Hexagon Nutrition Limited received a customs duty demand and penalty aggregating to ₹1.04 crore from the Commissioner of Customs, Chennai III. The order, dated August 27, 2026, was issued against Hexagon Nutrition Exports Private Limited (HNEPL), a previously wholly owned subsidiary amalgamated with the parent company in January 2026.

The customs authority alleged misclassification of Combined Nomenclation (CTH) codes for products sold to Domestic Tariff Area (DTA) units. This classification error reportedly led to discrepancies in Basic Customs Duty and Social Welfare Surcharge payments.

Breakdown of Demand

The total financial impact outlined in the order includes specific components for duty, fines, and penalties. The company states that the immediate financial impact is limited to these amounts plus applicable interest.

The order was received on Saturday, August 29, 2026. Hexagon Nutrition initiated an internal review and sought legal counsel advice before making the disclosure on September 1, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Legal Response

The company strongly disagrees with the findings of the order. Management believes it has a strong case on merits and is preparing to file an appeal before the relevant appellate authority within statutory timelines. Hexagon Nutrition expects a favorable outcome at the appellate level and asserts there is no material impact on its operational activities.

What the Numbers Show

The customs duty component constitutes approximately 78% of the total ₹1.04 crore demand, indicating that the core dispute revolves around tariff classification rather than punitive measures alone. The relatively smaller fine and penalty portions suggest the authority viewed the misclassification as a procedural contravention rather than willful evasion, though the final determination rests with the appellate authority.

Hexagon Nutrition has scheduled its 33rd Annual General Meeting for September 22, 2026, alongside reporting its strongest-ever financial performance for FY2025-26, with consolidated profit after tax rising 56% year-on-year to ₹379.37 million.

FY26 Financial Highlights

The company's consolidated revenue from operations grew 17.8% year-on-year to ₹3,826.28 million in FY2025-26, compared to ₹3,249.29 million in FY2024-25. Profitability expanded well ahead of revenue, with EBITDA rising 32.0% to ₹529 million and EBITDA margin widening to 13.8% from 12.3% in the prior year. PAT margin improved to 9.9% from 7.5%.

On a standalone basis, revenue from operations stood at ₹3,191.20 million versus ₹2,674.47 million in FY2024-25, with standalone PAT at ₹381.48 million compared to ₹269.69 million.

Segment Performance

The company operates across three segments. The branded nutrition (B2C) segment delivered year-on-year growth of 23.74%, crossing the ₹1,000 million mark. The premix formulations (B2B2C) segment grew 31% overall, with domestic premix up 44.06% and export premix up 24.87%. The ESG segment declined 16.51% due to delays in tender releases.

Export revenue contributed approximately 57% of total FY26 revenue, with the company exporting to 80+ countries across five continents.

IPO Listing and Corporate Developments

Hexagon Nutrition listed on the NSE and BSE on June 12, 2026, through a 100% Offer for Sale of 3,08,59,704 equity shares at an issue price of ₹45 per share, aggregating to ₹138.87 crore. The IPO was subscribed 53.68 times overall, with the QIB portion subscribed 19.77 times, NII 161.49 times, and retail 26.85 times. The listing price was ₹48.25 per share on NSE and ₹48.00 per share on BSE.

During the year, Hexagon Nutrition (Exports) Private Limited was amalgamated with the company pursuant to an NCLT order dated January 14, 2026, with an appointed date of April 1, 2025.

Dividend and AGM Agenda

The Board has recommended a final dividend of ₹0.30 per equity share of face value ₹1 each for FY2025-26, subject to shareholder approval at the AGM. The record date for dividend eligibility is September 15, 2026, and the dividend payment date is between September 23, 2026 and October 22, 2026.

The 33rd AGM will be held on Tuesday, September 22, 2026 at 11:30 AM (IST) through video conferencing. Key resolutions include adoption of financial statements, re-appointment of Dr. Nikhil Arun Kelkar as Joint Managing Director, declaration of the final dividend, appointment of Raghunath Sawant as Executive Director, revision in remuneration of executive directors, and alteration of the Articles of Association.

Key Financial Ratios

The company's R&D expenditure for FY26 stood at ₹18.35 million. Foreign exchange inflows were ₹1,498.79 million and outflows were ₹660.91 million during the year.