Huhtamaki India Ltd (NSE: HUHTAMAKI) Q3 2025 Earnings Call dated Oct. 15, 2025
Corporate Participants:
Dhananjay Salunkhe — Managing Director
Jagdish Agarwal — Executive Director and Chief Financial Officer
Analysts:
Aparajit Chakraborty — Analyst
Aditya Khetan — Analyst
Raman Venkata Kerti — Analyst
Lakshminarayanan K G — Analyst
Rohan — Analyst
Vipulkumar Shah — Analyst
Harsh Shah — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to the Hutamaki India Limited Q3 CY25 earnings conference call hosted by ICIC Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this call is being recorded. I now hand the conference over to Ms. Abrajita Chakraborty from ICIC Securities. Thank you and over to you.
Aparajit Chakraborty — Analyst
Good evening everyone. Thank you for joining on huta Marquee India Limited Q3 CY25 results conference call. We have Hutamaki India Management on call represented by Mr. Dhananjay Salunke, Managing Director, Mr. Jagdish Agarwal, Executive Director and CFO. I would like to invite Mr. Dhananjay to initiate with opening remarks post which we will have the Q and A session. Thank you and over to you sir.
Dhananjay Salunkhe — Managing Director
Thank you. So greetings everyone and thank you for joining today’s call. This is our continuous endeavor to engage with investor community and we continue to do that and I could see the optimism today that you know we have a call this immediately after the announcement of the results and I could see that many of you have joined. So let me start with first of. All wishing everyone of you very Happy Diwali, the festival which is considered of lights and happiness which is starting in next week. So Happy Diwali from our side to everyone in advance coming to the business presentation. I also would like to start with our safe harbor statement that whatever we discuss today is not going to be impactful for any future performance of the company. So with this let me give a quick brief about the performance of company for the last quarter that is quarter three 2025 and you would have seen also from the announcement that we continue to have a volume which are on the lower side.
However there is a significant increase in the margins as compared to previous year as well as previous quarter which is largely supported by the favorable sales mix and the excellent work being done in the operations side on the productivity and efficiency improvements. So all in all while the net. Sales is slightly lower year on year but we are seeing now momentum building up due to various factors of quarter on quarter. But overall EBITDA is having a very good strong momentum as compared to previous year as well as quarter on quarter and my copilot Jagdish will definitely explain it in a future slides how we are doing that in a sequential basis and both EBITDA and good margin improvement is already seeing reflected into the PBT as well as the eps. So with this I would like to. Hand over to Jagdish, our CFO and Ed for a detailed discussions.
Jagdish Agarwal — Executive Director and Chief Financial Officer
Thank you. Dhananjay Good evening everyone. Let me begin by extending my warm wishes to everyone on this call for safe and joyful Diwali, which we celebrate next week as a festival of lights. Diwali symbolizes hope, prosperity and happiness. I hope it brings all of that and more to you and your loved ones. As always, I’m pleased to walk you through the company’s financial performance for the quarter and nine months ended September 2025, along with some insights into how we have fared over the last nine months. When I talk about volume, Volume for the quarter remained broadly stable compared to the preceding quarter, though declined relative to the same quarter last year.
A similar downward trend is observed in the nine month period ended September 2025, with volumes lower than the corresponding period in 2024. Revenue for Q3 2025 is stood at 6 billion rupees, marking a 4.7% decline compared to 6.3 billion in Q3 2024. However, it reflects a modest growth of 2.2% over a rupees 5.9 billion reported in Q2 2025. For the ninth month period ended September 2025, revenue totaled at 17.9 billion rupees, down by 3.2% from 18.5 billion rupee in the same period last year. Now talking about a profit before tax for the quarter and before exceptional items, IT surged to rupees 492 million, a 3.5 times increase over 143 million in Q3 2024 compared to Q2 2025.
In that we’ve reported PBT of 331 million rupees, it rose by approximately 50%. That’s a very I said a strong performance. What we have seen in last many quarters and even if you look at the EBIT percentage which is slide number seven which we have uploaded on our website for investor presentation. If you look at a sequential EBIT for last five quarter, a 3% EBIT we have in Q3 2024 again 3% we have in Q4 2024 6.3% we have in the first quarter of this year which is a March quarter 6.1% we have in June quarter and in September quarter we have reported 8.6%.
So it’s a very good story. If you look at from that and. Probably this is the first quarter in. September in last so many quarters where our EBITDA is more than 10%. To sum up our financial performance so far this year, although our overall volumes are lower compared to last year, the impact on revenue has been minimal and not directly proportional or strategic decisions. Choosing way to play and optimizing our product and customer mix are showing strong results with steady improvement in profitability. Quarter after quarter we are focused on a high quality business and refining our product and customer portfolio to support profitable growth. On the manufacturing front, our long term efforts to implement world class operations are paying off.
