Hindware Home Innovation Limited – Investor Presentation Summary

Key Operational Highlights

  • Bathware business targeting mid-teen revenue growth in FY27, with faucets in high-teens and sanitaryware in double-digits.
  • Pipes & Fittings business targeting ~15% sales volume growth in FY27.
  • Consumer Appliances business targeting 15-20% CAGR over next 2-3 years, with ₹500+ crore revenue in 2 years and ₹700-750 crore by FY30.
  • Bathware capacity utilization: Sanitaryware ~90%, faucets ~85% in Q1 FY27.
  • Pipes sales volume: 10,221 MT in Q1 FY27 with ~28% growth YoY.
  • Key drivers: New product launches, premiumization strategy, weighted dealers expansion, and distribution deepening.

Segment-wise Performance

Bathware Segment:

  • Premium products constitute ~40% of mix in Q1 FY27, target to increase by ~5% over next 18-24 months.
  • Institutional sales contribute ~25% of total sales.
  • Tier 2/3 markets contribute ~70% of sales.
  • Brand stores contribute ~30% of general trade sales.

Pipes & Fittings Segment:

  • CPVC value mix: ~32% in Q1 FY27.
  • Top 30 distributors contribute ~58% of sales in Q1 FY27.
  • 22 new distributors added in Q1 FY27.

Consumer Appliances Segment:

  • Core focus on kitchen products: chimneys, hobs, cooktops, sinks.
  • Exited high-loss categories, now focusing on core kitchen and aggressive e-commerce.

Financial Highlights

Bathware Margins:

  • Q1 FY27 EBITDA: ~12%
  • Target: Improve by 2-4% over 18-24 months (from 11% in FY26)
  • Premium products have 2-3% higher gross margin than mass and mass premium

Pipes & Fittings Margins:

  • Q1 FY27 EBITDA: ~3%
  • FY27 Target: 4-5% through cost-optimization plans
  • CPVC & UPVC margins above blended average

Consumer Appliances Margins:

  • Gross margin: 35-40%
  • Target: Double-digit margins as scale builds up
  • Legacy costs gone, expecting positive EBITDA swing in FY27

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Bathware:

  • Net Bank debt: ₹271 crore (Q1 FY26) → ₹224 crore (Q1 FY27)
  • ROCE target: 16-18% over 18-24 months

Pipes & Fittings:

  • Net Bank debt: ₹421 crore (Q1 FY26) → ₹427 crore (Q1 FY27)

Consumer Appliances:

  • Net Bank debt: ₹25 crore (Q1 FY26) → ₹18 crore (Q1 FY27)
  • Working capital debt only; no term loan

Capex & Cash Flow Health

Bathware:

  • Capex range: ~₹50 crore (FY27)
  • Focus: Debottlenecking and investment in Brand Stores

Pipes & Fittings:

  • Capex range: ~₹15 crore (FY27)
  • Major capex program completed

Consumer Appliances:

  • Capex: ~₹5 crore per year
  • Asset-light business model

Strategic & R&D Initiatives

Bathware:

  • Insourcing: Faucet in-house ~50%, Sanitaryware ~70% (Q1 FY27)
  • Queo super-premium brand: ₹180-200 crore target in 5 years
  • "Designed for Sukoon" multimedia campaign live

Pipes & Fittings:

  • New products: DWC, Fire Sprinkler, PTMT & Foam Core to contribute over the year
  • Roorkee plant commercial production started January 2026, capacity utilization improvement expected in 2-3 quarters
  • Annual capacity: Roorkee 12,500 MT; Isnapur 66,000 MT

Consumer Appliances:

  • Hintastica Private Limited (HPL) became wholly owned subsidiary in Q1 FY27
  • Now leaner, nearly debt-free entity
  • Sourcing: ~75% domestic
  • Localizing BLDC motors and sensors to reduce FX/freight risk

Industry Trends & Business Environment

  • Bathware: Brass prices increased YoY by ~40% (Q1 FY27 vs Q1 FY26)
  • Pipes: PVC resin and raw material price volatility impacting market
  • North market witnessing aggressive competition and pricing pressure
  • Any stability in currency and resin prices expected to restore pricing discipline

Management Commentary & Growth Outlook

Bathware Outlook:

  • Reinforcing leadership via investment in brand and high growth in weighted dealers
  • Operating leverage and manufacturing cost-outs to drive margin improvement
  • Quarterly EBITDA may vary; annual EBITDA conveys balanced operational performance

Pipes & Fittings Outlook:

  • Volume + efficiency to lift RoCE
  • Stability of PVC resin will aid channel stocking and stabilize selling price
  • New value-added products, cost optimization, demand & distribution to improve profitability

Consumer Appliances Outlook:

  • Bottom-line growth to outpace top-line
  • Leveraging asset light model to scale
  • No new categories in near-term; focus on consolidation and deepening
  • Scheme of Arrangement: Shareholders & creditors approved (March 2026), NCLT proceedings underway

Working Capital Metrics

Bathware:

  • WC days: 95 (Q1 FY26) → 87 (Q1 FY27)
  • Inventory days: 92 → 97
  • Debtor days: 47 → 43
  • Target: 10-15% optimization over 18-24 months

Pipes & Fittings:

  • WC days: 86 (Q1 FY26) → 87 (Q1 FY27)
  • Inventory days: 95 → 70
  • Debtor days: 74 → 87
  • Target: 10-15% optimization over 18-24 months
  • Lean inventory to cushion from inventory volatility

Consumer Appliances:

  • WC days: 117 (Q1 FY26) → 77 (Q1 FY27)
  • Inventory days: 86 → 90
  • Debtor days: 72 → 55
  • Leaner SKUs + asset-light model