Hexagon Nutrition Ltd Management Discussions

Nourishing a Healthier Future Through Science, Innovation and Sustainable Growth

Nourishing healthier communities worldwide

Vision 2030 — Science-led innovation across clinical, preventive and institutional nutrition

Economic & Industry Overview

Management Discussion & Analysis

Nourishing a Healthier Future Through Science, Innovation and Sustainable Growth

FY25–26 marked another important year in the evolution of the global nutrition industry. While the global economy continued to navigate geopolitical uncertainties, inflationary pressures and evolving trade dynamics, the nutrition and healthcare sectors remained resilient, driven by the increasing shift towards preventive healthcare, healthy ageing and science-based nutritional interventions.

Against this backdrop, Hexagon Nutrition continued to strengthen its position as an integrated nutrition solutions company, leveraging its expertise across clinical nutrition, micronutrient premixes, therapeutic nutrition and consumer wellness. Guided by its Vision 2030 strategy, the Company remains focused on delivering sustainable value through innovation, operational excellence, global expansion and science-backed nutrition solutions.

FY2025–26 At a Glance

Particulars	FY2025–26 Outlook
Industry Position Core Businesses	One of Indias leading integrated nutrition companies
	Clinical Nutrition
	• Micronutrient Premixes
	• Consumer Wellness
	• Therapeutic Nutrition
Strategic Focus	Innovation, Premiumisation and Global Expansion
Manufacturing	Globally certified manufacturing facilities
Innovation	Science-led product development and R&D
Vision 2030	Becoming a globally respected nutrition company delivering sustainable health outcomes
Macro Environment Snapshot
Global Trends	India Trends
Stable global GDP growth	One of the fastest growing major economies
Rising healthcare expenditure	Rising disposable income
Healthy ageing	Expanding middle class
Preventive healthcare	Preventive healthcare awareness
Personalised nutrition	Food fortification initiatives
Clinical nutrition growth	Strong healthcare infrastructure

Global Economic Environment

The global economy remained resilient during FY2025–26 despite elevated geopolitical uncertainties, volatile commodity markets and evolving international trade dynamics. Economic growth moderated from the strong post-pandemic recovery but continued to be supported by resilient labour markets, technological innovation and sustained investments in healthcare, digital transformation and sustainability.

Global GDP growth is projected to remain around 3.1% in 2026, reflecting a stable but moderate expansion. While geopolitical developments in West Asia and supply chain disruptions created temporary inflationary pressures, businesses increasingly focused on localisation, supply chain diversification and operational resilience.

The healthcare and nutrition sectors remained among the strongest performing industries globally. Governments, healthcare providers and consumers increasingly recognised nutrition as an essential pillar of preventive healthcare, disease management and healthy ageing. Consequently, demand accelerated across clinical nutrition, fortified foods, specialised dietary products, immunity-enhancing formulations and evidence-based nutritional supplements.

Key Global Themes

• Shift from treatment to preventive healthcare

• Growing healthy ageing population

• Increased healthcare expenditure

• Rapid adoption of personalised nutrition

• Rising demand for clinically validated nutritional products

• Greater emphasis on sustainability and responsible sourcing

Indian Economic Overview

India continued to outperform most major economies during FY2025–26, supported by resilient domestic consumption, robust infrastructure investments, healthy manufacturing activity and continued policy reforms.

The countrys strong demographic profile, increasing urbanisation and expanding middle-income population continue to create a structurally attractive environment for the nutrition and healthcare sectors. Rising disposable incomes, greater health awareness and increasing digital penetration are transforming consumer purchasing behaviour towards premium healthcare and wellness products.

Government initiatives aimed at strengthening healthcare accessibility, nutrition security and food fortification have further enhanced long-term growth prospects for the sector. National programmes focused on maternal and child nutrition, anaemia reduction and fortified food adoption continue to support sustainable demand for nutritional products.

Chart 2 — India GDP Growth Trend

India continues to remain one of the fastest-growing major economies.

Structural Growth Drivers

Economic Driver	Impact on Nutrition Industry
Rising disposable income	Higher spending on premium nutrition
Urbanisation	Greater penetration of organised retail
Digital adoption	Faster growth in e-commerce nutrition sales
Healthcare infrastructure	Expansion of clinical nutrition demand
Government nutrition programmes	Increased demand for food fortification
Growing middle class	Higher preventive healthcare expenditure

Global Nutrition & Wellness Industry

The global nutrition industry continues to undergo a structural transformation, evolving from a traditional supplements market into a comprehensive healthcare ecosystem centred on prevention, disease management and overall wellness.