We have seen real improvements across our sites with better efficiency, reduced cost and tighter control on overheads. We have also benefited from the global expertise of Putamakis plants helping us enhance our process further. The results speak for themselves and this progress is the dedication and hard work by the entire team. On regulatory side, a recent market report suggests that upcoming GST reforms could boost growth for FMCG companies. For Rutamaki India, there are no changes in GST rates on the supply side, only a minor change on the procurement side. Moving to other financial aspects, the finance cost remained stable throughout 2025 consistent with the underlying debt levels.
Surplus cash was deployed into bank deposits and mutual funds generating an average yield exceeding 6%. Net profit for the quarter after exceptional items and income tax stood at 368 million compared to 117 million in Q3 2024 and rupees 249 million in Q2 of 2025. Earning per share for the quarter post exceptional items is 4.87 paisa for the nine month period ended September 2025. Net profit after excess items and income tax was rupees 879 million up from 763 million in the same period last year. It is important to Note that in 2024 figure included Rupees 227 million net of tax as an exceptional income from the sale of two land parcels in Thane EPS for nine month period stood at rupees 11 rupees 63 paise.
Regarding the debt and liquidity position equity position, the debt equity ratio remains stable with an ECB of Rupee 1 billion being the only debt in the books. Liquidity continues to be strong supported by substantial unutilized credit lines and minimal exposure. The working capital position also remains steady with negligible movement compared to prior periods. Before I close, I want to take a moment to express my sincere appreciation to all our stakeholders for the trust and support you have extended to me over the past few years I was interested with the responsibility of leading Gotamaki India’s financial performance during a challenging period in early 2022 and I’m proud of the progress we have made together.
As many of you may know I’ll be stepping down from my role towards the end of the next month. It has been an honor to serve as a CFO during a time of significant change in growth. I live confident in the company’s future. I believe I’m confident in the company’s future. Utamaki India is well positioned to scale new heights guided by dynamic leadership team and supported by strong talent pool across all levels. I wish Uttamaki India continued success and sustained growth in the years ahead. Thank you.
Dhananjay Salunkhe — Managing Director
Thank you. Thank you Jagdish I think we have been together last 12 quarters and you have been as I said co piloting the journey together and you are going to be sorely missed in this journey. Let me also take quickly on the sustainability part and how we are going there. So I think apart from the financial performance I think one of the also important milestone what we saw in quarter three of this year was that quarter three was incident pre quarter for us. I mean we call it a golden quarter where I am really proud that we do not had any lost time incident in last preceding 90 days in any of our site.
And as you know we have nine locations and 10 sites and then three offices. So we are really going in the right direction when it comes to safety in our premises. So and we want to continue on the same. We also continue to make a progress on renewable energy. We are continuously making progress on reduction of water consumption and then doing best possible actions to support the communities where we operate. So overall there is a good progress in last quarter in on this areas which are also important from a Mother Earth point of view. Thank you. And now I will hand it over back to the to open it for question.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. In order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at a time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Aditya Ketan from Smith’s Institutional Equities.
Please go ahead.
Aditya Khetan
Thank you sir, for the opportunity. Sir, when we look at the overall flexible packaging industry that is growing at around 11 12% I believe out of this somewhere 9, 10% should be the volume growth also. So why is not getting that volume growth? We are again I think compared to last year we are flattish only in terms of volume. Like for CY25 we will be ending I think at the flattish volumes level. What is that thing like why are we not getting volume growth? First? Second sir, you had mentioned that this quarter there was a sales improvement.
So this Blue Loop brand earlier like what was the share in last quarter of that fiscal and what is the current share?
Dhananjay Salunkhe
So good question. I think we have two questions in one. So first of all you would have read a documentary about flexible volume growth which is like higher single digit elsewhere. But if you also go to the. Next level of data, what you will observe that growth is coming in from I would say duality. So duality is basically there is a small regional players are growing faster than the large either multinational or Indian players. So volume growth is at I would say very low priced for products. And that is where the lot of commoditization is there. So when it comes to what we are we offer and what is our focus area is basically a very where we want to play and that is where we are, you know, focusing on. So yes there is a short term challenge in terms of Apple to Apple volume growth.
