Hindustan Foods Limited Reports Record Q3 FY26 Results with Strong FY27 Guidance
Hindustan Foods Limited reported record Q3 FY26 results with highest ever quarterly EBITDA of INR93 crores and PAT of INR36 crores. The company invested over INR750 crores in capex during FY26, maintaining strong financial discipline with 19% adjusted ROCE. Management provided optimistic FY27 guidance of INR200-220 crores PAT, representing 1.4x growth, driven by capacity ramp-up and operational leverage benefits.
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Hindustan Foods Limited delivered its strongest quarterly performance to date in Q3 FY26, marking a significant milestone in the company's growth trajectory. The diversified manufacturing platform demonstrated robust operational efficiency across multiple business segments during its earnings conference call held on February 11, 2026.
Record Financial Performance
The company achieved its highest ever quarterly EBITDA of INR93 crores and PAT of INR36 crores in Q3 FY26, even after accounting for onetime provisioning impact related to the New Labour Code implementation. This represents substantial growth momentum despite challenging FMCG sector conditions.
| Financial Metric: | Q3 FY26 | 9M FY26 | YoY Growth (9M) |
|---|---|---|---|
| Total Income: | INR1,000 crores | INR3,041 crores | 15% |
| EBITDA: | INR93 crores | INR266 crores | 17% |
| Profit Before Tax: | INR51 crores | INR140 crores | 31% |
| Profit After Tax: | INR36 crores | INR103 crores | 31% |
For the 9 months ended December FY26, total income reached INR3,041 crores with 15% year-on-year growth. EBITDA increased 17% year-on-year to INR266 crores, reflecting sustained operational efficiency across businesses.
Aggressive Capacity Expansion Strategy
During FY26, the company undertook cumulative capital expenditure of over INR750 crores, representing more than 60% of the opening gross block at the beginning of the year. This expansion was guided by disciplined capital allocation with all projects evaluated against an internal return threshold of 18% ROCE.
| Expansion Details: | Status |
|---|---|
| Total Capex FY26: | Over INR750 crores |
| Manufacturing Locations: | 41 locations across India |
| New Factory Space: | Over 5 lakh square feet |
| Annualized Adjusted ROCE: | 19% (as of December 2025) |
Multiple divisions including HPC and Food & Beverages delivered record production during the quarter. The ice cream and beverages divisions are fully prepared for the upcoming season commencing Q4 FY26, with capacity enhancements at Mysuru and Lucknow commercialized and ready for ramp-up.
Strong Financial Position and Future Outlook
The company maintains a robust balance sheet with cash and cash equivalents of INR151 crores as of December 31, 2025. Net debt to equity stands at a comfortable 0.77x, well within internal comfort thresholds. The financial discipline extends across both balance sheet management and P&L optimization in terms of return on capital employed.
| Financial Health Indicators: | December 2025 |
|---|---|
| Cash & Cash Equivalents: | INR151 crores |
| Net Debt to Equity: | 0.77x |
| Annualized Adjusted ROCE: | 19% |
| Internal ROCE Threshold: | 18% minimum |
Management provided confident guidance for FY27, projecting PAT in the range of INR200-220 crores, representing approximately 1.4x growth over FY26 expected levels. This guidance reflects progressive ramp-up and normalization of assets already commissioned or nearing commissioning, along with continued operating leverage benefits.
Operational Excellence and Project Execution
The company demonstrated exceptional project execution capabilities, completing all projects on time without cost overruns. Operations across all factories remained stable with multiple capacity enhancement projects progressing according to planned timelines.
Key operational highlights include:
- Capacity enhancements at Mysuru and Lucknow commercialized for upcoming season
- New capacities at Nashik and Panipat on track for seasonal production
- Brownfield detergent facility at Silvassa targeting Q1 FY27 commercialization
- Flavored yogurt facility at Goa ready by Q2 FY27
- New bottled water facility in West advancing for Q3 FY27 commercialization
Strategic Growth Initiatives
The Board has authorized a greenfield HPC (Home & Personal Care) project with an investment of INR50 crores as the first project of the new growth phase. The company is strengthening its organizational structure with business heads for various verticals and has established an international business division to capitalize on recent trade agreements with EU and US.
Recent GST rate reductions in categories like bottled water, ice cream, and foods are expected to drive meaningful consumption increases, creating new demand for the company's capacities. However, these changes also present duty inversion challenges that management is addressing through commercial model transitions with select customers.
Historical Stock Returns for Hindustan Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.85% | -2.73% | +0.75% | -4.39% | -4.82% | +33.31% |
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