Company Overview

Hexagon Nutrition Limited is a differentiated, research-oriented pure-play nutrition company offering holistic nutrition products across the entire value chain. The company operates across three business segments: (1) Branded wellness nutrition products/clinical nutrition products (B2C Segment), (2) Premix formulations (B2B2C segment), and (3) Therapeutic Nutrition - Ready-to-Use Foods (RUFs) and Micronutrient Powders (MNPs) (ESG segment). With manufacturing facilities in Nashik, Chennai, Thoothukudi, and Uzbekistan, the company serves over 75 countries and is one of the largest premix players in India and a licensed supplier of MNPs under UN programmes.

Offer Details

The Initial Public Offering (IPO) comprises an Offer for Sale of up to 30,859,704 Equity Shares by promoter and promoter group selling shareholders at a face value of ₹1 each. The offer includes:

  • Selling Shareholders: Arun Purushottam Kelkar (1,536,477 shares), Subhash Purushottam Kelkar (24,188,993 shares), Nutan Subhash Kelkar (3,608,142 shares), and Aditya Kelkar (1,526,092 shares)
  • Price Band: To be determined through book building process
  • Offer Opening: June 5, 2026
  • Offer Closing: June 9, 2026
  • Expected Listing: Around June 12, 2026
  • Allocation: QIB (50%), Non-Institutional (15%), Retail (35%)

The company will not receive any proceeds from the offer as it is entirely an offer for sale.

Financial Performance

Hexagon Nutrition has demonstrated strong financial growth:

Revenue Growth:

  • 9M FY2026: ₹2,675.87 million
  • FY2025: ₹3,249.29 million (16.8% growth)
  • FY2024: ₹2,977.31 million (6.9% growth)
  • FY2023: ₹2,785.01 million

Profitability Improvement:

  • PAT 9M FY2026: ₹270.33 million
  • PAT FY2025: ₹243.77 million (99.6% growth)
  • PAT FY2024: ₹122.14 million (109.7% growth)
  • PAT FY2023: ₹58.24 million

Margin Expansion:

  • EBITDA Margin: 6.17% (FY23) → 8.36% (FY24) → 12.33% (FY25)
  • PAT Margin: 2.07% (FY23) → 4.01% (FY24) → 7.36% (FY25)

Business Segment Contribution (9M FY2026):

  • Premix formulations: 51.47% (₹1,377.26 million)
  • Branded wellness products: 30.34% (₹811.93 million)
  • Therapeutic nutrition: 17.93% (₹479.76 million)

Risk Factors

Business Risks:

  • Customer concentration with top 10 customers contributing 41.82% of revenue (9M FY2026)
  • Dependence on premix formulation segment for 51.47% of revenue
  • Raw material price volatility and supply chain disruptions
  • Manufacturing capacity utilization challenges (28.76% in 9M FY2026)
  • High attrition rate of Key Managerial Personnel (23.48% for 9M FY2026)

Market Risks:

  • Export dependence with 55.82% of revenue from international markets
  • Currency exchange rate fluctuations affecting competitiveness
  • Intense competition from players like Abbott, Nestlé, Zydus Wellness
  • Economic slowdown affecting consumer spending on nutrition products

Regulatory Risks:

  • Compliance with multiple regulatory frameworks (FSSAI, FDA, EU regulations)
  • Foreign investment restrictions under Press Note 3 for border-sharing countries
  • Tax litigation involving ₹27.53 million in direct taxes and ₹9.41 million in indirect taxes
  • Complex regulatory requirements for international market entry

Corporate Structure & Subsidiaries

The company has undergone significant restructuring through three schemes of amalgamation since 2015. Current subsidiaries include:

  • Hexagon Nutrition (International) Private Limited (India)
  • Hexagon Nutrition Healthcare Private Limited (India)
  • Hexagon Nutrition Proprietary Limited (South Africa)
  • Hexagon Nutrition Limited Liability Company (Uzbekistan)
  • Hexagon Nutrition China Limited (Hong Kong)

Hexagon Nutrition (Exports) Private Limited was amalgamated with the company effective April 1, 2025.

Industry Outlook

The Indian nutrition and wellness industry has grown from ₹1,183 billion in CY23 to ₹1,528 billion in CY25, projected to reach ₹2,814 billion by CY30. Growth is driven by rising health awareness, increasing disposable incomes, aging populations, government initiatives (POSHAN Abhiyaan), and increasing demand for functional foods and supplements.

Regulatory Approvals & Compliance

The offer has received:

  • SEBI final observation letter dated February 10, 2026
  • In-principle listing approvals from BSE and NSE dated December 12, 2025
  • Necessary approvals for schemes of amalgamation from NCLT and High Court of Bombay

The company maintains various quality certifications including FSSC 22000, GMP, ISO 9001:2015, Halal, KOSHER, and BRCGS certifications.

Management & Promoters

The Kelkar family are the main promoters with extensive experience in the nutrition industry:

  • Arun Purushottam Kelkar: Chairman & Executive Director
  • Subhash Purushottam Kelkar: Executive Director
  • Vikram Arun Kelkar: Managing Director
  • Nikhil Arun Kelkar: Joint Managing Director
  • Aditya Kelkar: Non-Executive Director

Pre-IPO promoter shareholding stands at 79.10% with post-offer dilution to be determined based on final allotment.