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HEXAGON NUTRITION LTD

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Hexagon Nutrition Limited Q1FY27 Earnings Call Highlights

Financials

Business Background

Hexagon Nutrition Limited is a research-driven, integrated nutrition company founded in 1993, operating across clinical nutrition, wellness nutrition, micronutrient premixes, food fortification and therapeutic/humanitarian nutrition. The company has four manufacturing plants across Nashik, Chennai, Thoothukudi and Uzbekistan, two R&D centres and exports to 80+ countries through a network of domestic and international distributors. Its portfolio includes brands such as Pentasure, Pediagold, Obesigo and Nutrone, while its customers include FMCG companies, hospitals, consumers, governments and humanitarian organisations.


Q&A

Q1: Congratulations on your recent listing and starting FY27 on a strong note! Could you summarize the headline financial numbers for Q1 FY27?

A: Thank you! For Q1 FY27, our consolidated revenue from operations grew by 43.2% YoY to ₹104.3 crore (up from ₹72.9 crore in Q1 FY26). Gross profit rose 34.1% YoY to ₹45.8 crore. EBITDA increased 17.3% YoY to ₹11.8 crore, and Profit After Tax (PAT) grew 25.1% YoY to ₹8.1 crore.


Q2: What is the current segment-wise revenue contribution across your business lines?

A: For Q1 FY27, the revenue mix is approximately:

  1. Micronutrient Premixes: ~62% of revenue
  2. Branded Business (Clinical & Wellness Nutrition): ~28% of revenue
  3. Therapeutic Nutrition & ESG (RUF/RUSF): ~10% of revenue


Q3: What full-year FY27 revenue growth guidance are you targeting, and how is seasonality factored in?

A: We are conservatively targeting a 20% to 25% revenue growth range for FY27. Historically, Q1 and Q2 serve to gather momentum, while the main growth and revenue acceleration occur in Q3 and Q4.


Q4: Despite the strong 43.2% revenue growth, EBITDA margins contracted from 13.8% to 11.3% YoY. What drove this margin compression?

A: The compression was driven by two main factors:

  1. Raw Material Costs: West Asia geopolitical issues led to price spikes in key imported inputs like whey protein.
  2. Other Expenses & Freight: Freight/shipping costs rose due to geopolitical tensions, alongside strategic investments in expanding our field force capabilities (up >50%) and marketing efforts for tier 2/3 city penetration.


Q5: What steps are you taking to mitigate gross margin pressure going forward?

A: We have taken deliberate calls to pass cost increases onto customers. Specifically, we increased the MRPs of select branded products by 10% to 15%. The positive impact of these price hikes on margins should start reflecting from Q2 FY27 onwards.


Q6: What is your current order book position and visibility heading into Q2 FY27?

A: We have a strong order book of around ₹100 crore executable primarily in Q2 and partly in Q3. Roughly 70% to 75% of this order book is in the Premix and ESG segments, with the rest coming from Branded Nutrition.


Q7: How much capacity utilization are you seeing currently, and where is it highest?

A: Our blended overall capacity utilization stands at around 47% (up from ~30% previously). By facility/segment:

  1. Nashik: Running highest at ~45%–60%.
  2. Chennai: Operating at ~25%–30%.
  3. Tuticorin: Operating at ~35%–40%.
  4. Major volume utilization comes from RUF and Premixes.


Q8: What is the long-term vision for the B2C / Branded business segment, and how quickly can it scale?

A: Branded nutrition is our fastest-growing segment (grew 28% YoY in Q1). While it currently contributes ~28% of total revenue, we expect the B2C/branded portfolio to scale to 35%+ of overall revenue over the next couple of years.


Q9: What are your key strategic growth drivers for expanding the branded portfolio?

A: We are expanding beyond Tier-1 cities into Tier-2 and Tier-3 markets by strengthening our field force. Additionally, we are scaling presence on e-commerce (Amazon, Flipkart) and e-pharmacy channels alongside social media and HCP (Healthcare Professional) engagement for key brands like Pentasure, Pediavolt, Obesigo, and Neutron.


Q10: Are geopolitical disruptions in West Asia impacting export operations?

A: Geopolitical tensions have not materially impacted overall international business because our geographical footprint is diversified across 70+ countries. West Asia contributes less than 20% of total export revenues.


Q11: Which international markets present the highest growth potential going forward?

A: We are experiencing strong traction in Central Asia and Africa, while actively targeting entry and deeper expansion into newer geographies like Europe and North America.


Q12: What is the strategy behind your Uzbekistan manufacturing facility?

