Hindware Home In

Hindware Home Innovation Limited reported consolidated revenue of INR 531 crores and an EBITDA of INR 58 crores for Q1 FY26. The Bathware business contributed INR 341 crores in revenue and INR 43 crores in EBITDA. The Consumer Appliances segment recorded INR 71 crores in revenue and INR 10 crores in EBITDA, while the Pipes business generated INR 119 crores in revenue and INR 7 crores in EBITDA, facing challenging market conditions during the quarter.

The company strategically discontinued high loss-making product categories, including air coolers (outside e-commerce), ceiling and other fans, air purifiers, water purifiers, and furniture fittings. This move aims to sharpen focus on profitable kitchen appliances like chimneys, hobs, cooktops, sinks, and water heaters. This rationalization, while impacting Q1 results with a 'pretty large exceptional loss' from inventory write-offs, is expected to drive improved profitability and double-digit EBITDA margins for the segment in FY26, targeting INR 430-450 crores in revenue.

The Bathware business maintained its EBITDA margin at 12.7% in Q1 FY26, with PBT improving from 3.2% to 4.6% YoY. The company is driving premiumization by introducing new faucets with higher average selling prices and strengthening brand advocacy through engagement with plumbers, architects, and designers. Management aims to achieve an INR 400 crores quarterly revenue run rate by Q3/Q4 FY26 and targets mid-teens EBITDA margins, with institutional business growing 15% in Q1 and government sales expected to rise from 8-9% to 15-16% of institutional sales.

The Pipes segment experienced a 21% volume decline in Q1 FY26 due to difficult market conditions, raw material price volatility, and early monsoons. However, the business showed a strong recovery with 34% volume growth in July, and management expects high single-digit volume growth of 9-10% for the full year FY26, targeting 9-9.5% EBITDA margins. Trial production has commenced at the new Roorkee facility, with commercial production slated for H2 FY26 to enhance manufacturing capacity and market presence in Northern India.

For FY26, the company plans a total capex of approximately INR 92-105 crores, allocated as INR 70-80 crores for Bathware, INR 7-8 crores for Consumer Appliances, and INR 15-17 crores for Pipes, all funded through internal accruals. The company aims to reduce net debt by INR 60-70 crores in FY26 and an additional INR 120 crores in FY27, with a long-term objective of becoming debt-free within 4-5 years. The Consumer Appliances segment's standalone net borrowings stand at INR 35 crores.

The company provided an update on its demerger process, stating that an application has been made to the stock exchanges. Management anticipates receiving SEBI approval within the next 30-35 days. Following SEBI approval, the process will move to the NCLT, which is expected to take 8-12 months. The demerger will result in listed entities comprising Bathware and plastic pipes, with the demerged entity focusing on consumer products.