HP Adhesives Limited (HPAL)
₹34.19 +1.09% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, HP Adhesives' revenue was ₹63.4 Cr (-4.1% year on year, +9.7% on the previous quarter), and net profit ₹-0.9 Cr (against a profit a year earlier); the operating margin was -0.5%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹63.4 | -4.1% | +9.7% |
| Operating profit | ₹-0.3 | to loss | loss narrowed |
| Net profit | ₹-0.9 | to loss | loss narrowed |
| EPS (₹) | -0.10 | to loss | loss narrowed |
| Operating margin | -0.5% | — | — |
HPAL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 82.29% of the HPAL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 66.05%. That is higher than usual for this stock. Turnover was only ₹7 lakh, so a handful of trades can move this figure. Volume was 0.3 times its average, well below normal.
Delivery in the last 5 sessions: 62.1% · 77.4% · 54.2% · 72.2% · 82.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CARE Ratings Limited has reviewed and reaffirmed HP Adhesives Limited's long-term and short-term bank facilities totaling ₹37.96 crore at 'CARE BBB; Stable / CARE A3+'. Importantly, the rating agency has removed the facilities from 'Rating Watch with Negative Implications' and assigned a 'Stable' outlook. The rated debt represents approximately 15% of HPAL's TTM revenue of ₹252 crore, against a current total debt profile of just ₹4 crore.
- ₹37.96 crore total bank facilities reviewed and reaffirmed by CARE Ratings
- Long-term and short-term ratings reaffirmed at CARE BBB / CARE A3+
- Removed from Rating Watch with Negative Implications
- Stable outlook assigned following the review on October 9, 2026
HP Adhesives Limited received an Order-in-Original from the Joint Commissioner of Customs (Nhava Sheva) on September 26, 2026. The order demands Anti-Dumping Duty of Rs 28,70,934 along with applicable interest, an equal penalty of Rs 28,70,934, and a redemption fine of Rs 8,50,000 regarding imports of PTFE Thread Seal Tape. The total demand of approximately Rs 65.92 lakhs (plus interest) represents less than 0.3% of TTM revenue (Rs 252 Cr). The company confirmed it plans to contest the order before the appellate authority and will account for the exposure under contingent liabilities.
- Order-in-Original dated September 18, 2026 received on September 26, 2026 from Customs Authority
- Anti-Dumping Duty demanded totals Rs 28,70,934 plus applicable interest under Section 28AA
- Imposes a penalty of Rs 28,70,934 and a redemption fine of Rs 8,50,000
- Total quantified demand stands at Rs 65.92 lakhs, which HPAL plans to appeal
HP Adhesives has submitted the scrutinizer's report and voting results for its 7th Annual General Meeting held on September 22, 2026. All five resolutions were passed with requisite majorities, including the declaration of a 20% final dividend (Rs 0.40 per equity share of face value Rs 2) for FY26. Shareholders also approved the adoption of FY26 financial statements and the re-appointment and remuneration of Ms. Nidhi Haresh Motwani as Executive Director for a 3-year term. Promoter voting participation stood at 100% of their holding (65,550,675 shares), driving unanimous approval despite some dissent among the very small proportion of public non-institutional votes cast.
- Final dividend of 20% (Rs 0.40 per share of face value Rs 2) formally approved by shareholders
- All 5 resolutions passed with >99.98% overall majority votes cast
- Total of 65,573,958 votes polled representing 71.37% of total outstanding shares
- Ms. Nidhi Haresh Motwani re-appointed as Executive Director for a 3-year consecutive term
- Public non-institutional voter turnout was modest at 23,283 votes out of 26,313,991 shares (0.09%)
HP Adhesives Limited has issued its Annual Report for FY 2025-26 along with the notice for its 7th Annual General Meeting scheduled for September 22, 2026. The company confirmed a dividend of 20% (₹0.40 per share of face value ₹2) with a record date of September 15, 2026. For FY26, gross sales stood at ₹266.65 crore, led by Solvent Cement at 50.79% (₹135.44 crore) and Silicone Sealants at 18.27% (₹48.72 crore).
- 7th AGM scheduled for September 22, 2026, via Video Conferencing.
