Huhtamaki India Limited reported a robust financial performance for the second quarter of calendar year 2026 (Q2CY26), ending June 30, 2026, with net profit soaring 75.3% year-on-year to ₹437.3 crore. The growth was primarily driven by a 23.1% increase in net sales to ₹7,286.0 million, supported by a healthy mix of volume growth and pricing power that offset commodity cost pressures from the Middle East crisis. This strong operational execution resulted in expanded margins, positioning the company favorably in the flexible packaging sector.

The earnings conference call, held on July 27, 2026, at 3:30 PM IST, provided further insights into these results. Managing Director Kamal Taneja and Chief Financial Officer Amit Gupta highlighted that EBITDA rose 55.1% to ₹764.4 million, while EBIT jumped 71.8% to ₹621.6 million. These improvements reflect operational efficiencies and volume gains, although they were partially impacted by a one-time impairment charge. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

For the first half of 2026 (H1CY26), Huhtamaki India demonstrated consistent momentum. Net sales for the period reached ₹13,222.3 million, an 11.6% increase over H1CY25. Profit before tax (PBT) excluding exceptional items grew by 77.5% to ₹587.9 million in Q2CY26 alone. The company’s earnings per share (EPS), excluding exceptional items, stood at ₹5.79, up from ₹3.27 in the corresponding quarter last year.

Balance Sheet and Cash Flow Strength

Huhtamaki India maintains a pristine balance sheet with nil net debt. As of June 2026, the company held cash and cash equivalents of ₹2,706 million, along with ₹1,253 million invested in liquid mutual funds. Unutilized fund-based limits with banks stood at ₹4,272 million, providing ample liquidity headroom. The debt-to-equity ratio remained stable at 0.1, reflecting disciplined capital allocation.

Operating working capital increased to ₹4,643 million from ₹3,051 million in December 2025, mainly due to higher inventory levels and trade receivables. Despite this, operating cash generation remained strong, supported by higher profit before tax. Net investing activities generated a cash inflow of ₹1,853 million in H1CY26, indicating lower investment deployment compared to the previous year.

What the Numbers Show

The divergence between revenue growth (+23.1%) and EBITDA margin expansion (from 8.3% to 10.5%) indicates significant operating leverage. While commodity inflation posed challenges, the company’s ability to pass on costs through pricing, combined with volume growth, drove profitability higher than top-line growth. The nil net debt position allows Huhtamaki India to pursue strategic opportunities without financial strain, reinforcing its resilience against macroeconomic uncertainties.

Sustainability Initiatives

Beyond financial metrics, Huhtamaki India emphasized its sustainability commitments. The company reported a 40% reduction in the 12-month rolling year-to-date Total Recordable Incident Rate (TRIR). Solar captive generation at the Khopoli plant is expected in Q3CY26, enhancing renewable energy usage. Multiple plants, including Khopoli, Rudrapur, and Silvassa, continue to maintain Zero Liquid Discharge (ZLD) status, underscoring the firm’s focus on water conservation and environmental stewardship.

Huhtamaki has appointed Thomas Morin as President, Fiber Packaging and member of the Global Executive Team, effective September 1, 2026. He will report to President & CEO Ralf K. Wunderlich and will be based in Espoo, Finland. This leadership change is intended to strengthen the strategically important Fiber Packaging segment and drive profitable growth.

Morin succeeds Sara Engber, who was appointed President, North America, in March 2026. He joins Huhtamaki from TC Transcontinental, where he served as CEO and, prior to that, as President of the TC Transcontinental Packaging Division since 2019. He brings more than 25 years of global leadership experience in the packaging industry across North America, Asia-Pacific, Europe, the Middle East and Africa at TC Transcontinental, Amcor, Alcan and Pechiney.

Ralf K. Wunderlich, President & CEO of Huhtamaki, expressed confidence in the new appointment, citing Morin's extensive executive leadership experience and track record of delivering profitable growth. Wunderlich also thanked Sara Engber for successfully leading the Fiber Packaging segment and ensuring very strong performance.

"I am excited to join Huhtamaki and lead the Fiber Packaging segment at an important stage in its development," said Thomas Morin. He highlighted the increasing importance of fiber-based packaging in meeting evolving customer needs and noted Huhtamaki's strong position in this market.

Following the appointment, the members of Huhtamaki’s Global Executive Team include Ralf K. Wunderlich (Chair), President and CEO; Fredrik Davidsson, President, Foodservice Packaging; Sara Engber, President, North America; Thomas Geust, Chief Financial Officer; Axel Glade, President, Flexible Packaging; Katariina Kravi, Executive Vice President, Human Resources, Safety and Communications; Thomas Morin, President, Fiber Packaging (as of September 1, 2026); Riikka Tieaho, Executive Vice President, Sustainability, Corporate Affairs and Legal; and Changsheng Wu, Executive Vice President, Procurement.