Hindware Home Innovation Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Hindware Home Innovation Limited reported a consolidated revenue of ₹676 crore for Q2 FY26, with an EBITDA of ₹60 crore. The company is undergoing a strategic portfolio rationalization in its consumer appliances business to enhance profitability. While the Bathware segment showed robust growth, the Pipes business faced margin pressure due to raw material volatility and competition, leading to negative PBT.

Highlights

  • Consolidated H1 FY26 revenue of ₹1,207 crore and EBITDA of ₹118 crore.

  • Bathware business achieved 10.1% sales growth in Q2 FY26, with revenue of ₹397 crore.

  • Hindware Home Innovation (Consumer Appliances) reported an 11% EBITDA margin for H1 FY26.

  • Strategic portfolio rationalization in consumer appliances to focus on profitable categories.

  • Pipes business volume expected to grow approximately 15% in H2 FY26 with 9% margin guidance.

Concerns

  • Pipes business reported negative PBT of ₹15 crore for H1 FY26 and ₹5 crore for Q2 FY26.

  • EBITDA margin compression in Pipes business due to raw material price fluctuations and competition.

  • Increase in working capital days in H1 FY26 led to higher debt, increasing from ₹692 crore to ₹746 crore.

Key financials

2 periods

Q2 FY26

  • Consolidated Revenue
    ₹676 Cr
  • Consolidated EBITDA
    ₹60 Cr
  • Consolidated PBT
    ₹14 Cr

H1 FY26

  • Consolidated Revenue
    ₹1,207 Cr
  • Consolidated EBITDA
    ₹118 Cr
  • Consolidated PBT
    ₹24 Cr

What they filed

Q1 FY27: revenue up 17.7%, net profit up 115.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue630 594 699 531 676 +7%640 +8%663 −5%625 +18%
EBITDA30 29 41 49 56 +90%48 +64%44 +8%50 +3%
Net profit-16 -18 -31 -29 5 +132%4 +120%-19 +39%4 +115%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue (H1 FY26)
₹1,207 Cr Total
  • Bathware Business ₹737 Cr 61.1%
  • Pipes and Fittings Business ₹315 Cr 26.1%
  • Hindware Home Innovation Limited (Consumer Appliances) ₹155 Cr 12.8%

Capital allocation

medium confidence
  • Debt Gross ₹746 Cr
    • Repayment Repaid in the first half of FY26 ₹60 Cr
    • New borrowing Contracted for new plant in Roorkee
    So our debt has increased from INR 692 crore to INR 746 crore in the last 6 months... Part of the debt we contracted because our new plant in Roorkee is getting commissioned by end of December. And ultimately, the old loans, we are paying off, we have already paid off INR 60 crore in the first half and balance also we will pay another INR 60 crore.

Guidance & targets

Sales

  • Bathware Sales Growth Sales · H2 FY26 · Medium confidence early to mid-teen growth
    So in the second half, we are expecting early to mid-teen growth in sales and an EBITDA of about 13% to 14%.

    — Nirupam Sahay

  • Bathware Institutional Sales Growth Sales · this year and next couple of years · High confidence 15% to 20%
    So 15% to 20% is the kind of growth that we are targeting in institutional sales.

    — Nirupam Sahay

  • Bathware ASP Growth Contribution Sales · Medium confidence 3% to 4%
    Yes. So the ASP growth would contribute roughly about 3% to 4% of that growth rate.

    — Nirupam Sahay

  • Pipes Roorkee Plant Peak Sales Sales · end of next financial year · High confidence ₹20 crore per month
    I think by the end of the next financial year, we will be achieving its peak sales that's around INR 20 crore per month.

    — Rajesh Pajnoo

Profitability

  • Bathware EBITDA Margin Profitability · H2 FY26 · Medium confidence 13% to 14%
    So in the second half, we are expecting early to mid-teen growth in sales and an EBITDA of about 13% to 14%.

    — Nirupam Sahay

  • Bathware EBITDA Margin Improvement Profitability · FY27 · Medium confidence add 1% to 2%
    So we expect in the next year, so FY27 to add 1% to 2% on the EBITDA percentage that we deliver in FY26.

    — Nirupam Sahay

  • Consumer Appliances Steady-state EBITDA Margin Profitability · next financial year · High confidence 10% to 12%
    So we're looking at moving to an EBITDA of 10% to 12% in the next financial year.

    — Nirupam Sahay

  • Pipes Margin Profitability · H2 FY26 · Medium confidence around 9%
    Margin guidance would be around 9%.