- Dividend declared at 20% (₹0.40 per equity share of face value ₹2) with record date fixed as September 15, 2026.
- FY26 gross sales reached ₹266.65 crore, with Solvent Cement contributing ₹135.44 crore (50.79%).
- Remote e-voting period open from September 19, 2026 (9:00 AM) to September 21, 2026 (5:00 PM).
HP Adhesives Limited has issued physical letters to shareholders whose email addresses are not registered, providing web-links to access the FY2025-26 Annual Report and Notice of the 7th Annual General Meeting (AGM). The 7th AGM is scheduled to take place on Tuesday, September 22, 2026, at 3:30 PM IST via video conferencing. The cut-off date for determining e-voting eligibility is Tuesday, September 15, 2026. Remote e-voting will commence on September 19, 2026, and conclude on September 21, 2026.
- 7th AGM scheduled for Tuesday, September 22, 2026, at 03:30 p.m. IST via Video Conferencing
- Cut-off date for e-voting eligibility set to Tuesday, September 15, 2026
- Remote e-voting period runs from September 19, 2026 (09:00 AM IST) to September 21, 2026 (05:00 PM IST)
- Physical letters dispatched pursuant to Regulation 36(1)(b) of SEBI LODR Regulations
HP Adhesives has issued notice for its 7th Annual General Meeting scheduled for September 22, 2026, via video conferencing. The key agenda items include the adoption of FY26 audited financial statements and approval of a 20% final dividend (₹0.40 per equity share of face value ₹2). The company is also seeking shareholder approval to re-appoint Ms. Nidhi Haresh Motwani as Executive Director for a 3-year term starting February 10, 2027, with a proposed remuneration of ₹49.33 Lakhs p.a. (up from ₹44.85 Lakhs p.a.).
- 7th Annual General Meeting scheduled for Tuesday, September 22, 2026, at 3:30 PM IST via VC/OAVM
- Approval sought for final dividend of 20% (₹0.40 per equity share of face value ₹2) for FY26
- Re-appointment of Ms. Nidhi Haresh Motwani as Executive Director for a 3-year term (Feb 10, 2027 to Feb 9, 2030)
- Proposed annual remuneration for Executive Director is ₹49.33 Lakhs p.a. compared to ₹44.85 Lakhs p.a. last drawn
HP Adhesives Limited has scheduled its 7th Annual General Meeting (AGM) for Tuesday, September 22, 2026, via Video Conferencing. The company has fixed Tuesday, September 15, 2026, as the record date for determining shareholder eligibility for the FY26 dividend. The final dividend payout remains subject to shareholder approval at the AGM. For FY26, the company posted a net profit of Rs 6.97 Cr on total revenue of Rs 254.35 Cr.
- Record date for payment of FY26 dividend fixed as September 15, 2026
- 7th Annual General Meeting to be held on September 22, 2026, at 03:30 PM IST
- Meeting to be conducted via Video Conferencing (VC) / Other Audio Video Mode (OAVM)
- Dividend distribution is subject to declaration and approval by members at the AGM
HP Adhesives has released a statutory communication informing shareholders about Tax Deduction at Source (TDS) applicable to the FY26 dividend. The Board had recommended a dividend of 20% (Rs 0.40 per equity share of Rs 2 face value) on May 12, 2026, subject to shareholder approval at the AGM. Resident shareholders will face 10% TDS with a valid PAN (20% without PAN), with exemptions applicable for individual payouts up to Rs 10,000 or upon submission of Form 121. All relevant tax exemption declarations must be submitted to the RTA by September 14, 2026.
- Dividend declared at 20% (Rs 0.40 per equity share of Rs 2 face value) for FY26
- Standard TDS rate is 10% for resident shareholders with valid PAN and 20% without valid PAN
- No TDS deducted for resident individual shareholders if aggregate dividend does not exceed Rs 10,000
- Cut-off deadline to submit tax exemption documents and forms to RTA is September 14, 2026
HP Adhesives reported a consolidated net loss of ₹0.91 Cr for the quarter ended June 30, 2026, a sharp reversal from a profit of ₹4.19 Cr in the same period last year. Revenue from operations declined 4.1% YoY to ₹63.42 Cr, while total expenses rose to ₹65.83 Cr, primarily driven by higher material costs. The company recognized an additional exceptional loss of ₹0.90 Cr related to the January 2026 fire incident at its Unit I facility. Management re-appointed Ms. Nidhi Motwani as Executive Director for a three-year term starting February 2027.