Increasing incidences of lifestyle diseases, ageing populations and greater awareness regarding preventive healthcare have significantly expanded demand for specialisednutritionalinterventions.Consumersincreasingly seek clinically validated, science-backed products that address specific health needs, including metabolic health, immunity, gastrointestinal wellness, oncology support, diabetes management and healthy ageing.

The convergence of nutritional science, biotechnology and digital health is also driving the emergence of personalised nutrition solutions, enabling more targeted and evidence-based interventions.

Major Global Growth Drivers

Growth Driver	Industry Impact
Preventive healthcare	Higher nutrition adoption
Healthy ageing	Growth in specialised formulations
Lifestyle diseases	Increased clinical nutrition demand
Personalised nutrition	Product innovation opportunities
Functional foods	Premiumisation of nutrition products
Digital health	Consumer engagement and personalised solutions

Indian Nutrition & Wellness Industry

Indias nutrition and wellness industry continues to witness robust long-term growth, driven by favourable demographics, increasing healthcare awareness and government initiatives promoting nutrition security.

The market is shifting from curative healthcare to preventive nutrition, with consumers increasingly investing in products that support immunity, healthy ageing, weight management and disease-specific nutritional needs.

Clinical nutrition has emerged as one of the fastest-growing healthcare categories, supported by expanding hospital infrastructure, greater physician awareness and increasing diagnosis of chronic diseases. Simultaneously, food fortification continues to gain momentum through public health initiatives aimed at addressing micronutrient deficiencies across the population.

Chart 3 — Key Growth Pillars of Indias Nutrition Industry

Growth Pillar	Outlook
Clinical Nutrition	Strong
Micronutrient Premixes	Strong
Food Fortification	Very Strong
Consumer Wellness	Strong
Sports Nutrition	High Growth
Personalised Nutrition	Emerging High-Growth Segment

Management Perspective

"The long-term fundamentals of the nutrition industry remain highly favourable. Rising health consciousness, supportive government initiatives, technological advancements and increasing consumer preference for science-backed nutritional solutions are expected to drive sustained growth. With its diversified portfolio, research-led approach and Vision 2030 roadmap, Hexagon Nutrition is well positioned to capitalise on these structural opportunities while creating long-term value for all stakeholders."

Business Overview - Building Nutrition Solutions Across the Value Chain

Hexagon Nutrition Limited has established itself as one of Indias leading integrated nutrition companies with expertise spanning micronutrient premixes, clinical nutrition, therapeutic nutrition, food fortification and consumer wellness. Over the years, the Company has transformed from a micronutrient solutions provider into a science-led nutrition enterprise serving healthcare institutions, food manufacturers, governments and consumers across domestic and international markets.

The Companys diversified business model enables it to address nutritional challenges across all stages of life—from maternal and child nutrition to adult wellness, disease-specific nutrition and healthy ageing. Backed by strong research capabilities, advanced manufacturing infrastructure and a growing global footprint, Hexagon Nutrition continues to deliver high-quality, scientifically validated nutritional solutions aligned with evolving consumer and healthcare needs.

Hexagon Nutrition Business Model

Scientific Research & Innovation

Advanced Manufacturing

Micronutrient Premixes Clinical Nutrition Therapeutic Nutrition Consumer Wellness

Hospitals Food Companies Government Programmes Retail Global Markets

Improved Nutritional Outcomes

Industry Positioning

Hexagon Nutrition operates at the intersection of healthcare, nutrition and food technology. Its integrated capabilities across product development, formulation, manufacturing and distribution position the Company to address both preventive and therapeutic nutrition requirements.

Strategic Positioning

Business Segment	Key Focus Areas	Growth Outlook
Clinical Nutrition	Disease-specific nutritional solutions	High
Micronutrient Premixes	Food fortification & FMCG	Strong
Consumer Nutrition	Health & wellness products	High
Therapeutic Nutrition	Hospital & institutional nutrition	High
International Business	Exports across multiple geographies	Strong

Clinical Nutrition Market

Clinical nutrition continues to emerge as one of the fastest-growing healthcare segments globally and in India. Increasing incidences of diabetes, cancer, kidney disorders, gastrointestinal diseases and age-related health conditions have significantly expanded the need for specialised nutritional interventions.

