Huhtamaki India Ltd (HUHTAMAKI)
🎯 Key Takeaways
- Huhtamaki India is in a strong phase of profitable growth, driven by robust volume expansion, pricing power, and margin improvement, supported by disciplined capital allocation and strategic focus on sustainable packaging under Strategy 2030. The company has demonstrated consistent top-line and bottom-line acceleration, with improving returns and a stable capital structure.
- Revenue declined 6.3% QoQ to ₹523 in Q3FY17.
- ⚠️ 1) Commodity and inflationary pressures remain a concern, though management has so far achieved pricing pass-through; sustained pressure could challen
- Market Cap
- ₹1,769
- P/E Ratio
- 20.1
- P/B Ratio
- 2.61
- ROE
- 0.0%
- ROCE
- 16.0%
- Debt/Equity
- 0.60
- Div Yield
- 1.28%
- Promoter
- 67.7%
📖 The Story
Huhtamaki India is in a strong phase of profitable growth, driven by robust volume expansion, pricing power, and margin improvement, supported by disciplined capital allocation and strategic focus on sustainable packaging under Strategy 2030. The company has demonstrated consistent top-line and bottom-line acceleration, with improving returns and a stable capital structure.
📰 What's Happening
In Q2 FY26 (ended June 2026), Huhtamaki India reported a 23.1% YoY surge in net sales to ₹7,286 crores, with EBITDA up 55.1% and EBIT up 71.8%, reflecting strong volume growth and successful pricing pass-through amid commodity pressures. Management highlighted execution excellence and margin expansion despite a one-time impairment charge, reinforcing confidence in sustainable profitability. The board approved these unaudited results, underscoring operational efficiency and pricing discipline as key growth levers.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Mar 2016 | Jun 2016 | Sep 2016 | Dec 2016 |
|---|---|---|---|---|
| Revenue | 526 | 572 | 557 | 523 |
| Operating Profit | 56 | 36 | 32 | 31 |
| OPM % | 10.7% | 6.3% | 5.8% | 6.0% |
| Net Profit | 35 | 20 | 18 | 16 |
| EPS | ₹4.71 | ₹2.51 | ₹2.31 | ₹2.10 |
The company has transitioned from modest margins in 2016 (OPM ~6%) to improved operating margins of 7.7% in 2025 and sustained EBIT growth of 71.8% YoY in Q2 FY26, indicating effective cost management and pricing power. Despite a temporary revenue dip in 2025, margins expanded and H1CY26 revenue grew 12% YoY, signaling resilience. The one-time depreciation correction in Q1 FY26 improved tax efficiency, contributing to a 77.5% YoY rise in profit before tax, reflecting both operational strength and accounting optimization.
🔮 Management Outlook & What's Next
Management consistently emphasizes 'profitable growth', 'disciplined capital allocation', and 'sustainability' as pillars of Strategy 2030, with no aggressive expansion plans but a focus on operational excellence and shareholder value creation. The reaffirmation of CRISIL's AA-/Stable rating and the appointment of a new Company Secretary signal strengthened governance and financial stability. No forward numerical guidance was provided, but management reaffirmed confidence in long-term structural growth driven by packaging demand and sustainability trends.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2016 | Mar 2016 | Mar 2017 | Mar 2017 |
|---|---|---|---|---|
| Equity Capital | 15 | 15 | 15 | 15 |
| Reserves | 604 | 591 | 662 | 657 |
| Borrowings | 487 | 542 | 408 | 429 |
| Total Liabilities | 1,649 | 1,729 | 1,654 | 1,712 |
| Fixed Assets | 755 | 0 | 0 | 0 |
| Investments | 207 | 148 | 195 | 185 |
| Total Assets | 1,649 | 1,729 | 1,654 | 1,712 |
The balance sheet reflects a stable and conservative capital structure, with debt-to-equity at 0.79 and borrowings held at ₹408–487 crores over recent years, while equity and reserves have grown steadily. This suggests management is prioritizing financial resilience over leverage, supporting long-term investments without overburdening the balance sheet. The company maintains sufficient liquidity and has not pursued large-scale capital raises, aligning with its disciplined capital allocation approach.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2016 |
|---|---|
| Operating | +316 |
| Investing | -501 |
| Financing | +184 |
| Net Cash Flow | -1 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 67.7% | 67.7% | 67.7% | 67.7% |
| FII | 0.9% | 1.1% | 1.4% | 0.7% |
| DII | 0.4% | 1.1% | 1.1% | 1.0% |
| Public | 22.7% | 22.4% | 23.8% | 25.1% |
| # Shareholders | 35,726 | 35,356 | 35,296 | 35,339 |
Institutional investor interest has shown a gradual increase, with FII holdings rising from 0.39% in Q2 FY26 to 1.35% in Q4 FY26, while DII holdings have remained relatively stable. Promoter holding remains steady at 67.73%, indicating confidence in long-term prospects. The growing foreign institutional interest, though modest in absolute terms, may reflect rising visibility and confidence in the company’s execution and governance improvements.
