Hindustan Foods Limited accepted the resignation of Nikhil Vora as Non-Executive Non-Independent Director with immediate effect on September 23, 2026. The move comes amid a broader board restructuring that includes a change in designation for Shashi Kalathil.

Vora cited an increase in professional responsibilities and commitments as the reason for his departure. The Board acknowledged his contribution to the company during his tenure. No other material reasons for the resignation were disclosed in the filing submitted to stock exchanges.

Board composition changes

Concurrently, the Board approved the change in designation of Shashi Kalathil from Independent Director to Chairman, Non-Executive Non-Independent Director. This transition follows the completion of his second term as an Independent Director on the same date. Kalathil will continue to serve on the Board, liable to retire by rotation.

The company also approved the re-constitution of its Audit and Nomination and Remuneration Committees to reflect these leadership changes. The new committee structures are effective immediately.

Committee structures

The reconstituted Audit Committee and Nomination and Remuneration Committee comprise the following members:

Governance implications

The simultaneous exit of one director and the conversion of another from independent to non-independent status alters the board's independence profile. Shashi Kalathil’s shift means he no longer counts towards the independent director quota, while his continued presence on both key committees ensures continuity in oversight functions.

Hindustan Foods Limited reported its highest-ever annual financial performance for FY26, with consolidated revenue growing 17% to ₹4,265 crore and Profit After Tax (PAT) expanding 29% to ₹149 crore. The company’s EBITDA also rose 20% to ₹377 crore, surpassing its stated guidance amid a challenging macroeconomic environment.

The growth was driven by strong execution across its diversified contract manufacturing verticals, including Home & Personal Care, Food & Beverages, Ice Cream, Healthcare, and Footwear. Chairman Shashi Kalathil noted that the company signed projects worth ₹780 crore in FY26, marking the highest annual project commitment in its history. More than 70% of this value, or ₹550 crore, has already been commercialised, with the balance expected to contribute during FY27.

Sectoral performance and capacity expansion

The company continued to invest decisively in capacity and capabilities across its 42 manufacturing facilities spread over 12 states. In the Ice Cream division, which saw a defining year, total capital expenditure reached approximately ₹630 crore. This included the commissioning of a greenfield facility in Nashik and expanded operations in Lucknow. Backward integration efforts were strengthened through the acquisition of a waffle cone and packaging unit, alongside the commissioning of a dedicated stick manufacturing facility.

In the Food & Beverages segment, focused investments in beverages, dairy, and snacks led several factories to achieve their highest-ever production levels ahead of the summer season. The company is entering Greek yoghurt manufacturing and expanding bottled water capacity in Aurangabad and South India. A greenfield facility for bottled water and juices is also under development.

The Footwear business crossed an annual turnover milestone of ₹500 crore, despite facing headwinds from geopolitical volatility and rising petrochemical prices. Meanwhile, the Healthcare division added new customers following successful regulatory audits and is constructing a new Ayurvedic wellness manufacturing facility in Baddi.

Financial metrics overview

Note: FY25 absolute figures for Revenue and EBITDA were not explicitly disclosed in the source text, only percentage changes.

What the numbers show

A key indicator of operational discipline amidst aggressive expansion is the company's adjusted Return on Capital Employed (ROCE). Despite being in a peak investment phase, adjusted ROCE stood at 18.9% after normalising for recently commissioned and under-utilised assets. This figure remains above the company’s internal minimum threshold of 18% for new projects, suggesting that capital allocation strategies are effectively balancing growth investments with profitability requirements. Additionally, the divergence between the 17% revenue growth and the 29% PAT growth indicates improved operating leverage and margin resilience, likely aided by backward integration initiatives in the Ice Cream segment.

Balance sheet and outlook

The company maintained a well-managed balance sheet with a net debt-to-equity ratio of 0.84x and cash and cash equivalents of ₹90 crore at the end of FY26. However, higher working capital requirements impacted cash flow during the year, attributed partly to an inverted GST duty structure and strategic inventory building amid geopolitical uncertainty.

Looking ahead, Hindustan Foods maintains its guidance of ₹200–220 crore in Profit After Tax for FY27. This outlook reflects confidence in the robust project pipeline and the commissioning of new capacities, which are expected to drive further operating leverage.