Healthcare professionals increasingly recognise nutrition as an integral component of disease management, recovery and rehabilitation. Consequently, demand for disease-specific nutritional formulations is growing across hospitals, nursing homes, home healthcare providers and retail pharmacies.

Several structural trends continue to support long-term growth:

• Rising burden of chronic diseases

• Increasing ageing population

• Growing awareness among physicians

• Expansion of hospital infrastructure

• Home healthcare adoption

• Higher healthcare expenditure

Clinical Nutrition Market Growth Drivers

Growth Driver	Business Impact
Ageing population	Higher geriatric nutrition demand
Diabetes prevalence	Disease-specific nutrition
Oncology care	Recovery nutrition
Renal disorders	Therapeutic formulations
ICU & critical care	Clinical nutrition adoption
Home healthcare	Expanding retail opportunity

Food Fortification Market

Food fortification remains one of the most impactful and cost-effective public health interventions to address hidden hunger and micronutrient deficiencies. Governments, international agencies and food manufacturers continue to adopt fortified food programmes aimed at improving nutritional outcomes, particularly among women and children.

India continues to face a significant burden of iron, vitamin A, vitamin D, zinc and folic acid deficiencies. Government initiatives promoting fortified staples and nutrition programmes provide a strong structural growth opportunity for micronutrient premix manufacturers.

Hexagon Nutrition, with its expertise in customised premix formulations, quality assurance and regulatory compliance, is well positioned to support food manufacturers and institutional programmes across India and global markets.

Opportunities in Food Fortification

Application	Opportunity
Rice Fortification	Large government programmes
Wheat Flour	Mass nutrition initiatives
Dairy	Value-added nutrition
Edible Oil	Vitamin fortification
Beverages	Functional nutrition
Infant Nutrition	Premium segment growth

Consumer Wellness

Consumer behaviour continues to evolve towards preventive healthcare, with increasing emphasis on immunity, fitness, metabolic wellness and healthy ageing. Higher disposable incomes, greater awareness and digital access to health information have accelerated adoption of nutritional supplements and functional foods.

E-commerce platforms, digital pharmacies and organised retail have become important channels for consumer nutrition products. Consumers increasingly seek products that are evidence-based, transparent and tailored to their specific health needs.

Key categories witnessing strong demand include:

• Immunity support

• Womens health

• Childrens nutrition

• Healthy ageing

• Weight management

• Gut health

• Sports nutrition

• Protein supplementation

Research, Development & Innovation

Innovation remains central to Hexagon Nutritions long-term strategy. The Company continues to invest in research and development to strengthen its portfolio of science-backed nutritional solutions.

Its innovation efforts focus on:

• New product development

• Clinical validation

• Advanced ingredient technologies

• Improved bioavailability

• Customised nutritional formulations

• Regulatory compliance

• Product differentiation

This research-led approach enables the Company to respond effectively to changing consumer needs while strengthening its competitive positioning across domestic and international markets.

Vision 2030 — Building a Global Nutrition Company

Hexagon Nutritions Vision 2030 provides a clear roadmap for sustainable long-term growth. The strategy is anchored on innovation, customer-centricity, operational excellence and global expansion, while reinforcing the Companys commitment to improving nutritional outcomes through science-based solutions.

Strategic Pillars

Pillar	Strategic Focus
Innovation	Science-backed product development
Operational Excellence	Manufacturing efficiency and quality
Global Expansion	Strengthening international presence
Brand Leadership	Building trusted nutrition brands
Sustainability	Responsible and inclusive growth
Digital Transformation	Leveraging technology and data

 

Vision 2030 Strategic Framework
VISION 2030 — Becoming a Global Nutrition Leader
Innovation	Operational Excellence	Global Expansion
Brand Leadership	Digital Transformation	ESG & Sustainability

Creating Sustainable Stakeholder Value

Competitive Strengths

Hexagon Nutritions competitive advantage is built on a combination of scientific expertise, manufacturing excellence and customer-centric innovation.

Core Competitive Advantages
Strength	Competitive Benefit
Integrated nutrition platform	Diversified revenue streams
Strong R&D capabilities	Continuous innovation
Advanced manufacturing	High quality and scalability
Global certifications	Access to international markets
Experienced management	Strategic execution
Long-standing customer relationships	Stable business growth
Diversified product portfolio	Lower business concentration risk

Management Perspective

"As nutrition increasingly becomes a fundamental pillar of preventive healthcare, Hexagon Nutrition is uniquely positioned to benefit from favourable structural trends. The Companys integrated business model, research-led innovation, strong manufacturing capabilities and Vision 2030 roadmap provide a solid foundation for long-term sustainable growth. By continuing to invest in product innovation, operational excellence and global market expansion, Hexagon Nutrition aims to strengthen its leadership position while delivering meaningful health outcomes and creating enduring value for all stakeholders."

