HP Adhesives Limited (NSE: HPAL | BSE: 543433)
Source: HP Adhesives Limited Annual Report FY 2025-26 (Fiscal Year Ended March 31, 2026)
📋 Quick Facts: Company Snapshot
HP Adhesives Limited is a prominent Indian manufacturer and distributor of adhesives, sealants, and allied products. From its origins as a single-product enterprise in the late 1980s, the company has evolved into a multi-product solutions provider operating across consumer and industrial applications, serving plumbing, building construction, woodworking, automotive, footwear, and home improvement sectors across India and international markets.
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | HP Adhesives Limited |
| Corporate Identity Number (CIN) | L24304MH2019PLC325019 |
| ISIN | INE0GSL01024 |
| NSE Symbol & BSE Scrip Code | NSE: HPAL | BSE: 543433 |
| Date of Incorporation / Conversion | Incorporated on 7th May, 2019 (Converted from Partnership Firm M/s HP International; Converted to Public Limited on 1st July, 2021) |
| Founders / Key Founding Figures | Mrs. Anjana Haresh Motwani (Founded predecessor entity Hindustan Plastics in 1979) |
| Registered Office | 11, Unique House, Chakala Cross Road, Andheri East, Mumbai – 400 099, Maharashtra, India |
| Corporate Headquarters | Business Square-C, 501, Sir Mathuradas Vasanji Road, Andheri East, Mumbai – 400 053, Maharashtra, India (Tel: 022-6819 6300) |
| Chairperson & Executive Director | Mrs. Anjana Haresh Motwani |
| Managing Director | Mr. Karan Haresh Motwani |
| Chief Financial Officer (CFO) | Mr. Mihir Suresh Shah |
| Company Secretary & Compliance Officer | Ms. Swati Sunil Talgaonkar (w.e.f. 24th September, 2025) |
| Promoter & Holding Group | Motwani Family (Mrs. Anjana Haresh Motwani, Mr. Karan Haresh Motwani, Ms. Nidhi Haresh Motwani) holding 71.35% equity |
| Industry / Sector Classification | Adhesives, Sealants, Building Materials & Construction Chemicals |
| Total Employee Workforce | 705 employees (499 Men, 206 Women) as of 31st March, 2026 |
| Manufacturing Facilities | 2 Units situated at Village Narangi and Village Kumbhivali, Taluka Khalapur, District Raigad, Maharashtra (Combined Installed Capacity: ~18,600 MTPA) |
| Domestic & Global Distribution Reach | 30 Indian States & UTs, 450+ Cities, 1,625+ Domestic Distributors, 1,750+ Total Customers, 49 Export Customers across 22 Countries |
| Statutory Auditors | M/s. Priya Choudhary & Associates LLP, Chartered Accountants |
| Registrar and Share Transfer Agent (RTA) | M/s. Bigshare Services Private Limited |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
HP Adhesives Limited stands as an integrated player within India’s adhesives, sealants, and building products landscape. Built over four decades of operational evolution, the company manufactures a diversified basket of products spanning Solvent Cement, Silicone Sealants, Contact Adhesives (Synthetic Rubber), Polyvinyl Acetate (PVA / White Glue), Epoxy Adhesives, Epoxy Putty, MS Polymer Sealants, Cyanoacrylates, Spray Paints, PTFE Teflon Tapes, and Ball Valves. The company’s business model bridges broad retail trade distribution with specialized original equipment manufacturer (OEM) supply agreements.
Operating out of primary manufacturing infrastructure located in Raigad district, Maharashtra, the company commands a domestic footprint spanning over 30 States and Union Territories with a retail distribution web backed by more than 1,625 active distributors. Simultaneously, HP Adhesives has established international trading corridors, serving 49 overseas customers across 22 countries in North America, Europe, Asia-Pacific, and the Middle East.