At the same time if you look at our overall product mix and the overall margin management, I think that is something which we are currently focusing on. Of course there is a room there the other side. You also asked about the Blue Loop contributions. So I think as we continue to make good progress on that at the same time the percentage wise we would say that it’s somewhere still hovering about 27 to 30% range. And here even I would also like to inform you that when we make change towards Blue Loop brand so many. Times it’s going to be a replacement volume of some existing recyclable product or new. So we do not see immediate uptick. In terms of the, you know, volumes coming in from a Blue loop surpassing the 30% mark immediately. But I think that’s what we are striving together with our customers.
Aditya Khetan
Got it sir. The sequence was deep in your employee and other expenses that there is a sharp dip of 15% in employee cost. I think the gross margins are badly flat only when we look on sequential basis. So what has led to this dip in your other cost?
Dhananjay Salunkhe
So I think during the presentation as. Jagdish mentioned, we have been really focusing on productivity improvements and the operational efficiencies in the, in our plants and also. Not only in our plants but across the company. And those improvements are or improvements are clear now giving the results to us. So on a, I would say flattish volumes, we are able to actually generate better productivity.
Aditya Khetan
So this is a structural change. Like deep in your cost is a structural change and not a temporary phenomena that you highlighted.
Dhananjay Salunkhe
I would tend to. Yes, I tend to agree with that. It’s structural changes are definitely there which are basically here to stay.
Aditya Khetan
Got it. Just one last question. This quarter numbers how sustainable you feel this will be in a span of for the next two years how sustainable this number.
Dhananjay Salunkhe
Look? I mean you are in the also market and look, two years is a long period. I’m not sure how can we predict two years future because things are changing every I would say month. So what I would say that if. You look at our past performance of. Last 2/4 to 3/4, I think there. Is a good sequential improvements. And if you see last quarter and. This quarter, I think you can make. Your own, you know, judgment about the sustainability of this performance. And I would tend to say that. This is really a good thought through. Process where we know now where we. Want to play, how do we want to play and we are really confident on that. And Jagdish also have some additional comment on that.
Jagdish Agarwal
Yeah. So when we talk about like are these structural changes or temporary. So definitely, you know, what is the project which you are driving from last one one and half year, those are coming into a line right now. So we believe that most of the. Programs on the cost reductions, optimizations and all are going to remain. The question is that how we are going to focus on improving our growth on top line as well. So you know all these things can then improve even further. So our endeavor is that how we are going to sustain and improve further that would be our, you know, endeavor on these numbers. Specifically when you spoke about employee cost, employee cost in this quarter we do have one off item that because of that there is a certain reduction, but that’s not a big number. So more or less we are going to be having improved cost structure.
Aditya Khetan
But how much of that cost would be one of cost?
Jagdish Agarwal
It’s around if I have to put a number in the range of around four to five cross.
Aditya Khetan
Got it. Thank you sir.
operator
Thank you. We’ll take our next question from the line of Raman KV from Sequent Investments. Please go ahead.
Raman Venkata Kerti
Hello, can you hear Me sir?
operator
Yes, please go ahead.
Raman Venkata Kerti
My first question is with respect to the finance cost. You mentioned that when we look at your balance sheet for the quarter profit and loss basically the finance cost has reduced. I just want to understand is this. Because of reduction in the interest rate or is this because of reduction in debt and what are current debt and at what interest do we have?
Jagdish Agarwal
So it is a reductions into date. If you look at the last year start of the last year we had 2 million rupee ECB and out of that one installment of 1 billion we have repaid into September 24th. So and in this we started of this year with a 1 billion ECB only. So it is a reductions into the date only.
Raman Venkata Kerti
Is this in rupees or
Jagdish Agarwal
billion rupees? 1 billion rupees repaid total 2 million was there last year 1 billion was repaid into September 24th. Now we have outstanding of over million rupees. 100 crores. 100 crores is outstanding as of date.
Raman Venkata Kerti
Okay. And sir, my second question is with respect to the volumes can you give us any volume figure?
Jagdish Agarwal
Generally we don’t discuss very specific on the volume and all but definitely we had some reductions or drop into the volume and again you know sometimes we are just choosing a right mix and right business also to ensure that we don’t compromise on the bottom line. So sometimes it’s a consist call and sometimes like Nananjay explained that if you look at even competitions what kind of players especially digital players and small players are even in FMCG space if you look at small players are having a higher growth compared to the biggies and all so that reflects into a flexible company as well.
But I think we are going very cautiously and very conscious calls which we are choosing to have a right mix.
Raman Venkata Kerti
And so my third question is with respect to the product mix which you you mentioned that margin improvement was partly because of change in product mix. So can you just explain me with respect to that how are the margins for you know the sustainable packaging blue Blue loop brand versus tube laminates and during the quarter how much share how much percent of the revenue was from exports and our the exports margin better and by how much? If you can.
