Hindware Home Innovation Ltd

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.

Scheme & Listing Status

• Composite Scheme to demerge Consumer Products into HHIL and merge with Hindware Limited.
• Appointed date 1 April 2025; BSE/NSE approvals obtained.
• NCLT sanction pending; unsecured creditors and equity approved the scheme on 7 March 2026.
• Post-implementation, Hindware Limited and HHIL Limited will be listed; Hindware Home Innovation will cease.

Governance & Board Changes

• Girdhari L. Sultania ceased as director on 5 Mar 2026; Ram Babu Kabra appointed 4 Mar 2026.
• Shashvat Somany to be appointed Additional Director from 1 July 2026; AGM approval required.
• Board comprises six directors; four Independent and two Non-Independent; Sandip Somany to be considered for reappointment.

Financial Highlights

• Standalone FY2025-26 revenue from operations: 31,702.29 lakh; standalone loss: 7,059 lakh.
• Consolidated FY2025-26 revenue about 251,028 lakh; consolidated loss approximately 39.3 crore.

Overview

• Standalone BRSR for Hindware Home Innovation Limited for FY2025-26.
• Core activities: kitchen appliances, air coolers, other household goods; retail discontinued.
• Exports contribute 0.20% of turnover; export revenue ₹61.17 lakh across 3 international markets.
• Reporting boundary is standalone unless specified; 18 national offices and operations across 28 states.

Key ESG Risks & Opportunities

• Emission reduction and energy management seen as opportunities with long-term cost savings.
• Human capital development through training boosts productivity and retention.
• Corporate governance improvements to support strategy execution and ethics.
• Product quality and safety initiatives protect revenue and customer trust.
• Waste management efforts reduce footprint and improve efficiency.
• Customer relationship management enhances brand leadership and satisfaction.
• Sustainable supply chain and transport can lower Scope 3 emissions.

Governance & Policy Highlights

• Board and Risk Management Committee oversee ESG; policies approved and implemented.
• Anti-bribery measures embedded in Vigil Mechanism/Whistle-blower policy across the group.
• ISO 9001:2015 quality management; no external assurance obtained.
• No penalties or adverse regulatory actions reported in FY2025-26.

Social Responsibility & Workforce

• Total employees: 471; permanent 260 (251 male, 9 female); others 211 (189 male, 22 female).
• Board female representation: 1 of 6; KMP female: 1 of 2.
• Permanent employee turnover: 21% total in FY2025-26.
• Well-being spend: 0.05% of total revenue; health/safety training 100% for BoD/KMP.
• Return-to-work after parental leave: 100% for permanent staff; overall 83% retention.
• Grievance channels implemented; confidential mechanisms for employees and workers.

Environmental Performance

• Total non-renewable electricity consumption: 481.68 GJ; energy intensity 1.59 GJ per crore turnover.
• No reported renewable energy share; LED and solar initiatives underway.
• Scope 2 emissions: 51.68 tCO2e; Scope 1 emissions not disclosed; intensity 0.17 tCO2e per crore turnover.
• Water withdrawal: 88 KL (third-party source); water intensity 0.254 KL per turnover; PPP-adjusted 5.262.
• Total waste generated: 128.33 MT; plastic 34.92 MT; non-hazardous 93.41 MT.
• Waste recycled: 128.33 MT; some waste landed (54.133 MT); ZLD not yet implemented.

Stakeholder Engagement & Complaints

• Key stakeholders: Board, employees, community, suppliers, investors, regulators, shareholders, and customers.
• Board engagements: quarterly; other groups engaged on a need basis.
• Shareholders filed 8 complaints in FY2025-26; 1 pending resolution.
• Customers filed 12,634 complaints in FY2025-26; 10 pending at year-end; majority resolved post-year-end.
• Value chain partners and investors have established channels for grievances and queries.

Other Notable Metrics

• 61% of inputs sourced from MSMEs; 36% from within India (FY2025-26).
• Sales to dealers/distributors: 61% of total dealer sales; 547 dealers; top 10 dealers account for 24%.
• No product recalls in FY2025-26; data privacy/cybersecurity policy in place; no breaches reported.
• Importer EPR license; aligned waste collection plans with EPR guidelines (collection infra, awareness, reporting).
• Affiliations with trade bodies: none; marketing and consumer channels include WeCare, helpline, and digital touchpoints.