IPO closes on 9 Jun'26
Hexagon Nutrition Ltd.
Minimum Investment
₹ 14,985 / 333 shares
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- Hexagon Nutrition Ltd (HNL) has demonstrated strong financial performance in recent years, recording revenue CAGR of 8% and net profit CAGR of 105% over FY23–FY25, driven by meaningful margin expansion.
- HNL’s operating performance has improved sharply, with EBITDA margin expanding from 6.2% in FY23 to 12.3% in FY25, reflecting better cost efficiency and operating leverage.
- The company’s net profit margin also improved meaningfully from 2.1% in FY23 to 7.5% in FY25, indicating that revenue growth is translating into stronger bottom-line performance.
- The momentum has continued into 9MFY26, with EBITDA margin further improving to 14.0% and net profit margin reaching 10.1%, supported by sustained margin expansion and improved profitability.
About the company
Founded in
27 May'93
Managing director
Vikram Kelkar
- HNL is a research-oriented, pure-play nutrition company with products spanning micronutrient premixes, wellness nutrition and therapeutic and clinical nutrition.
- It operates across three segments: (i) B2C, which includes branded wellness and clinical nutrition products; (ii) B2B2C, which includes premix formulations; and (iii) ESG-focused products such as Ready-to-Use Foods (RUFs) and Micronutrient Powders (MNPs).
- HNL is among India’s largest premix players and a leading licensed supplier of MNPs under UN programmes, supporting global fortification and public health initiatives.
- The company operates 3 manufacturing facilities in India and 1 in Uzbekistan, exporting to 75+ countries.
STRENGTHS
- Impressive Growth: Revenue from operations has increased at a CAGR of 8% between FY23 and FY25. EBITDA and net profit have grown at even higher CAGRs of 53% and 105%, respectively, during the same period.
- Margin Expansion: EBITDA margin improved steadily from 6.17% in FY23 to 12.33% in FY25 and further to 14.03% in 9MFY26. Similarly, net profit margin also expanded from 2.07% in FY23 to 7.36% in FY25 and further to 9.81% in 9MFY26.
- Improving Return Ratios: Return on Equity (RoE) increased from 3.5% in FY23 to 10.47% in FY25, while Return on Capital Employed (ROCE) improved from 5.94% to 17.06% over the same period, indicating better capital efficiency and improved profitability.
- Customer Stickiness: HNL has established long-standing relationships across B2C, B2B2C and ESG segments. Repeat customers contributed 55.54% of revenue in 9MFY26, providing a strong base for sustainable growth.
- Certified Manufacturing Base: HNL’s manufacturing facilities are backed by multiple quality certifications. Additionally, its two SEZ-based plants located near ports provide export benefits and potential cost advantages.
RISK FACTORS
- Client Concentration: HNL derives a meaningful share of revenue from a limited customer base. In 9MFY26, the top 5 customers contributed 30% of revenue, while the top 10 customers contributed 42%. Any loss or reduction in business from key customers could impact revenue, profitability and cash flows.
- Dependence on Premix Formulations: This segment contributed 51.47% of revenue in 9MFY26. Demand slowdown, pricing pressure, customer loss or regulatory changes in this category could materially affect performance.
- Supplier Concentration: Top 10 suppliers accounted for 53.15% of raw material purchases in 9MFY26. Supply disruptions, price hikes or adverse vendor terms could impact operations and margins.
- Low Capacity Utilisation: Capacity utilisation across major product categories remained low at around 28.76%–31.06% during 9MFY26 and the last three fiscals.
- Forex & Trade Exposure: HNL imports a number of raw materials and earns 55.82% of its revenue from exports in 9M FY26. This exposes the firm to currency volatility, geopolitical risks and global trade disruptions.
- Cash Flow Concerns: HNL reported negative operating cash flows in 9MFY26 and FY23. If this trend continues, it could affect working-capital flexibility, operational stability and the company’s ability to fund future growth efficiently.
- Subsidiary Losses: HNL’s subsidiaries have incurred losses in the past and may continue to do so, which could adversely affect its consolidated results of operations and financial condition.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 139 Crore
Fresh Issue
₹
OFS
₹ 139 Crore
Price range
₹ 42 - 45
Lot size
333 shares
Issue Objective
This is a pure Offer for Sale (OFS), which means the company will not receive any proceeds from the offer, and all proceeds will go to the Selling Shareholders
Dates
Bidding open
5 Jun'26
Bidding close
9 Jun'26
Allotment date
10 Jun'26
Refund date
11 Jun'26
Listing
12 Jun'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
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