Hexagon Nutrition Limited – Investor Presentation Summary

Key Operational Highlights

  • Employees: 527+ permanent staff
  • R&D Centres: 2 (Nashik + Chennai) with 11-member team and 9 pipeline products
  • Distributors: 358 domestic + 20 international (as on YTD Dec 25)
  • Manufacturing Utilization: Nashik plant at 29.6% (dry), 5.4% (liquid), 49.7% (clinical); Chennai plant at 74.4% (dry), 37.2% (MNP); Thoothukudi plant at 34.3% (RUF) for 9M FY26
  • Certifications: FSSC 22000, ISO 9001, GMP, Halal across all plants

Key drivers of operational performance: Strong focus on customer requirement understanding and customized solutions, consistent R&D investment, modern technology equipment in labs.

Segment-wise Performance

  • Product portfolio spans B2C Clinical Nutrition (Pentasure brand), B2C Wellness Nutrition (Pediagold, Obesigo brands), B2B2C Premix Portfolio, and ESG Humanitarian products (RUTF, RUSF, MNP)
  • Manufacturing output mix: Dry premix (29.6%), Liquid premix (5.4%), Clinical nutrition (49.7%), RUF (34.3% for 9M FY26), MNP (22.7%)

Explanation of significant changes in segment performance: Growth driven by diversified product portfolio across therapeutic, wellness, and humanitarian nutrition segments with international approvals in 14+ countries.

Financial Highlights

  • Revenue: ₹3,826.28 million
  • EBITDA: ₹529.04 million
  • PAT: ₹379.37 million
  • EPS: Basic ₹3.43, Diluted ₹3.09
  • Margins: EBITDA Margin 13.8%, PAT Margin 9.9%
  • YoY comparison: Revenue growth from ₹3,249.29 million in FY25 to ₹3,826.28 million in FY26; PAT growth from ₹243.05 million to ₹379.37 million

Drivers of financial performance: Higher revenue growth, improved operational efficiencies, margin expansion across business segments.

Key Risks: Raw material price fluctuations (76% domestic, 24% imported sourcing), regional affordability gaps, misinformation challenges in nutrition market.

Geographical Revenue Split

  • Export markets: 80+ countries across 5 continents
  • Regional Breakdown: Southeast Asia (Malaysia, Indonesia, Philippines, Vietnam), Middle East (UAE, Qatar, Saudi Arabia, Oman, Jordan, Israel, Kuwait), Africa (Ethiopia, Rwanda, South Africa, Nigeria, Ghana, Kenya, Zimbabwe, Cameroon), Latin America (Brazil, Paraguay, Peru, Mexico, Colombia, Ecuador), Pacific (French Polynesia, Mauritius, Australia, New Zealand)

Balance Sheet Snapshot

  • Net Debt/Equity: 0.13x D/E Ratio
  • Reserves: Part of Other Equity ₹2,222.30 million
  • Current Assets: ₹2,413.81 million
  • Current Liabilities: ₹713.17 million
  • Working Capital/Leverage Metrics: Current Ratio 3.38x, Interest Coverage 13.65x, NWC Turnover 2.25x

Financial Health Insights: Strong cash flow generation with cash & equivalents ₹157.74 million, bank balances ₹21.55 million, improved liquidity position.

Capex & Cash Flow Health

  • Capital Expenditure: Reflected in Capital Work-in-Progress ₹25.32 million
  • Investment Rationale: Focus on capacity expansion across 4 plants in 3 countries, technology upgrades in R&D facilities.

Strategic & R&D Initiatives

  • Investments in Innovation: 2 R&D centres, 9 products in pipeline, continuous formulation upgrades, new category entry strategy
  • Expected impact on growth: Nuevo Pedia Gold premium under development, expanding product portfolio across therapeutic areas
  • Strategic Rationale: Expanding into high-growth markets through international distribution, reducing operational costs through efficiency improvements

Industry Trends & Business Environment

  • Macro/Industry Trends: India nutrition market growing at ~13% CAGR (CY23-CY30), clinical nutrition market at 12.1% CAGR (CY24-CY30P), rising health awareness, higher disposable incomes, supportive government policies
  • Impact on Company: Post-COVID demand surge for immunity products, rising UNICEF/WFP procurement addressing malnutrition, e-commerce growth enabling nutrition access, government fortification programs (POSHAN Abhiyaan, ICDS, PM Mid-Day Meal)

Management Commentary & Growth Outlook

  • Strategic Outlook: To be a globally recognized, research-driven nutrition company — the partner of choice for individuals, healthcare professionals, FMCG leaders, and humanitarian organizations seeking science-backed nutritional solutions
  • Growth Strategy: Five pillars including organic growth, new categories, global expansion, operational excellence, and strategic partnerships
  • Risks and Opportunities: Addressing India's malnutrition challenges (30% of global childhood stunting), leveraging UN-licensed MNP supplier status (one of 22 globally approved), expanding in high-growth international markets

ESG Updates

  • Social Impact: UN-licensed MNP supplier, addressing malnutrition in 80+ countries, aligned with SDG goals, contributing to UNICEF, WFP, government health ministries globally
  • CSR committee constituted for corporate social responsibility programmes