Jagdish Agarwal
We’Ll not talk specifically margins on domestic and export but definitely export proportion is higher in September or even in the first nine months compared to what we have in the last year. So that’s a healthy sign for sure when you talk about blue loop Blue loop remain range bound within 27 to 30% kind of a range we have. So I Have not seen a much change into that what it was last year. What it is in this year.
Raman Venkata Kerti
Blue. Loop is 12 to 13% margin.
Jagdish Agarwal
I’m not talking. I’m talking about a total blue loop sales is between 27 to 30% and it has not changed. It is more or less similar we have in the last year as well.
Raman Venkata Kerti
And so in the previous.
operator
I request you to join back the queue please.
Raman Venkata Kerti
I just have a. I just have.
operator
I’ll request you to join back the queue, please. Thank you. We’ll take our next question from the line of Lakshmi Narayanan KG from Tunga Investments. Please go ahead.
Lakshminarayanan K G
Am I audible? Yeah. Yes, please go ahead. Yeah. I just want to understand what is your client mix in terms of, you know, national firms like the unilever and then second the local firms. And third is the D2C firms. And the reason I’m asking is that have you taken a call to actually exist certain categories so that you can actually. Have you talked about better mix? I think it’s in the context of what is the mix of revenue from the different set of people. And second is want to understand your exports, how the exports is growing for this year with respect to last year.
And the third, I want to understand what is the mix of value added products for the last nine months.
Dhananjay Salunkhe
Okay.
Dhananjay Salunkhe
I think you were too fast. So two last two questions I could catch. What was the first one?
Lakshminarayanan K G
The first one you always mentioned that there is a mix of national firms like the Unileverse, etc. And then there are things happen by reverse auction where the cost is actually highly controlled and our margin is little. Second category is the local firms or maybe regional firms. The third category is all the D2C firms like or paperboard.
Dhananjay Salunkhe
Right.
Lakshminarayanan K G
So you look at the pyramid. There are these three categories of firms. Now have we changed our revenue mix to this kind of categories and what has been our revenue mix and is that leading to a better margin is my question.
Dhananjay Salunkhe
Yeah. So clearly that the revenue mix has been changed. Clearly that. That’s. You are right. When you talk about the customers. Typically we don’t talk about the individual customers. But the stratification what you shared is actually a right stratification. But at the same time, you know, it’s not about. Not everyone is exactly the same philosophy. Right. So what we do is basically we identified what are our strengths as a company and what are the solutions we have available and how we are solving those pain points to of our customers with a service mentality and highest quality.
So. And that is where we Call it as a sweet spot. So you know we do not really look at oh we want to only talk about the only MNCs or large players. No, it’s like in all the pyramids we look forward for the opportunities and match our strengths with those opportunities and that’s why the revenue mix has been improving better. Okay. Also what happens also is that once you identify that then we are looking at this allocation of our resources and focused efforts on that and that is why we are able to. You would have.
You are able to see that there is a overall cost reduction in terms of employee cost and all the others and productivity. So you know all across it benefits because you are focused, you allocate your resources on right opportunities and that is what customers are able to resonate and relevant. You know see that we are the you know long term partner for them. So that’s the overall on a revenue mix on a value added. So that’s what value added versus or non value added. Of course whatever business we do we it adds value to us.
So typically that’s what we will be continue to do. And the mid question was on the exports. Yeah so I think exports from a. From a product mix, sorry business mix point of view I think it’s steady or slightly improving because of various reasons and I think that is the focus area for us also going forward because there are certain pockets of opportunity keeps on you know emanating because of the what’s happening around the world. So in last at least quarter and previous to that I think we are seeing that there is a good traction on the exports sales development.
Lakshminarayanan K G
All right, thank you. I’ll come back in. Q thank you.
operator
Next question is from the line of Rohan from Golden Money Investments. Please go ahead.
Rohan
Yes sir. Sir, I want to know about in 2025 any new products added in the blue loop section or the main product portfolio.
Dhananjay Salunkhe
Well, new product development is one of our key focus areas always. So if I have to remember, I mean there are so many but I think there are good development happening on blue loop area and they’re on a high barrier structures. So we have introduced very high barrier structures which are getting resonated in particularly in personal care sector. That is one second. I think there is also very good strong introduction of products in a paper base. While we do not have a facility to do paper coating etc. But we have Uttamaki other locations who have expertise in that.
So we coordinate with them and then have introduced a certain paper based products this quarter and these also are getting really A good response from the customers who are conscious of this recyclability and sustainability.
Rohan
Okay sir.
operator
You’Re through with your question. Thank you. Next question is from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead.
