Hindware Bathware Q2 sales rise 11%, margin slips to 11%

Hindware Home Innovation Limited’s Bathware business reported Q2 FY27 revenue of Rs 440 crore, about 11% above Rs 397 crore a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin slipped to 11% from 12% in Q1 FY27. EBITDA increased to Rs 47 crore from Rs 43 crore in Q2 FY26.

How did Hindware Bathware perform in Q2 FY27?

Hindware Bathware recorded revenue of Rs 440 crore in Q2 FY27, compared with Rs 397 crore in Q2 FY26 and Rs 387 crore in Q1 FY27. Management described the year-on-year increase as about 11% despite industry headwinds and rising input costs. Revenue was Rs 53 crore higher than the preceding quarter.

Retail was Hindware Bathware’s primary revenue contributor in Q2 FY27, while institutional and project sales represented about 25% of revenue. Management said both channels grew during the quarter. The presentation lists a network of more than 500 brand stores, more than 500 distributors and more than 35,000 retailers.

The quarterly comparison shows EBITDA rose by Rs 4 crore year on year and by Rs 1 crore sequentially, against revenue increases of Rs 43 crore and Rs 53 crore, respectively. Hindware Bathware reports EBITDA, earnings before interest and tax (EBIT), and profit before tax (PBT) inclusive of other income.

Why did Hindware Bathware’s EBITDA margin fall to 11%?

Hindware Bathware’s EBITDA margin was 11% in Q2 FY27, unchanged from Q2 FY26 but 1 percentage point below Q1 FY27’s 12%. EBITDA moved from Rs 46 crore in Q1 FY27 to Rs 47 crore in Q2 FY27, while revenue rose from Rs 387 crore to Rs 440 crore over the same period.

Management said Q2 FY27 EBITDA of Rs 47 crore was aided by better mix and operating leverage, while also citing industry headwinds and rising input costs. The presentation does not provide a numerical breakdown of material costs or product mix, so it does not quantify the drivers of the sequential 1-percentage-point margin movement.

EBIT was Rs 31 crore in Q2 FY27, compared with Rs 30 crore in Q1 FY27 and Rs 25 crore in Q2 FY26. EBIT margin was 7%, versus 8% in Q1 FY27 and 6% a year earlier. PBT reached Rs 22 crore at a 5% margin, compared with Rs 21 crore and 5% in Q1 FY27 and Rs 16 crore and 4% in Q2 FY26.

What did Hindware Bathware deliver in H1 FY27?

Hindware Bathware generated H1 FY27 revenue of Rs 828 crore, up from Rs 737 crore in H1 FY26. EBITDA increased to Rs 94 crore from Rs 86 crore, but EBITDA margin declined by 1 percentage point to 11% from 12%.

EBIT rose to Rs 60 crore in H1 FY27 from Rs 50 crore in H1 FY26, while EBIT margin remained 7% in both periods. PBT increased to Rs 43 crore from Rs 31 crore, and its margin improved to 5% from 4%. These management-reported earnings measures include other income.

The first-half comparison adds Rs 91 crore of revenue, Rs 8 crore of EBITDA, Rs 10 crore of EBIT and Rs 12 crore of PBT. The reported margin pattern differed by measure: EBITDA margin fell from 12% to 11%, EBIT margin held at 7%, and PBT margin rose from 4% to 5%.

How did Hindware Bathware’s working capital and debt change?

Hindware Bathware reduced net working capital to 83 days in Q2 FY27 from 100 days in Q2 FY26 and 87 days in Q1 FY27. The H1 FY27 figure was also 83 days, compared with 100 days in H1 FY26, representing a 17-day year-on-year reduction.

Net bank debt was Rs 192 crore in Q2 FY27, down from Rs 277 crore in Q2 FY26 and Rs 224 crore in Q1 FY27. On the stated basis, the debt reduction was Rs 85 crore year on year and Rs 32 crore sequentially. The measure excludes an inter-company loan from Hindware Home Innovation Limited to Hindware Limited.

What is Hindware Bathware targeting for FY27?

Hindware Bathware aims for mid-teen sales growth in FY27, according to management’s strategic outlook. Management linked that aim to improving market conditions and momentum across core categories and markets, without setting a specific revenue target. H1 FY27 revenue was Rs 828 crore.

The presentation lists sanitaryware capacity of 1.75 million pieces a year at Bahadurgarh, Haryana, and 2.1 million pieces at Bibinagar, Telangana. Kaharani, Rajasthan, has faucet capacity of 3.7 million pieces annually. The Q2 FY27 update also highlighted smart toilets, touch-free technology, designer basins, sensor flush plates and towel warmers.

Conclusion

Hindware Bathware combined Q2 FY27 revenue growth of about 11% with higher absolute EBITDA, EBIT and PBT, but its EBITDA margin moved from 12% in Q1 FY27 to 11%. The H1 FY27 figures similarly show revenue increasing by Rs 91 crore and EBITDA by Rs 8 crore, alongside a 1-percentage-point EBITDA-margin decline.

The next disclosure will indicate whether Hindware Bathware’s mid-teen FY27 sales-growth aim is supported by second-half demand and whether the better mix and operating leverage cited by management can offset rising input costs. Net working capital of 83 days and net bank debt of Rs 192 crore at Q2 FY27 provide additional reported measures to track.