Skip to content

    Huhtamaki India Q1 FY27 earnings call

    HUHTAMAKI
    Capital Goods·27 Jul 2026
    Management Summary

    Huhtamaki India Limited reported a strong Q2 CY '26, with net sales up 23.1% to INR 723 crores and PBT growing 77% YoY. This performance was fueled by a balanced contribution from pricing, volume, and product mix, leading to a notable EBITDA margin expansion to 10.5%. Despite challenges from geopolitical tensions and raw material volatility, the company maintained a robust financial position with nil net debt and focused on profitable growth and sustainability initiatives.

    Highlights

    5

    • Net sales grew by 23.1% in Q2 CY '26, reaching INR 723 crores, driven by price, volume, and product mix.

    • EBITDA grew by 55% and EBIT by 71% in Q2 CY '26, with EBITDA margin improving from 8.3% to 10.5%.

    • Profit Before Tax (PBT) increased by 77% YoY to INR 559 crores in Q2 CY '26.

    • Earnings Per Share (EPS) grew by 77.3% in Q2 CY '26, and H1 CY '26 EPS was INR 9.18, up 36% YoY.

    • The company maintains a nil net debt position, supported by INR 270 crores in bank balances and INR 125 crores in liquid mutual funds.

    Concerns

    3

    • The market was significantly impacted by the Middle East crisis, leading to supply chain disruptions and raw material cost variations.

    • Higher inventory levels were maintained as a conscious call to manage potential out-of-stock situations amidst market volatility.

    • EBIT margins in H1 were impacted by a one-time prior period depreciation charge of INR 8.8 crores (INR 88 million).

    Key financials

    Single quarter

    06 metrics
    1. 01Net Sales₹723 Cr+23.1%YoY
    2. 02EBITDA Growth55.0%+55.0%YoY
    3. 03EBITDA Margin10.5%
    4. 04EBIT Growth71%+71%YoY
    5. 05PBT₹559 Cr+77%YoY

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Net ₹0 crores

    Liquidity

    Cash ₹270 crores · Undrawn ₹427 crores

    Bank balances and investments in liquid mutual funds provide strong cash position.

    Guidance & targets

    5
    CategoryTargetPriority
    Volume Growth
    Market Growth Rate
    3-5%
    		Medium
    Volume Growth
    Quarterly Growth Rate
    not 23%
    		High
    Operational Efficiency
    Productivity and Efficiency Improvement
    continue to do that
    		High
    Capacity
    Future Growth Capacity
    quite okay to cater
    		Medium
    Sustainability
    Solar Power Plant Commissioning
    supply almost 50% of power for our Khopoli plant
    		High

    What to watch in Q2 FY27

    5

    Customer Inventory Buildup Normalization

    Next quarter (Q3 CY '26)
    CurrentAcknowledged possibility, quantum unknown
    TargetClarity on normalization or impact on volume

    Why it matters

    To understand if current volume growth is sustainable or partially driven by one-off📎 customer stocking.

    I think we would be more clear in quarter 3 because by then, we should know how much of that inventory buildup.

    Risks & concerns

    3
    RiskSeverity

    Middle East crisis and geopolitical tension

    The crisis led to significant supply chain disruption and raw material cost variation, but the company leverages its global footprint to manage. — Both acknowledged

    high

    Raw material price volatility

    Volatility in raw material prices is managed through transparent pass-through mechanisms and inventory sharing with customers. — Both acknowledged

    high

    Customer inventory buildup

    There is a possibility of customer inventory buildup contributing to current volume, but the quantum is unknown, and the festive season may offset this. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “I can't give you exact volume number. But I can tell you it's a high single digit. So if I compare last year with this year, Hitesh, so just short of, let's say, double digit, if I can say that. I think in terms of export or domestic, it's been very balanced, as Amit also said.”

    Analyst probed for specific volume growth numbers and sustainability given past strategy of sacrificing volume for profit; management provided a qualitative range.

    asked by Hitesh Randhawa

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q2 CY '26 Performance Driven by Balanced Growth

    Huhtamaki India Limited delivered a robust Q2 CY '26, with net sales growing by 23.1% and reaching INR 723 crores. This growth was broad-based, equally driven by price, volume, and product mix, with both domestic and export businesses contributing. The company's strategy of profitable growth led to significant margin expansion, with EBITDA growing 55% and EBIT growing 71% year-on-year.

    02

    Significant Margin Expansion and Profitability Improvement

    The company's EBITDA margin improved notably from 8.3% to 10.5% in Q2 CY '26, reflecting higher margins from a healthy portfolio mix, volume, and pricing. Profit Before Tax (PBT) surged by 77% YoY to INR 559 crores, and Earnings Per Share (EPS) increased by 77.3%. For the first half of CY '26, EPS stood at INR 9.18, up 36% YoY, marking one of the best performances in years.

    03

    Prudent Financial Management and Strong Liquidity

    Huhtamaki India maintains a strong financial position with nil net debt, a stable gross debt, and healthy liquidity. The company reported INR 270 crores in bank balances and INR 125 crores invested in liquid mutual funds. Additionally, INR 427 crores in unutilized fund-based limits provide ample financial flexibility, ensuring adequate coverage for operational needs.

    04

    Strategic Focus on Sustainability and Operational Efficiency

    The company is actively pursuing sustainability initiatives across people, climate, and nature. Safety incidents reduced by 40% year-to-date, and a solar captive power plant is expected to come online in Q3 CY '26, supplying nearly 50% of the Khopoli plant's power. Efforts include Zero Liquid Discharge, water treatment, and promoting recycled plastic materials and FSC-certified packaging, aligning with both environmental goals and economic sense.

    05

    Navigating Market Volatility and Raw Material Challenges

    Despite facing significant market volatility🌐 due to the Middle East crisis, supply chain disruption🌐s, and raw material cost variations, the company effectively managed these challenges. It employs transparent raw material cost pass-through mechanisms with customers, including quarterly price changes and inventory sharing. A conscious decision was made to hold higher inventory to prevent out-of-stock situations, ensuring continuous supply to customers.

    06

    Product Mix and Blueloop Innovation Driving Value

    The company's growth is supported by a healthy product mix, with increasing volumes in liquid and home care categories. The Blueloop product, a unique sustainable packaging solution, is gaining curiosity from customers, though its market adoption is still below 30%. While Blueloop products have higher costs, the company aims to maintain margins by focusing on the value proposition of sustainability and mono-material design.

    This is an AI-generated summary of a publicly available earnings call transcript.