Financial Performance Overview

Full Year FY26 (Consolidated)

  • Revenue: ₹2,510 crore (vs. ₹2,523 crore in FY25)
  • EBITDA: ₹233 crore (vs. ₹184 crore in FY25), up 27% YoY
  • EBITDA Margin: 9% (vs. 7% in FY25)
  • Profit Before Tax (before exceptional items): ₹45 crore (vs. negative ₹28 crore in FY25)

Q4 FY26 (Consolidated)

  • Revenue: ₹663 crore (vs. ₹699 crore in Q4 FY25)
  • EBITDA: ₹63 crore (vs. ₹51 crore in Q4 FY25), up 23% YoY
  • EBITDA Margin: 9% (vs. 7% in Q4 FY25)
  • Profit Before Tax (before exceptional items): ₹15 crore (vs. ₹2 crore in Q4 FY25)

Business Segment Performance

Bathware Business (FY26)

  • Revenue: ₹1,520 crore (vs. ₹1,384 crore in FY25), growth of 10% YoY
  • EBITDA: ₹157 crore (vs. ₹121 crore in FY25), growth of 30% YoY
  • EBITDA Margin: 10.3% (vs. 8.8% in FY25), improvement of 160 basis points
  • Profit Before Tax: ₹48 crore (vs. negative ₹1 crore in FY25)
  • PBT Margin: 3.2%
  • Capacity Utilization: Sanitaryware plants at 82%, Faucet plant at 89%
  • Working Capital Days: Improved from 103 days in FY25 to 89 days in FY26
  • Net Bank Debt: Reduced from ₹308 crore to ₹234 crore

Bathware Business (Q4 FY26)

  • Revenue: ₹397 crore (vs. ₹360 crore in Q4 FY25), growth of 10% YoY
  • EBITDA: ₹38 crore (vs. ₹31 crore in Q4 FY25), growth of 20% YoY
  • EBITDA Margin: 9.5% (vs. 8.7% in Q4 FY25)
  • Profit Before Tax: ₹11 crore (vs. ₹2 crore in Q4 FY25)
  • PBT Margin: 2.9%

Hindware Home Innovation Limited (Consumer Appliances)

  • Q4 FY26 Revenue: ₹80 crore with EBITDA of negative ₹7 crore
  • FY26 Revenue: ₹317 crore with negative EBITDA of ₹12 crore

Pipes Business (FY26)

  • Revenue: ₹673 crore
  • EBITDA: ₹41 crore
  • PBT Loss: ₹29 crore

Pipes Business (Q4 FY26)

  • Revenue: ₹186 crore
  • EBITDA: ₹10 crore
  • PBT Loss: ₹10 crore

Strategic Developments

The Board approved discontinuation of high loss-making product categories including air coolers (except through e-commerce), ceiling and other fans, air purifiers, water purifiers, and furniture fittings. This strategic portfolio rationalization is focused on exiting loss-making categories and sharpening focus on segments with stronger market positioning.

Operational Challenges

Bathware Business

  • Tiles business witnessed temporary supply disruptions due to fuel shortages faced by manufacturing partners
  • Impacted product availability and sales during Q4
  • Continued cost pressures in fuel, brass, and other key input materials driven by geopolitical developments and commodity volatility

Pipes Business

  • Sharp increase in PVC resin prices from approximately ₹68 per kg to ₹114 per kg by March 2026
  • Rapid escalation created short-term demand acceleration and pricing opportunities
  • Limited inventory availability during March impacted operating leverage and profitability
  • Supply constraints and cautious channel behavior due to extreme raw material volatility

Consumer Appliances

  • Operational challenges with input cost volatility and intermittent availability of key raw materials
  • Margin performance partially offset by continued cost inflation across key input materials

Capacity Expansion

The Roorkee plant for pipes business became operational towards the end of January 2026. The ramp-up is progressing as planned, with meaningful contribution anticipated in the second half of FY27 as utilization levels improve.

Price Increases Implemented

Faucets

  • 15% price increase mid-January 2026 due to brass price increase from ₹600 to ₹800
  • 3% price increase on 1st May 2026

Sanitaryware

  • 6% price increase on 1st February 2026
  • 7% price increase mid-April 2026 due to gas price increases

Growth Guidance and Outlook

Bathware Business FY27

  • Revenue growth guidance: 15-20%
  • Margin improvement target: 1-2% annually for next 2 years
  • Market share gains expected through focus on weighted dealers, Tier 2/3 distribution, premiumization, and influencer engagement

Consumer Appliances Business

  • Targeting 15-20% growth in FY27
  • Expecting positive profitability in Q1 FY27
  • Targeting 8-10% EBITDA margin within next 2 financial years (FY27-FY28)
  • Launching AI-enabled chimneys range and innovation across kitchen appliances and water heaters

Pipes Business

  • Volume growth guidance: 14-15% for FY27
  • April 2026 growth: 50% YoY
  • Year-to-date May 2026 growth: approximately 30%

Market Position and Strategy

Bathware Market Size

  • Sanitaryware: ₹7,000-8,000 crore
  • Faucets: ₹13,000-14,000 crore

Geographic Revenue Mix

  • Tier 1 cities: 35%
  • Tier 2 cities: 35%
  • Tier 3 cities: 30%

Strategic Focus Areas

  • Premiumization through three-brand strategy: Queo (premium), Hindware Italian Collection (mid-premium), Hindware (mass)
  • Focus on weighted dealers and increasing distribution in Tier 2/3 towns
  • New product introductions in high-margin categories: smart toilets, thermostats, differentiated design products
  • Digital marketing and consumer engagement with 1 lakh plumbers registered on app
  • Strengthening engagement with architects and interior designers

Financial Targets

  • Overall consolidated margin expansion target: 1.5-2% systematically for next 2 years
  • Net debt reduction target: 30-40% reduction over next 2 years from current ₹708 crore
  • Major debt repayment of ₹145-150 crore scheduled for current year

Demerger Update

The demerger process is progressing with:

  • Board approval received in March 2025
  • Stock exchange approval received in July 2025
  • Shareholders and unsecured creditors approved the scheme on 7th March 2026
  • Second motion application filed with NCLT Kolkata, order reserved
  • Expected timeline: 2-3 months for final court order, followed by 1-1.5 months for listing process

Exceptional Items

Q4 exceptional items include impairment of goodwill of ₹34-35 crore in joint venture Hintastica Private Limited, and losses from discontinued seasonal businesses. These are considered one-off items.