Vipulkumar Shah
Hi sir, thanks for the opportunity and congratulations for very good set of numbers. So my question is with this GST reduction, volume of FMCG companies are likely to increase. So are you seeing any early signs of that in your, your discussions with the clients? So some color on that will be really very helpful sir.
Dhananjay Salunkhe
Yeah, so I think as you are, you know, observing the trends, we are also closely working with our customers and what we saw and let’s say GST announcement in the first week of September and then some clarifications in the mid and then expand actual implementation in the last week of September. So September was kind of a bit of uncertain month because they know many of the customers had to put hold on to the printing etc. But I think after that bit of early uncertainty we could see that there is a good traction and whatever our customers are informing us, we can inform you that they see positivity on the consumption side.
Second, positivity also is which is a good news is that even after this reduction price reduction on account of gst, the end consumer is not still dropping their ticket size. So what they are doing silently, basically they are going for a premium product. So I would say now there is a upgradation of products by consumers which was actually a trend of a down trading in last couple of years. I think we could see that now there is a trend possibly might reverse to the up trading and which both these two consumptions as well as you know, premiumization shall help the FMCG companies to really go into a growth mode which ultimately will be helpful for the packaging companies.
Vipulkumar Shah
So from what you are seeing today, volume growth should be better in this quarter as compared to last quarter or corresponding quarter? Corresponding quarter of the previous year, sir.
Dhananjay Salunkhe
I would say yes.
Vipulkumar Shah
And lastly sir, can you comment on the margins for blue loop portfolio vis a vis rest of the conventional portfolio, how they means, what is the difference between the margin for the two?
Dhananjay Salunkhe
So first of all, I mean we do not really discuss the margin profiles at a, I would say product mix level and that is one second, if you see a huge investment has been made by Utamaki globally as well as in India for this recyclable products. And right now if you see we are working with all our customers to kind of introduce these products. So at this moment you Know the startup cost, the startup wastages and all other costs are at least on a very high side. And that’s why, and that’s been absorbed by, absorbed by us to really make sure that we really participate in the larger cause which is you know, introducing the recyclable laminates in the, in the ecosystem.
So at this moment I would say in fact it’s more challenging for us than actually making better money because we are into a transition stage.
Vipulkumar Shah
So what will be the length of this transition phase, sir?
Dhananjay Salunkhe
Well it depends upon various factors and one of the important and key factor is basically the regulatory landscape. Right. And then if you see with respect to Indian regulatory landscape I think still lot of clarity need to evolve as against or as compared to the developing market or developed markets elsewhere. I think there are crystal clear clarity about how they are going to approach the recyclability or sustainability. So that will be one of the important aspect what regulations are going to come in and that would clearly decide the speed of the change.
Vipulkumar Shah
So till now what would be our capex to introduce this recyclable blue loop range?
Dhananjay Salunkhe
So I think you have to probably do this yourself by examining our previous announced results and I think you can clearly make out how much money we have invested there.
Vipulkumar Shah
Okay, thank you sir.
operator
Thank you. Next question is from the line of Harsh Shah from Merisys Advisors. Please go ahead. Mr. Harsha, hello. Please go ahead with your question.
Harsh Shah
Yeah, so when can we expect any volume growth? Say maybe 2, 3, 4 quarters going ahead? Can we expect volume growth going ahead from the company?
Dhananjay Salunkhe
Yeah, I would say so.
Harsh Shah
Okay. In what range can you give a broad range?
Dhananjay Salunkhe
Really it’s not, it’s difficult to give but I think the idea is to at least, at least grow with the industry or the market.
Harsh Shah
Okay. Okay. Understand that’s, that would be. Thank you.
operator
Thank you. Next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Raman Venkata Kerti
Hello, can you hear me?
operator
Yes, but we can hear some background disturbance. Raman.
Raman Venkata Kerti
Is now my voice clear?
operator
Yes, please go ahead.
Raman Venkata Kerti
Yes, my question is I just want to understand the total addressable market with respect to the two products which we cater. One is the blue blue loop, another one is the tube packaging and again on the margin front are what’s on a ballpark number. What will be the margin difference? Like I just want to understand which is a better margin business. Is the tube lamination a better margin business or the currently blue loop or better margin business?
Dhananjay Salunkhe
Well, it’s very difficult to put a number because you Know what happens. The Blue Loop products are complexity, difference, difference, complexity versus tube laminate, different complexities and they, they consume different set of raw materials and all. So I think it’s very difficult to put number on it. But at the same time, look, whatever as you asked about the addressable market and this. So whatever business today we are trying to, you know, continue or focus on, we have a strong hope and anticipation that those are the areas where it will grow. And I think we can see that tube laminate is definitely one of the area where it will be having a growth because the underlying trend is essentially moving from rigid to flexibles and plastics.