    — Rajesh Pajnoo

  • Pipes Business Profitability Profitability · next two quarters · Medium confidence profitable
    Once the revenue goes up, we will be profitable automatically. So we are hoping it will happen in the next two quarters.

    — Rajesh Pajnoo

Market Share

  • Bathware Company Growth Rate vs Market Market Share · Medium confidence 1.25 to 1.5x of market growth rate
    Through a combination of all that, we are clearly targeting that we grow 1.25 to 1.5x at least of the market growth rate.

    — Nirupam Sahay

Revenue

  • Consumer Appliances Business Revenue Revenue · next 2 years · High confidence ₹470 crore to ₹500 crore
    we can grow this business to INR 470 crore to INR500 crore company in the next 2 years.

    — Nirupam Sahay

  • Consumer Appliances Exit Revenue Run Rate Revenue · Q4 FY26 · High confidence ₹100 crore per quarter
    So quarter 4 of this year, we expect to end at a run rate of INR 100 crore. And then going forward next year, accelerate further.

    — Nirupam Sahay

  • Pipes Revenue Growth Revenue · Medium confidence flattish
    Revenue, as I said, since we are operating at a price, which is below 6% than the last year's price, so it looks like the revenue would be flattish, unless and until there is an increase in the raw material price.

    — Rajesh Pajnoo

Volume

  • Pipes Volume Growth Volume · H2 FY26 · Medium confidence approximately 15%
    H2, it would be at the same prices that are prevailing now, it will be approximately 15%.

    — Rajesh Pajnoo

What to watch in Q3 FY26

Pipes Business Profitability

Next two quarters
Current Negative PBT of ₹5 crore in Q2 FY26
Target Profitable

Why it matters

Key indicator of the success of strategic initiatives and market recovery in the Pipes segment.

Once the revenue goes up, we will be profitable automatically. So we are hoping it will happen in the next two quarters.

Risks & concerns

  • Resin price fluctuations and subdued demand in Pipes business

    high

    Resin price volatility and weak demand are creating headwinds for the Pipes segment, leading to margin pressure.

    Management acknowledged

  • Overall market softness impacting demand

    medium

    The market remained somewhat soft in Q2 FY26, affecting overall business performance.

    Management acknowledged

  • Tough competition in Pipes segment

    medium

    Intense competition in the pipes market is contributing to selling price pressure and impacting margins.

    Management acknowledged

  • Increased working capital days leading to higher debt

    medium

    An increase in working capital days during H1 FY26 contributed to the rise in gross debt, with plans to reduce it by year-end.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Bathware/Faucets Market Share Evasive
So unfortunately, there's no syndicated data available for the Bathware segment. So unfortunately, accurate data on market share is not available. Having said that, very clearly, in the sanitaryware space, we are a top 3 player and in the faucet space, again, we are a top 3 player.

Management could not provide specific market share data despite claiming leadership, indicating a lack of granular market intelligence or unwillingness to disclose.

Asked by Aditya Gada

Institutional B2B vs Retail Channel Margin Differential Direct
So the institutional business is roughly about 23% of our sales. It remains between 20% and 25% pretty much in the quarter... So differential is roughly about 400 basis points between general trade and the B2B business.

Clarifies the lower profitability of B2B sales (400 bps lower gross margin) and its contribution to overall revenue (20-25%).

Asked by Aditya Gada

Intercompany Loan from HHIL to Hindware Limited Direct
If you recall, there was a rights issue in the month of December 2024 in the company. And one of the end use, which we had stated that the parent company will give a loan of INR 98 crore to Hindware Limited. This is the same loan. This is an interest-bearing loan. And post demerger, this loan will remain as a loan post implementation, HHIL Limited to Hindware Limited. And on the due dates, it will get repaid.

Explains the nature and repayment terms of a significant intercompany loan, clarifying its impact on the balance sheet post-demerger.

Asked by Aditya Gada

Consumer Products Division Restructuring and Path to Profitability Direct
So we've taken a conscious call to discontinue certain categories that we've been in the past few years... So now in the categories that we're focused on kitchen appliances, water heaters and coolers through e-commerce, that is where we will now grow.

Details the strategic shift in the consumer products division, discontinuing loss-making categories to focus on profitable ones, which is crucial for future margin improvement.

