HP Adhesives Limited reported a consolidated net loss of ₹237.27 lakh for the quarter ended March 31, 2026, a significant reversal from the profit of ₹358.97 lakh recorded in the corresponding period of the previous year. The decline was primarily driven by exceptional items, including an estimated loss of ₹2,498.50 lakh recognized following a fire incident at the company's Unit I manufacturing plant in Raigad, Maharashtra. For the full year ended March 31, 2026, the company reported a net profit of ₹697.70 lakh, a decrease from ₹1,824.36 lakh in the prior year.

Consolidated Financial Performance

Revenue from operations for the quarter stood at ₹5,782.07 lakh, down from ₹6,616.22 lakh in Q4FY25. Total income for the quarter decreased to ₹5,855.09 lakh from ₹6,769.28 lakh in the same period last year. For the full year, revenue from operations was ₹24,927.52 lakh, slightly lower than the ₹24,979.33 lakh reported in FY25.

Total expenses for the quarter rose to ₹6,378.70 lakh from ₹6,290.36 lakh in the previous year. The company reported a loss before exceptional items and tax of ₹523.61 lakh for the quarter. Exceptional items for the year totaled ₹80.98 lakh, which included costs related to GST demands, Labour Code impacts, and the fire incident.

Exceptional Items and Key Events

The financial results were impacted by several exceptional items. A fire incident on January 17, 2026, at the Unit I plant resulted in damage to property, plant, equipment, and inventory. The company has recognized an estimated loss of ₹2,498.50 lakh under exceptional items, with a corresponding insurance claim receivable recognized as an other current financial asset. The final settlement of insurance claims remains pending.

Additionally, the company faced a GST audit demand of ₹311.01 lakh for the period FY 2019-20 to 2023-24, of which ₹32.34 lakh was paid and reported as an exceptional item. The company also recorded an incremental impact of ₹42.06 lakh related to the gratuity liability assessment under the new Labour Codes notified in November 2025.

Standalone Results and Assets

On a standalone basis, the company reported a net loss of ₹238.75 lakh for Q4FY26 compared to a net profit of ₹411.81 lakh in Q4FY25. For the full year, standalone net profit was ₹688.22 lakh, down from ₹1,824.36 lakh in the previous year. Total assets as of March 31, 2026, stood at ₹23,154.06 lakh, compared to ₹22,751.87 lakh in the previous year.

The Board of Directors approved the audited consolidated and standalone financial results at their meeting held on May 12, 2026. The statutory auditor, Priya Choudhary & Associates LLP, provided an unqualified opinion on the financial results, noting the uncertainty regarding the final insurance claim settlement for the fire incident.

HP Adhesives held its Board of Directors meeting on May 12, 2026, approving the audited standalone and consolidated financial results for the quarter and financial year ended March 31, 2026. The board recommended a final dividend of ₹0.40 per fully paid-up equity share of ₹2 each for FY2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The statutory auditors, M/s Priya Choudhary & Associates LLP, issued an unmodified audit opinion on the financial results. Subsequently, on May 13, 2026, the company filed a corrigendum to the notes to its standalone and consolidated financial results, correcting a survey number in the fire incident disclosure from "Survey no. 7/18" to "Survey no. 7/14." The audited financial results were published in Active Times (English) and Pratakhkal (Marathi) on May 14, 2026, pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Consolidated Financial Performance

HP Adhesives reported a consolidated revenue from operations of ₹24,927.52 lakh for the year ended March 31, 2026, compared to ₹24,979.33 lakh in the previous year. Total income stood at ₹25,287.24 lakh versus ₹25,436.95 lakh. The company posted a consolidated profit after tax (PAT) of ₹697.70 lakh for the full year, a significant decline from ₹1,824.36 lakh in the prior year. For the quarter ended March 31, 2026, the company reported a consolidated net loss of ₹237.27 lakh, compared to a profit of ₹358.97 lakh in the same quarter of the previous year. The following table summarises the key consolidated financial metrics:

Standalone Financial Performance

On a standalone basis, HP Adhesives reported revenue from operations of ₹24,866.85 lakh for FY26, compared to ₹24,819.63 lakh in the prior year. Total income was ₹25,210.46 lakh versus ₹25,267.86 lakh. Standalone PAT for the full year stood at ₹688.22 lakh, down from ₹1,784.03 lakh in the previous year. For Q4 FY26, the standalone net loss was ₹238.75 lakh against a profit of ₹411.81 lakh in Q4 FY25. The table below presents key standalone financial metrics:

Balance Sheet Highlights

On a consolidated basis, total assets stood at ₹23,211.35 lakh as at March 31, 2026, compared to ₹22,807.52 lakh in the prior year. Total equity increased to ₹18,774.54 lakh from ₹18,427.97 lakh. Current assets were ₹15,413.96 lakh versus ₹14,753.17 lakh, while total current liabilities stood at ₹4,308.56 lakh against ₹4,134.57 lakh. On a standalone basis, total assets were ₹23,154.06 lakh as at March 31, 2026, with total equity at ₹18,724.73 lakh. The key balance sheet figures are summarised below:

Cash Flow Summary

On a consolidated basis, net cash flows from operating activities after exceptional items stood at ₹707.97 lakh for the year ended March 31, 2026, compared to ₹1,712.95 lakh in the prior year. Net cash used in investing activities was ₹154.56 lakh, while net cash used in financing activities was ₹778.18 lakh. Cash and cash equivalents at the end of the year stood at ₹88.97 lakh, down from ₹313.73 lakh at the beginning of the year. On a standalone basis, net cash flows from operating activities after exceptional items were ₹717.63 lakh, with closing cash and cash equivalents of ₹79.84 lakh.

Fire Incident and Exceptional Items

A fire incident on January 17, 2026, at the company's manufacturing Plant Unit-I located at Survey No. 7/14, Village Narangi, Taluka Khalapur, District Raigad, Maharashtra, resulted in damage to property, plant and equipment, inventory, and interruption of operations. The company has preliminarily recognised an estimated loss of INR 2,498.50 lakh under Exceptional Items, with a corresponding insurance claim receivable disclosed under Other Current Financial Assets. The company has insurance coverage for reinstatement value of damaged assets and loss of profit due to business interruption; the survey and loss assessment by the insurance company are ongoing, and the final outcome may differ from the amount currently recognised. Additionally, exceptional items for the year included ₹32.34 lakh paid towards a GST audit demand and ₹6.58 lakh paid pursuant to a final order by the Hon'ble CESTAT, Mumbai. The company also recognised an incremental gratuity liability impact of ₹42.06 lakh arising from the Government of India's notification of four Labour Codes on November 21, 2025.

Corrigendum to Fire Incident Note

On May 13, 2026, HP Adhesives filed a corrigendum to Note no. 5(d) of its standalone and consolidated financial results for the quarter and year ended March 31, 2026. The corrigendum clarifies that the survey number of the fire-affected plant was inadvertently mentioned as "Survey no. 7/18" in the original filing dated May 12, 2026, and should correctly read as "Survey no. 7/14." The corrigendum forms an integral part of the notes to the financial results and is to be read in conjunction with the financial statements.

IPO Proceeds Utilisation

HP Adhesives completed its Initial Public Offering during the year ended March 31, 2022. As at March 31, 2026, the company has fully utilised the net IPO proceeds of ₹9,669.12 lakh across all stated objects. The utilisation details are as follows:

A balance of ₹0.18 lakh is lying in the monitoring agency account and ₹463.85 lakh in fixed deposits as on March 31, 2026, representing surplus funds.