The Founders, Promoters & Their Legacy
The operational journey of HP Adhesives Limited traces back to 1979 when Mrs. Anjana Haresh Motwani established Hindustan Plastics as a sole proprietorship dedicated to manufacturing solvent cement for plastic piping systems. Over subsequent decades, the business expanded its technical capabilities and product reach, transitioning into the partnership firm M/s HP International.
The leadership legacy passed into a consolidated corporate structure when HP Adhesives Limited was incorporated on 7th May, 2019 under the Companies Act, 2013, acquiring the business operations of M/s HP International. The company was later converted into a public limited entity on 1st July, 2021, culminating in its initial public offering (IPO) and stock exchange listing on the BSE and NSE on 27th December, 2021.
- Mrs. Anjana Haresh Motwani (Chairperson & Executive Director): Possesses over 41 years of operational and managerial experience in the adhesives and plastics industry. She laid the founding groundwork of the group’s manufacturing capabilities and export market expansion.
- Mr. Karan Haresh Motwani (Managing Director): Holds a Bachelor’s degree in Management Studies from NMIMS and a Postgraduate diploma from S.P. Jain Institute of Management and Research. Joining the leadership in 2007, he spearheaded product diversification, distribution footprint expansion, and corporate structuring.
- Ms. Nidhi Haresh Motwani (Executive Director): Holds a Bachelor’s degree in Business Administration from NMIMS and a Master’s degree in Global Business from S.P. Jain School of Global Management. Joining in 2016, she leads operational efficiency, new project implementation, R&D innovation, and newer category introductions including Silicone Sealants and Rubber Adhesives.
The Journey: History & Evolution
From a single-product manufacturer catering to basic plumbing solvent requirements in the late 20th century, the business systematically built multiple growth platforms:
- 1979–1980s: Inception of Hindustan Plastics by Mrs. Anjana Haresh Motwani, pioneering localized production of PVC solvent cement.
- 2000s–2010s: Business expansion under M/s HP International, broadening into uPVC and CPVC solvent cements, synthetic rubber contact adhesives, and ancillary plumbing accessories like PTFE Teflon tapes and PVC ball valves.
- May 2019: Incorporation of HP Adhesives Limited as part of corporate consolidation to house all manufacturing assets and commercial contracts under a single corporate entity.
- July 2021 – December 2021: Conversion into a Public Limited Company and successful execution of an Initial Public Offering (IPO) raising ₹125.96 Crores (gross issue proceeds), listing on BSE and NSE.
- FY 2024–26: Scaling up of non-solvent product categories including Silicone Sealants, MS Polymers, Epoxy systems, and Tile Cleaners. Establishment of wholly-owned subsidiary Unitybond Solutions Private Limited in April 2024.
The Corporate Umbrella
HP Adhesives Limited operates as the operating parent company of the group. As of 31st March, 2026, the company holds 100% equity interest in a single operating subsidiary, Unitybond Solutions Private Limited (incorporated on 11th April, 2024), which engages in complementary adhesive manufacturing and trade activities.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
HP Adhesives Limited operates predominantly within a single primary reportable business segment under Ind AS 108: Adhesives and Allied Products. However, internally the management monitors performance across distinct product categories serving different end-use market ecosystems.
| Product Category | FY 2025-26 Gross Sales (₹ in Crores) | % Share of Total Gross Sales | Primary End-Use Applications |
|---|---|---|---|
| Solvent Cement | 135.44 | 50.79% | Plumbing, PVC/CPVC/uPVC pipe joining, irrigation, drainage & sewerage |
| Silicone Sealants | 48.72 | 18.27% | Glass glazing, building facades, weather sealing, interior gap filling |
| Ball Valves & Tapes | 36.58 | 13.72% | Fluid flow control, pipe thread sealing, masking applications |
| Contact Adhesives & PVA | 20.27 | 7.60% | Woodworking, furniture, foam & furnishings, footwear, automotive interiors |
| New / Emerging Products | 18.27 | 6.85% | MS Polymer industrial sealing, structural bonding, tile cleaning, spray painting |
| Others / Ancillary Products | 7.37 | 2.77% | PU foam insulation, rubber lubricants, gasket shellac, pipe fittings |
| Total Product Gross Sales | 266.65 | 100.00% | Consolidated Operations |
The Product & Service Catalog
The company maintains a broad catalog comprising over 200 Stock Keeping Units (SKUs) packaged in formats ranging from 10 ml tubes to 5,000-liter bulk containers:
- Solvent Cements: Fast-setting, leak-proof bonding solutions specifically formulated for PVC, CPVC, and uPVC pipe connections. Variants include regular-bodied, medium-bodied, and heavy-duty formulations along with companion surface cleaners and primers sold under the HP and StrongWeld brands.
