Amrutanjan Health Care Ltd

Plant expansion

• Greenfield Telangana sanitary napkin plant commissioned; ₹150 crore investment, 10 acres, 1.4 lakh sq ft built-up.
• Fifth AHCL plant with two automated high-speed lines from Japan.

New launches and product mix

• Q4 FY26 launches include women's razors, men's razors, antiseptic plaster, ortho pain oil, nasal spray.
• New launches contributed 4% of AHCL sales in Q1 FY27.

Rent and exceptional item update

• Rent demand ₹974.67 lakhs paid on 1 Aug 2026; additional ₹202.75 lakhs provision booked.
• Previous year provision ₹760.50 lakhs; land possession handed over to Tamil Nadu government May 2018; one-time impact.

Operations and sales momentum

• Stockist up 7%, outlets up 17%, effective coverage up 8%, lines sold up 20% in Q1 FY27.
• Q1 FY27 net sales growth of 9.48%.

Outlook and commentary

• Outlook: double-digit revenue and operating profit growth; monetize Comfy Plant.
• War in West Asia pressures costs; price increases implemented to offset inflation.

Record date for final dividend

• Record date fixed as 11 September 2026 for payment of final dividend for FY 2025-26.

Key board decisions and disclosures

• Approved unaudited standalone results for quarter ended 30 June 2026, with Limited Review by BSR & Co. LLP.
• 89th AGM scheduled for 23 September 2026 via VC/OAVM.
• Record date for final dividend and voting eligibility fixed at 11 September 2026.
• Share transfer register closed from 12 to 23 September 2026.
• Segment rename: Women’s Hygiene to Women’s Hygiene & Personal Care.
• New Labour Codes: one-time employee benefits provision of INR 125.17 Lakhs recognised as exceptional item.
• Tamil Nadu lease rent revision: provision INR 760.50 Lakhs recognised; additional INR 202.75 Lakhs disclosed as exceptional item.
• Results filed with NSE and BSE and on company website.

Meeting Details

• Board meeting on 11 August 2026 to be held in Hyderabad.

Key Agenda Items

• Consider and approve unaudited financial results for quarter ended June 30, 2026 with Limited Review Report.

Other Notes

• Trading window closed from 1 July 2026 to 13 August 2026.

New sanitary napkin facility in Telangana

• New greenfield sanitary napkin facility commissioned at Seetharampur, Shabad Mandal, Rangareddy District, Telangana.
• Investment of ₹150 crore supports planned capacity of 700 million napkins annually.
• Facility spans 10 acres with 1.4 lakh sq ft built-up area and two automated lines from Japan.
• Planned annual capacity of 700 million napkins aligns with Comfy brand expansion.
• Facility located ~45 km from Hyderabad to leverage regional ecosystem and markets.
• Direct and indirect employment potential: 200 direct and 150 indirect jobs.
• Sustainability features include rainwater harvesting, STP, waste recycling, LED lighting; solar power planned.
• Fifth manufacturing plant in Amrutanjan's network.
• Telangana facility supports Make in India and strengthens feminine hygiene portfolio.

Rating action and overview

• Issuer rating assigned: CARE A; Stable by CARE Ratings Limited.
• Instrument rated: Issuer rating; no external debt outstanding.
• Outlook: Stable.
• Strengths include century-long track record and strong brand recall.
• Extensive distribution network supports wide geographic reach.
• Debt-free capital structure with comfortable liquidity.
• Healthy FY26 operating margin of 15.06%.
• Modest scale and product concentration in pain relief.
• Margins vulnerable to raw-material price volatility.
• Intense FMCG competition pressures profits.
• Liquidity metrics: accruals ₹64 cr; cash ₹33 cr; deposits ₹188 cr.
• Sanitary napkin plant commissioned June 2026; funded by internal accruals.
• In-house manufacturing for women's hygiene from June 2026; efficiency gains expected.
• Beverages/ORS market changes; export potential.
• Material change: New issuer rating assigned.

Risks and sensitivities

• Positive factors: scale grows beyond ₹1000 crore with margins maintained.
• Negative factors: revenue below ₹400 crore or gearing above 0.50x.
• Regulatory and commodity-price volatility could pressure margins.

Dematerialisation processing and listing

• Securities received for dematerialisation during quarter ended 30 June 2026 were confirmed to the depositories.
• Securities in the certificates have been listed on the stock exchanges where the earlier issued securities are listed.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification.
• Depository name substituted as registered owner in the register of members within the prescribed time limit.
• Certificate issued by Registrar and Share Transfer Agent Cameo Corporate Services Limited.

Business

• Amrutanjan Health Care sells pain management, women’s hygiene, congestion, and rehydration products.
• Key brands include Amrutanjan, Relief, Comfy, and Enerlyte/Electro+.

Operations

• FY26 growth was driven by Back Pain Roll On, Maha Strong, and Head Roll On.
• Comfy growth came from XL variants and value packs.
• New Q4 launches included razors, antiseptic plaster, ortho pain oil, and nasal spray.
• Sales infrastructure expanded: stockists up 9%, outlets up 12%, productive calls up 6%.

Financials

• FY26 net sales rose 11.23% to Rs 502.55 crore.
• FY26 PBT rose 12.87% to Rs 77.89 crore; PAT rose 13.10% to Rs 57.92 crore.
• Profit before exceptional items rose 25.47% to Rs 86.74 crore.
• Q4 FY26 net sales rose 10.60% to Rs 149.77 crore.
• Q4 FY26 PBT was Rs 21.02 crore and PAT was Rs 16.19 crore.
• FY26 ad spend fell to Rs 3.47 crore from Rs 5.89 crore.

Capital

• Exceptional items included Rs 76 million lease-rent provision and Rs 12.5 million labour code impact.
• Labour code changes increased gratuity and leave encashment costs by Rs 125.17 lakh.

Outlook

• Management expects demand to remain strong and plans to relaunch the Relief congestion brand.
• A new sanitary pad plant is scheduled to start production in May.
• COGS inflation from crude-linked supply chains may be partly offset by price increases.
• Digitisation is expected to reach about 85% after DMS and SAP TM implementation.

Governance

• The company disclosed the company secretary and compliance officer in the filing.