HINDWAREAP - Hindware Home In

📊 NSE: HINDWAREAP 🏢 Trading 📅 Last Updated: 12/14/2025 7:45

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 was INR 2,526.84 Cr, a decline of 9.76% from INR 2,800.03 Cr in FY24. In Q2 FY26, revenue grew 7.3% YoY to INR 676 Cr. Segmental mix for Q2 FY26: Bathware (59% of revenue, grew 10.1% YoY), Plastic Pipes & Fittings (29%), and Consumer Products (12%).

Geographic Revenue Split

Not disclosed in available documents, though the company maintains a widespread national marketing and distribution network across India.

Profitability Margins

Consolidated PBT margin was 2% in Q2 FY26 (INR 14 Cr) compared to -2% in Q2 FY25 (INR -15 Cr). Standalone PAT for FY25 was a loss of INR 39.60 Cr compared to a loss of INR 35.99 Cr in FY24.

EBITDA Margin

Consolidated EBITDA margin improved to 9% in Q2 FY26 (INR 60 Cr) from 6% in Q2 FY25 (INR 40 Cr). The company targets a 1-2% EBITDA margin expansion in FY27 over FY26 levels through product rationalization and operating leverage.

Capital Expenditure

The company incurred significant debt for the INR 403 Cr acquisition of the BPD manufacturing division from AGI Greenpac Ltd. Current focus is on the upcoming Roorkee plant for Pipes and Fittings, expected to commence operations within 1-2 months of Q2 FY26.

Credit Rating & Borrowing

CARE Ratings monitors the company with a focus on improving net adjusted debt to PBILDT to below 3x. Total debt stood at INR 1,205 Cr as of March 31, 2024, including INR 403 Cr in term debt for acquisitions.

⚙️ Operational Drivers

Raw Materials

Key materials include PVC/CPVC resins for pipes (representing a significant portion of the 29% pipe segment revenue), ceramic raw materials, and glass for bathware and kitchen appliances.

Import Sources

Not specifically disclosed, but the company is monitoring anti-dumping duties on certain imports which suggests international sourcing for specific components or materials.

Key Suppliers

AGI Greenpac Ltd (supplied the BPD manufacturing division via acquisition). Other specific suppliers are not named.

Capacity Expansion

Pipes and Fittings segment currently operates at 65% capacity utilization. Expansion is focused on the Roorkee plant (CoD in 1-2 months) to strengthen the pipes segment and improve overall profitability.

Raw Material Costs

In the pipe segment, prices are currently operating at 6% below last year's levels due to market conditions. The company uses incentive schemes and margin trade-offs to maintain volumes during low demand periods.

Manufacturing Efficiency

Current pipe capacity utilization is 65%. The company is phasing out low-margin products (fans, coolers) to focus on high-margin categories like kitchen chimneys and water heaters to improve blended efficiency.

Logistics & Distribution

The company utilizes a widespread marketing and distribution network to weather industry downtrends and maintain market presence among leading players.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be driven by a 15-20% target in institutional bathware sales supported by a healthy order book, a 15% volume growth target in the pipe segment for H2 FY26, and the operationalization of the Roorkee plant. Strategic rationalization involves exiting loss-making categories (fans/coolers) to focus on high-growth kitchen appliances and water heaters.

Products & Services

Sanitaryware, faucets, plastic pipes, fittings, kitchen chimneys, water heaters, fans, and coolers.

Brand Portfolio

Hindware, Hindware Home Innovation.

New Products/Services

Focusing on high-demand categories like kitchen appliances and water heaters; specific new launch revenue contributions are not quantified but are expected to drive profitability in coming quarters.

Market Expansion

Expansion into the institutional B2B segment for bathware and increasing capacity in Northern India via the Roorkee plant.

Market Share & Ranking

Hindware is recognized as a leading player in sanitaryware, faucets, and kitchen appliances with a long track record.

Strategic Alliances

Joint venture performance resulted in a loss of INR 17.89 Cr in FY25 compared to a loss of INR 9.12 Cr in FY24.

🌍 External Factors

Industry Trends

The industry is currently in a subdued demand cycle with muted sentiment in mid/entry categories due to lower household savings. Future outlook depends on recovery in the real estate sector and the implementation of anti-dumping duties on imports.

Competitive Landscape

Competitors are achieving approximately 15% EBITDA margins, while Hindware is currently at 9% (Q2 FY26), aiming to close the gap through portfolio rationalization and scale.

Competitive Moat

Moat is built on the 40+ year 'Hindware' brand legacy, an extensive distribution network, and a diversified product portfolio across bathware and pipes. Sustainability is supported by experienced management and a broad-based professional board.

Macro Economic Sensitivity

High sensitivity to macroeconomic slowdowns, geopolitical tensions, and inflation spikes which dampen consumer demand for building and consumer products.

Consumer Behavior

Shift toward high-demand premium categories like kitchen chimneys and water heaters, while demand for entry-level products remains muted due to inflation.

Geopolitical Risks

Exposure to global market disturbances and geopolitical tensions that can lead to inflation spikes and interest-rate hikes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to domestic and international economic conditions, government regulations, and tax regimes. The company is currently anticipating the implementation of anti-dumping duties which may allow for price increases in the pipe segment.

Taxation Policy Impact

Consolidated tax expense for FY25 was a credit of INR 6.51 Cr due to losses, compared to an expense of INR 19.99 Cr in FY24.

Legal Contingencies

Statutory auditors reported no instances of fraud or qualifications in the financial statements for FY25. Secretarial audit for FY25 also contained no adverse remarks.

⚠️ Risk Analysis

Key Uncertainties

Difficulty in securing funds at favorable rates (Credit Profile Risk) and exposure to macroeconomic slowdowns (Market Risk) could impact operations by 10-15% if demand fails to recover.

Geographic Concentration Risk

Not disclosed, but the company operates across India with a widespread network.

Third Party Dependencies

Reliance on external consulting firms for evaluating internal financial controls and external suppliers for raw materials like PVC resins.

Technology Obsolescence Risk

The company uses SAP ERP for data integrity and management information to mitigate operational risks and ensure efficient information exchange across locations.