- Silicone Sealants: Specialised sealing solutions marketed under the Strong Seal brand. Variants comprise General Purpose acetoxy sealants, Weather Sealants for outdoor curtain walls, Glass & Aquarium sealants, Neutral Cure sealants for sensitive substrates, and Paintable Acrylic sealants.
- Woodworking & Contact Adhesives: Water-based Polyvinyl Acetate (PVA) white glues for wood furniture assembly, and brushable/sprayable Synthetic Rubber (SR) contact adhesives designed for laminate bonding, foam, footwear, and automotive trim assembly marketed under the Strong Fix brand.
- Epoxy Adhesives & Putty: Structural two-component epoxy systems under the StrongTite umbrella. Variants include StrongTite Ultimate (50-minute pot life for heavy-duty structural bonding), StrongTite Zatpat (quick 3-minute setting), and specialty Epoxy Putties for sanitary and emergency pipe leak repairs.
- Emerging Category Offerings: High-end MS Polymer sealants tailored for bus body fabrication and structural building facades under the Nail Free brand; instant-bonding Cyanoacrylates under STRONG ‘n’ QUIK; multi-purpose fast-drying Spray Paints; and specialized Tile Cleaners for post-construction masonry work.
- Plumbing Accessories: High-precision PVC and CPVC Ball Valves for fluid control, non-reactive PTFE Teflon Tapes for threaded joints, and Masking Tapes.
The Names You Know
HP Adhesives markets its product portfolio across distinct brand pillars targeted at specific applicator segments:
- HP & StrongWeld: Flagship brand powerhouses commanding strong recall among plumbers, irrigation contractors, and hardware dealers for solvent cements.
- Strong Seal: Umbrella brand covering general purpose, neutral, and weather-proofing silicone sealants.
- Strong Fix: Brand dedicated to woodworking PVA glues and synthetic rubber contact adhesives.
- StrongTite: Specialized product line for structural epoxy adhesives, epoxy putties, and repair compounds.
- STRONG ‘n’ QUIK: Instant cyanoacrylate bonding range.
Mapping the Domestic & Global Reach
HP Adhesives distributes its products through a dual-channel structure serving both retail trade networks and industrial OEM accounts across domestic and international markets.
| Geographic Market | FY 2025-26 Footprint / Metrics | Key Infrastructure & Target Countries |
|---|---|---|
| Domestic (India) | 30 States & UTs | 450+ Cities | 1,625+ Distributors | 4 Regional Sales Hubs (North: Delhi/Kanpur, West: Mumbai/Ahmedabad/Indore, East: Kolkata/Patna, South: Bengaluru); Depots & direct dealer networks |
| International (Export Markets) | 22 Countries | 49 Export Customers | Exports to North America, Middle East, Asia-Pacific, Africa, and Europe facilitated by proximity to JNPT Port, Nhava Sheva |
The Brick & Mortar Footprint
The company anchors its production capabilities in two manufacturing facilities situated in Raigad district, Maharashtra, offering strategic access to National Highway networks and shipping routes through JNPT Port:
- Unit I (Village Narangi, Khalapur, Raigad): Survey No. 7, Hissa 14, Narangi Village. Primary hub housing solvent cement production, packaging lines, resin processing, quality control testing, and finished goods warehousing. Installed annual capacity of ~18,600 MTPA across product categories.