⚖️ Peer Comparison — Packaging
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| INOXINDIA | 18,607 | 73.0 | 29.2% | — | 0.06 |
| GRWRHITECH | 15,455 | 39.8 | 22.0% | — | 0.00 |
| EPL | 7,531 | 19.4 | 17.1% | — | 0.25 |
| AGI | 5,200 | 14.4 | 19.6% | — | 0.10 |
| UFLEX | 4,645 | 6.8 | 8.8% | — | 1.21 |
| TCPLPACK | 3,628 | 31.4 | 17.8% | — | 0.80 |
| POLYPLEX | 3,340 | 21.5 | 7.7% | — | 0.23 |
| XPROINDIA | 2,680 | 81.2 | 5.2% | — | 0.38 |
| COSMOFIRST | 2,215 | 13.1 | 11.4% | — | 0.98 |
| KNACK | 2,162 | — | — | — | 0.80 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Commodity and inflationary pressures remain a concern, though management has so far achieved pricing pass-through; sustained pressure could challenge margins if not fully offset. 2) Revenue growth in 2025 declined 2% annually, suggesting potential softness in end-markets or demand slowdown, which could impact momentum if not addressed. 3) Exposure to geopolitical and currency volatility, though partially mitigated by pricing strategies, remains a macro risk. 4) While margins have improved, they are still below global peers, indicating room for efficiency gains but also potential competitive constraints.
📋 Recent Filings
- 🔴 Announcement2026-09-11Huhtamaki India disclosed a penalty of Rs. 17.55 lakhs from Dadra and Nagar Haveli authorities for delayed occupancy certificate at its Silvassa facto…
- 🟡 Board Meeting2026-08-19Huhtamaki India announced the appointment of Ms. Akanksha Kandoi as Company Secretary and Compliance Officer effective August 24, 2026, following boar…
- 🟡 Board Meeting2026-08-19Huhtamaki India announced the appointment of Ms. Akanksha Kandoi as Company Secretary and Compliance Officer effective August 24, 2026, following boar…
- 🟡 Board Meeting2026-08-12Huhtamaki India Limited received a reaffirmation of its CRISIL AA-/Stable rating for an ₹88 crore bank loan facility, reflecting stable financial risk…
- Announcement2026-07-31Huhtamaki India reported robust Q2 FY26 results with 23.1% YoY net sales growth, 55% EBITDA growth, and 71% EBIT growth, driven by volume, price, and …
- Announcement2026-07-27Huhtamaki India announced that its earnings call audio recording for Q2 FY2026 will be available on July 27, 2026 at 3:30 PM IST via YouTube and its w…
- 🔴 Financial Results2026-07-27Huhtamaki India reported a 23.1% YoY rise in net sales to ₹7,286.05 crores for Q2 2026, driven by volume and pricing that offset commodity pressures, …
- 🔴 Financial Results2026-07-21Huhtamaki India reported a 23.1% YoY rise in Q2 2026 net sales to Rs. 7,286 million, with EBIT up 71.8% to Rs. 622 million, while H1 sales grew 11.6% …
- 🔴 Financial Results2026-07-21Huhtamaki India Limited announced it will host an earnings conference call on July 27, 2026 at 15:30 IST to discuss unaudited Q2 results ending June 3…
- 🟡 Board Meeting2026-07-21Huhtamaki India's board approved unaudited Q2 and H1 2026 financial results showing revenue growth of 23.1% YoY in Q2 to Rs. 7,286 million and 11.6% Y…
🧠 Analyst's Read
Huhtamaki India is executing well within its strategic framework, delivering strong profitability and margin expansion amid challenging conditions. Investors should monitor volume trends, margin sustainability, and management’s ability to maintain pricing power in a competitive packaging landscape as key near-term indicators.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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