
| Particulars | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales (₹ in crores) | 904 | 1,076 | 1,432 | 1,491 | 1,696 |
| Operating Profit (₹ in crores) | 134 | 156 | 236 | 249 | 287 |
| Net Profit (₹ in crores) | 34 | 49 | 118 | 102 | 141 |
| EPS (₹) | 37.1 | 54.1 | 129.1 | 111.6 | 155.2 |
Although the company posted a profit despite softening export orders due to global supply chain disruptions and muted overseas demand, the share price remained in negative territory for a while. In the last six months, TCPL’s stock price declined by 30%, while over the past year, it fell by more than 49%.
The governance change in the company also created uncertainty, with investors being cautious about TCPL.
Jindal Poly Films vs TCPL Packaging vs Others
| Company | P/E | Dividend Yield (%) | ROCE (%) |
| Jindal Poly Films | – | 0.73 | 5.36 |
| TCPL Packaging | 17.8 | 1.29 | 20.03 |
| EPL Ltd. | 15.7 | 2.51 | 17.48 |
| Uflex | 12.2 | 0.75 | 7.75 |
| Polyplex Corporation | 85.7 | 1.63 | 7.16 |
Looking at the comparison, TCPL Packaging stands out with a balanced mix of valuation and efficiency, while EPL Ltd. also holds a steady position. Uflex and Polyplex Corporation appear more modest on returns, and Jindal Poly Films signals underlying stress, suggesting uneven performance across the sector.
What’s Dragging Packaging Sector Stocks Down?
Despite strong long-term growth projections, most listed packaging companies are underperforming due to near-term structural pressures on margins and demand.
The biggest issue is oversupply and pricing pressure. Over the past 2–3 years, companies have aggressively added BOPP and BOPET films capacity. But in contrast to expectations, demand normalised after the Covid surge. This has led to a sharp fall in realisations. BOPP margins fell to around ₹10–12/kg from ₹25–40/kg earlier.
At the same time, raw material and energy costs have increased sharply. Recent geopolitical tensions have pushed up prices of crude-linked polymers, kraft paper, coal, and freight. All these have increased packaging costs by 10% in some segments. However, companies are unable to pass on these costs due to intense competition.
Another key factor is weak demand from FMCG and export markets. Large FMCG companies have reported slower volume growth and margin pressure, which directly impacts packaging demand and pricing power.
Additionally, pricing wars and competition from new entrants and private labels have reduced bargaining power across the value chain.
What’s in it for Investors?
India’s packaging industry is growing steadily with e-commerce, but there’s a clear gap between long-term potential and current performance. Broadly, demand remains strong, especially for paper-based and flexible packaging, yet oversupply, weak FMCG demand, and rising costs are squeezing margins.
At the company level, trends vary. Some are hit by disruptions and cost pressures, while others benefit from stronger balance sheets and strategic moves. Overall, growth remains intact, but earnings continue to be uneven and closely tied to pricing and demand cycles.
It may be a good idea to add these stocks to your watchlist and keep track to see when margins and demand start improving.
Disclaimer:
Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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