Huhtamaki India Q1 CY26: Margin Up Despite Depreciation

Transcript filing and who spoke on the call

Huhtamaki India Limited filed the transcript of its Q1 CY26 earnings conference call with BSE Limited and the National Stock Exchange of India Ltd. under SEBI’s Listing Regulations. The call was held on May 13, 2026, and the transcript was submitted on May 18, 2026. ICICI Securities Limited hosted the call, and it was moderated by Mohit Mishra. Management representation included Kamal Taneja, Managing Director, and Amit Gupta, Chief Financial Officer. The company said the transcript is also available on its website. The filing was signed by Abhijaat Sinha, Company Secretary and Legal Counsel.

Q1 CY26 headline: stable sales, stronger operating profitability

Management described Q1 CY26 as a quarter of stable top-line performance paired with a notable improvement in profitability. Net sales were essentially flat year-on-year, rising by 10 basis points. The company attributed this to a “selective participation” strategy that focuses on higher-value and innovation-led business. At the same time, EBITDA rose meaningfully year-on-year. The quarter also included an accounting adjustment related to prior periods that affected reported EBIT and profit for the period. When that one-off is excluded, management highlighted stronger underlying EBIT and margin expansion.

Key financial metrics: what changed year-on-year

The company shared a set of headline numbers for Q1 CY26 compared with Q1 CY25, including reported and adjusted measures.

One-off depreciation correction: what management said

CFO Amit Gupta said reported EBIT was impacted by a one-off prior-period depreciation charge of ₹8.80 crore. The charge relates to FY 2024 and FY 2025. Management attributed it to an error where depreciation was calculated on the Written Down Value basis instead of the company’s stated Straight Line Method. Because the adjustment is linked to earlier periods, management presented operating performance both on a reported basis and excluding the prior-period impact. The company said that excluding the charge, EBIT margins improved sharply year-on-year.

Margin commentary: reported versus underlying trend

Management said the reported EBIT margin was 8.0% for the quarter, in line with Q4 of the prior year. It also stated this was about 170 basis points higher than Q1 of the prior year. The call commentary linked the margin movement to the company’s strategy and operating actions. Management also referred to sequential improvement in profitability over multiple quarters. In the transcript excerpts shared, the company described profitability as “consistently going up,” indicating a trend rather than a one-quarter spike. The quarter’s profit for the period was ₹25.60 crore, down 2.10% year-on-year due to the adjustment. Management added that excluding the prior-year charge, profit before such postings was up by around 23.10%.

Demand, mix and pass-through: what the company highlighted

Alongside the margin improvement, management described a demand environment that was “flat,” while cost measures supported profitability. The company also pointed to a favorable sales mix and operational efficiencies contributing to EBIT growth. In a separate summary block included with the transcript context, revenue from operations was stated at ₹613.10 crore, slightly lower than Q4 2025’s ₹622.52 crore. Profit before tax was shown at ₹35.04 crore, down from ₹40.98 crore in Q4 2025. Profit for the quarter was ₹25.60 crore, compared with ₹30.30 crore in Q4 2025. These quarter-on-quarter comparisons, presented alongside the call context, align with management’s description of a steady top line and improved operating efficiency.

Capacity, acquisitions and the Daman property sale

Management said capacity is not a constraint at present, and that room is available to support organic growth. On inorganic opportunities, the company indicated that acquisitions are not currently under active consideration. It said the near-term focus remains on strengthening operations and capturing organic demand aligned with the company’s value proposition. The call also disclosed that a property in Daman has been put up for sale following the curtailment of operations at that location. The company did not provide a sale timeline or valuation in the provided text. These disclosures matter because they help frame capital allocation and operational footprint decisions during a period when management is emphasizing profitability and mix.

ECB loan clarification and RBI compliance

Management addressed an ECB loan from the parent company. It clarified that the repayment timeline extending to June 2027 is in compliance with RBI guidelines. It also stated that the service cost is benchmarked to returns earned on fixed deposits maintained by the company. This explanation was provided as part of the broader call discussion on financial items. The company did not disclose the ECB principal amount in the provided text. The June 2027 timeline remains the key stated milestone.

Sustainability update: four pillars mentioned

Managing Director Kamal Taneja said the company made progress across four sustainability pillars during the quarter. The provided text does not list the pillars or detail specific initiatives. Still, management’s inclusion of the topic indicates sustainability remains a recurring reporting theme. With packaging as the core business, sustainability commentary is often closely followed by customers and investors. Any further detail would likely be in the full transcript or subsequent disclosures.

Upcoming results calendar and investor contact

Management confirmed the upcoming financial results schedule, setting clear dates for the next two milestones.

The company also stated that the filing is accessible via its investor relations contact at investor.communication@huhtamaki.com. This provides a formal channel for shareholders seeking additional context around the transcript and disclosures.

Stock-return snapshot and recent shareholder meeting context

A historical stock returns snapshot shared in the same context showed: 1 day +0.94%, 5 days -4.42%, 1 month -13.16%, 6 months -28.58%, 1 year -18.54%, and 5 years -36.88%. Separately, Huhtamaki India held its 76th AGM on May 8, 2026 via VC and OAVM, with the meeting running from 2:30 p.m. to 4:31 p.m. The company stated that all six resolutions were passed with requisite majority, and shareholders approved a dividend of Re. 2 per equity share (100%). It reported 36,550 shareholders registered as of May 1, 2026, and said 55 members attended through video conferencing. The AGM details, alongside the earnings-call filing, show an active disclosure cycle over May 2026.

Why the quarter matters: separating operating trend from one-offs

The call’s core takeaway is the contrast between flat net sales and a strong improvement in EBITDA and underlying EBIT. The prior-period depreciation correction was central to interpreting reported profit and EPS. Management’s emphasis on selective participation and mix suggests it is prioritizing profitability over chasing volume. The disclosures on capacity, a non-active stance on acquisitions, and the Daman property sale provide additional signals about near-term operational focus. Investors will likely track whether the operating margin strength holds as the company moves through CY26 reporting dates already confirmed. The next formal update is scheduled with Q2 and H1 2026 results on July 21, 2026.