Hindware Home Innovation Ltd

Hindware Home Innovation Ltd — Trading Window closed from 1 October 2026 till 48 hours after declaration of unaudited financial results for the quarter and half-year ending 30 September 2026

AGM Details

• Date and time: 18 August 2026 at 12:00 Noon; mode: VC/OAVM.
• Record date/cut-off for voting: 11 August 2026.

Key Resolutions and Outcomes

• Item 1 (Ord): Adopt audited standalone and consolidated financial statements; passed.
• Item 2 (Ord): Reappoint Sandip Somany as Director; passed.
• Item 3 (Ord): Appoint Shashvat Somany as Non-Executive Non-Independent Director; passed.
• Item 4 (Special): Remuneration by Commission to Directors other than MD/WTD; passed.
• Overall outcome: All resolutions passed; 3 ordinary and 1 special.

Director Changes

• Sandip Somany retires by rotation; reappointed as Director.
• Shashvat Somany appointed as Non-Executive Non-Independent Director.

AGM Details

• Held on 18 August 2026 at 12:00 IST via VC/OAVM.
• Meeting concluded at 1:05 PM IST.
• Remote e-voting window: 15–17 August 2026.
• Quorum present; meeting opened by Company Secretary.

Resolutions Put to Vote

• Ordinary: Adoption of standalone and consolidated financial statements and reports for FY2025-26.
• Ordinary: Re-appointment of Sandip Somany, retires by rotation.
• Ordinary: Appointment of Shashvat Somany as Non-Executive Non-Independent Director.
• Special: Approval of remuneration by way of Commission to Directors (excluding MD/WD).

Voting Status

• Final voting results to be announced and filed with exchanges within 2 working days.

Dividend

• No dividend proposed or declared at this AGM.

Directors & Appointments

• Sandip Somany to continue as director post-re-appointment; retires by rotation.
• Shashvat Somany appointed as Non-Executive Non-Independent Director.

Business Overview

• Core business covers bathroom fixtures, sanitaryware, faucets, CPVC/UPVC, and kitchen products.
• Strategic focus on premiumisation, brand investment, and weighted-dealer distribution growth.
• In-house manufacturing for high-margin items; low-margin volumes outsourced.
• Hindware Water Heater (HPL) became wholly owned; asset-light model emphasized.
• Scheme of Arrangement for HPL approved; NCLT process to follow; listing planned post-order.
• Channel mix: Institutional ~25%, Tier 2/3 ~70%, brand stores ~30% GT sales.
• Premium mix about 40% of sales in Q1 FY27.
• Target premium mix increase of ~5% over 18-24 months.

Key Operational Highlights

• Roorkee plant started commercial production January 2026; ramp-up 2-3 quarters.
• Roorkee capacity 12,500 MT; Isnapur 66,000 MT.
• Top 30 distributors account for ~58% of sales; 22 new distributors added in Q1 FY27.
• Capex plan ~₹50 crore for FY27 and debottlenecking at key plants.
• In-house focus for high-volume, high-margin products; outsourcing of low-margin volumes.
• Debt reduction: Net bank debt down to ₹224 cr (Q1 FY27) from ₹271 cr (Q1 FY26).
• Faucets in-house ~50%; sanitary ware ~70%.
• Margins: CPVC/UPVC margins above blended; ROCE target 16-18% in 18-24 months.
• Raw material pressures: Brass prices up ~40% YoY; faucets price hikes ~20%.
• PVC resin and currency volatility could affect margins; stabilisation expected to restore pricing discipline.
• New product additions: DWC, Fire Sprinkler, PTMT, Foam Core.
• GTM/distribution: 22 distributors added; top distributors and exclusive brand stores emphasis.

Financial Performance

• FY27 EBITDA guidance: ~3% in Q1 FY27; 4-5% for FY27 via cost optimisations.
• FY27 bathware revenue anticipated in mid-teens; faucet mix in high-teens; sanitaryware double-digit.
• HPL subsidiary: No debt, asset-light; listing plan after NCLT.
• Q1 FY27 capacity utilisation: Sanitaryware ~90%; Faucets ~85%.
• Q1 FY27 sales volume: 10,221 MT; ~28% YoY growth.
• Kitchen-focused revenue targets: ₹500+ cr in 2 years; ₹700-750 cr by FY30.
• Legacy costs removed; FY27 positive EBITDA swing.
• Gross margin 35-40%; margin trajectory to double-digit as scale builds.

Capital Structure & Liquidity

• Net bank debt Hindware Bathware down to ₹224 cr (Q1 FY27) from ₹271 cr (Q1 FY26).
• HPL net debt ₹18 cr (Q1 FY27) vs ₹25 cr (Q1 FY26); no term loan.
• Capex FY27 ~₹50 cr; major capex completed; earnings to reduce debt.
• HPL listing post-NCLT; listing with BSE/NSE after order.

