HEXAGON Q4 FY26 earnings call

Hexagon Nutrition Limited delivered a robust financial performance for the fiscal year ended March 31, 2026. Revenue from operations increased by 17.8% year-on-year, reaching INR382.63 crores. This growth was accompanied by a significant improvement in profitability, with EBITDA rising 32.01% to INR52.9 crores and EBITDA margins expanding to 13.83% from 12.33% in FY25. Profit after tax (PAT) also saw a substantial increase of 56.1% to INR37.94 crores, with PAT margin improving from 7.5% to 9.9%.

The company operates with a diversified business model across multiple nutrition segments, including micronutrient premixes, therapeutic foods, clinical nutrition, food fortification, and consumer nutrition products. For FY26, the branded business contributed 30% of total sales with high margins of 60-68%. The premix segment accounted for 35-40% of sales with margins of 35-40%, while the ESG segment contributed 30% of sales with margins of 25-30%. This diversification provides resilience and allows participation across various parts of the nutrition value chain.

Hexagon Nutrition is strategically focused on expanding its high-margin branded product portfolio, which includes PentaSure, PediaGold, and Obesigo. The growth strategy involves increasing its sales force to cover Tier 2 and Tier 3 cities, expanding its distribution network, and boosting e-commerce sales on major platforms like Amazon and Flipkart. Additionally, the company is leveraging social media and medical marketing, including conferences and educational programs, to enhance brand visibility and penetration.

The company emphasizes operational discipline, continuous improvement, and maintaining high-quality standards across its manufacturing facilities in Maharashtra and Tamil Nadu. While the blended capacity utilization was around 30% for YTD December, management expects it to range between 35% to 40% by year-end, maintaining a buffer for future tenders and orders. This approach ensures consistent quality, reliability, and customer confidence, which are crucial for long-term relationships.

Hexagon Nutrition has an international presence through wholly-owned subsidiaries in South Africa, India, Uzbekistan, and Hong Kong, serving customers in multiple markets. Exports constitute 57% of total revenues, with over 80% coming from premixes and the ESG segment. Despite global geopolitical situations, the company has not experienced significant negative impacts on its business, with exports to West Asia being less than 20% of total exports and raw material imports (less than 25% of total requirement) from various regions remaining stable.