Hindustan Foods delivers strong FY26 performance across all business verticals

Hindustan Foods Limited ("HFL" or the "Company"), a diversified FMCG contract manufacturer, announced its unaudited financial results, for the quarter and full year ending 31st March 2026.

Key Consolidated Financial Highlights for FY26 are as follows:

- Total Income increased by 17% to Rs 4,264.7 Crores in FY26 from Rs 3,655.8 Crores in FY25

- EBITDA increased by 20% to Rs 377.0 Crores in FY26 from Rs 315.3 Crores in FY25

- PBT before exceptional increased by 32% to Rs 204.2 Crores in FY26 from Rs 155.1 Crores in FY25

- PAT increased by 29% to Rs 149.0 Crores in FY26 from Rs 115.3 Crores in FY25

Key Consolidated Financial Highlights for Q4FY26 are as follows:

- Total Income increased by 17% to Rs 1120.9 Crores in Q4FY26 from Rs 961.8 Crores in Q4FY25

- EBITDA increased by 28% to Rs 104.1 Crores in Q4FY26 from Rs 81.4 Crores in Q4FY25

- PBT before exceptional increased by 40% to Rs 58.2 Crores in Q4FY26 from Rs 41.6 Crores in Q4FY25

- PAT increased by 32% to Rs 41.5 Crores in Q4FY26 from Rs 31.5 Crores in Q4FY25

*Previous year/quarter numbers are restated

Key Highlights:

Board of Directors has authorized following investments

- Rs. 50 Crores to set up a bottled water plant in South India which is expected to be commercialized by Q3FY27

- Rs. 50 Crores Investment in Ice Cream manufacturing in North India which is expected to be commercialized by Q3FY27

- The Board had earlier authorized an investment of Rs. 50 Crores to set up a detergent bars facility in Lucknow which is expected to be commercialized in Q3FY27

Commenting on the results, Sameer R. Kothari, Managing Director said, "We are proud to report record numbers for FY26 because they truly represent the successful implementation of a series of transformative initiatives taken over the last 4 years.

As a part of this transformation, HFL undertook an ambitious capex goal of investing more than Rs. 700 crores. This capex has enabled us to deliver capacities across geographies and product categories laying a strong foundation for continued compounding growth across revenues, profitability and manufacturing capabilities. Despite very challenging macroeconomic and geopolitical headwinds, the strength and scope of our initiatives has enabled us to deliver these record numbers.

HFL has transitioned from being a large, diversified Contract Manufacturer to a broad based manufacturing platform servicing marquee and emerging customers across multiple product categories and sectors.

With a strong pipeline and improving utilisation across facilities, we remain confident in our ability to sustain profitable growth and deliver on our FY27 PAT guidance."

Commenting on the Operational Performance, Ganesh Argekar, Executive Director said, "Q4FY26 capped a year of strong operational execution across our manufacturing network. All our divisions performed well posting robust performance, with some of the seasonal business like Beverages and Ice Cream delivering record volume growth. The smooth commissioning of the newer factories and the integration of the acquisitions further added to our performance.

The company was able to successfully manoeuvre the disruptions caused by the geo-political conditions through strategic build-up in inventories and working capital investment. Two of our factories were temporarily affected by the LPG shortages and while we have been able to pass on the increased cost of raw materials across all our verticals, our footwear division did bear the brunt of the rise in the petrochemical prices in this quarter.

As we look ahead, our manufacturing network is better equipped, more diversified and more capable than at any point in our history. The focus for FY27 will be on accelerating utilization ramp-up across recently commissioned assets, continuing to judiciously invest in new capex, and ensuring that this translates into sustained improvement in earnings and returns across all platforms."

Commenting on the Financial Performance, Mayank Samdani, Group CFO said, "FY26 has been another year of record financial delivery as the Company reported its highest-ever annual Profit After Tax of Rs. 149 crores, surpassing our guidance.

As mentioned earlier, duty inversion owing to GST rate changes effective September 2025 continued to exert pressure on working capital situation. Further, the current geopolitical environment has necessitated higher inventory buffers to protect supply chain continuity. These factors did affect our cash flows, but we have taken steps to address them and are confident that we should be able to resolve these issues in the near term.

On capital allocation, FY26 saw the commercialization of the most significant investment cycle in the Company's history, with gross block including capital work in progress and capital advances reaching more than Rs. 1,800 crores by March 2026. Our adjusted ROCE, after normalizing for underutilized and recently commissioned assets, remains above our internal minimum threshold of 18%, demonstrating disciplined capital allocation even through a phase of peak investment. Net debt-toequity remains at a comfortable 0.84x.

Looking ahead, certain businesses will transition from gross to net revenue recognition from Q3FY27 onwards that will have no impact on absolute profitability, though it will moderate reported revenues for those businesses. With improving operating leverage, new capacity commissioning and strong execution momentum, we remain confident in delivering our FY27 PAT guidance of Rs. 200-220 crore."

Source : Equity Bulls

Keywords

HindustanFoods Q4FY26 Q4FY2026 FY26 FY2026 ResultUpdate