- Revenue from operations fell 4.1% YoY to ₹63.42 Cr from ₹66.10 Cr in Q1 FY26.
- Reported a Net Loss of ₹0.91 Cr against a Net Profit of ₹4.19 Cr in the year-ago quarter.
- Recognized an additional ₹89.84 Lakhs as an exceptional loss for fire-related debris removal and PPE write-offs.
- Cumulative insurance claim receivable stands at approximately ₹25.88 Cr, representing ~13.8% of the company's net worth.
- Total expenses of ₹65.83 Cr exceeded total income of ₹64.48 Cr for the quarter.
HP Adhesives Limited reported a consolidated net loss of ₹0.91 Cr for Q1 FY27, a significant downturn from a profit of ₹4.19 Cr in the same quarter last year. Revenue from operations declined 4.1% YoY to ₹63.42 Cr, while total expenses rose to ₹65.83 Cr, driven by a 26% increase in raw material costs. The company recognized an additional exceptional loss of ₹89.84 lakhs related to the January 2026 fire at its Raigad plant, bringing the total estimated loss recognized to date to approximately ₹25.88 Cr. The final insurance settlement remains an area of uncertainty as the claim is currently recorded as a receivable.
- Revenue from operations fell to ₹63.42 Cr in Q1 FY27 from ₹66.10 Cr in Q1 FY26.
- Reported a Net Loss of ₹0.91 Cr for the quarter versus a Net Profit of ₹4.19 Cr YoY.
- Recognized an additional exceptional loss of ₹89.84 lakhs for debris removal and PPE write-offs following the Jan 2026 fire.
- Cost of materials consumed spiked to ₹36.23 Cr from ₹28.77 Cr in the year-ago period.
- Ms. Nidhi Motwani re-appointed as Executive Director for a 3-year term starting February 2027.
HP Adhesives Limited (HPAL) reported a weak Q1 FY27, swinging to a net loss of ₹0.91 Cr from a profit of ₹4.19 Cr in the same period last year. Revenue from operations declined 4.1% YoY to ₹63.42 Cr, although it showed a sequential recovery of 9.7% from the previous quarter. The company continues to face financial headwinds from a major fire incident at its Unit-I facility in January 2026, recording an additional ₹0.90 Cr loss this quarter. While a cumulative insurance claim of approximately ₹25.88 Cr is recognized as a receivable, the final settlement remains pending and uncertain.
- Revenue from operations decreased 4.1% YoY to ₹63.42 Cr from ₹66.10 Cr in Q1 FY26.
- Reported a Net Loss of ₹0.91 Cr for the quarter, compared to a Net Profit of ₹4.19 Cr in the year-ago period.
- Recognized an additional fire-related loss of ₹89.84 lakhs in Q1 FY27, following a ₹24.98 Cr loss in FY26.
- Total insurance claim receivable stands at approximately ₹25.88 Cr, pending final assessment and settlement.
- Re-appointed Ms. Nidhi Motwani as Executive Director for a 3-year term starting February 2027.
HP Adhesives Limited (HPAL) has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The company's Registrar and Share Transfer Agent, Bigshare Services Private Limited, confirmed that no requests for dematerialization or rematerialization were received during the quarter ended June 30, 2026. Furthermore, the filing confirms that 100% of the company's shares are already held in dematerialized form. This is a standard administrative disclosure with no impact on business operations or financials.