A: The Uzbekistan plant is strategically placed to cater to the domestic Central Asian market as well as serve as an export hub for neighboring 'Stan' countries and Russia.


Q13: What are your planned capital expenditures (CapEx) for FY27?

A: We are undertaking a strategic redevelopment of our Nashik facility (premix unit) with a planned CapEx of roughly ₹25 crore to ₹30 crore over the next 12 to 18 months. We plan to fund about 70% of this via long-term debt to minimize impact on operating cash flows.


Q14: Has operating cash flow improved compared to the cash conversion challenges in FY26?

A: Yes, operating cash flow improved compared to Q1 FY26 due to large-scale shipments in ESG and Premixes, enabling us to recover major outstanding receivables. Current inventory stands at around 142 days due to strategic stocking for executed order books and critical raw material price trends.

Strategic Outlook

  1. Hexagon intends to improve its product mix by increasing the contribution of B2C nutrition, with a stated objective of taking the B2C revenue contribution above 35% over the medium term.
  2. The company will continue investing in new categories and R&D-led product development to address emerging demand in preventive healthcare, clinical nutrition, wellness and condition-specific nutrition.
  3. Global expansion remains a priority, with the company targeting additional market approvals and using its international subsidiaries in South Africa, Uzbekistan and Hong Kong to strengthen regional distribution.
  4. The company plans to increase capacity utilisation from current levels of around 30%, supporting better absorption of fixed costs and improving manufacturing efficiency and margins.
  5. Hexagon aims to increase repeat-client revenue and deepen relationships with FMCG companies, hospitals, healthcare professionals, UN agencies and institutional customers.
  6. Industry tailwinds from rising health awareness, increasing chronic disease prevalence, government-led food fortification, higher disposable income and growing demand for preventive healthcare provide a favourable environment for long-term growth.


Business Strategy

  1. Hexagon is focused on expanding into new product categories such as functional foods, dietary supplements, plant-based nutrition, maternal and geriatric nutrition, personalised nutrition and condition-specific products.
  2. The company plans to strengthen its domestic footprint by expanding its distributor network beyond 358, increasing penetration in Tier 2 and Tier 3 cities and building greater awareness for brands such as Pentasure and Nutrone.
  3. The company aims to deepen healthcare-professional engagement by targeting more than 25,000 HCPs while scaling its D2C e-commerce business, which currently contributes 6.5% of B2C revenue.
  4. Hexagon plans to expand branded exports beyond 14 countries, pursue new market approvals in the Middle East and Africa and leverage its South Africa subsidiary as an Africa hub.
  5. The company is targeting higher B2B2C premix growth by increasing its FMCG wallet share, entering applications such as bakery and snacks, developing pharma-grade nutraceutical premixes and scaling its Uzbekistan facility.
  6. Manufacturing efficiency remains a key focus, with the company targeting higher capacity utilisation, reducing import dependency and improving operating leverage to support a medium-term EBITDA margin target of 15%+.


Key Highlights

  1. Revenue from operations stood at ₹104.31 crs in Q1 FY27, registering 43.16% YoY growth from ₹72.86 crs in Q1 FY26, supported by broad-based growth across the company’s nutrition portfolio.
  2. EBITDA increased 16.86 % YoY to ₹11.74 crs, while EBITDA margin stood at 11.25%. PAT rose 25.19% YoY to ₹8.43 crs, with PAT margin at 8.43%.
  3. The company has built an integrated nutrition platform spanning micronutrient premixes, clinical nutrition, wellness products, therapeutic nutrition and humanitarian nutrition, enabling it to address multiple end markets.
  4. Hexagon operates four manufacturing plants across India and Uzbekistan and two R&D centres, with products exported to 80+ countries through 358 domestic and 20 international distributors.
  5. B2C revenue crossed the ₹100 cr milestone in FY26, while the company was listed on NSE and BSE in June 2026, marking an important milestone in its 30+ year journey.
  6. The company continues to strengthen its innovation pipeline, with nine products under R&D and a focus on developing customised nutritional solutions backed by DSIR-approved R&D facilities.


Performance


Q1 FY27:

  1. Revenue from operations: ₹104.31 crs (↑43.16% YoY)
  2. EBITDA: ₹11.74 crs | EBITDA Margin: 11.25% (↓253 Bps)
  3. PAT: ₹8.43 crs | PAT Margin: 8.09% (↓116 Bps)



FY26:

  1. Revenue from operations: ₹382.63 crs
  2. EBITDA: ₹52.60 crs | EBITDA Margin: 13.75%
  3. PAT: ₹39.11 crs | PAT Margin: 10.22%


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