hindustan foods has received a demand order from the Commercial Taxes Department, Tindivanam, Tamil Nadu, regarding an alleged wrongful claim of Input Tax Credit (ITC) for FY 2021-22. The order, dated May 27, 2026, and received on May 29, 2026, demands a total of Rs. 19,95,330, comprising tax, penalty, and interest. The company stated that the order does not have a material impact on its financials or operations and that it is in the process of contesting the demand.

Details of the Demand Order

The demand was issued under Rule 86A(a) and (c) of the CGST/SGST Act, 2017. The total amount of Rs. 19,95,330 includes a tax and penalty component of Rs. 14,05,996, alongside an interest charge of Rs. 5,89,354. The order specifically pertains to the alleged wrongful claim of ITC by the company during the specified financial year.

Company Response and Impact

Hindustan Foods Limited disclosed that there is no material impact on its financial, operational, or other activities as a result of this order. The management indicated that the company is actively pursuing the contestation of the order. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Hindustan Foods Limited delivered its highest ever annual profitability in FY26, with Profit After Tax (PAT) rising 29% year-on-year to INR149 crores. The company achieved record numbers across profitability parameters, including EBITDA and PBT, driven by healthy operating leverage and improved utilization levels. Total income for the fiscal year increased by 17% to INR4,264 crores, while EBITDA grew by 20% to INR377 crores. The company has provided a guidance for FY27 PAT in the range of INR200 crores to INR220 crores.

Financial Performance

For the quarter ended March 31, 2026 (Q4FY26), the company reported its strongest quarterly performance. Total income grew by 17% year-on-year to INR1,120 crores, while EBITDA increased by 28% to INR104 crores. Profit Before Tax (PBT) before exceptional items grew by 40% to INR58.2 crores, and PAT increased by 32% to INR41.5 crores.

Operational Highlights and Capex

FY26 marked the successful pivoting of the business to a broad-based manufacturing platform, supported by an ambitious capex goal of over INR700 crores. The company commissioned new facilities, including the Panipat plant in April 2026, and integrated acquisitions such as the Aurangabad Personal Care facility. New projects worth approximately INR150 crores have already been signed for FY27, including investments in beverages, Home and Personal Care (HPC), and ice cream capacities.

Balance Sheet and Outlook

Gross block, including capital work in progress, increased to INR1,800 crores as of March 2026. The company maintained a net debt to equity ratio of 0.84x, well within its internal comfort level of 1x. Adjusted Return on Capital Employed (ROCE) stood at 18.9%. Management remains confident in sustaining profitable growth and delivering the FY27 PAT guidance, backed by improving utilization across newly commissioned capacities and a healthy project pipeline.