Huhtamaki India H1FY26 Results (NSE: HUHTAMAKI)
Signal: Growth reaccelerated
The read
The operating trajectory improved materially: H1 revenue rose 11.6% to 13631.2 million and EBIT rose 37.5% to 1007.3 million as management cited volume growth, price pass-through, mix and efficiency; however, the thesis is tempered by negative operating cash flow of 713.6 million, working-capital build and other income equal to 25% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,363.12 Cr | 11.6% | N/A |
| EBIT | ₹100.73 Cr | 37.5% | |
| Net profit | ₹69.33 Cr | 35.7% | |
| EPS | ₹9.18 | 35.8% | |
| EBIT margin | 10.2% |
P&L walk
H1 revenue rose 11.6% to 13631.2 million, while EBIT increased 37.5% to 1007.3 million on volume growth, improved mix and operational efficiency; PAT rose 35.7% to 693.3 million but included 234.2 million of other income and operating cash flow was negative 713.6 million.
Segments
Consumer Packaging remained the sole operating segment, generating 13631.2 million of H1 revenue and 821.3 million of segment result, up from 578.6 million, so the improvement was broad within the disclosed business rather than subsidiary-led.
Key positives
- H1 revenue increased 11.6% to 13631.2 million, with management citing strong volume growth and higher-price pass-through.
- EBIT increased 37.5% to 1007.3 million, materially faster than revenue, and EBIT margin improved to 7.6% from 6.2%.
- Employee costs declined 3.0% YoY to 1344.2 million while revenue grew 11.6%, supporting the reported operational-efficiency benefit.
- Consumer Packaging segment result rose 42.0% to 821.3 million from 578.6 million.
- The balance sheet moved from net debt of 69.5 million at 31 December 2025 to net cash of 808.2 million at 30 June 2026.
Key concerns
- Operating cash flow was negative 713.6 million versus negative 75.6 million in H1 2025, despite PAT of 693.3 million.
- Trade receivables increased by 1230.0 million and inventories increased by 1899.8 million, creating a material working-capital drag.
- Raw-material and inventory costs rose 11.7% to 8987.7 million, leaving gross margin broadly flat at 34.1% despite pricing pass-through.
- The depreciation increase included an 88.0 million correction for prior-period errors, making reported depreciation and EBIT comparisons less clean.
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