Hindustan Adhesives Reports 65% Drop in Q2 Profit Despite Stable Revenue

Hindustan Adhesives , a key player in the adhesives industry, has reported a significant decline in its quarterly profit despite maintaining stable revenue figures. The company's financial results for the second quarter ended September 30, 2025, reveal a complex picture of its performance.

Financial Highlights

Metric	Q2 FY2026	Q1 FY2026
Net Profit	652.00	1,869.00
Revenue	6,587.00	6,639.00

Metric	H1 FY2026	H1 FY2025
Half-Year Profit	1,022.00	1,539.00
Earnings Per Share (EPS)	12.73	20.06

All financial figures are in Rs. lakhs, except for EPS which is in Rs.

Quarterly Performance Analysis

Hindustan Adhesives experienced a sharp 65% decrease in net profit for Q2 FY2026, dropping to Rs. 652.00 lakhs from Rs. 1,869.00 lakhs in the previous quarter. This decline occurred despite the company maintaining a relatively stable revenue of Rs. 6,587.00 lakhs, compared to Rs. 6,639.00 lakhs in Q1 FY2026.

Half-Year Performance

The company's half-year results also reflect a downward trend:

Net profit for H1 FY2026 stood at Rs. 1,022.00 lakhs, a 33.6% decrease from Rs. 1,539.00 lakhs in H1 FY2025.
Earnings per share (EPS) declined to Rs. 12.73 in H1 FY2026 from Rs. 20.06 in the same period last year, marking a 36.5% reduction.

Financial Position

As of September 30, 2025, Hindustan Adhesives reported:

Total assets of Rs. 25,613.00 lakhs
Total equity of Rs. 10,220.00 lakhs
Current assets of Rs. 13,821.00 lakhs, including:
- Inventories of Rs. 6,043.00 lakhs
- Trade receivables of Rs. 3,533.00 lakhs

Cash Flow and Liquidity

The company's cash flow statement indicates:

Net cash from operating activities: Rs. 1,264.00 lakhs
Net cash used in investing activities: Rs. 840.00 lakhs
Net cash used in financing activities: Rs. 820.00 lakhs

Cash and cash equivalents at the end of the period stood at Rs. 224.00 lakhs, showing a decrease from Rs. 620.00 lakhs at the beginning of the year.

Conclusion

While Hindustan Adhesives has maintained stable revenue, the significant drop in quarterly profit suggests the company may be facing challenges in maintaining profitability. The decline in profit could be attributed to various factors such as increased operational costs or market pressures. Investors and stakeholders may seek further clarification from the company's management on the reasons behind the profit decline and strategies to improve performance in the coming quarters.

As the adhesives industry continues to evolve, Hindustan Adhesives' ability to navigate these challenges and improve its profit margins will be crucial for its future growth and market position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.92%	+3.44%	-3.37%	-8.79%	-27.20%	+209.13%

Hindustan Adhesives Limited, a company listed on the Bombay Stock Exchange (BSE: 514428), has announced the appointment of Mr. Amit Sharma as an Additional Director in the category of Non-Executive Independent Director. The appointment, which is subject to shareholder approval, is for a five-year term from September 4, 2025, to September 3, 2030.

Board Approval and Appointment Details

The Board of Directors of Hindustan Adhesives Limited, in a meeting held on September 4, 2025, approved Mr. Sharma's appointment based on the recommendation of the company's Nomination and Remuneration Committee. The board meeting, which commenced at 14:00 and concluded at 15:30, resulted in this significant decision for the company's governance structure.

About Amit Sharma

Mr. Amit Sharma, aged 44, brings a diverse educational background and professional expertise to his new role:

Aspect	Details
Educational Qualifications	B.Com degree and M.Sc. in Yoga
Areas of Expertise	Finance, Accounting, Taxation, Legal & Regulatory compliance
DIN (Director Identification Number)	11255297

Independence and Compliance

Hindustan Adhesives Limited has confirmed that Mr. Sharma meets the independence criteria as prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also verified that Mr. Sharma is not debarred from holding the office of director by virtue of any order passed by SEBI or any other such authority.

Additional Information

Mr. Sharma is not related to any existing directors of Hindustan Adhesives Limited.
The appointment is effective from September 4, 2025, subject to shareholder approval.
This information has been disclosed in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The appointment of Mr. Amit Sharma as an Independent Director is expected to bring fresh perspectives and expertise to Hindustan Adhesives Limited's board, potentially contributing to the company's governance and strategic direction in the coming years.