Asked by Resha Mehta

Pipes Segment Volume Decline and Margin Compression Direct
But the margins, there is a lot of impact of selling prices in the market because of the lower prices prevailing in the market because of low raw material prices, we have to fight it out in the market. So there have been stress on the price at which we have been selling.

Explains the reasons behind the weak performance in the pipes segment (industry-wide softness, raw material price impact on selling prices, competition) and the company's strategy to regain volume.

Asked by Harshit Mundra

Debt Increase and Repayment Plan Direct
When we internally do analysis, why it has increased is primarily on account of increase in number of days of the working capital in the first 6 months, which we feel that we should be able to take off to a level of around 5% to 7%... So part of the debt will get paid off there.

Provides clarity on the reasons for the recent debt increase and outlines a plan for debt reduction through working capital management and repayment of existing loans.

Asked by Harshit Mundra

Pipes Business Investment Rationale and Profitability Timeline Direct
This pipes market has been growing with a healthy CAGR rate throughout in the last 20 years. So now we are not investing, but this Roorkee plant, which we are investing, we have taken a call 2 years back... So we thought of going to the North because eventually in this business, if you want to grow in this business, it consists of 2 components.

Justifies the strategic investment in the Roorkee plant for the pipes business, emphasizing long-term growth potential and geographical expansion despite current market challenges.

Asked by Praneeth Bommisetti

Raw Material Prices (Brass) and Impact on Faucet Margins Direct
So we've already taken a price increase in faucets of about 3%, 3.5% starting 1st November. So this was based partly on the fact that brass as the key input prices were going up... We'll keep tracking the brass price very carefully. And if we feel the need in the next couple of months, we may take another price increase.

Addresses the impact of rising brass prices on faucet margins and outlines proactive measures taken (price increases) and future strategy to manage commodity cost volatility.

Asked by Parikshit Gupta

2 min read 6 chapters

Detailed narrative

Consolidated Performance Overview

Hindware Home Innovation reported a consolidated revenue of ₹1,207 crore for H1 FY26, with an EBITDA of ₹118 crore and PBT of ₹24 crore before exceptional items. For Q2 FY26, consolidated revenue stood at ₹676 crore, EBITDA at ₹60 crore, and PBT at ₹14 crore before exceptional items. These figures reflect the company's strategic focus on improving overall profitability.

Bathware Business Momentum

The Bathware segment demonstrated strong recovery and growth, achieving 10.1% sales growth in Q2 FY26, with revenue of ₹397 crore and an EBITDA of ₹43 crore, representing an 11.6% EBITDA margin. Management anticipates early to mid-teen growth and an EBITDA margin of 13-14% in H2 FY26, driven by recent price increases and a premiumization strategy. Institutional sales are projected to grow 15-20% for the current and next two years.

Consumer Appliances Portfolio Rationalization

The company has strategically discontinued high loss-making product categories such as air coolers (except e-commerce), fans, air purifiers, water purifiers, and furniture fittings. The renewed focus is on profitable categories like kitchen appliances (chimneys, hobs, cooktops), water heaters, and e-commerce coolers. This segment aims to grow to a ₹470-500 crore company within the next two years, targeting a steady-state EBITDA margin of 10-12% in the next financial year.

Pipes and Fittings Business Challenges & Strategy

The Pipes business reported H1 FY26 revenue of ₹315 crore with an EBITDA of ₹20 crore but faced a negative PBT of ₹15 crore. This performance was primarily due to resin price fluctuations, subdued demand, and intense competition. Management expects volume growth of approximately 15% and a margin of around 9% in H2 FY26, with profitability anticipated within the next two quarters, supported by the new Roorkee facility in Uttarakhand, which has commenced trial production and is expected to begin commercial operations in H2 FY26.

Debt Management and Capital Structure

The company's gross debt increased from ₹692 crore to ₹746 crore in the last six months, primarily due to an increase in working capital days and funding for the new Roorkee plant. Management plans to reduce working capital days by 5-7% by year-end, expecting a corresponding reduction in debt. An intercompany loan of ₹98 crore from the parent company (HHIL) to Hindware Limited is interest-bearing and will be repaid post-demerger.

Strategic Initiatives for Growth and Margins

Across all segments, Hindware is implementing strategic initiatives to drive growth and improve profitability. These include refining go-to-market strategies, driving premiumization across product categories, implementing zero-based budgeting, and enhancing operational efficiency. New product introductions, a new brand campaign ('Designed for Sukoon'), and deeper engagement with influencers are expected to contribute to stronger performance and momentum in the second half of the year.

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