- Unit II (Village Kumbhivali, Khalapur, Raigad): Plot No. 21A, Aditya Industrial Estate. Secondary facility supporting specialized mixing, secondary packaging, component storage, and overflow processing lines.
📊 The Financial Health: The Numbers Simplified
Multi-Year Financial Highlights (₹ in Crores)
HP Adhesives has demonstrated steady long-term top-line expansion, though FY 2025-26 profitability was temporarily impacted by an operational disruption caused by a major fire incident at its primary manufacturing facility on 17th January, 2026.
| Financial Metric (₹ in Crores) | FY 2025-26 | FY 2024-25 | FY 2023-24 | FY 2022-23 | FY 2021-22 | Latest YoY (%) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 249.28 | 249.79 | 236.02 | 233.00 | 164.60 | -0.20% |
| EBITDA | 34.07 | 30.60 | 22.00 | 16.68 | 12.42 | +11.34% |
| Profit After Tax (PAT) | 6.98 | 18.24 | 18.24 | 10.66 | 6.01 | -61.73% |
| Net Worth / Total Equity | 187.75 | 184.28 | 168.89 | 148.29 | 137.84 | +1.88% |
| Debt-to-Equity Ratio (times) | 0.017 | 0.031 | 0.020 | 0.030 | 0.030 | -45.16% |
| Net Working Capital (% of Sales) | 24.11% | 26.60% | 25.80% | 29.80% | 28.90% | – |
Earnings, Expenses, & Take-Home Profits
During FY 2025-26, Consolidated Revenue from Operations stood flat at ₹249.28 Crores compared to ₹249.79 Crores in FY 2024-25. The flat revenue growth was predominantly caused by lost sales volume post 17th January, 2026, when a fire disrupted packaging lines at Unit I. Operating profitability faced margin compression due to fixed cost overhead absorption and temporary fire restoration expenses.
| Statement of Profit and Loss (₹ in Crores) | FY 2025-26 | FY 2024-25 | Latest YoY (%) |
|---|---|---|---|
| Revenue from Operations | 249.28 | 249.79 | -0.20% |
| Other Income | 3.60 | 4.58 | -21.40% |
| Total Income | 252.87 | 254.37 | -0.59% |
| Cost of Materials Consumed | 117.68 | 127.71 | -7.85% |
| Purchases of Stock-in-Trade | 36.55 | 32.88 | +11.16% |
| Changes in Inventories of Finished Goods, WIP and Stock-in-Trade | (0.32) | (4.64) | -93.10% |
| Employee Benefits Expense | 39.95 | 34.04 | +17.36% |
| Finance Costs | 2.67 | 2.15 | +24.19% |
| Depreciation and Amortisation Expense | 5.83 | 4.72 | +23.52% |
| Other Expenses | 42.34 | 33.79 | +25.30% |
| Total Expenses | 244.69 | 230.64 | +6.09% |
| Profit Before Exceptional Items and Tax | 8.19 | 23.73 | -65.49% |
| Exceptional Items (Net) | (0.81) | 0.00 | N/M |
| Profit Before Tax | 7.38 | 23.73 | -68.90% |
| Current Tax Expense | (1.93) | (4.39) | -56.04% |
| Deferred Tax Credit / (Expense) | 1.55 | (1.10) | N/M |
| Short / (Excess) Tax Provision of Previous Years | (0.01) | 0.00 | N/M |
| Profit After Tax (PAT) | 6.98 | 18.24 | -61.73% |
| Other Comprehensive Income (Net of Tax) | 0.16 | (0.10) | N/M |
| Total Comprehensive Income | 7.14 | 18.15 | -60.66% |
| Basic & Diluted Earnings Per Share (₹ per Share of ₹2/- face value) | 0.76 | 1.99 | -61.81% |
Assets, Borrowings, & Net Worth
The company maintains a healthy financial position characterized by low debt leverage and a strong net worth base of ₹187.75 Crores. Total assets increased to ₹232.11 Crores as of 31st March, 2026. A substantial portion of current financial assets (₹26.94 Crores) reflects an Insurance Claim Receivable of ₹24.98 Crores recognized following the Unit I fire incident.
