Huhtamaki India Q3 sales rise 23.7% as margins narrow

Huhtamaki India Limited reported Q3 2026 sales of Rs 748.1 crore, up 23.7% year on year, as volume growth and pricing offset raw-material inflation. However, earnings before interest and tax, or EBIT, before exceptional items stayed at Rs 52.1 crore, reducing the EBIT margin to 7% from 8.6%; a Rs 9.6 crore Baddi restructuring charge lowered reported profit by 19.1%.

Why did Huhtamaki India’s Q3 2026 sales increase?

Huhtamaki India’s Q3 2026 sales increased through a mix of volume growth and pricing that offset raw-material inflation. Sale of products and services rose to Rs 748.1 crore in the July-September 2026 quarter from Rs 604.9 crore in Q3 2025, producing the reported 23.7% year-on-year increase.

Management said it continued to manage geopolitical disruptions while maintaining uninterrupted supplies of materials and products to customers. The presentation does not separate the respective contributions of volume and pricing, but identifies both as drivers of the Rs 143.2 crore increase in quarterly sales.

The quarterly trend shows sales rising for a second consecutive quarter. Sales were Rs 593.6 crore in Q1 2026, Rs 728.6 crore in Q2 2026 and Rs 748.1 crore in Q3 2026, compared with Rs 599.1 crore in Q4 2025 and Rs 604.9 crore in Q3 2025.

Why did Huhtamaki India’s EBIT margin fall to 7%?

Huhtamaki India’s EBIT margin fell because EBIT before exceptional items was broadly unchanged despite substantially higher sales. EBIT before exceptional items was Rs 52.1 crore in Q3 2026 and Q3 2025, while the margin declined by 1.6 percentage points to 7% from 8.6%.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 1.2% to Rs 65.6 crore from Rs 64.9 crore. Its margin declined to 8.8% from 10.7%, and management described the quarter as one of stable profitability amid cost pressures.

The Q3 margin was also below the June-quarter level. EBIT was Rs 62.2 crore and margin was 8.5% in Q2 2026, versus Rs 52.1 crore and 7% in Q3 2026; Q1 2026 EBIT was Rs 38.6 crore with a 6.5% margin.

Finance cost was Rs 3.1 crore in Q3 2026, compared with Rs 2.9 crore a year earlier. Profit before tax excluding exceptional items was Rs 49 crore, close to Rs 49.2 crore in Q3 2025, separating the pre-exceptional-item comparison from the reported result.

How did the Baddi closure affect Huhtamaki India’s profit?

Huhtamaki India recognised a Rs 9.6 crore restructuring cost in Q3 2026 for the Baddi plant closure. Management said the charge was part of its PS Labels footprint-optimisation initiative, intended to improve operational efficiency, optimise costs and enhance long-term competitiveness.

Reported profit before tax fell to Rs 39.4 crore from Rs 49.2 crore, while profit for the period decreased to Rs 29.7 crore from Rs 36.8 crore. Management attributed the 19.1% fall in quarterly profit for the period to the impact of the Rs 9.6 crore restructuring cost.

Reported earnings per share were Rs 3.94 in Q3 2026, against Rs 4.87 in Q3 2025. Excluding the exceptional item, earnings per share were Rs 4.89 versus Rs 4.87, while reported profit before tax differed from the Rs 49 crore pre-exceptional-item figure.

The presentation labels the Q3 2025 EBIT figure of Rs 52.1 crore as excluding exceptional items. Its Q3 2026 financial review likewise identifies Rs 52.1 crore as EBIT before exceptional items, so the 7% margin comparison uses the pre-exceptional-item operating measure.

What do Huhtamaki India’s nine-month results show?

Huhtamaki India’s 9M-26 results show sales and reported profit growth despite the Q3 restructuring charge. Sales rose 15.7% to Rs 2,070.4 crore from Rs 1,789.9 crore in 9M-25, while EBITDA increased 24.6% to Rs 204.2 crore from Rs 163.9 crore.

Nine-month EBIT increased 22% to Rs 152.8 crore from Rs 125.3 crore, and the EBIT margin rose to 7.4% from 7%. This contrasts with Q3, when EBIT margin declined to 7% from 8.6%, indicating that the cumulative nine-month outcome differed from the July-September comparison.

Reported profit before tax was Rs 133.3 crore in 9M-26, up from Rs 117.3 crore, and profit for the period increased 12.8% to Rs 99.1 crore from Rs 87.9 crore. Reported earnings per share were Rs 13.12, compared with Rs 11.63 in 9M-25.

Management said 9M-26 included a non-recurring Rs 8.8 crore depreciation adjustment for the prior year, partly offset by a Rs 2.2 crore deferred-tax benefit. The Rs 9.6 crore PS Labels restructuring cost was also recognised in 9M-26 because the nine-month period includes Q3.

What operational developments did Huhtamaki India report?

Huhtamaki India reported zero Total Recordable Incidents in Q3 2026. It also said its 12-month rolling Total Recordable Incident Rate continued to improve, supported by near-miss reporting and preventive safety observations.

Khopoli captive solar generation was commissioned in August 2026, lifting renewable electricity’s share to 22% in Q3. Huhtamaki India said it had finalised a decarbonisation roadmap to support its 2030 Scope 1 and Scope 2 emission-reduction commitments, alongside energy-efficiency programmes across manufacturing sites.

The company received three IFCA STAR Awards in 2026 for blueLoop OmniLock Smart PE, blueLite and its Metallic Premium Tactile & Texture Label. The recognised products included a recyclable mono-material stand-up pouch for beverage powders and a foil-free high-barrier laminate for tomato ketchup sachets.

Khopoli, Rudrapur and Silvassa continued to maintain Zero Liquid Discharge through water treatment and reuse, according to the presentation. It also said Taloja implemented mechanical vapour recompression technology for wastewater recycling, while three label plants and Khopoli held Forest Stewardship Council certification.

Conclusion

Huhtamaki India combined a Rs 143.2 crore year-on-year rise in Q3 sales with flat pre-exceptional-item EBIT, resulting in a lower 7% quarterly EBIT margin. The Baddi closure charge reduced reported quarterly profit, while the 9M-26 figures showed sales growth of 15.7%, EBIT growth of 22% and a 7.4% EBIT margin.

The next items to watch are management’s execution of the PS Labels footprint-optimisation initiative and whether it delivers the stated operational-efficiency and cost objectives. Huhtamaki India also plans to implement energy-efficiency programmes and use its finalised roadmap to support 2030 Scope 1 and Scope 2 emission-reduction commitments after the August 2026 Khopoli solar commissioning.