Hexagon Nutri. Q4 FY26 Earnings Call — Analysis (NSE: HEXAGON)
Hexagon Nutrition maiden earnings call: FY26 revenue ₹382.63 Cr (+17.8% YoY), PAT surges 56% to ₹37.94 Cr as margins expand across diversified portfolio.
The take
FY26 Revenue ₹382.63 Cr ( +17.8% YoY ) . New guidance — FY27 overall revenue and profit grow… same momentum . New story: Diversified nutrition portfolio .
Results
Revenue ₹382.63 Cr +17.8% YoY; EBITDA ₹52.90 Cr +32.0%, margin 13.83% (+150 bps); PAT ₹37.94 Cr +56.1%; Q4 revenue ₹115.04 Cr, EBITDA margin 13.34%, PAT ₹10.90 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹382.63 Cr | +17.8% | yoy · FY26 · ₹324.93 Cr in FY25 |
| EBITDA | ₹52.90 Cr | +32.01% | yoy · FY26 |
| EBITDA Margin | 13.83% | +150bps | yoy · FY26 · 12.33% in FY25 |
| PAT | ₹37.94 Cr | +56.1% | yoy · FY26 · ₹24.31 Cr in FY25 |
| PAT Margin | 9.9% | +240bps | yoy · FY26 · 7.5% in FY25 |
| Revenue | ₹115.04 Cr | point_in_time · Q4FY26 | |
| EBITDA | ₹15.35 Cr | point_in_time · Q4FY26 | |
| EBITDA Margin | 13.34% | none · Q4FY26 | |
| PAT | ₹10.90 Cr | point_in_time · Q4FY26 |
Guidance
Management expects to maintain FY24-FY26 growth momentum with further margin expansion; long-term aspiration to double revenue in 4-5 years; branded segment gross margin guided at 60-68%.
What management committed to
- Management expects to maintain the revenue and profit growth momentum of the last 2-3 years going forward. — same momentum, FY27
- Company expects EBITDA margin expansion as revenue grows, driven by operating leverage. — some expansion, FY27
- Branded segment gross margins will be in the range of 60-68%, premix segment gross margins 35-40%, and ESG segment gross margins 25-30%. — 60-68%, 35-40%, 25-30%
- Overall blended capacity utilization is expected to reach 35-40% in the near term. — 35-40%, way forward
- Revenue is expected to double over the next 4-5 years, implying reaching approximately ₹765 Cr. — double, 4-5 years
- Company expects to continue its growth journey in FY27 without negative impact from the West Asia war situation. — continue growth journey, FY27
Key themes
Diversified nutrition platform, margin expansion driven by branded segment.
How the narrative shifted
- Branded margin premiumization: Branded clinical nutrition (PentaSure) with 60-68% gross margins is the key margin driver; company scaling this segment via wider distribution and e-commerce.
- Diversified nutrition portfolio: Company operates across premixes, therapeutic foods, clinical, consumer, and fortification, reducing dependence on any single category.
- Secular nutrition demand tailwinds: Preventive healthcare, government fortification mandates, and rising health awareness globally are creating long-term structural demand for nutrition products.
- Tender pipeline & capacity buffer: Low current utilization (30%) is partly due to UN tender lumpiness; management maintains buffer capacity for future tender orders, eyeing 35-40% utilization.
- Export resilience amid geopolitics: Despite West Asia conflict, exports are diversified and demand for food ingredients remains essential; no significant disruption seen.
- Newly listed, governance focus: First earnings call emphasizes commitment to transparency, governance, and shareholder engagement.
Operational commentary
- Exports accounted for 57% of FY26 revenue; >80% of exports derived from micronutrient premixes and ESG (RUTF/fortification) segments.
- Overall manufacturing capacity utilization low at ~30% (blended, YTD Dec), but branded unit runs 50-60%, premix 40-45%; management expects blended utilization to reach 35-40% in near term as tender orders pick up.
- Revenue mix: branded ~30%, premix 35-40%, ESG ~30% in FY26. Branded segment (PentaSure, PediaGold) gross margins 60-68%, driving overall margin expansion.
- Management expanding sales force and distribution to Tier 2/3 cities and scaling e-commerce (Amazon, Flipkart, e-pharmacies) to grow branded consumer health business.
- Competitors include DSM, Firmenich, BASF, SternVitamin (global premix), Piramal (India), and Abbott, Nestlé, Fresenius Kabi in clinical nutrition. Company cites product differentiation via multi-protein blends.
- Imports <25% of raw material requirement, mainly vitamins from China, Singapore, Korea, Europe; no significant supply chain disruptions reported.
- Exports to West Asia <20% of total exports, limiting direct impact from regional conflict; demand for food ingredients remains resilient.
Analyst Q&A
Q. Can you give growth guidance in terms of volume and margins?
We expect to maintain the same momentum what we have created in the last two to three years... we expect some expansion in the margins as well.
Q. How will capacity utilization shape up given the current 30% level?
We can definitely expect our capacity to range around 35% to 40% as we see the positive growth in all our major segments... we always keep this buffer for our future tenders and orders also.
Q. What is the long-term aspiration for revenue growth?
When asked if doubling revenue in 3-5 years is correct, management replied: Yes. That should be a correct estimate to go forward.
Q. Why did trade receivables increase from ₹60 Cr to ₹82 Cr?
We had a couple of large orders dispatched in the last quarter and third quarter... this is a little bit cyclical in nature, but these are now been normalized.
Research and educational content only. Not investment advice.