I would say flexibles plastics, right. So tubes provides a very good alternative to move from rigids to that one. That’s one second. I think when the small FMCG players it’s very, you know they want to keep their product portfolios and offerings in the marketplace very nimble and I would say fast changing and I think tube again give that option to them. So I think that product portfolio is definitely attractive one and Blue Loop is I would say the investment for the future. Like when you hear our purpose and strategy 2030 we want to really convert all the product portfolio 100% to the recyclable and Blue Loop is the vehicle to go there.
And right now we invested in last two years. We are into a transition phase and that also shall offer us and we consider that as attractive industry. Sorry, attractive product portfolio. So that’s something which we want to continue to focus. So rest assured that both are attractive as well as futuristic.
Lakshminarayanan K G
Thank you sir.
operator
Thank you. Take our next question from the line of Lakshmi Narayan and KG from Tunga Investments. Please go ahead.
Lakshminarayanan K G
Yeah, few questions. If you look at last year or the previous year, there has been a bad summer because of which we had challenges in our margins and our sales. But this year despite summer not being pretty good, we managed to have sustained good margins. Can you just help me understand what percentage of our portfolio is exposed to summer and how we actually withstood this challenge?
Dhananjay Salunkhe
Yeah, I think look, summer or no summer. So let’s say this way we have a wide range of portfolio. So what happens, you know, if there is. And that’s I think I would say resilience of our company is that we, we operate into a vast range of the industry and it helps us to actually mitigate the challenges which are from a weather related. So let’s say if we have extended summers there are products which are going into a beverage industry which are basically sell more. Now if we summers got and then ice cream related stuff really get kind of into the market.
Whereas if that doesn’t happen something else comes in which is basically again in a ready to serve or ready to eat kind of a category. So I would say we have a really good resilient product portfolio. At the same time the summer related portfolio definitely are more demanding in terms of their requirements the changes. So that is something which we have kind of over a period of time kind of have understood well and I think that’s how you can see that there is a bit of a better performance there.
Lakshminarayanan K G
Got it. And what is the mix of liquid versus non liquid and has it changed and that is also leading to a better margins.
Dhananjay Salunkhe
We don’t really monitor liquid and non liquid per se. I’m not if I’m afraid I’m not understood. If I have for example if you.
Lakshminarayanan K G
If you have a paper boat which is your packaging which is liquid and then you have a conflict which is a. Which is a solid. I mean dry items inside. Right. So and I understand that the barriers are important for the liquid versus the solid. In that case whether we will be supplying. I presume that will be supplying higher value products for liquid. And if so has that actually changed for us and that is also leading for a better margin.
Dhananjay Salunkhe
I don’t see much change. Only thing what we could see that pouching. I think there is a good I would say traction happening because as I said customers and our customers and end consumers are going for a premium product and which are basically basically on a liquid like let’s say in a laundry or home care. I think we are clearly seeing that there is a subtle change happening in terms of consumption pattern. And those products are I would say high value addition because it adds couple of more operations or couple of more value added steps.
So that clearly is seen that there is uptick there other beverage. I may not be able to because that’s not. We differentiate. But look we definitely focus on food and beverage. So food is most likely we say as you said, it’s a solid beverage, mostly liquid. And I think both of our attractive market segment within food then we have at least another three subcategories which is culinary and dry, you know and then wait then ready to drink or ready to eat or ready to cook. So I think These are the 4, 5 areas in beverages.
Again you can imagine, you know, cold and hot and coffees and so on. So but coffee typically would be again powder. So that that’s where there is a bit of overlap. So but I Would say both are having their own. I would say structures and from a texture point of view, I would not say because end of the day they are both considered as a food. So we have to follow all the. I would say this BSR and FSSR regulation. So from there I don’t see much differentiation.
Lakshminarayanan K G
If I look at your last 2024 quarters and I think we have been showing very, very consistent margin for the last three quarters. Okay, now can you be specific and to what actually led to this? Did you vacate certain spaces or when. Of course there will be combination of various value engineering things you would have done. But this has been a stupendous thing over the last 2024 quarters I’ve been tracking. So what is that specific thing? You know, can you just elaborate on two or three key things that you did which was not done earlier.
It has actually helped you to be so resilient.