| Consolidated Balance Sheet (₹ in Crores) | As at 31st March, 2026 | As at 31st March, 2025 | Latest YoY (%) |
|---|---|---|---|
| ASSETS | |||
| Non-Current Assets | |||
| Property, Plant and Equipment | 71.58 | 70.98 | +0.85% |
| Capital Work-in-Progress (CWIP) | 4.75 | 4.37 | +8.70% |
| Right of Use Assets | 0.92 | 1.72 | -46.51% |
| Other Intangible Assets | 0.13 | 0.15 | -13.33% |
| Other Financial Assets (Non-Current) | 0.00 | 2.86 | -100.00% |
| Deferred Tax Asset (Net) | 0.60 | 0.00 | N/M |
| Other Non-Current Assets | 0.00 | 0.46 | -100.00% |
| Total Non-Current Assets | 77.97 | 80.54 | -3.19% |
| Current Assets | |||
| Inventories | 50.50 | 56.49 | -10.60% |
| Current Investments | 22.19 | 24.65 | -9.98% |
| Trade Receivables | 37.26 | 41.74 | -10.73% |
| Cash and Cash Equivalents | 0.89 | 3.14 | -71.66% |
| Bank Balances Other than Cash and Cash Equivalents | 7.35 | 11.76 | -37.50% |
| Loans (Current Financial Assets) | 1.11 | 1.02 | +8.82% |
| Other Financial Assets (Current) | 26.94 | 0.69 | +3804.35% |
| Current Tax Assets (Net) | 2.72 | 1.13 | +140.71% |
| Other Current Assets | 5.18 | 6.91 | -25.04% |
| Total Current Assets | 154.14 | 147.53 | +4.48% |
| Total Assets | 232.11 | 228.08 | +1.77% |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity Share Capital | 18.37 | 18.37 | 0.00% |
| Other Equity | 169.37 | 165.90 | +2.09% |
| Total Equity | 187.75 | 184.28 | +1.88% |
| Non-Current Liabilities | |||
| Non-Current Borrowings | 0.00 | 0.00 | N/M |
| Lease Liabilities (Non-Current) | 0.57 | 0.68 | -16.18% |
| Provisions (Non-Current) | 0.69 | 0.80 | -13.75% |
| Deferred Tax Liabilities (Net) | 0.02 | 0.97 | -97.94% |
| Total Non-Current Liabilities | 1.28 | 2.45 | -47.76% |
| Current Liabilities | |||
| Current Borrowings | 3.26 | 5.69 | -42.71% |
| Lease Liabilities (Current) | 0.40 | 1.33 | -69.92% |
| Trade Payables: Micro and Small Enterprises | 7.72 | 5.79 | +33.33% |
| Trade Payables: Creditors Other than Micro and Small Enterprises | 19.93 | 17.21 | +15.80% |
| Other Financial Liabilities (Current) | 6.87 | 6.54 | +5.05% |
| Other Current Liabilities | 1.88 | 1.80 | +4.44% |
| Provisions (Current) | 3.03 | 2.97 | +2.02% |
| Current Tax Liabilities (Net) | 0.00 | 0.02 | -100.00% |
| Total Current Liabilities | 43.09 | 41.35 | +4.21% |
| TOTAL LIABILITIES | 44.37 | 43.80 | +1.30% |
| TOTAL EQUITY AND LIABILITIES | 232.11 | 228.08 | +1.77% |
Cash Flow: Tracking the Money Movement
The company generated operating cash flows of ₹7.08 Crores post exceptional item adjustments during FY 2025-26, down from ₹17.13 Crores in FY 2024-25. Capital allocation remained focused on plant reinstatement, equipment modernisations, and software upgrades.