Strategic Priorities & Outlook

• Cost optimisation and manufacturing cost-outs; in-house production of CPVC/UPVC.
• RoCE target 16-18% over 18-24 months.
• E-commerce focus; consolidate legacy costs; no new categories in near term.
• Distribution: 22 distributors added; top 30 distributors growth; exclusive brand stores.
• Revenue growth: Kitchen segment 15-20% CAGR over 2-3 years.
• North market pricing pressure; ramp-up expected with 2-3 quarters; premiumisation drive.
• Premiumization and weighted dealer growth to support margin expansion.

Risks & Mitigation

• Raw material price volatility: Brass up ~40% YoY; PVC resin volatility.
• Currency fluctuations; pricing pass-through expected to mitigate impact.
• North region pricing pressure affecting ramp-up; mitigated by debottlenecking and in-house production.
• Channel inventory volatility; addressed by lean inventory and asset-light model.

Governance & Leadership

• Scheme of Arrangement for HPL approved by shareholders and creditors in March 2026.
• NCLT proceedings underway; listing post-order with BSE/NSE.
• HPL became wholly owned subsidiary; asset-light model; 75% domestic sourcing.
• Sourcing: ~75% domestic; localise motors and sensors to cut FX risk.
• Capex for HPL: ~₹5 cr per year; near debt-free post plant sale.

Business Overview

• Bathware, Pipes & Fittings, and Consumer Appliances are Hindware's core businesses.
• Composite Scheme demerges Consumer Products into HHIL and amalgamates the remaining into Hindware Limited.
• Post-scheme, HHIL and Hindware Limited will be listed on BSE/NSE; Hindware Home Innovation to cease.
• Appointed date is 1 April 2025; approvals from BSE/NSE; NCLT sanction pending.

Operational Highlights

• Bathware Q1 FY27 sales ₹387 Cr; EBITDA ₹46 Cr, ~14% YoY growth.
• Pipes & Fittings: Roorkee plant ramp-up; Roorkee capacity 66,000+ MTPA; Sangareddy 78,500+ MTPA.
• Commercial production started at Roorkee on 30 January 2026.
• CPVC products were ~32% of value mix in Q1 FY27.
• Live brand campaign Designed for Sukoon strengthens premium positioning.
• 500+ distributors and 35,000+ dealers support broad market reach.
• Launched designer basins, faucets, and smart kitchen appliances.

Financial Performance

• Q1 FY27 revenue ~₹83 Cr, up 16% YoY.
• Bathware Q1 FY27 revenue ₹387 Cr; EBITDA ₹46 Cr.
• Target gross margin of 35-40%, with margins expanding to double-digit as scale grows.
• Revenue roadmap: cross ₹500 Cr in two years; ₹700-750 Cr by FY31.

Capital Structure & Liquidity

• Composite Scheme approved; demerger of Consumer Products into HHIL and amalgamation into Hindware Limited.
• Post-scheme, HHIL and Hindware Limited listed on BSE/NSE; Hindware Home Innovation to cease.
• Appointed date 1 April 2025; approvals from BSE/NSE; NCLT sanction pending.
• HPL becomes wholly owned subsidiary; asset-light model to drive scalable growth.

Strategic Outlook & Priorities

• Mid-teen revenue growth target for FY27, supported by improving market conditions.
• Expand distribution: 500+ distributors and 35,000+ dealers; exclusive brand stores.
• Portfolio expansion into high-value segments like DWC and foam-core pipes.
• Investments to expand geography and product portfolio; lean manufacturing.
• New product launches: designer basins, faucets, and smart appliances.
• Sustainability emphasis: energy efficiency, solar, and wastewater management.

Risks & Mitigation

• Currency volatility and PVC resin price; ramp-up challenges at Roorkee; pricing pressure.
• Mitigation: cost controls, product diversification, and broader distribution.

Governance & Leadership

• Board combines independent directors and seasoned executives with extensive sector experience.

Q1 FY27 consolidated highlights

• Consolidated revenue from operations: ₹625.25 crore in Q1 FY27.
• Consolidated total income: ₹628.98 crore; expenses: ₹622.47 crore.
• EBITDA from continuing operations: ₹53.85 crore for the quarter.
• Net consolidated PAT from continuing operations: ₹4.35 crore; basic/diluted EPS ₹0.52.
• Segment revenue: Building products ₹540.26cr, Consumer appliances ₹85.08cr; total ₹625.25cr.
• Segment pre-tax profit: Building products ₹23.56cr; Consumer appliances ₹0.34cr; Others ₹0.05cr.
• Hintastica Private Limited became subsidiary effective 4 June 2026; consolidated from that date.
• Exceptional items: standalone impairment ₹0.14cr; consolidated ₹0.83cr; high-loss category exit ₹44.28cr FY25-26.
• Scheme of Arrangement to demerge Consumer Products into HHIL approved; awaiting final NCLT sanction.
• Balance sheet: paid-up equity ₹16.73 crore; total assets ₹2,466.62 crore; total liabilities ₹1,687.50 crore.

Meeting Details

• Date: 12 August 2026; time and venue not disclosed.

Key Agenda Items

• Approval of unaudited standalone and consolidated results for Q1 ended 30 June 2026, with segment data.

Other Notes

• Other routine matters to be considered under the Chairman's consent.