Hindustan Foods Limited (HFL), one of India’s leading contract manufacturers in the FMCG sector, has achieved a major milestone by reporting a record Profit After Tax (PAT) of ₹110 crore in FY25, up from ₹93 crore in FY24. This growth not only cements the company's leadership position in the industry but also highlights its agility in capitalizing on high-growth opportunities amid a challenging consumer environment.

Stellar Financial Performance Despite Market Challenges

HFL’s financial performance in FY25 paints a clear picture of resilience and strategic execution.

• Total Income rose by 30% YoY, reaching ₹3,579 crore compared to ₹2,762 crore in FY24.

• EBITDA improved by 34% to ₹308 crore from ₹229 crore, highlighting improved operational efficiency.

• Profit Before Tax (PBT) jumped by 26% to ₹148 crore.

• PAT increased by 18%, crossing the ₹100 crore landmark for the first time.

In Q4FY25 alone, the company clocked:

• ₹936 crore in Total Income, a 27% rise YoY

• ₹80 crore in EBITDA, up 25%

• ₹41 crore in PBT, surging 47%

• ₹31 crore in PAT, an impressive 34% increase over Q4FY24

These numbers reflect consistent quarter-on-quarter growth, driven by the company’s diversified business model.

Seasonal Demand and Category Wins Power Revenue Growth

Hindustan Foods attributed its revenue growth to high seasonal demand and a strong performance in key categories like:

• Ice Cream

• Beverages

• Footwear

The beverage division in Mysuru achieved its highest-ever output, while the ice cream segment in Lucknow also contributed significantly. The new greenfield facility in Nashik, launched in May 2025, is expected to further boost capacity for a newly onboarded customer.

Footwear Division Turns Around After Struggles

The footwear business, previously underperforming, turned operationally profitable in Q4FY25, recording its highest turnover in the fiscal year. This division, which was earlier a drag due to integration issues and acquisition challenges, now stands at an inflection point.

Mayank Samdani, Group CFO, acknowledged that the shoe business had a loss of ₹11 crore in FY25, mainly due to integration costs and ESOP accounting. However, the break-even milestone in Q4 is seen as a pivotal moment, boosting confidence in complete turnaround by FY26.

Strategic Capacity Expansion to Meet Demand

HFL invested heavily in expanding manufacturing infrastructure:

• Expanded Mysuru and Lucknow facilities went live at the right time to match seasonal spikes.

• A new greenfield ice cream plant in Nashik began production in May 2025.

• The Baddi factory ramp-up also contributed to enhanced supply capability.

These expansions align with HFL’s strategy to meet growing customer demands while ensuring operational scalability.

Sustainability and Strategic Investments

Demonstrating its commitment to sustainability and the circular economy, HFL’s board approved a strategic minority stake acquisition in The Kabadiwala, a key player in plastic scrap collection and recycling.

This move positions HFL favorably under India’s Extended Producer Responsibility (EPR) regulations, while also enabling it to support clients in meeting their eco-compliance targets.

Focus on Talent Retention and Employee Ownership

To reward its workforce of nearly 7,000 employees and nurture future leadership, HFL:

• Issued preferential allotment of shares in its footwear subsidiary

• Launched a new Employee Stock Ownership Plan (ESOP)

These initiatives reflect a focus on long-term value creation, retention of top talent, and organizational stability.

Strong Operational Backbone

Ganesh Argekar, Executive Director, emphasized that the company's supply chain teams ensured high volumes even under pressure. Despite deflationary trends in certain FMCG categories, HFL delivered record volumes across beverages, ice cream, and footwear.

Furthermore, HFL is exploring exciting developments in its OTC Pharma division, showing intent to diversify further within the contract manufacturing space.

Robust Cash Flows and Capital Positioning for Growth

Despite increased working capital requirements, particularly from the footwear segment, the company:

• Generated ₹113 crore in operating cash flows

• Strengthened its financial position with proceeds from a Warrants issue

• Plans to double its gross block to ₹1,800 crore by FY26-end

This financial discipline ensures that HFL remains well-positioned to capture new business opportunities, enhance manufacturing capabilities, and explore strategic partnerships.

Outlook for FY26 and Beyond

The management team is optimistic about FY26, especially with the footwear segment on the road to recovery, and the beverages and ice cream divisions firing on all cylinders. The company also aims to:

• Expand OTC Pharma operations

• Explore new client engagements

• Deepen its sustainability agenda

With a sharp focus on innovation, efficiency, and ESG compliance, HFL is set to scale new heights in the FMCG contract manufacturing ecosystem.

Conclusion

Hindustan Foods Ltd's record PAT of ₹110 crore in FY25 marks a turning point in its journey. The performance reflects its robust strategy, operational excellence, and future-focused initiatives. From turning around its footwear business to expanding production capacities and investing in sustainability, HFL has laid a solid foundation for sustained, profitable growth in the coming years.

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The Closed IPOs are Accretion Pharmaceuticals, Integrity Infrabuild Developers.

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