| Consolidated Statement of Cash Flows (₹ in Crores) | FY 2025-26 | FY 2024-25 | Latest YoY (%) |
|---|---|---|---|
| Net Profit Before Tax | 7.38 | 23.73 | -68.90% |
| Operating Profit Before Working Capital Changes | 15.07 | 24.36 | -38.14% |
| Cash Generated from Operations | 11.50 | 24.01 | -52.10% |
| Direct Taxes Paid (Net) | (3.61) | (6.88) | -47.53% |
| Exceptional Items Paid / Outflow | (0.81) | 0.00 | N/M |
| Net Cash from Operating Activities | 7.08 | 17.13 | -58.67% |
| Purchase of Property, Plant and Equipment (CapEx / CWIP) | (12.84) | (14.03) | -8.48% |
| Proceeds from Sale of Property, Plant and Equipment | 0.00 | 0.26 | -100.00% |
| Investment in Bank & Fixed Deposits (Maturity > 3 Months) | 7.27 | 1.55 | +369.03% |
| Purchase of Current Investments (Mutual Funds / Bonds) | (97.78) | (123.77) | -21.00% |
| Sale of Current Investments | 100.42 | 118.44 | -15.21% |
| Interest Received & Debenture Income | 1.38 | 1.26 | +9.52% |
| Net Cash Flows Used in Investing Activities (B) | (1.55) | (16.30) | -90.49% |
| Repayment of Lease Liabilities | (1.14) | (0.79) | +44.30% |
| Repayment of Non-Current Borrowings | 0.00 | (0.37) | -100.00% |
| Movement in Short-Term Bank Borrowings (Net) | (2.43) | 5.54 | N/M |
| Dividend Paid to Shareholders | (3.68) | (2.76) | +33.33% |
| Finance Costs Paid | (0.53) | (0.09) | +488.89% |
| Net Cash Flows Used in Financing Activities (C) | (7.78) | 1.52 | N/M |
| Net Increase / (Decrease) in Cash & Cash Equivalents (A+B+C) | (2.25) | 2.36 | N/M |
| Cash and Cash Equivalents at Beginning of the Year | 3.14 | 0.78 | +302.56% |
| Cash and Cash Equivalents at End of the Year | 0.89 | 3.14 | -71.66% |
Funding the Future: CapEx, CWIP & R&D Spending
CapEx cash additions for property, plant, equipment, and intangibles totaled ₹12.84 Crores during FY 2025-26, down from ₹14.03 Crores in FY 2024-25. The company’s capital deployment focused on three key areas:
- Unit I Reinstatement & Machinery Replacement: Post the January 2026 fire, the company immediately placed orders for replacement solvent cement filling lines, automated packaging lines, storage tanks, and utility equipment.
- Unit II Production Expansion: Modifying space within Unit II building to absorb relocated packaging lines and establish temporary solvent cement filling capabilities.
- Capital Work-in-Progress (CWIP): Standing at ₹4.75 Crores as of 31st March, 2026, comprising building construction and plant machinery installation projects undergoing final commissioning.
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
Pursuant to Section 129(3) of the Companies Act, 2013, the financial summary of HP Adhesives Limited’s wholly-owned subsidiary is detailed below:
| Entity Name | Relationship | Country of Inc. | % Shareholding | Turnover (₹ in Crores) | Profit After Tax (₹ in Crores) |
|---|---|---|---|---|---|
| Unitybond Solutions Private Limited | Wholly-Owned Subsidiary | India | 100.00% | 1.87 | 0.10 |
Strategic Investments & Treasury Holdings
HP Adhesives maintains a conservative treasury policy, deploying surplus funds into liquid, capital-safe instruments to generate interest income while ensuring operational liquidity. As of 31st March, 2026, current investments totaled ₹22.19 Crores (valued at market price FVTPL), comprising:
- Quoted Mutual Funds: ₹0.85 Crores in liquid and debt scheme units.
- Quoted Government Securities: ₹5.16 Crores in sovereign debt bonds.
