HP Adhesives Limited has secured a Working Capital Term Loan of Rs 21.6 million from ICICI Bank Limited to bolster its financial resources. The credit facility, approved by the board on July 13, 2026, carries an interest rate of 9% per annum and a total tenure of 5 years. This financing includes a 1-year moratorium on principal payments, providing immediate liquidity relief to the company.

The board meeting, convened under Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, commenced at 04:00 p.m. and concluded at 04:30 p.m. The approval of the loan facility was a key agenda item during the session.

Loan Details

The specifics of the approved Working Capital Term Loan are outlined below:

The company stated that this information has been uploaded to its official website under the Investor relations section. Swati Talgaonkar, Company Secretary, signed the regulatory filing submitted to the National Stock Exchange of India Ltd and BSE Limited.

HP Adhesives Limited reported a consolidated net loss of ₹237.27 lakh for the quarter ended March 31, 2026, a reversal from the profit of ₹358.97 lakh 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. The company recently clarified that it re-uploaded these audited financial results on the BSE portal on June 23, 2026, to address a visibility issue, confirming no changes were made to the original figures submitted on May 12, 2026.

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.