Hexagon Nutrition Limited – IPO Analysis
DRHP Dated: May 25, 2026 | BSE & NSE Listing
IPO Snapshot
| Company Name | Hexagon Nutrition Limited |
| IPO Type | Book Built – Mainboard IPO |
| Face Value | ₹1 per share |
| Price Band | ₹42 – ₹45 per share |
| Lot Size | 333 shares |
| Min. Investment (Retail) | ₹14,985 (at upper band) |
| Max. Retail (13 lots) | ₹1,94,805 (4,329 shares) |
| Total Issue Size | ~₹138.87 Cr (at cap price) |
| Fresh Issue | Nil (100% Offer for Sale) |
| Offer for Sale | 3,08,59,704 equity shares |
| IPO Open Date | June 5, 2026 |
| IPO Close Date | June 9, 2026 |
| Allotment Date | June 10, 2026 |
| Listing Date | June 12, 2026 (BSE & NSE) |
| Registrar | KFin Technologies Limited |
| BRLMs | Cumulative Capital Pvt Ltd, Catalyst Capital Partners Pvt Ltd |
Reservation (Category-wise)
| Category | Quota |
|---|---|
| QIB (Qualified Institutional Buyers) | 50% |
| NII / HNI | 15% |
| Retail Individual Investors | 35% |
About the Company
Hexagon Nutrition Limited, incorporated in 1993, is a research-driven, pure-play nutrition company headquartered in Mumbai. The company operates across the full nutrition value chain — from R&D and product development to manufacturing and marketing.
Its product portfolio covers micronutrient premixes, branded wellness and clinical nutrition products, and therapeutic nutrition (Ready-to-Use Foods and Micronutrient Powders). The company exports to 75+ countries and operates four manufacturing facilities — three in India (Nashik, Chennai, Thoothukudi) and one in Uzbekistan.
Key brands include Pentasure (adult clinical nutrition), Obesigo (weight management), Pediagold (pediatric nutrition), and Nutrone (launched in FY24).
Business Segments (Revenue Breakup)
| Segment | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Premix (B2B2C) | 51.5% | 47.6% | 44.8% | 54.9% |
| Branded (B2C) | 30.3% | 28.3% | 23.9% | 22.5% |
| RUFs/MNPs (ESG) | 17.9% | 24.0% | 31.3% | 22.5% |
The premix formulations segment (B2B2C) remains the largest revenue contributor. However, the B2C branded segment has been growing its share consistently — from 22.5% in FY23 to 30.3% in 9M FY26 — indicating the company’s push toward higher-margin consumer brands.
Financial Performance (Consolidated)
| Metric (₹ Mn) | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Revenue from Ops | 2,675.9 | 3,249.3 | 2,977.3 | 2,785.0 |
| Total Revenue | 2,755.7 | 3,312.9 | 3,046.2 | 2,816.5 |
| EBITDA | 375.5 | 400.7 | 248.8 | 171.7 |
| EBITDA Margin | 14.03% | 12.33% | 8.36% | 6.17% |
| Profit After Tax | 270.3 | 243.8 | 122.1 | 58.2 |
| PAT Margin | 9.81% | 7.36% | 4.01% | 2.07% |
Revenue has grown from ₹2,785 Mn in FY23 to ₹3,249 Mn in FY25 — a growth of ~16.7% over two years. Profitability has improved significantly — PAT grew from ₹58 Mn in FY23 to ₹244 Mn in FY25, roughly a 4x jump. The 9-month FY26 PAT of ₹270 Mn has already surpassed full-year FY25, suggesting a strong trajectory.
Key Financial Ratios
| Ratio | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Basic EPS (₹) | 2.44 | 1.75 | 1.10 | 0.51 |
| RoE (%) | 13.02 | 10.47 | 7.21 | 3.50 |
| ROCE (%) | 14.82 | 17.06 | 11.12 | 5.94 |
| Debt/Equity | 0.18 | 0.14 | 0.21 | 0.32 |
| Interest Cover | 13.36x | 9.54x | 5.70x | 3.82x |
| Current Ratio | 2.71 | 3.49 | 2.98 | 1.93 |
| NAV/Share (₹) | 18.15 | 15.91 | — | — |
Debt-to-equity has been declining consistently (0.32 to 0.18), and interest coverage has improved from 3.82x to 13.36x. RoE and ROCE are both on an upward trajectory — indicating improving capital efficiency.
Valuation Comparison
| Metric | Hexagon | Zydus Wellness | Nestlé India |
|---|---|---|---|
| Revenue FY25 (₹ Mn) | 3,249 | 27,809 | 2,02,016 |
| Diluted EPS (₹) | 1.75 | 10.90 | 16.63 |
| P/E Ratio | ~25.7x* | 46.22x | 88.86x |
| RoNW (%) | 12.46 | 6.12 | 77.91 |
| NAV/Share (₹) | 15.91 | 178.26 | 21.35 |
*P/E at upper band ₹45 based on FY25 EPS of ₹1.75. Industry average P/E of peers: 67.54x. No directly comparable listed peer exists as per the DRHP.