- Quoted Debentures / Bonds: ₹16.18 Crores in corporate bonds and non-convertible debentures.
- Term Deposits with Banks: ₹7.35 Crores held in bank fixed deposits maturing between 3 to 12 months, including margin money deposits of ₹0.43 Crores pledged against bank guarantees.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
The Board of Directors of HP Adhesives Limited comprises 6 members as of 31st March, 2026, featuring an equal balance of 3 Executive Directors and 3 Non-Executive Independent Directors.
| Name of Director / KMP | Designation / Role | DIN | Category |
|---|---|---|---|
| Mrs. Anjana Haresh Motwani | Chairperson & Executive Director | 02650184 | Executive Director (Promoter) |
| Mr. Karan Haresh Motwani | Managing Director | 02650089 | Executive Director (Promoter) |
| Ms. Nidhi Haresh Motwani | Executive Director | 06655834 | Executive Director (Promoter) |
| Mr. Surendra Kumar Mehta | Non-Executive & Independent Director | 09211358 | Non-Executive Independent Director |
| Mr. Rajendra Kumar Jain | Non-Executive & Independent Director | 00144095 | Non-Executive Independent Director |
| Dr. Chandra Sekhar Nettem | Non-Executive & Independent Director | 10646814 | Non-Executive Independent Director (w.e.f. 12th Feb 2026) |
| Mr. Mihir Suresh Shah | Chief Financial Officer (CFO) | – | Key Managerial Personnel |
| Ms. Swati Sunil Talgaonkar | Company Secretary & Compliance Officer | – | Key Managerial Personnel (w.e.f. 24th Sep 2025) |
Note: Mr. Ajeet Anant Walavalkar (DIN: 09226644) resigned as Non-Executive Independent Director on 12th February, 2026 due to health conditions, and Dr. Chandra Sekhar Nettem was appointed in his place.
Who Owns the Stock? Shareholding Pattern
As of 31st March, 2026, the paid-up equity share capital of HP Adhesives Limited stood at ₹18.37 Crores comprising 9,18,74,735 equity shares of face value ₹2/- each. Promoters hold a controlling 71.35% equity stake.
| Shareholder Category | Number of Equity Shares Held | % of Total Paid-Up Capital |
|---|---|---|
| A. Promoter & Promoter Group | ||
| Mrs. Anjana Haresh Motwani | 2,87,00,675 | 31.24% |
| Mr. Karan Haresh Motwani | 2,68,50,000 | 29.22% |
| Ms. Nidhi Haresh Motwani | 1,00,00,000 | 10.88% |
| Sub-Total Promoter Group (A) | 6,55,50,675 | 71.35% |
| B. Public Shareholding | ||
| Retail Individual Shareholders | 2,28,93,545 | 24.92% |
| Non-Resident Indians (NRIs) | 17,34,803 | 1.89% |
| Bodies Corporate | 8,23,566 | 0.90% |
| Hindu Undivided Family (HUF) | 7,86,797 | 0.86% |
| Clearing Members | 34,500 | 0.04% |
| Foreign Companies | 28,000 | 0.03% |
| Foreign Portfolio Investors (FPIs) | 22,849 | 0.02% |
| Sub-Total Public Shareholding (B) | 2,63,24,060 | 28.65% |
| GRAND TOTAL (A + B) | 9,18,74,735 | 100.00% |
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
HP Adhesives has constructed significant competitive moats that safeguard its market position against localized and unorganized competition:
- Category Dominance in Solvent Cements: Holding over 200 specialized SKUs, HP Adhesives is an established manufacturer of PVC, uPVC, and CPVC solvent cements in India, serving as a consolidated single-source supplier for plumbing accessories.
- Extensive Multi-Tier Distribution Web: A distribution apparatus covering 1,625+ active distributors spanning 30 States and UTs, accessing over 450 cities. This retail depth makes it difficult for new entrants to dislodge brand recall among hardware retailers.
