Huhtamaki India

Huhtamaki India reported Q4 CY25 net sales of INR 6 billion, remaining flat compared to the previous quarter and year-on-year. For the full year 2025, net sales were INR 23.9 billion, a 2.5% decline from INR 24.5 billion in 2024. Despite lower volumes, the company achieved a significantly higher profit before tax (PBT) of INR 410 million in Q4, up 169.7% YoY from INR 152 million in Q4 2024. Full-year 2025 PBT (before exceptional item^📎s) grew 83% to INR 1.57 billion, and net profit after tax reached INR 1.182 billion, up 34.3% from INR 880 million in 2024.

The company's strategic decisions focused on optimizing product and customer mix, leading to improved operational efficiencies and cost structure. Management highlighted that the long-term strategy for world-class operations is paying off, with real improvements across sites, including better efficiency, reduced waste, and tighter control of overheads. The company's core priorities for future growth are profitable growth, capital discipline, and accountability, aiming to build high-quality business and refine its product and customer portfolio.

Huhtamaki India made significant progress in sustainability, achieving approximately 50% reduction in recordable incidents and lost time injuries. The company also reported 0 liquid discharge at its Khopoli, Rudrapur, and Silvassa sites, demonstrating a commitment to sustainable water practices. A renewable electricity project is underway, expected to generate energy in Q2 CY26, and solvent consumption was reduced across all sites in Q4 2025, improving worker environment and reducing emissions.

While the company has sufficient inherent capacity and has optimized operations to make room for growth, volumes remained largely steady quarter-on-quarter but decreased slightly year-on-year for both Q4 and FY25. Management acknowledged that volume growth has been stagnant for several years, and while they aspire for customer volume and profit to double, they lack concrete expectations for a near-term turnaround in top-line growth, indicating a focus on profitable growth over sheer volume.

The company continues to introduce new products, often supported by global expertise from overseas. Blueloop, a sustainable and recyclable product, is considered a game-changer. However, its growth has been slower than expected due to slow customer adaptation and less stringent regulations, with customers delaying trials. Despite these challenges, the company remains hopeful for its long-term success, with asset utilization currently around 25-30%.

Analysts raised concerns about significant charges paid to the parent company for IT and centralized services, citing INR 80 crores in FY24 as a substantial amount impacting minority shareholder profitability. Management defended these charges as essential for supporting operations and leveraging global resources, arguing they provide value and economy of scale. However, they also acknowledged the analyst's request for negotiation and review of these costs.

Recent senior leadership changes, including the exits of the CEO, CFO, and Sales Head, were noted by analysts. Management stated that these changes were not part of a systematic approach and emphasized that the company's strong foundation and principles would ensure continued performance. The new Managing Director, Kamal Taneja, expressed commitment to building on the strong foundation and leading Huhtamaki India into its next phase of growth, focusing on profitable growth, capital discipline, and accountability.