Hindustan Adhesives Limited has released its unaudited financial results for the third quarter and nine months ended December 31, 2025, showing mixed performance across key metrics. The results were reviewed by the audit committee and approved by the Board of Directors on February 14, 2026.

Financial Performance Overview

The company's quarterly performance reflects varied trends across different periods. Revenue from operations for Q3FY26 declined compared to the previous year, while profitability showed improvement.

Nine-Month Performance

For the nine-month period from April to December 2025, the company demonstrated stronger overall performance with significant revenue generation and profitability.

Strategic Investment and Corporate Developments

During Q3FY26, Hindustan Adhesives made a substantial investment in its wholly-owned subsidiary. The company invested ₹300 lakhs in 10,00,000 equity shares of Bagla Technopack Private Limited at ₹30 per share, including a premium of ₹20 per share. This investment was based on a valuation report from an independent valuer considering projected financial performance and relevant factors.

Operational Expenses and Cost Structure

The company's expense structure for Q3FY26 included cost of materials consumed at ₹35.21 crores, employee benefits expense of ₹5.88 crores, and finance costs of ₹1.72 crores. Total expenses for the quarter amounted to ₹59.80 crores compared to ₹67.79 crores in Q3FY25.

Regulatory Impact and Exceptional Items

The implementation of new labour codes effective from November 21, 2025, resulted in an exceptional item of ₹29 lakhs. This impact includes increased gratuity liability from past service costs and higher leave encashment liability. The company classified this as a non-recurring exceptional item due to the legislative nature of the change.

Tax Provisions and Comprehensive Income

For Q3FY26, the company's tax expenses totaled ₹2.28 crores, comprising current tax of ₹1.56 crores and deferred tax of ₹0.72 crores. Total comprehensive income for the quarter matched the net profit at ₹5.57 crores, with no other comprehensive income items reported.

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

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.