- Applicator & Influencer Brand Equity: Direct engagement programs with plumbers, carpenters, and masons. In FY 2025-26 alone, the company hosted over 2,600 applicator meets featuring live demonstrations, driving brand preference at the point of application.
- Diversified Product Engine: Rapid scaling of non-solvent product categories (Silicone Sealants, MS Polymers, Epoxy Adhesives) reduces reliance on any single product class, expanding market potential across automotive, facade construction, and home improvement sectors.
- Strong Balance Sheet & Cash Reserves: Near-zero net debt position (Debt-to-Equity ratio of 0.017) supported by high liquid cash reserves, allowing the company to absorb operational disruptions and fund CapEx internally.
What Could Go Wrong? Key Challenges & Business Risks
Investors and analysts must weigh operational vulnerabilities and external sector headwinds disclosed by management:
- Operational Interruption & Fire Insurance Settlement Risk: The fire incident at Unit I on 17th January, 2026 damaged main solvent cement packaging lines and packaging inventories. While an insurance claim of ₹24.98 Crores has been recognized, final surveyor assessment and settlement by New India Assurance and ICICI Lombard are ongoing. Any shortfall in eventual insurance recovery could impact future earnings.
- Raw Material Price Volatility: Key raw materials including PVC resin, solvents (MEK, THF, Cyclohexanone), synthetic rubbers, and silicone polymers are derived from petrochemical derivatives. Fluctuations in global crude oil and energy markets can compress gross margins if cost increases cannot be passed on immediately.
- Product Concentration Risk: Solvent Cement continues to account for 50.79% of gross sales. Downturns in real estate construction, rural plumbing demand, or plastic piping adoption directly affect top-line growth.
- Working Capital Intensity: Managing over 200 SKUs across 1,625+ distributors requires significant inventory buffer holdings (₹50.50 Crores) and trade credit extension (₹37.26 Crores), exposing the business to inventory obsolescence and receivables credit loss risks (ECL provision of ₹8.26 Crores).
The Next Chapter: Growth & CapEx Initiatives
To sustain double-digit expansion, HP Adhesives has outlined key operational priorities for FY 2026-27 and beyond:
- Full Reinstatement of Unit I Facility: Rapid commissioning of newly ordered automated packaging and filling lines to bring solvent cement production fully back in-house, eliminating contract manufacturing outsourcing expenses.
- Accelerating Emerging Category Traction: Scaling up production and market penetration of MS Polymer sealants, Epoxy Putties, Cyanoacrylates, and Tile Cleaners. Emerging products grew 94.38% in FY 2025-26 to ₹18.27 Crores, expanding its share of gross sales from 3.61% to 6.85%.
- Geographic Expansion in Domestic & Export Markets: Deepening retail distribution reach across Tier-3 and Tier-4 semi-urban consumption hubs while expanding international footprint beyond existing 22 export countries.
- Infrastructure Tailwinds Alignment: Leveraging policy-driven demand catalysts including the Jal Jeevan Mission (allocated ₹67,670 Crores in Union Budget FY 2026-27), AMRUT urban development scheme (allocated ₹8,000 Crores), and PMAY-Urban 2.0 affordable housing construction.
The Verdict: Strategic Outlook & Conclusion
HP Adhesives Limited enters FY 2026-27 positioned to navigate past temporary operational setbacks. The company’s swift operational response to the January 2026 fire—re-initiating solvent cement packaging through Unit II modifications and vendor outsourcing—underlines its operational agility and management commitment.
Supported by a debt-free balance sheet, strong distributor equity, a diversified multi-category portfolio, and underlying macro tailwinds in Indian construction, plumbing, and industrial manufacturing, HP Adhesives remains well-positioned to drive profitable growth and expand market share across domestic and international markets.
Note: Financial ratios, margins, YoY growth percentages, and % revenue shares are calculated by IndianCompanies.in based on disclosed Ind AS financial statements.
Official Site: https://www.hpadhesives.com