Dhananjay Salunkhe
Yeah, I think as you rightly said that we took a position like, you know, where to play in last a few quarters ago and how to play so where to place, where is the attractive segments. And how to play is basically how do we allocate our resources and focus, account management, et cetera, et cetera. And that is clearly now consistent which is helping us to have a better favorable sales and customer mix. The second better one is basically the now if you see last two, three quarters, I think overall the indices are stand, you know, bit stability on a raw material side while we pass on all the benefits which we get on a raw material side to our customer because we have a very transparent agreement with our customers.
But at least what happens because of that stability is that there is a focus is basically on a efficiency improvements. So the stability in the raw material helps to give some more visibility to our end customers. And then we focus on improving our operational efficiencies. And then as a structural changes what we have done on overheads that is helping us in last three quarters. And I think our whole credit goes to our world class operations team who relentlessly works across our plants with the help of global teams. I think they have a really strong some good stupendous ideas to take cost outs which we actually have to do investments and we invest in that.
And I think those are, you know, investments are actually paying off in a big way.
Lakshminarayanan K G
And do you think this is something which is sustainable? This kind of something which is. Which has been quite internalized and. And all your KRA is all I link to this?
Dhananjay Salunkhe
I think so, yes. Yes, I think so. So as I said we invest into operational improvements. So now once you invest into something that remain for the future here. Right. So now next year possibly there may not be an incremental benefit, but that today whatever benefit we are getting now will continue to be in the pnl.
Lakshminarayanan K G
Thank you sir.
operator
Thank you. Next question is from the line of Aditya Ketan from Smith’s Institutional Equities. Please go ahead.
Aditya Khetan
Thank you sir. For the follow up. Sir, you mentioned regarding the GST rate cuts could if the consumer do not down trade so that could benefit FMCG players. So any sense if you can give for flexible packaging how this relates to a positive side like any improvement in volumes can you attribute this to and how did the. And how the consumer behavior will change? Secondly, compared to this quarter, how you see the next quarter results backed by this announcement?
Dhananjay Salunkhe
Yeah, so as I said, I think consumers upgrading is basically was in the last months or maybe first weeks newspapers. I think we kind of resonate that well what happens once consumers upgrade? Then the BMCG customers also kind of put their efforts to improve the brand propositions. They start spending on A and B and so you know they focus on more I would say the activations. Right. And that helps to. I would say volume generation. Now what happens when consumer upgrade to the higher ASP products as its average selling price? Then we also end up benefiting because those premium products need premium packaging.
Right. And then premium packaging typically will have more colors, more value added features which typically otherwise commodity product would not have. So that is how I would say ripple effect or ripple benefit we will get. We get. So that’s the, that’s the way coming to what happens next quarter or next quarter. I think that is a bit speculative but I think as I said during last one hour that what we are doing is creating a more sustainable business model and which we have done for last 12 quarters or so. And I think we want to continue that, that, that trend.
Aditya Khetan
Okay. Okay. Okay. Sir, for CY26 any anticipated number of volume growth.
Dhananjay Salunkhe
I I think your. Your questions are really too speculative and as I said at the start that we do not do this. And even if by chance we are giving him giving all of you some hints of performance of future possibly I would resort to my safe harbor statement that please do not use this for a future indication of a performance.
Aditya Khetan
Got it sir. Got it. Thank you sir.
operator
Thank you. Next question is from the line of Rohan Pandey from Golden Money Investments. Please go ahead.
Rohan
Sir. As you told that around 27.
operator
Sorry, can you use your handset Mode please. Your audio is not very clear.
Rohan
Hello.
operator
Yes, please go ahead.
Rohan
After I told that in whole of our revenue around 27 to 30% of our revenue comes from. Right. Sir, I think what I think right now that.
operator
Rohan, your audio is not very clear.
Dhananjay Salunkhe
Yeah, we can’t hear you properly.
Rohan
Am I audible?
operator
Are you using your handset mode please.
Dhananjay Salunkhe
Mr. Rohan, you can be slower. You can. Let me. Let us again try whether we can catch.
Rohan
Okay. Sir, my question was related to the blue loop 27 to 30% of sales, right? So I think right now what the company and what. What I think is you guys have more. More focused on premium products in the blue look section right now. Not on the main simple product which, which have lower margins. Is it like that or you guys are basically working in both sections. Premium also and the normal one also. Because as you know, today’s time the recycled packaging, when we talk about something like Blue Loop has compared to very much less margin as the one the standard products have like bop bop.
Right. So sir, the question is that you guys have more of percentage of premium production of Blue Loops or the mixture is basically comfortable or normal.
