Huhtamaki PPL , a leading flexible packaging manufacturer, has reported robust financial results for the third quarter, marking significant improvements in profitability despite a slight dip in revenue.

Financial Highlights

• Revenue stood at INR 6.00 billion, down 4.7% year-on-year but up 2.2% sequentially
• Profit before tax surged 3.5 times to INR 492.00 million compared to INR 143.00 million in the same quarter of the previous year
• EBITDA exceeded 10% for the first time in four to five years
• EBIT reached 8.6%, showing a steady increase over the past five quarters
• Net profit rose to INR 368.00 million, up from INR 117.00 million in the previous year

Operational Performance

The company achieved substantial margin improvements through a favorable sales mix and operational efficiency gains, despite lower volumes. Blueloop recyclable products, along with other recyclable offerings, contributed 27-30% of sales, indicating a strong focus on sustainability.

Financial Position

Huhtamaki PPL maintained a strong liquidity position with INR 1.00 billion in ECB debt. The company has deployed surplus cash in deposits and mutual funds, yielding over 6%, demonstrating prudent financial management.

Management Commentary

Dhananjay Salunkhe, Managing Director of Huhtamaki PPL, expressed satisfaction with the quarter's performance, stating, "This is one of the strongest quarters we've had in the last 12 to 13 quarters. Double-digit EBITDA has happened almost after four to five years, and we want to continue that momentum."

The management noted early signs of consumers upgrading to premium products following the GST rate cuts, which could potentially benefit the FMCG sector and, in turn, the packaging industry.

Future Outlook

The company remains optimistic about the impact of GST reforms on FMCG demand. Huhtamaki PPL is focusing on capturing the India growth story while maintaining its emphasis on sustainable and recyclable packaging solutions.

Management Changes

CFO Jagdish Agarwal announced his departure by the end of next month, marking a transition in the company's financial leadership.

Huhtamaki PPL's strong Q3 results reflect its strategic focus on operational efficiency, product mix optimization, and sustainability initiatives. As the company continues to navigate the evolving market landscape, its improved profitability and strategic positioning suggest a positive outlook for the coming quarters.

Huhtamaki PPL , a subsidiary of global packaging solutions provider Huhtamäki Oyj, has unveiled plans to boost its profit margins through a two-pronged approach: improving operational efficiency and introducing new premium packaging solutions. This strategic move comes as the company navigates a challenging market environment marked by lower sales volumes.

Financial Performance

In its recently released Q3 results, Huhtamaki India reported:

Despite the decrease in sales, the company has managed to significantly improve its profitability, with EBIT more than doubling compared to the same period last year.

Strategic Initiatives

Dhananjay Salunkhe, Managing Director of Huhtamaki India, commented on the company's performance: "During Q3 and the 9-month period ended Sep 2025, the revenues are almost range bound compared to corresponding periods of the previous year. However, in-spite of the slight dip in sales, the margins have improved significantly for both Q3 as well as the 9-month period vs the corresponding periods of last year."

The company attributes this improvement to:

1. Favorable sales mix
2. Cost efficiency programs across the value chain

Huhtamaki India plans to build on this success by:

• Enhancing margins through continued efficiency improvements
• Introducing new premium packaging solutions
• Focusing on long-term profitable growth initiatives

Sustainability Focus

As part of its Huhtamaki Strategy 2030, the company aims to position itself as the first choice in sustainable packaging solutions. This aligns with global trends towards environmentally friendly packaging options and may contribute to the company's premium product offerings.

Market Outlook

While Huhtamaki India faces challenges in terms of sales volume, its focus on operational efficiency and premium solutions suggests a strategic shift towards higher-value products. This approach may help the company navigate the current market environment and potentially capture more lucrative market segments.

The company's ability to improve profitability despite lower sales volumes indicates resilience and effective management of its cost structure. However, investors should monitor whether Huhtamaki India can sustain this margin improvement and successfully introduce premium packaging solutions to drive future growth.

As the packaging industry continues to evolve, with increasing emphasis on sustainability and innovation, Huhtamaki India's strategic initiatives position it to potentially capitalize on these trends. The coming quarters will be crucial in determining the effectiveness of the company's margin enhancement and product development strategies in driving long-term growth and profitability.