Huhtamaki India Q1FY27: PAT up 75% YoY to ₹43.7 Cr as EBIT margin jumps to 8.5%
PAT +75.4% YoY · revenue +22.5% · margins expanding
₹750.02 Cr
+22.5% YoY
₹43.73 Cr
+75.4% YoY
5.82%
+1.8pp YoY
₹5.79
Huhtamaki India delivered a genuinely strong standalone June quarter (its 'Q2 2026' on the calendar year), with revenue from operations up 22.5% YoY to ₹750.0 Cr and net profit up 75.4% YoY to ₹43.7 Cr (EPS ₹5.79 vs ₹3.30). Crucially the profit surge is operational, not accounting-led: EBIT before exceptional items rose 71.8% YoY to ₹62.2 Cr and the EBIT margin expanded to 8.5% from ~5.9%, with NPM lifting to 5.8% from 4.1%. Management (MD Kamal Taneja) attributes this to strong volume growth, pass-through of higher pricing to offset raw-material inflation, an improved product mix and operational efficiency — and the numbers back the framing, since other income actually collapsed to ₹1.3 Cr (from ₹6.7 Cr YoY and ₹22.1 Cr QoQ), so none of the beat came from treasury income. This directly confirms the qualitative guidance from the last concall, where management stressed profitable growth over volume and confidence in protecting margins through cost pass-through; there was no quantitative target to beat, and no published street consensus exists for this thinly-covered Huhtamäki Oyj subsidiary.
Q1 FY-2027 vs prior quarters
The headline +71% QoQ profit jump should be read with care: the prior (Mar-26) quarter carried an ₹8.8 Cr one-off extra depreciation charge (Note D, correcting FY24-25 WDV-vs-SLM errors), depressing that base — so YoY, which has no such distortion, is the cleaner read. The one soft spot is working capital: inventories nearly doubled to ₹395.7 Cr and receivables rose to ₹676.7 Cr, driving a ₹71.4 Cr operating cash outflow in H1 (vs ₹7.6 Cr outflow a year ago), though the company still ended with ₹185.2 Cr cash. The board approved the results today (21 Jul 2026); a notable concurrent development is the May resignation of Head of Operations Himanshu Desai, worth tracking against the operational-efficiency narrative driving these margins.
The stock went into the print at ₹265, up 42.6% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.
What the summary numbers don't show
Standalone-only basis (no subsidiaries/JVs) — results limited-reviewed, unmodified opinion
Management did not provide specific quantitative guidance but reiterated a clear strategic focus on profitable growth over volume by selectively participating in higher-value business. They expressed confidence in their ability to pass through volatile raw material costs, thereby protecting margins, and believe their c
— This quarter: met
What to watch
W1
Working-capital reversal in H2 — inventory nearly doubled to ₹395.7 Cr and receivables ₹676.7 Cr turned H1 operating cash flow to a ₹71.4 Cr outflow; watch for normalisation
W2
Sustainability of the 8.5% EBIT margin as RM-cost pass-through and product mix hold — management's stated priority is profitable growth over volume
W3
Whether Q3 sustains ~22% topline growth once the low base fades, and whether other income (₹1.3 Cr this quarter) normalises
W4
Operational continuity after Head of Operations Himanshu Desai's May 2026 resignation, given efficiency gains underpin the margin story
Clean digital PDF, limited-review (unaudited). Company labels this 'Q2 2026' (calendar Jan-Dec year); it is the quarter ended 30 Jun 2026 = Q1 FY27 in our Apr-Mar convention. No consolidated statement — Note E: no subsidiaries/associates/JVs, so standalone is the only basis. Current qtr has NO exceptional item (year-ago had negligible ₹0.28 Cr PPE-sale gain). QoQ base (Mar-26 qtr) was depressed by an ₹8.8 Cr one-off extra depreciation (Note D: FY24-25 WDV/SLM correction, with deferred tax lower by ₹2.2 Cr), which inflates the QoQ optics. Other income unusually low at ₹1.3 Cr vs ₹22.1 Cr QoQ — profit is fully operational.
Informational and educational content only. Not investment advice.