- Zero requests received for dematerialization or rematerialization during the quarter ended June 30, 2026
- 100% of the company's shares are confirmed to be in demat form as of the reporting date
- Compliance certificate issued by Bigshare Services Private Limited on July 9, 2026
- Filing submitted to exchanges on July 21, 2026, in accordance with SEBI timelines
HP Adhesives Limited (HPAL) has secured board approval for a Working Capital Term Loan (ECLGS) of Rs 2.16 crore from ICICI Bank. The loan is priced at 9% p.a. with a 5-year tenure, including a 1-year moratorium on principal payments. This facility represents approximately 0.85% of the company's TTM revenue of Rs 254 crore and 1.15% of its net worth. The move provides low-cost liquidity following a challenging March 2026 quarter where the company reported a net loss of Rs 2.37 crore.
- Approved a Working Capital Term Loan (ECLGS) of Rs 21.6 million (Rs 2.16 Cr)
- Interest rate set at 9% p.a. with a total tenure of 5 years
- Includes a 1-year moratorium on principal payments from ICICI Bank
- Loan amount is small, representing ~0.85% of TTM revenue (Rs 254 Cr)
HP Adhesives Limited (HPAL) has notified the exchanges that its trading window will be closed starting July 1, 2026. This closure is a standard regulatory requirement under SEBI Insider Trading Regulations ahead of the declaration of financial results for the quarter ending June 30, 2026. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the board meeting results are made public. The specific date for the board meeting to approve these results will be announced separately in the future.
- Trading window closure begins on July 1, 2026, for designated persons and their relatives.
- The closure is in anticipation of the un-audited financial results for the quarter ending June 30, 2026.
- The window will reopen 48 hours after the conclusion of the board meeting where results are approved.
- The company will intimate the specific date of the board meeting in due course.
HP Adhesives Limited (HPAL) has submitted its Annual Secretarial Compliance Report for the financial year ending March 31, 2026. The audit, conducted by Shivam Sharma & Associates, confirms that the company has adhered to all applicable SEBI regulations and circulars without any noted deviations. The report verifies compliance across key areas including Insider Trading norms, Related Party Transactions, and Board performance evaluations. Notably, no penalties or adverse actions were taken against the company or its promoters by SEBI or stock exchanges during the period.
- Zero deviations reported in compliance with SEBI (LODR) and (PIT) Regulations for the financial year ended March 31, 2026.
- Related Party Transactions were duly ratified by the Audit Committee within the mandatory 3-month window as per Regulation 23(2)(f).
- No actions, fines, or warnings were issued by SEBI or Stock Exchanges against the company, its promoters, or directors.
- The company maintained a functional website with timely dissemination of all required documents and corporate governance reports.
- Unitybond Solutions Private Limited was identified as the company's sole, non-material subsidiary during the review period.
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment: Adhesives & Sealants. Revenue for FY24 was INR 236.97 Cr, representing a marginal growth of 1.41% compared to INR 233.67 Cr in FY23.
Geographic Revenue Split
Domestic sales contribute approximately 88.77% of revenue, supported by a network of 1,575+ distributors. Exports account for 11.23% of total revenue (FY25), with a presence in 21+ countries including UAE, Iraq, Mexico, and Qatar.
Profitability Margins
Gross margins improved from 27.8% in FY23 to 31.7% in FY24. However, PAT margin moderated to 7.16% in FY25 from 8.68% in FY24, and further declined to 6.34% in Q1 FY26 due to increased operational costs.
EBITDA Margin
PBILDT margin was 10.93% in FY25, a decrease from 13.40% in FY24. This moderation was primarily driven by higher employee costs resulting from aggressive recruitment to support future growth. Q1 FY26 EBITDA margin stood at 9.88%.
Capital Expenditure
Property, Plant and Equipment (PPE) increased to INR 70.73 Cr in FY25 from INR 49.51 Cr in FY24. Capital Work-in-Progress (CWIP) decreased from INR 16.20 Cr to INR 4.36 Cr, indicating the completion and commissioning of expansion projects.
Credit Rating & Borrowing
CARE Ratings reaffirmed a 'CARE BBB; Stable' rating for long-term bank facilities and 'CARE A3+' for short-term facilities as of September 19, 2024. The company maintains a low-risk profile with an overall gearing of 0.02x and interest coverage of 17.15x in FY24.
Operational Drivers
Raw Materials
Key raw materials include derivatives of crude oil, which are essential for manufacturing solvent cements and synthetic rubber adhesives. These materials, along with traded goods, represent approximately 61% of total revenue based on FY23 consumption of INR 142.09 Cr.
