Huhtamaki India Limited has received a significant penalty notice from municipal authorities regarding property tax payments for its Bengaluru manufacturing facilities. The company disclosed this development under regulatory compliance requirements on February 23, 2026.

Penalty Details and Authority

The Chief Officer of Town Municipal Council, Jigani, Bengaluru issued the demand notice on February 20, 2026. The notice was personally handed over to the Bengaluru plants team by a visiting official and subsequently shared with the corporate office on February 23, 2026.

Nature of Violation

The municipal council has alleged delayed payment of property tax for an extended period spanning from 2014 to 2025. The demand notice requires the company to pay property tax, cess, and the imposed penalty for the alleged delays in tax payments related to its Bengaluru manufacturing plants.

Company's Response and Impact Assessment

Huhtamaki India has clarified that beyond the demanded penalty amount, there is no impact on the company's financial or operational activities. The company has indicated that it is currently reviewing and evaluating its legal options, including the right to challenge or appeal against the penalty order.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments.

Regulatory Compliance

The company fulfilled its disclosure obligations by informing both BSE Limited and National Stock Exchange of India about this development. Company Secretary and Legal Counsel Abhijaat Sinha signed the regulatory filing, emphasizing the company's commitment to maintaining proper corporate governance standards.

Huhtamaki India Limited has submitted the transcript of its earnings call for the fourth quarter and year ended December 31, 2025, to BSE Limited and National Stock Exchange of India. The submission was made on February 17, 2026, by Company Secretary & Legal Counsel Abhijaat Sinha, following the company's earlier notification about the earnings call held post announcement of audited financial results.

Regulatory Compliance and Documentation

The transcript submission was made pursuant to Regulation 30(6) read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company had earlier submitted the audio/video recording link of the earnings call on February 13, 2026.

Key Financial Highlights from Earnings Call

During the earnings call held on February 13, 2026, newly appointed Managing Director Kamal Taneja presented strong financial performance for 2025. The company achieved significant profit growth despite flat revenue performance.

Management Strategy and Outlook

Kamal Taneja, who joined as Managing Director on January 15, 2026, outlined three key strategic priorities for the company: profitable growth, capital discipline, and accountability. He emphasized that the company's strong profit performance resulted from strategic decisions to optimize product and customer mix, along with operational efficiency improvements.

The company maintained a strong liquidity position with INR 2.99 billion in bank balances and additional mutual fund investments, totaling approximately INR 4.80 billion in liquid assets. The only debt on books remains the External Commercial Borrowing (ECB) of INR 1.00 billion.

Sustainability and Operational Improvements

The company reported significant progress in sustainability metrics, including a 50% reduction in recordable incidents and lost time injuries. Three manufacturing sites - Khopoli, Rudrapur, and Silvassa - achieved zero liquid discharge status. A renewable electricity project is underway with energy generation expected in the second quarter of 2026.

Stock Exchange Information

The transcript is available on the company's website at www.flexibles.huhtamaki.in for stakeholder reference.