Opportunities

The nutrition industry is undergoing a structural transformation driven by increasing health awareness, demographic changes, government nutrition initiatives and technological advancements. These long-term trends create significant opportunities for Hexagon Nutrition to strengthen its market position across domestic and international markets.

Key Growth Opportunities

Opportunity	Business Impact	Strategic Focus
Clinical Nutrition	Increasing demand for disease-specific nutrition	Product innovation and hospital penetration
Food Fortification	Government nutrition programmes	Expansion of micronutrient premix portfolio
Preventive Healthcare	Rising health-conscious consumers	Consumer wellness portfolio
International Markets	Growing demand for quality nutrition products	Export expansion
Healthy Ageing	Increasing elderly population	Therapeutic nutrition solutions
Personalised	Science-based	R&D and digital
Nutrition	customised nutrition	nutrition platforms
Functional	Premium nutrition	Strategic partnerships

Emerging Industry Trends

The nutrition industry is expected to be shaped by the following structural trends over the coming decade:

• Shift from curative to preventive healthcare

• Increasing adoption of clinically validated nutritional products

• Growing demand for personalised nutrition solutions

• Expansion of digital health ecosystems

• Higher consumption of functional foods

• Greater emphasis on sustainable sourcing and clean-label products

• Integrationofartificialintelligenceandnutritionalscience

• Expansion of institutional nutrition programmes These trends align closely with Hexagon Nutritions Vision 2030 and reinforce the Companys long-term growth strategy.

Risk Management

Hexagon Nutrition operates in a dynamic business environment where proactive risk management is essential for sustainable value creation. The Company has established robust processes to identify, assess, monitor and mitigate key business risks while ensuring operational resilience.

Enterprise Risk Matrix

Risk	Potential Impact	Mitigation Strategy
Raw Material Price Volatility	Margin pressure	Strategic sourcing, long- term supplier partnerships and inventory planning
Supply Chain Disruptions	Delayed deliveries	Multi-location sourcing and supplier diversification
Regulatory Changes	Product approvals and compliance	Continuous regulatory monitoring and quality systems
Foreign Exchange Fluctuations	Export profitability	Natural hedging and prudent treasury management
Intensifying Competition	Pricing pressure	Continuous innovation, differentiated products and customer engagement
Technology Changes	Product obsolescence	Sustained investment in research and development
Cybersecurity	Operational disruption	Strengthened digital infrastructure and information security controls

ESG & Sustainability

Hexagon Nutrition believes that sustainable business practices are fundamental to long-term value creation. The Company integrates environmental stewardship, social responsibility and sound governance into its business strategy to deliver positive outcomes for stakeholders while contributing to healthier communities.

Environment Social Governance Long-Term Value Creation

Digital Transformation

Technology continues to play a critical role in enhancing operational efficiency and customer engagement. Hexagon Nutrition is progressively integrating digital solutions across manufacturing, quality assurance, supply chain management and customer interactions.

Strategic areas of digital transformation include:

• Advanced manufacturing systems

• Data-driven quality management

• Digital customer engagement

• Supply chain visibility

• Product traceability

• Business analytics

• AI-enabled decision support

These initiatives are expected to improve productivity, strengthen customer relationships and enhance overall business agility.

Human Capital

People remain the Companys most valuable asset and the driving force behind its continued success.

Hexagon Nutrition fosters a high-performance culture built on innovation, collaboration and continuous learning. The Company invests in employee capability development through structured learning programmes, leadership development initiatives and technical skill enhancement. Key priorities include:

• Leadership development

• Talent retention

• Employee engagement

• Health and wellness

• Diversity and inclusion

• Safe working environment

• Performance-driven culture

The Company also promotes an entrepreneurial mindset that encourages innovation and cross-functional collaboration while aligning employee goals with long-term organisational objectives.