Dhananjay Salunkhe
Yeah. Okay, so look, I think. Let me again restart with that. When we talk about our sales composition. When we say 27 to 30% comes in from a Blue Loop, actually it’s exactly not a Blue Loop. It’s a Blue Loop which is recyclable product which are basically produced on the specific assets and all the recyclable products which we sell. So 27 to 30% is all products which are recyclable whether they are produced through Blue Loop or assets or not. So that’s first one, second one. Of course when Blue Loop is getting introduced, idea was to definitely target the specific products which needs high barriers and they can.
They have a large opportunity to kind of get into a recyclable chain. Now when we see this now in India regulations all the other, you know, challenges around. So we have not stopped only at what we were supposed to offer at the start of our project. But we are also having a certain intermediate production. We call it like a blue light and all. So which we are trying to offer, offer to our customers the solutions which are also intermediate. So without. Because many times what happens when you change to the large scale, it also needs investment at a customer end because of the packaging line changes, some things need to change and so on.
So some customers show inability to change certain things. Then we offer them the interim solutions or intermediate solutions that you know, keeping the sealant layer same but only changing the barrier layers and so on, so forth. So we are not only fixated on focusing on the top of the pyramid, we are offering the custom based solutions to the customers so that we make a progress together towards the sustainability, towards the recyclability. So that’s the, that’s the approach.
Rohan
27 to 30% not only contains human products.
Dhananjay Salunkhe
Absolutely. Mix of the other recyclable products.
Rohan
Thank you.
operator
Thank you. Next question is from the line of Rajakumar Vaidyanathan from RK Invest. Please go ahead. I’m sorry, we’ve lost his connection. We’ll move to the next question from the line of Vipul Kumar Shah from Sumangal Investment. Please go ahead.
Vipulkumar Shah
Hi sir. So do we have any low margin portfolio which we would like to deliberately phase out from our offerings and if it is so, it constitute what percentage of our volume?
Dhananjay Salunkhe
Look, I think we still continue to look at overall basket and if I say no low margin then I would say there will be a challenge in our customers. Customers purchasing departments like so I would say there is lot of areas which are available to fulfill the overall footprints which we have, assets we have, capabilities we have. So at this moment I would say look, we have to see this as a whole and not at a individual product or portfolio level. Because there will be always a portfolio, right? We will be doing certain things at low margin, certain things at high and then you know every product will also go through their product life cycle, innovations, intellectual properties, maybe commoditization and then renovation.
So all these aspects, keep in mind I think we have a reasonably balanced portfolio and that if we are able to manage this way I think we shall be able to continue the momentum. That’s point number one. Point number two. Definitely there are pockets of opportunities and that’s that those are the opportunities we are examining and investing our time into that how do we really go along with the market? Because what we did last few quarters is basically yes, we want to play here and in spite of you know, flat, flat growth or so. But now essentially the idea is to capture the India growth story and while we continue we will see that how do we pan out what should be.
Vipulkumar Shah
Our overall capacity utilization? Sir.
Dhananjay Salunkhe
So again as we keep on saying that we normally do not discuss the capacity utilizations because we are complex multilocational company so we don’t really dwell into that much.
Vipulkumar Shah
Okay, thank you.
operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I now hand the conference over to Mr. Dhananjay Saranke for closing comments. Over to you sir.
Dhananjay Salunkhe
Thank you, thank you for moderating this so well and I appreciate all the questions and I hope we were able to answer your queries. First of all again thank you team for organizing this. I would say this is one of. The strong quarter we had in I. Would say in last 12 quarters or. So, 12, 13 quarters we have started our investor calls and I’m really feeling, I would say proud in terms of the numbers what we are able to deliver in last quarter double digit EBITDA as Yagdish mentioned that happened almost after four to five years I think and we want to really continue that and this wouldn’t have been possible without this underlenting support and the patronage what we get from our customers, from our supplier partners and the mostly the state government and government of India where we get lot of support in terms of how wherever we operate in terms of the licenses and the approvals and you know, no objection certificates.
So I would really want to place this on record that without this three large stakeholders we couldn’t really survive and exist. And then lastly our fabulous team Utamaki India team, the plant teams, the sales teams and the finance. I mean everyone, I think this is a fabulous quarter behind us and what. A good start for the upcoming Diwali. At the same time my mind is also little vary that Jagdish is leaving Utamaki India. I think from the first December he won’t be on the Jagdish. We will be missing your services to this organization and I would want to place it on record a great contributions you had over the last few plus years with Uttamaki appreciate and will wish you all the luck for your future endeavors. So with this comments I would again thank everyone for your patronage, support and good wishes. Thank you.
operator
Thank you sir. On behalf of ICICI securities. That concludes this conference. Thank you for joining us and you may now disconnect your lines.