Huhtamaki India Limited (NSE: HUHTAMAKI, BSE: 509820) reported broadly flat revenue in the fourth quarter of 2025 amid lower volumes, while profitability improved year on year due to a favorable sales mix and continued efficiency measures, according to the company’s investor presentation for the quarter and full year ended December 31, 2025.
Q4 2025 performance
Net sales for Q4 2025 stood at ₹5,991.3 million, marginally lower than ₹6,012.3 million a year earlier, reflecting softer volumes in a subdued market environment. Despite the volume pressure, EBITDA rose 94.1% year on year to ₹621.4 million, with EBITDA margin improving to 10.4% from 5.3% in Q4 2024, supported by higher gross margins and a favorable product mix.
EBIT increased 167.0% year on year to ₹485.6 million, while profit before tax (excluding exceptional items) rose 169.1% to ₹409.8 million. Profit for the period increased to ₹303.0 million from ₹116.9 million a year earlier. Earnings per share rose to ₹4.02 from ₹1.55.
Management said lower volumes weighed on sales growth in Q4, but margin expansion was supported by product mix improvement and ongoing efficiency programs across manufacturing and operations.
Full-year 2025 snapshot
For the full year 2025, net sales declined 2.5% year on year to ₹23,890.4 million, compared with ₹24,505.3 million in 2024. Profitability improved sharply. EBITDA rose 49.7% to ₹2,260 million, lifting the EBITDA margin to 9.5% from 6.16% in the prior year.
EBIT increased 68.0% year on year to ₹1,738.7 million, while profit before tax (excluding exceptional items) rose 83.0% to ₹1,573.2 million. Profit for the year increased 34.3% to ₹1,181.6 million, and EPS improved to ₹15.65 from ₹11.65.
Balance sheet and cash position
Huhtamaki India ended Q4 2025 with net debt at nil, supported by higher EBITDA and stable gross debt levels. Cash and cash equivalents and other bank balances totaled ₹2,989 million, with ₹1,943 million invested in liquid mutual funds. The company also reported unutilized fund-based bank limits of ₹4,424 million, providing ample liquidity headroom.
The financial position remained stable, with operating working capital improving to ₹3,051 million due to lower inventory levels. The current ratio stood at 2.4x, and debt-to-equity remained at 0.1x, indicating a conservative leverage profile.
Operational efficiency and sustainability
Management highlighted ongoing efficiency initiatives that supported margin expansion through productivity improvements and mix optimization.
On sustainability, the company reported material safety improvements in 2025, with total recordable incidents down 46.2% year on year and lost-time injuries down 50%. Several sites achieved Zero Liquid Discharge status, and the company’s SBTi 1.5°C-aligned climate targets for Scope 1 and 2 emissions were verified in December 2025. Renewable electricity projects are progressing, with commissioning targeted for Q2 2026.
Outlook
Management expects efficiency programs to continue supporting profitability as market conditions stabilize. While volume growth remains sensitive to demand conditions across key end markets, margin resilience is expected to be supported by mix improvements, operational discipline and sustainability-led initiatives that improve cost efficiency over time.
Summary
Huhtamaki India delivered a strong improvement in profitability in Q4 and FY2025 despite flat to slightly lower sales, driven by margin expansion from favorable mix and efficiency measures. A net cash balance sheet and strong liquidity provide flexibility to navigate demand volatility, while sustainability initiatives and productivity programs support medium-term margin resilience.