Synopsis: With a market cap of more than 1400 Cr, the largest manufacturer of finished flexible packaging saw its stock surge by 5 percent soon after the company announced its robust Q3FY26 result with 150 percent net profit growth on YoY basis.
The small-cap stock of a company engaged in manufacturing and supplying sustainable packaging and labelling solutions saw its stock in the spotlight soon after the company announced its strong Q3FY26 result. The company in context has a 3 year profit CAGR of 195 percent.
With a market cap of more than Rs 1400 Cr, Huhtamaki India Ltd saw its stock hit an intraday high of Rs 201 which is 5 percent higher than the previous close of Rs 191.
Q3FY26 Result
In the latest quarterly result the company has seen its revenue from operations increase by a percent on YoY basis, from Rs 619 Cr in Q3FY25 to Rs 623 Cr in Q3FY26, while the QoQ decreased by a percent from Rs 625 Cr. The net profits grew by 150 percent going from Rs 12 Cr in Q3FY25 to Rs 30 Cr in Q3FY26, while the QoQ decreased by 19 percent from Q2FY26’s Rs 37 Cr.
In 9M numbers of the fiscal year, the company saw its revenue from operations decrease by 2 percent YoY, from Rs 2450 Cr in 9MFY25 to Rs 2389 Cr in 9MFY26. The net profits for the same period grew by 34 percent going from Rs 88 Cr to Rs 118 Cr.
The company has a 3 year sales CAGR of negative 1 percent, while the TTM is at negative 2 percent. The company’s 3 year profit CAGR is at 195 percent, while the TTM number is at 82 percent. The company also has a ROCE of 7 percent and a ROE of 5 percent.
Quarterly Highlight
The company saw a 35 percent YoY increase in other operating revenue going from Rs Rs 17 Cr to Rs 23 Cr, while the other income also grew by 60 percent on YoY basis from Rs 5 Cr to Rs 8 Cr. Apart from these the company also saw its cost of material reduced by 5 percent, reducing from Rs 402 Cr to Rs 380 Cr. Apart from these, the company also saw its Operating profit margin increase by 500bps on YoY basis from 4 percent in Q3FY25 to the current 9 percent in Q3FY26.
Dividend & Solar SPV
The board recommended a Rs 2 per share dividend for FY26, subject to shareholder approval at the AGM, reflecting strong financial performance and the company’s focus on rewarding shareholders.
The company approved a Rs 2.76 crore investment to acquire 28 percent in a solar SPV, enabling captive renewable power generation, regulatory compliance, lower energy costs, and enhanced sustainability.
Huhtamaki India Ltd is a provider of flexible packaging solutions, catering to food, beverage, and FMCG industries. It is the largest manufacturer of finished flexible packaging in terms of volume in Africa, India, and Asia Pacific excluding Japan, offering innovative, sustainable, and high-quality packaging products.
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