HP Adhesives Limited has announced the outcome of its board meeting held on February 12, 2026, revealing third-quarter financial performance alongside significant board restructuring and disclosure of a fire incident at its manufacturing facility.

Q3FY26 Financial Performance

The company reported mixed financial results for the quarter ended December 31, 2025, with consolidated operations showing resilience despite challenges:

For the nine-month period, consolidated revenue increased to ₹19,653.23 lakhs compared to ₹18,612.84 lakhs in the previous year, while PAT declined to ₹934.97 lakhs from ₹1,398.89 lakhs.

Board Restructuring and Director Changes

The board approved significant changes in its composition with immediate effect from February 12, 2026:

Dr Chandra Sekhar Nettem brings extensive experience as a Business Architect with deep expertise in the Building Materials Industry. His appointment is subject to shareholder approval through postal ballot.

Committee Restructuring

Following the board changes, three key committees have been reconstituted with Dr Nettem replacing Mr. Walavalkar:

Nomination & Remuneration Committee

Fire Incident and Operational Impact

The company disclosed a significant post-reporting period event involving a fire incident on January 17, 2026, at its Unit 1 manufacturing facility in Khopoli, Maharashtra. The incident resulted in damage to property, plant, equipment, and inventory, temporarily disrupting operations of the main Solvent Cement product category.

The company has initiated alternate production arrangements and insurance claim processes. As a non-adjusting event under Ind AS 10, no financial impact has been recognized in the current quarter results.

Exceptional Items and Regulatory Compliance

The quarter included exceptional items totaling ₹48.64 lakhs, comprising GST audit demands of ₹32.34 lakhs, CESTAT order payments of ₹6.58 lakhs, and Labour Code implementation impact of ₹42.06 lakhs related to revised gratuity liability calculations.

The board meeting, conducted through audio-visual means, commenced at 3:30 PM and concluded at 7:00 PM, with all decisions taken in compliance with SEBI Listing Regulations.

HP Adhesives Limited has announced that CARE Ratings Limited has reviewed and reaffirmed its credit ratings in a press release dated January 29, 2026. The company informed both the National Stock Exchange of India and BSE Limited about this development in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

CARE Ratings has maintained its assessment of HP Adhesives' creditworthiness with specific ratings for different facility types. The rating agency's review covered the company's banking arrangements and provided updated outlooks for its financial instruments.

The reaffirmed rating of CARE BBB for long-term facilities and CARE A3+ for short-term facilities comes with a Rating Watch Negative (RWN) outlook. This rating applies to bank facilities totaling ₹37.96 crore. Simultaneously, CARE Ratings has withdrawn its rating for long-term bank facilities that currently stand at zero amount.

Regulatory Compliance

The rating announcement was formally communicated to both major stock exchanges where HP Adhesives shares are listed. The company trades on the National Stock Exchange under the script ID HPAL and on BSE Limited with script code 543433.

Chairperson and Executive Director Anjana Haresh Motwani signed the regulatory filing on January 30, 2026. The company has also made this information available on its official website at www.hpadhesives.com , ensuring transparency for all stakeholders including investors and creditors.

Rating Watch Negative Implications

The Rating Watch Negative outlook indicates that CARE Ratings is monitoring certain factors that could potentially impact the company's credit profile. While the current ratings remain unchanged, the RWN status suggests the rating agency will closely observe HP Adhesives' performance and financial metrics in the near term.