Paper Boat maker Hector Beverages reported Rs 760 crore in operating revenue for FY26, up 13.8% from the previous year, even as a sharp rise in expenses pulled its net profit down 96% to Rs 2 crore. The annual financial statements, sourced from the Registrar of Companies, show the beverage company grew its top line steadily but saw profitability shrink during the fiscal year ended March 2026.
Revenue crosses Rs 760 crore
Operating revenue rose to Rs 760 crore in FY26 from Rs 668 crore in FY25. Including Rs 18 crore in other income, total income stood at Rs 778 crore against Rs 682 crore in the previous year.
A shift in product mix drove the top line. Revenue from traded goods jumped 30.2% to Rs 574 crore and contributed over 75% of operating revenue, while revenue from manufactured goods declined 18.6% to Rs 184 crore.
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Expenses grew faster than revenue
Total expenditure increased 22% to Rs 776 crore in FY26 from Rs 636 crore a year earlier. Consumption of materials remained the largest cost head at Rs 485 crore, accounting for 62.5% of total expenditure. Advertising and promotional expenses jumped 55.6% to Rs 28 crore, selling and distribution expenses rose 15.5% to Rs 67 crore, and job work charges more than doubled to Rs 25 crore. Employee benefit expenses declined marginally to Rs 88 crore.
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Profit and margins take a hit
As spending outpaced revenue growth, EBITDA declined 39.7% to Rs 41.4 crore from Rs 68.6 crore, with the margin narrowing to 5.4% from 10.3%. The higher costs weighed heavily on the bottom line – profit after tax fell 96% to Rs 2 crore from Rs 46 crore in the previous fiscal year.
Balance sheet and what lies ahead
Hector Beverages reported total assets of Rs 522.5 crore at the end of FY26. Its cash and bank balance declined 29% to Rs 101 crore, while current assets stood at Rs 365 crore.
The company sells beverages under the Paper Boat brand and competes with established players such as Dabur, PepsiCo and Coca-Cola, along with regional juice and traditional beverage brands across India. With the brand continuing to invest in advertising and distribution, the coming year will show whether a sharper focus on margins can bring profitability back to the levels investors remember.