FINANCIAL PERFORMANCE

Revenue From Operations (Rs in Crore) (FY 2024-25 To FY 2025-26 —Hexagon Nutrition Limited)

Financial Year	Revenue from Operations (Rs
FY 2024-25	Rs 324.93
FY 2025-26	Rs 382.63

EBITDA AND EBITDA MARGIN (FY 2024-25 to FY 2025-26 — Rs Crore and Percentage)

Financial Year	EBITDA (Rs Crore)	EBITDA Margin (%)
FY 2024-25	Rs 40.07	12.33%
FY 2025-26	Rs 52.90	13.83%

PROFIT AFTER TAX (PAT) AND NET PROFIT MARGIN (FY 2024-25 to FY 2025-26 — Rs Crore and Percentage)

Financial Year	PAT (Rs Crore)	Net Profit Margin (%)
FY 2024-25	Rs 24.31	7.40%
FY 2025-26	Rs 37.93	9.90%

SEGMENT-WISE REVENUE MIX — FY 2025-26

Category	Approximate Revenue Share (Amt in Mn)	%
Branded nutrition products/ clinical nutrition products (B2C segment)	1139.56	30%
Premix formulations (B2B2C segment)	2026.48	53%
ESG segment	649.95	17%

VERTICAL-WISE REVENUE MIX — FY 2025-26 (Domestic vs. Export Revenue Distribution

Revenue Vertical	Approximate Revenue Share
Export Revenue	57% (Rs2,163 Mn of FY26 total)
Domestic Revenue	43% (implied balance)

FINANCIAL RATIOS

The following table presents the key financial ratios of Hexagon Nutrition Limited

Particulars	FY25-26	FY24-25	% Change
Current Ratio	3.38	3.50	-3.20%
Debt-Equity Ratio	0.13	0.14	-5.14%
Debt Service Coverage Ratio	1.89	1.52	24.46%
Return on Equity Ratio	17.75%	10.81%	64.24%
Inventory turnover ratio	2.75	2.57	7.08%
Trade Receivables turnover ratio	5.41	6.00	-9.87%
Trade payables turnover ratio	9.33	8.04	16.02%
Net Working capital turnover ratio	2.25	2.47	-8.96%
Net profit ratio	9.91%	7.48%	32.55%
Return on Capital employed	20.94%	17.06%	22.76%
Return on investment	6.14%	7.93%	-22.57%

Internal Control Systems

Hexagon Nutrition maintains an effective internal control framework designed to safeguard assets, ensure financial integrity and support efficient business operations.

The Companys internal control mechanisms include:

• Clearly defined authority matrix

• Enterprise-wide risk management processes

• Internal audit reviews

• Financial reporting controls

• Compliance monitoring

• Information technology controls

• Business continuity planning

The Audit Committee regularly reviews the adequacy and effectiveness of internal controls and ensures timely implementation of recommendations.

Outlook

The long-term outlook for the global nutrition industry remains highly encouraging. Increasing awareness regarding preventive healthcare, healthy ageing, clinical nutrition and food fortification is expected to sustain demand across key business segments.

India continues to offer one of the most attractive long-term growth opportunities, supported by favourable demographics, increasing healthcare expenditure, government nutrition initiatives and rising disposable incomes.

Against this backdrop, Hexagon Nutrition remains well positioned to capture emerging opportunities through its integrated nutrition platform, science-led innovation and expanding global presence.

Going forward, the Company will continue to focus on:

• Strengthening its clinical nutrition portfolio

• Expanding micronutrient premix capabilities

• Accelerating international business growth

• Investing in research and innovation

• Enhancing manufacturing excellence

• Driving operational efficiencies

• Building stronger consumer brands

• Advancing sustainability initiatives

Guided by its Vision 2030 roadmap, Hexagon Nutrition aims to strengthen its position as a trusted global nutrition partner while delivering sustainable and profitable growth.

Management Perspective

"The nutrition industry stands at the intersection of healthcare, science and sustainability. As consumers increasingly embrace preventive healthcare and evidence-based nutrition, Hexagon Nutrition is uniquely positioned to create meaningful value through innovation, scientific excellence and responsible business practices. Our Vision 2030 provides a clear strategic direction to strengthen our global presence, deepen customer relationships and develop differentiated nutritional solutions that improve lives across geographies. We remain confident that our diversified business model, strong research capabilities and commitment to operational excellence will enable us to deliver sustainable growth while fulfilling our purpose of nourishing healthier communities worldwide."

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied due to various factors including changes in economic conditions, government policies, regulatory developments, competitive dynamics, raw material availability, foreign exchange fluctuations and other risks beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.