Hindware Home Innovation Limited: Navigating Growth with Strategic Clarity in Q2 FY26

Hindware Home Innovation Limited (HHIL), a prominent player in India's home improvement sector, has presented a nuanced performance for the second quarter and first half of the financial year 2026. The company reported a consolidated revenue of ₹676 crore for Q2 FY26 and ₹1,207 crore for H1 FY26. While the Bathware segment demonstrated robust growth and strategic advancements, the Pipes and Fittings business navigated a challenging market, and the Consumer Products division underwent significant portfolio rationalization aimed at enhancing profitability.

For Q2 FY26, the company's consolidated revenue stood at ₹676 crore, with an EBITDA of ₹60 crore and a Profit Before Tax (PBT) of ₹14 crore before exceptional items. The first half of the fiscal year saw consolidated revenue of ₹1,207 crore, an EBITDA of ₹118 crore, and a PBT of ₹24 crore before exceptional items. These figures reflect a period of strategic adjustments and focused execution across its diverse business segments.

Segmental Performance and Strategic Initiatives

The Bathware business, a cornerstone of HHIL's operations, delivered a strong performance, reporting a revenue of ₹397 crore for Q2 FY26 and ₹737 crore for H1 FY26. The segment achieved a 10.1% growth in Q2, meeting its objective of double-digit expansion. This growth was underpinned by a strategic focus on premiumization, with new ranges of premium faucets introduced, boasting higher average selling prices and stronger margins. The company also launched a new brand campaign, 'Designed for Sukoon', which has garnered positive responses from both consumers and trade partners. Management anticipates an early to mid-teen sales growth and an EBITDA of 13% to 14% for the Bathware segment in H2 FY26, with a further 1% to 2% improvement in EBITDA percentage expected in FY27.

In the Pipes and Fittings segment, the company reported a revenue of ₹196 crore for Q2 FY26 and ₹315 crore for H1 FY26. This segment faced a challenging market environment, primarily due to resin price fluctuations and subdued demand, which impacted margins. Despite these headwinds, the company is expanding its product portfolio with solutions like foam core pipes for underground drainage, double-wall corrugated (DWC) pipes, and polypropylene random (PPR) pipes and fittings. A significant development is the commencement of trial production at the new Roorkee facility in Uttarakhand, with commercial operations expected to begin in H2 FY26. This expansion aims to enhance capacity and serve the Northern India market more efficiently, with peak sales of around INR 20 crore per month projected by the end of the next financial year. The management has guided for approximately 15% volume growth and a 9% margin for the Pipes segment in H2 FY26.

The Consumer Products division, comprising Hindware Home Innovation Limited (HHIL), recorded a revenue of ₹84 crore for Q2 FY26 and ₹155 crore for H1 FY26. In a strategic move to enhance profitability, the Board approved the discontinuation of high loss-making product categories such as air coolers (outside the e-commerce channel), ceiling and other fans, air purifiers, water purifiers, and furniture fittings. The focus is now sharpened on core kitchen appliances like chimneys, hobs, and cooktops, as well as water heaters and e-commerce channel coolers. This rationalization is expected to drive growth and profitability, with the segment aiming for a run rate of INR 100 crore by Q4 FY26 and an EBITDA margin of 10% to 12% in the next financial year.

Financial Summary

Note: PBT figures are before exceptional items. Revenue figures are rounded for convenience.

Strategic Outlook and Operational Focus

The company's leadership emphasized a strong focus on improving return ratios through a combination of business consolidation, cost optimization, and driving growth in core segments. Sandeep Sikka, the Group CFO, indicated that the company expects to see significant improvements in margins by the end of FY27, driven by operating leverage and market support. The overall strategy involves accelerating growth by 1.25 to 1.5 times the market growth rate, particularly through weighted dealer focus, premiumization, and an improved product portfolio.

Debt management remains a key area, with the increase in debt primarily attributed to higher working capital requirements and investments in the new Roorkee plant. The company is actively working to reduce working capital days and directs a majority of its generated cash towards debt repayment. The management also highlighted anticipating an anti-dumping duty on PVC, which could stabilize raw material prices and improve the profitability of the Pipes segment.

Conclusion

Hindware Home Innovation Limited's Q2 FY26 performance reflects a company in transition, strategically re-aligning its portfolio and operations for sustained, profitable growth. The strong performance in Bathware, coupled with the decisive rationalization in Consumer Products and the capacity expansion in Pipes, demonstrates a clear roadmap. While market challenges persist, particularly in the Pipes segment, the management's proactive initiatives, focus on premiumization, and commitment to operational efficiency position the company to unlock stakeholder value and achieve its long-term objectives.