Huhtamaki India Q2 Sales Jump 23.1% to ₹723 Crore

Huhtamaki India Limited reported robust financial outcomes for the second quarter of fiscal year 2027, concluding on June 30, 2026. The company’s net sales surged by 23.1% year-on-year, reaching ₹723 crore, signaling one of its most potent quarterly showings.

Profit before tax (PBT) escalated by 77% to ₹559 crore, while earnings per share (EPS) also experienced a 77.3% rise. These gains were driven by a balanced contribution from pricing strategies, increased sales volume, and an optimized product mix, effectively navigating higher raw material costs stemming from Middle East geopolitical disruptions.

Margin Expansion and Market Context

• EBITDA margin: Expanded to 10.5% from 8.3% in the prior year.
• EBIT margin: Reached 8.5% from approximately 4.9%.

Managing Director Kamal Taneja and Chief Financial Officer Amit Gupta stated during the July 27, 2026, earnings call that the company successfully passed on commodity cost increases to customers through transparent indexing. They characterized the broader market as competitive yet robust, growing at 4–5%.

First Half FY27 Performance

For the first half of FY27, Huhtamaki India sustained its positive trajectory. Top-line growth stood at approximately 12%, with EBITDA margins maintained at 10.5%, representing a 2.2 percentage point increase year-on-year.

• H1 EPS: ₹9.18, reflecting a 36% increase.
• Volume growth: High single digits, with both domestic and export segments contributing.
• Exports: Constitute about 30% of sales volume, reaching Southeast Asia, Africa, Europe, and the Americas.

Customer inventory buildup, anticipating future price escalations, also supported current volumes during this period.

Financial Strength and Sustainability Initiatives

The company maintains a nil net debt position, backed by strong liquidity. Bank balances totaled ₹270 crore, supplemented by an additional ₹125 crore invested in liquid mutual funds, with unutilized fund-based limits at ₹427 crore.

Operating working capital increased due to strategic inventory buildup aimed at mitigating supply chain risks, and accounts receivable grew in line with higher sales, although days sales outstanding and days inventory outstanding remained stable. In sustainability, Huhtamaki India achieved a 40% reduction in its total incident rate year-to-date through behavioral safety programs.

A new solar captive power plant is scheduled to become operational in Q3, projected to supply nearly 50% of the Khopoli plant’s power, aligning with 2030 decarbonization targets. Water conservation efforts, including zero liquid discharge and rainwater harvesting, continue alongside innovation in recycled plastic packaging and lightweighting solutions like Blueloop mono-material.