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Hindustan Composites Ltd

| Audited Standalone Financial Results for Quarter & Year Ended March 31, 2026

Report Source

⬤23rd Apr 26

Summary : Hindustan Composites Ltd. reported strong FY26 results with revenue growth, recommended a dividend, and approved capacity expansion for Railway Brake Pads, despite a past regulatory fine and JV losses.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: Rs. 15,760 Lakhs (FY26) vs Rs. 14,326 Lakhs (FY25) (Standalone)
  2. Employee benefits expense: Rs. 4,680 Lakhs (FY26) vs Rs. 4,194 Lakhs (FY25) (Standalone)
  3. Depreciation and amortization expense: Rs. 1,198 Lakhs (FY26) vs Rs. 1,033 Lakhs (FY25) (Standalone)
  4. Exceptional item (New Labour Codes impact): Rs. 291 Lakhs (FY26)
  5. Total Revenue from Operations: Rs. 37,501 Lakhs (FY26) vs Rs. 32,508 Lakhs (FY25) (Standalone)
  6. Segment Revenue: Composite Products, Investment, Trading in Commodity
  7. Net cash generated from operating activities: Rs. 2,113 Lakhs (FY26) vs Rs. 2,986 Lakhs (FY25) (Standalone)
  8. Net cash used in investing activities: Rs. (2,951) Lakhs (FY26) vs Rs. (1,791) Lakhs (FY25) (Standalone)
  9. Net cash used in financing activities: Rs. (410) Lakhs (FY26) vs Rs. (312) Lakhs (FY25) (Standalone)
  10. Total Assets: Rs. 126,481 Lakhs (FY26) vs Rs. 119,635 Lakhs (FY25) (Standalone)
  11. Equity Share Capital: Rs. 738 Lakhs (FY26 & FY25)
  12. Other Equity: Rs. 114,002 Lakhs (FY26) vs Rs. 107,922 Lakhs (FY25)
  13. Both standalone and consolidated financial results approved
  14. Consolidated results exclude JV losses exceeding investment

Corporate Overview

  1. Mumbai
  2. New Delhi
  3. Kolkata
  4. Chennai
  5. Fine for delayed submission of unaudited financial results (Q1 2019)
  6. Joint Venture losses exceeded investment, not consolidated in results.
  7. Manufacturing of Composite Products
  8. Investment activities
  9. Trading in Commodity
  10. Formal, compliant, and forward-looking regarding expansion plans.
  11. Composite Products
  12. Investment
  13. Trading in Commodity
  14. Existing capacity for Railway Brake Block/Pad: 425,000 units/month (84% utilization)
  15. Proposed capacity addition for Railway Brake Block/Pad: 85,000 units/month
  16. Approved capacity expansion plan for financial year 2026-27
  17. Proposed addition of 85,000 Railway Brake Block/Pad units/month
  18. Investment of Rs. 350 Lakh to be financed by internal resources
  19. Expansion aims to cater additional demand in this segment
  20. Project completion expected within 6 months

Risk Factors

  1. Past regulatory fine for delayed financial results.
  2. Joint Venture losses not consolidated due to exceeding investment.
  3. Uncertain impact of new Labour Codes.
  4. Reliance on internal resources for capex.

Key Drivers

  1. Approved capacity expansion for Railway Brake Pads.
  2. Recommended dividend of Rs. 2 per share.
  3. Revenue from operations increased significantly.
  4. Unmodified audit opinion on financial results.

Auditor’s Report

  1. Unmodified opinion on standalone financial results
  2. Unmodified opinion on consolidated financial results

Board Commentary

  1. Re-appointed M/s. Suresh Pimple & Associates as Cost Auditors for FY 2026-27
  2. Recommended dividend of Rs. 2 per share (on face value of Rs. 5) for FY2026
  3. Dividend subject to approval at the upcoming Annual General Meeting
  4. Payment within 30 days of AGM approval
  5. Regulatory non-compliance leading to fine
  6. Impact of New Labour Codes on employee benefits
  7. Fine of Rs. 1,55,000 for delayed submission of Q1 2019 unaudited consolidated financial results
  8. Company paid fine and filed waiver application with BSE Ltd.
  9. Approved capacity expansion plan for Railway Brake Block/Pad for FY 2026-27
  10. Investment of Rs. 350 Lakhs, financed by internal resources

Corporate Governance

  1. Audit Committee reviewed and approved financial results
  2. Past regulatory non-compliance for delayed submission of results

Management Discussion & Analysis

Future Strategy

  1. Capacity expansion to meet additional market demand

Operational Focus Areas

  1. Implementing capacity expansion for Railway Brake Block/Pad

Performance Drivers

  1. Increased revenue from operations
  2. Growth in profit before tax

Risk Control Measures

  1. Paid fine for non-compliance and filed waiver application
  2. Evaluating impact of New Labour Codes for accounting adjustments

Critical Risks

  1. Regulatory non-compliance (past fine)
  2. Potential impact of New Labour Codes on employee benefits
  3. Joint Venture losses exceeding investment