At ₹45, the P/E comes to ~25.7x on FY25 earnings — significantly lower than both listed peers. However, the company is much smaller in scale, and listed peers are not directly comparable as noted by the company itself.
Offer Structure & Promoters
| Pre-Offer Shares | 12,29,18,109 |
| Post-Offer Shares | 12,29,18,109 (No dilution) |
| OFS Component | 100% — Company receives ₹0 |
Selling Shareholders
| Name | Shares Offered | Avg. Cost (₹) |
|---|---|---|
| Subhash P. Kelkar | 2,41,88,993 | 0.65 |
| Nutan S. Kelkar | 36,08,142 | 0.51 |
| Arun P. Kelkar | 15,36,477 | 0.48 |
| Aditya Kelkar | 15,26,092 | 1.27 |
The weighted average cost of acquisition for selling promoters ranges from ₹0.48 to ₹1.27, while the IPO price band is ₹42–45 — implying promoters are selling at 33x to 93x their acquisition cost.
Objects of the Offer
Since this is a 100% Offer for Sale (OFS), the company will not receive any proceeds from the IPO. The entire amount goes to selling shareholders. The primary objective is achieving listing benefits and providing liquidity to existing shareholders.
Operational Highlights
| Metric | 9M FY26 | FY25 | FY24 | FY23 |
|---|---|---|---|---|
| Capacity Util. | 28.76% | 30.03% | 29.53% | 31.06% |
| Customers | 423 | 456 | 491 | 462 |
| Repeat Customers | 286 | 294 | 284 | 246 |
| Top 10 Rev. (₹ Mn) | 1,119.0 | 1,490.5 | 1,453.7 | 1,271.3 |
Capacity utilization is low at ~29–31%, which the company has acknowledged as a risk factor. Revenue from top 10 customers is ~42–49% of total revenue, indicating meaningful concentration.
Key Risk Factors (from RHP)
- Heavy dependence on premix segment (~51% of revenue).
- Significant customer concentration (top 10 = ~42–49% of revenue).
- Very low capacity utilization (~29–31%).
- Raw material price volatility (vitamins, minerals — many imported).
- Nashik Facility needs reconstruction due to past regulatory actions.
- 100% OFS — company gets zero proceeds.
- No prior public trading history.
- Counterfeit/look-alike product risks in domestic market.
- Geographic revenue concentration in select Indian states.
- R&D dependency — delays could affect growth pipeline.
Pros & Cons at a Glance
✅ Potential Positives
| # | Point |
|---|---|
| 1 | Strong PAT growth — ₹58 Mn (FY23) → ₹244 Mn (FY25) → ₹270 Mn (9M FY26 alone) |
| 2 | EBITDA margin expanded from 6.17% to 14.03% over three years |
| 3 | Declining debt — D/E from 0.32 to 0.18; interest coverage at 13.36x |
| 4 | Niche nutrition play with 30+ years operating history |
| 5 | Exports to 75+ countries; 4 manufacturing plants |
| 6 | Growing B2C branded segment (22.5% → 30.3% contribution) |
| 7 | Affordable entry — ₹45/share; ₹14,985 minimum for retail |
| 8 | P/E at ~25.7x is below peer average of ~67.5x |
| 9 | Established brands — Pentasure, Obesigo, Pediagold |
| 10 | India’s nutrition industry growing with govt. fortification push |
⚠️ Potential Concerns
| # | Point |
|---|---|
| 1 | 100% OFS — Company receives zero proceeds; pure promoter exit |
| 2 | Promoters selling at 33x–93x their acquisition cost |
| 3 | Very low capacity utilization (~29–31%) |
| 4 | Top 10 customers = ~42–49% of revenue — high concentration |
| 5 | 51% revenue from single segment (premix) — concentration risk |
| 6 | Small scale — ₹325 Cr revenue vs ₹20,200 Cr for Nestlé India |
| 7 | Nashik facility reconstruction may impact production temporarily |
| 8 | No directly comparable listed peer for valuation benchmarking |
| 9 | Raw material import dependency — forex & supply chain exposure |
| 10 | GMP currently flat — indicating muted initial market sentiment |
Quick Summary for Investors
Hexagon Nutrition is a 30+ year old niche nutrition company with improving financials and expanding margins. The business has three segments — B2B premixes (largest), B2C brands (fastest growing), and ESG therapeutic nutrition. Profitability has improved dramatically in recent years.
However, this is a 100% OFS IPO where the company receives nothing — it is entirely a promoter monetization event. Capacity utilization remains low at ~30%, customer concentration is high, and the company is small-scale compared to listed peers. The P/E at ~25.7x appears reasonable relative to peers, but direct comparison is difficult due to differing business profiles.
Investors should thoroughly study the RHP, assess the risk factors, and consult a SEBI-registered advisor before making any decision.
