Hindware Home In

For FY26, Hindware Home Innovation Limited reported consolidated revenue of ₹2,510 crore, a slight decrease from ₹2,523 crore in FY25. However, EBITDA significantly improved by 27% YoY to ₹233 crore, with margins expanding to 9% from 7% in the previous year. Profit before tax (excluding exceptional item^📎s) turned positive at ₹45 crore, compared to a negative ₹28 crore in FY25. Q4 FY26 saw consolidated revenue of ₹663 crore, with EBITDA at ₹63 crore (up 23% YoY) and PBT at ₹15 crore (up from ₹2 crore in Q4 FY25).

The Bathware Business delivered robust performance, with FY26 revenue growing 10% YoY to INR1,520 crore. EBITDA for the segment increased by 30% to INR157 crore, achieving a margin of 10.3% (up from 8.8% in FY25). Q4 FY26 revenue also grew 10% YoY to INR397 crore, with EBITDA up 20% to INR38 crore. The company attributes this to strategic priorities like premiumization, strengthening dealer networks, expanding distribution in Tier 2/3 markets, and deep engagement with influencers. Working capital days improved from 103 to 89 days, and net bank debt reduced from INR308 crore to INR234 crore.

The Hindware Home Innovation segment reported Q4 FY26 revenue of INR80 crore with a negative EBITDA of INR7 crore, and for FY26, revenue was INR317 crore with a negative EBITDA of INR12 crore. The company has strategically discontinued high loss-making product categories such as air coolers (excluding e-commerce), fans, air purifiers, water purifiers, and furniture fittings to sharpen focus on kitchen appliances and water heaters. Management expects the segment to turn EBITDA positive in Q1 FY27 and aims for an 8-10% EBITDA margin within the next two financial years (FY27 and FY28), targeting INR100 crore quarterly revenue.

The Pipes business faced a challenging FY26, with Q4 revenue at INR186 crore, EBITDA of INR10 crore, and a PBT loss of INR10 crore. The year was marked by significant raw material volatility, particularly a sharp increase in PVC resin prices from INR68/kg to INR114/kg by March, which then stabilized around INR80/kg. This volatility, coupled with low inventory levels, impacted Q4 performance. However, the business showed strong recovery post-quarter, with April recording 50% growth and year-to-date May growth of 30%, and expects 14-15% volume growth in FY27.

Net bank debt for the Bathware business reduced from INR308 crore to INR234 crore during FY26. On a consolidated basis, the net debt stands at INR708 crore. The company plans to repay INR145-150 crore this year and aims for a substantial debt reduction of 30-40% over the next two years. The Roorkee plant, which contributed to the debt increase, became operational in Q4, and the focus for FY27 will be on driving full utilization and improving operational efficiency.

The demerger process is in its final stages. The Board approved it in March last year, followed by SEBI and stock exchange approvals. Shareholder and unsecured creditor approvals were obtained on March 7, 2026. The company has filed the second motion application with the NCLT Kolkata, and the order is reserved. Management anticipates the final court order within two to three months, followed by another month to month and a half for stock exchange listing formalities.

The company experienced continued cost pressures from fuel, brass, and other input materials due to geopolitical developments and commodity volatility. To mitigate this, price increases were implemented in Bathware (15% in January, 3% in May for faucets; 6% in February, 7% in April for sanitaryware). These price hikes, along with premiumization, are aimed at protecting margins. Supply disruptions due to fuel shortages impacted the tiles business, causing an estimated INR10 crore sales loss in March and INR4-5 crore in April-May, with stabilization expected by June.