HP Adhesives Limited has announced its financial results for the third quarter ended December 31, 2025, alongside significant board restructuring and disclosure of a recent fire incident at its manufacturing facility. The company submitted clarification letters to stock exchanges addressing procedural corrections and provided comprehensive details of board meeting outcomes.

Financial Performance Overview

The company's consolidated financial results for Q3FY26 demonstrate mixed performance compared to the previous year. Total income reached ₹6,629.66 lakhs for the quarter, while profit after tax stood at ₹162.22 lakhs.

For the nine months ended December 31, 2025, the company reported consolidated revenue from operations of ₹19,653.23 lakhs compared to ₹18,612.84 lakhs in the corresponding period of the previous year, representing a growth of 5.59%. However, profit after tax for the nine-month period was ₹934.97 lakhs against ₹1,398.89 lakhs in the previous year.

Board Restructuring and Leadership Changes

The company's board approved the appointment of Dr Chandra Sekhar Nettem as Additional Independent Director for a five-year term from February 12, 2026, to February 11, 2031, subject to shareholder approval. Dr Nettem brings extensive experience as a Business Architect and Advisor with deep expertise in the Building Materials Industry.

Simultaneously, Mr Ajeet Anant Walavalkar resigned from his position as Independent Director effective February 12, 2026, citing health conditions. His resignation also resulted in his cessation as member of the Nomination & Remuneration Committee, Stakeholder's Relationship Committee, and Corporate Social Responsibility Committee.

Committee Reconstitution

Following the board changes, the company reconstituted its key committees with Dr Nettem replacing Mr Walavalkar across all committee memberships. The Nomination & Remuneration Committee now comprises Mr Surendra Kumar Mehta as Chairman, with Mr Rajendra Kumar Jain and Dr Chandra Sekhar Nettem as members. Similar restructuring occurred for the Stakeholder's Relationship Committee and Corporate Social Responsibility Committee.

Fire Incident and Operational Impact

The company disclosed a significant fire incident that occurred on January 17, 2026, at its Plant-Unit-I located at Survey no. 7, Narangi Village, Khalapur, Khopoli, District Raigad, Maharashtra. The incident resulted in damage to property, plant and equipment, as well as inventory, while reporting no casualties or injuries.

The fire temporarily disrupted operations of the company's main product category of Solvent Cement. HP Adhesives has activated standby production facilities at adjoining buildings and implemented alternate production arrangements to minimize impact on production schedules and customer supplies. The company has initiated insurance claim procedures, with assessment subject to surveyor evaluation and policy terms.

Exceptional Items and Regulatory Matters

The company reported exceptional items totaling ₹48.64 lakhs for the quarter, primarily related to regulatory compliance costs. These include GST audit-related payments of ₹32.34 lakhs and CESTAT order compliance costs of ₹6.58 lakhs. Additionally, the implementation of new Labour Codes resulted in an incremental gratuity liability impact of ₹42.06 lakhs, reflecting regulatory-driven changes in wage definitions.

IPO Proceeds Utilization

The company provided an update on IPO proceeds utilization, showing near-complete deployment of the ₹9,669.12 lakhs raised. As of December 31, 2025, ₹9,655.23 lakhs have been utilized, leaving a balance of ₹13.89 lakhs primarily allocated for capital expenditure requirements. The unutilized funds remain invested in fixed deposits with scheduled commercial banks.

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.