Import Sources
Approximately 30% of raw materials and traded goods are imported to ensure quality and availability, though specific source countries are not disclosed in available documents.
Capacity Expansion
The company completed significant expansion in FY25, evidenced by the transfer of INR 11.84 Cr from CWIP to PPE. The manufacturing facility is located at Khalapur, Raigad, Maharashtra, providing proximity to the JNPT port for logistics efficiency.
Raw Material Costs
Raw material costs are highly susceptible to crude oil price volatility. The company manages this by passing on price increases to customers with a time lag. In FY23, material costs were INR 142.09 Cr against revenue of INR 232.99 Cr.
Manufacturing Efficiency
The company operates a centralized facility in Maharashtra with 7 strategically located sales depots across India to optimize distribution and service more than 1,575 distributors.
Logistics & Distribution
The company utilizes 7 sales depots to service its domestic distributor base. Proximity to JNPT port provides a strategic advantage for the 11.23% of revenue derived from exports.
Strategic Growth
Growth Strategy
Growth is targeted through the expansion of the distributor network (increased from 1,250 to 1,575+), increasing export footprint beyond 21 countries, and diversifying the product portfolio into ancillary plumbing products like ball valves and Teflon tapes.
Products & Services
Solvent cements, silicone sealants, synthetic rubber adhesives, rubber lubricants, PVA adhesives, gasket shellacs, ball valves, Teflon tapes, spray paints, and masking tapes.
Brand Portfolio
HP Adhesives (proprietary brands).
New Products/Services
The company has expanded into silicone sealants, rubber lubricants, and trading products like ball valves and masking tapes to leverage its existing plumbing and hardware distribution channels.
Market Expansion
Targeting deeper penetration in 21+ export countries including UAE, Iraq, Mexico, and Qatar, alongside domestic expansion through 7 regional sales depots.
Market Share & Ranking
The company is noted to have a modest scale of operations compared to established brands in the adhesive industry.
External Factors
Industry Trends
The adhesives and sealants industry is evolving towards a wider application range in plumbing, automobile, and furniture sectors. HPAL is positioning itself by expanding its SKU count and product categories to become a multi-product player.
Competitive Landscape
Competes with established large-scale brands in the chemical and adhesive sectors; HPAL's strategy focuses on niche plumbing applications and a wide range of SKUs.
Competitive Moat
Moat is built on proprietary brands and a robust distribution network of 1,575+ partners. Proximity to JNPT port provides a sustainable cost advantage for international trade compared to inland competitors.
Macro Economic Sensitivity
Highly sensitive to global crude oil prices and geopolitical factors that affect petrochemical supply chains and shipping costs.
Geopolitical Risks
Trade barriers or supply chain disruptions in the Middle East or other export regions (UAE, Iraq) could impact the 11.23% export revenue stream.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act, 2013 and SEBI Listing Regulations. The company maintains internal financial controls with no reportable deficiencies as of March 31, 2025.
Environmental Compliance
ESG risks are noted as 'Not Applicable' in credit rating assessments for this scale of operations.
Taxation Policy Impact
The effective tax rate was approximately 23.9% in FY23, with current tax liabilities of INR 1.28 Cr as of March 2024.
Legal Contingencies
No penalties or strictures were imposed by SEBI or Stock Exchanges. The company reported no instances of significant fraud or material legal violations during the audit period.
Risk Analysis
Key Uncertainties
Volatility in crude oil prices (primary input) and foreign exchange risk (30% imports) are the primary business uncertainties that could impact PBILDT margins, which already saw a decline to 10.93% in FY25.
Geographic Concentration Risk
Domestic revenue is concentrated in India (~89%), while export revenue is spread across 21 countries, reducing single-country export risk.
Third Party Dependencies
30% dependency on imported raw materials and traded goods exposes the company to global supplier and shipping availability.
Credit & Counterparty Risk
Receivables increased by INR 4.30 Cr in FY25. The company reversed a provision for expected credit loss of INR 0.55 Cr, suggesting stable credit quality of its 1,575+ distributors.
