A three-decade-old, research-driven nutrition company hits the market with a Rs 139 crore pure offer-for-sale, priced at the upper band of Rs 45.
Hexagon Nutrition Ltd., a differentiated, research-driven nutrition company with an integrated presence across the entire nutrition value chain, opens for subscription on June 5 with the issue closing on June 9. Founded in 1993, the company has evolved from a micronutrient formulations manufacturer into one of India’s leading pure-play nutrition companies. Both SBI Securities and BP Wealth recommend subscribing for a long-term horizon.
What the Company Does
Hexagon Nutrition operates across three key segments: premix formulations (B2B2C), branded nutrition products (B2C), and therapeutic nutrition solutions including ready-to-use foods and micronutrient powders. It supplies customized vitamin and mineral premixes to leading domestic and multinational FMCG companies, while also running a portfolio of consumer-facing brands such as Pentasure, Obesigo, Pediagold, and the recently launched Nutrone, catering to specialised areas like diabetes, renal care, and bariatric nutrition.
The company has a strong global footprint, with exports reaching more than 75 countries and contributing 55.8% of revenue in 9M FY26. Its manufacturing footprint spans Nashik, Chennai, and Thoothukudi in India, plus an overseas facility in Tashkent, Uzbekistan.
The SEZ-based facilities in Chennai and Thoothukudi offer export connectivity and duty benefits. It is also among the largest licensed suppliers of Micronutrient Powders under United Nations programmes, giving it a strong position in both commercial and public health nutrition markets.
As BP Wealth notes in its report, the company’s “broad portfolio and end-to-end capabilities distinguish it from peers that typically operate in limited nutrition segments.” The premix formulations business remains the core, contributing 51.5% of revenue in 9M FY26.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | June 5, 2026 |
| Issue Closes | June 9, 2026 |
| Price Band | Rs 42 – Rs 45 per share |
| Face Value | Re 1 |
| Issue Size | ~Rs 139 crore (at upper band) |
| Issue Type | Entirely Offer for Sale |
| Total Shares | 3,08,59,704 shares |
| Bid Lot | 333 shares and multiples thereof |
| Post-Issue Market Cap | ~Rs 516 – 553 crore |
| QIB / Retail / NII Split | 50% / 35% / 15% |
| BRLMs | Cumulative Capital Pvt. Ltd., Catalyst Capital Partners Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
| Listing | BSE and NSE |
Since this is a pure Offer for Sale, the company will not receive any proceeds — the entire issue provides an exit to selling shareholders. Promoter shareholding declines from 89.4% pre-issue to 64.3% post-issue, with public float rising to 35.7%.
Financial Performance
| Particulars (Rs cr) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Revenue | 278.5 | 297.7 | 324.9 | 267.6 |
| EBITDA | 22.4 | 24.5 | 40.9 | 37.5 |
| EBITDA Margin | 8.0% | 8.2% | 12.6% | 14.0% |
| PAT | 5.8 | 12.2 | 24.4 | 27.0 |
| PAT Margin | 2.1% | 4.1% | 7.5% | 10.1% |
| RoE | 3.6% | 6.9% | 12.6% | — |
| RoCE | 8.4% | 10.9% | 17.4% | — |
| D/E (x) | 0.3 | 0.2 | 0.1 | 0.2 |
The company has demonstrated robust profitability growth, with revenue, EBITDA, and PAT growing at a CAGR of 8.0%, 35.1%, and 104.6% respectively over FY23–FY25. Margins have expanded meaningfully — EBITDA margin from 8.0% to 12.6% over the period and further to 14.0% in 9M FY26, driven by a favourable product mix and an increasing contribution from higher-margin branded products. PAT margin reached 10.1% in 9M FY26. The company also maintains a comfortable balance sheet with low leverage.
Valuation and Peer Comparison
At the upper band of Rs 45, the issue is valued at a P/E of around 15.3x based on annualised 9M FY26 earnings — a notable discount to its listed peers. As SBI Securities states in its note, “Considering the industry tailwinds, improving profitability, and balanced valuation, investors may consider subscribing to the issue with a long-term investment horizon.”
| Particulars (Rs cr) | Hexagon Nutrition* | Zydus Wellness | Nestlé India |
|---|---|---|---|
| CMP (Rs @ UB) | 45 | 498 | 1,399 |
| Mkt Cap (@ UB) | 553 | 15,814 | 2,69,849 |
| Revenue | 357 | 3,961 | 23,155 |
| EBITDA Margin | 14.0% | 12.9% | 22.9% |
| PAT Margin | 10.1% | 5.0% | 15.3% |
| RoE (%) | 15.7 | 3.4 | 66.8 |
| P/E (x) | 15.3 | 68.1 | 78.2 |
| Mkt Cap/Sales (x) | 1.6 | 4.0 | 11.7 |
*Based on annualised 9M FY26 earnings and post-issue equity at the upper band.
Risks to Consider
The company derives a substantial portion of its revenue from the premix formulations segment, which accounted for over 50% of revenue in 9M FY26 — any adverse developments such as customer concentration, competitive intensity, or regulatory changes within this segment could materially impact performance.
Revenue concentration is also a factor, with the top 10 customers contributing around 41.8% in 9M FY26. Additionally, the ongoing reconstruction of a portion of the Nashik facility following past regulatory actions may result in temporary production disruptions, and any prolonged delays in restoring full capacity could affect output. As a pure Offer for Sale, no fresh capital flows into the business.