Hindware Q2 FY27 Business Update Presentation

Date: 13th November, 2026

Growth, Market Share & Margin

FY27 Outlook: Targets mid-teen bathware revenue growth, with faucets in high-teens and sanitaryware in double-digits.
Growth Drivers: Weighted dealers, new products, and premiumization push.
Market Share & Premiumisation: Premium products constitute ~40% of mix in H1 FY27, targeting +~5% increase over next 18-24 months.
Queo super-premium brand targets ₹180-200 crore revenue in 5 years.
Gross Margin: Premium products have 2-3% higher gross margin than mass and mass premium segments.
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Channel & Tier Mix: Institutional sales contribute ~25% of sales (lower margin than general trade). Tier 2/3 cities contribute ~70% of sales. Brand stores contribute ~30% of general trade sales.
Margin Guidance: Q2 FY27 EBITDA at ~11% (H1 FY27 at ~11%). Targets +2-4% improvement over 18-24 months from FY26 base of ~11%.
Margin Levers: Operating leverage and manufacturing cost-outs.
Insourcing: Faucet in-house production at ~50%, sanitaryware at ~70%.

Costs, Balance Sheet & Operations

Raw Material & Pricing: Input cost inflation with brass prices up ~58% YoY (Q2 FY27 vs Q2 FY26). Faucets selling prices have risen progressively over last 1 year.
Working Capital: Working capital days improved from 100 (H1 FY26) to 83 (H1 FY27). Inventory days stable at 98 days. Debtors days improved from 60 to 45 days. Targeting 10-15% optimization over 18-24 months.
Debt & Deleveraging: Net bank debt (excluding inter-company loan) reduced from ₹277 crore (H1 FY26) to ₹192 crore (H1 FY27). No capacity expansion underway except debottlenecking and brand store investment. Targets ROCE of 16-18% over 18-24 months.
Capacity Utilisation: Sanitaryware plants at ~93%, faucets at ~89% (H1 FY27). Focus on manufacturing high volume & margin products in-house while outsourcing low margin products. Capex range: ~₹50 crore for FY27.

Growth, Roorkee & Capacity

Sales Outlook: Targets ~15% sales volume growth in FY27. Value growth may be impacted by resin and raw material volatility.
New Products: DWC, Fire Sprinkler, PTMT & Foam Core expected to contribute over the year.
Top 30 Distributors contribute ~53% of sales (Q2 FY27). Added 46 channel partners in Q2 FY27.
Roorkee Plant: Commercial production started from January 2026. Capacity utilization improvement will need further 2-3 quarters. Annual capacity: Roorkee 12,500 MT; Isnapur 66,000 MT. North market facing aggressive competition and pricing pressure.
Capacity Utilisation: Sales volume of 14,176 MT in Q2 FY27 with ~19% growth YoY. CPVC value mix at ~36% in Q2 FY27.
Path to Profitability: Focus on new value-added products, cost optimization, demand & distribution. Aim to raise CPVC mix (higher margin), improve capacity utilization, and benefit from pricing stability.

Margins, Costs & Balance Sheet

Margin Guidance: Q2 FY27 EBITDA at ~4% (H1 FY27 at ~3%). Targets 4-5% for FY27 through cost-optimization plans. CPVC & UPVC margins above blended average.
Raw Material & Pricing: PVC resin and currency volatility may impact FY27 margins.
Working Capital: Working capital days improved from 90 (H1 FY26) to 83 (H1 FY27). Inventory days improved from 87 to 61 days. Debtor days increased from 86 to 101 days. Targeting 10-15% optimization over 18-24 months.
Debt & Capex: Net bank debt (excluding inter-company loan) reduced from ₹446 crore (H1 FY26) to ₹420 crore (H1 FY27). Capex range: ~₹15 crore for FY27. Major capex program completed; earnings expected to reduce debt.

Growth, Margins & Turnaround

Sales Outlook: Core products include kitchen chimneys, hobs, cooktops, sinks. Targets 15-20% CAGR over next 2-3 years. Revenue target of ₹500+ crore in 2 years; ₹700-750 crore by FY30.
Go-to-Market: Scaling dealers + exclusive brand stores.
Margin Guidance: Robust gross margin of 35-40%. Growth narrative: Unencumbered growth with legacy overhang cleared by FY27. Margin trajectory: Targeting double-digit as scale builds up. Bottom-line growth expected to outpace top-line.
Path to Profitability: Exited high-loss categories. Focus on core kitchen + aggressive e-commerce. No new categories planned in near-term; focus on consolidation. FY27: Legacy costs gone → positive EBITDA swing.
Water-Heater Business: Hintastica Private Limited (HPL) became wholly owned subsidiary in Q1FY27. Now leaner, nearly debt-free entity leveraging asset light model.

Scheme, Inputs & Balance Sheet

Scheme of Arrangement Status: Certified true copy of the NCLT order received. Next steps: Filing with ROC and initiating listing process of HHIL Limited and Hindware Limited with BSE & NSE.
Input Costs & Sourcing: Asset-light model with ~75% domestic sourcing. Localization of BLDC motors and sensors to cut FX/freight risk. Confident on industry price pass-through.
Working Capital: Working capital days improved from 93 (H1 FY26) to 79 (H1 FY27). Inventory days improved from 93 to 85 days. Debtor days improved from 69 to 54 days.
Debt & Balance Sheet: Net bank debt stable at ₹24 crore (H1 FY26 and H1 FY27). Profile: Working capital only; no term loan. Capex: ~₹5 crore per year. HPL near debt-free post plant sale.

The presentation was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The presentation is available on the company website: www.hindwarehomes.com.