Financial Performance Highlights

H1 FY27 Consolidated Results (Unaudited)

  • Total Income: Increased by 18% to ₹2,476 Crores from ₹2,098 Crores in H1 FY26
  • EBITDA: Increased by 26% to ₹222 Crores from ₹176 Crores in H1 FY26
  • PBT: Increased by 28% to ₹118 Crores from ₹92 Crores in H1 FY26
  • Adj. PAT: Increased by 30% to ₹89 Crores from ₹69 Crores in H1 FY26

Q2 FY27 Consolidated Results (Unaudited)

  • Total Income: Increased by 18% to ₹1,269 Crores from ₹1,076 Crores in Q2 FY26
  • EBITDA: Increased by 26% to ₹115 Crores from ₹92 Crores in Q2 FY26
  • PBT: Increased by 25% to ₹61 Crores from ₹49 Crores in Q2 FY26
  • Adj. PAT: Increased by 22% to ₹46 Crores from ₹38 Crores in Q2 FY26

Note: Q2 & H1 FY27 PAT figures exclude a one-time exceptional loss of ₹1.3 crore owing to deductible on insurance policy arising from floods at the Silvassa facility.

Management Commentary & Operational Updates

Managing Director's Perspective (Sameer R. Kothari)

The company delivered healthy growth despite geopolitical uncertainties and operational challenges. Operational challenges included approximately 1.5 months of disruption at Silvassa due to floods and delayed ramp-up of the newly commissioned Liquid Detergent facility. The footwear business has returned to profitability. The company is witnessing strong volume growth across end user markets with a robust demand environment. Leadership team has been strengthened with appointment of business heads across all divisions. With capacities ramping up and new projects coming on stream, the company is positioned for strong H2 FY27 and sustained earnings growth into FY28.

Executive Director's Operational Review (Ganesh Argekar)

Flooding at Silvassa premises led to around 1.5 months of disruption, with operations quickly restored. The floods delayed ramp-up of the liquid detergent plant at Silvassa, with normalization expected by end of Q3 FY27. Footwear business faced cost pressures in Q1 FY27 from higher raw material costs and revised wage rates. In Q2 FY27, the division completed execution of legacy fixed price orders and secured fresh orders at revised prices, returning to profitability. October 2026 recorded the division's highest-ever monthly turnover. Expansion projects including detergent bar plant at Lucknow, Greek yoghurt facility in Goa, and Ayurveda wellness plant at Baddi are running 1-2 months behind schedule due to delays in supply of critical imported equipment, with commercialization expected in early part of Q4 FY27.

Group CFO's Financial Review (Mayank Samdani)

Q2 FY27 delivered healthy underlying growth with adjusted PAT rising 22% YoY. H1 FY27 cash flow from operations stood at ₹58 crore, showing improvement from H2 FY26. This was driven by progress in moving select customer businesses from gross to net revenue recognition. Additional customers have agreed to move to net revenue recognition from Q4 FY27. The balance sheet remains strong providing financial flexibility. Q4 FY27 is expected to be the major contributor to the year's profitability driven by ramp-up of newly commissioned capacities and sustained improvement in the footwear division.

Guidance & Outlook

Management reaffirmed PAT guidance of ₹200-220 crore for FY27 and expects to close around ₹200 crores PAT for FY27. Q4 FY27 is expected to be the major profitability contributor. The company expects significantly stronger cash flows in H2 FY27, which will help fund growth projects.

Company Background

HFL was founded in 1984 and offers dedicated and shared manufacturing services to FMCG corporates. In 2013, Vanity Case India Private Limited (The Vanity Case Group of Companies) bought a controlling stake in HFL. The company has manufacturing competencies in Food & Beverages, Home Care, Fabric Care, Beauty & Personal Care, Wellness & OTC Pharma, Leather & Sports Footwear, and Household Insecticides.