Hindustan Foods Limited convened its 41st Annual General Meeting on September 23, 2026, where members considered a proposal to increase the company's borrowing power to ₹1,300 crore.

The meeting was conducted via Video Conference and Other Audio-Visual Means. The agenda included the adoption of audited standalone and consolidated financial statements for FY26, alongside the re-appointment of director Shrinivas Dempo, who retired by rotation.

Key resolutions put to vote

The Board of Directors proposed several ordinary and special resolutions for member approval. The most significant financial item involved authorizing the Board to borrow amounts exceeding the company's paid-up share capital, free reserves, and securities premium.

Attendance and voting details

The company reported that 59,245 shareholders were registered as of the cut-off date, September 16, 2026. A total of 60 participants attended the virtual meeting, comprising 10 from the promoter and promoter group and 50 public shareholders.

• Promoter Group: 7 via Video Conferencing, 3 through authorized representatives.
• Public Shareholders: 45 via Video Conferencing, 5 through authorized representatives.
• Proxies: No proxies were recorded for either category.

Remote e-voting commenced on September 20, 2026, and concluded on September 22, 2026, with additional voting facilities available during the AGM itself. The scrutinizer appointed for the process was Amit Surase, a practising company secretary.

Auditor and governance updates

The Chairman noted that the statutory auditors, M S K A & Associates LLP, and the secretarial auditor had not reported any qualifications or adverse remarks in their reports for the financial year ended March 31, 2026. The auditors' reports were taken as read with the consent of the members present.

What the Numbers Show

The proposal to raise the borrowing ceiling to ₹1,300 crore under Section 180(1)(c) of the Companies Act, 2013, indicates a strategic intent to scale debt capacity beyond current equity and reserve limits. This move is paired with a special resolution to authorize charges on movable and immovable assets, suggesting that future borrowings may be secured against the company's asset base.

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.