Nobel Hygiene IPO

Strengths · 7

• 01Revenue from operations rose from Rs 728.54 crore in FY2024 to Rs 846.75 crore in FY2026, with revenue growth of 14.56% in FY2026 and volume growth of 18.57%.
• 02EBITDA rose from Rs 20.92 crore in FY2024 to Rs 84.76 crore in FY2026, and EBITDA margin went from 2.87% to 10.01%.
• 03Total borrowings fell from Rs 368.31 crore in FY2024 to Rs 113.41 crore in FY2026, and net debt including lease liabilities to EBITDA fell from 18.54 times to 1.25 times.
• 04Operating cash flow was Rs 71.13 crore in FY2026, and cash conversion was 82.41% against 41.82% in FY2025.
• 05Product margin rose from 39.76% in FY2024 to 44.43% in FY2026, and trade working capital days fell from 28 to 22.
• 06Online channel revenue grew from 16.97% of the total in FY2024 to 30.68% in FY2026.
• 07The company sells in 473 towns and cities across 31 States and Union Territories and exports to 19 countries.

Risks · 10

• 01Friends and Teddyy brands gave 37.85% and 39.63% of revenue from operations in FY2026, so two brands carry a large share of sales.
• 02Adult and baby products gave 49.25% and 45.32% of FY2026 revenue, so a slowdown in either category would hit sales.
• 03Profit is thin: profit after tax was Rs 18.91 crore in FY2026, a margin of 2.23%, after Rs 0.23 crore in FY2025 and a loss of Rs 39.01 crore in FY2024.
• 04The offer includes 1,55,11,082 shares offered for sale, so a large part of the money goes to selling shareholders and not to the company.
• 05The top five raw material suppliers accounted for 25.72% of FY2026 revenue from operations (21.17% in FY2024), so supply or price disruption can hurt margins.
• 06Income tax proceedings against the company involve Rs 49.06 crore for four assessment years, and a subsidiary has one tax case of Rs 35.06 crore.
• 07Criminal proceedings are pending against the company (3 cases) and against promoters Kamal Kumar Johari and Kamini Kamal Johari (2 cases) in Nashik courts.
• 08Offline channel revenue fell from 70.32% in FY2024 to 55.47% in FY2026, so the business depends on online platforms whose terms the company does not control.
• 09General corporate purposes amount is not yet fixed and can go up to 25% of the gross proceeds of the fresh issue.
• 10Auditors have made remarks on the audit trail in the accounting software for FY2025 and FY2024, and on the Companies (Auditor's Report) Order for FY2026, FY2025 and FY2024.

Nobel Hygiene Limited makes absorbent hygiene products in three groups. Adult products are sold under the Friends and B-Fit brands. Baby products are sold under the Teddyy and Snuggy brands. Feminine products are sold under the RIO brand. The company calls itself India's largest home-grown branded manufacturer of absorbent hygiene products in value terms in Fiscal 2026, among pure-play branded companies, citing the RedSeer report.

Adult absorbent hygiene products gave Rs 417.05 crore, or 49.25% of revenue from operations, in FY2026. Baby products gave Rs 383.75 crore, or 45.32%. Others, which include wet wipes, bed bath towels, sanitary napkins and sale of raw material, gave Rs 45.96 crore, or 5.43%. The company reports a single business segment, diapers, underpads and other related products.

It runs two manufacturing facilities, at Nashik in Maharashtra and Halol in Gujarat, with 14 manufacturing lines across about 19 acres. As of 31 March 2026 it had a distribution presence across 473 towns and cities in 31 States and Union Territories. It also exports to 19 countries, including Sri Lanka, the United Arab Emirates, Australia and Mauritius.

The sales mix is moving online. Online channel revenue (e-commerce, quick commerce and its own website) was 30.68% of revenue in FY2026, up from 16.97% in FY2024. Offline channel revenue fell from 70.32% to 55.47% in the same period. Export and private label was 10.92% of revenue in FY2026.

The company was incorporated in 2001. Kamal Kumar Johari, aged 65, is the Chairman and Managing Director and has been associated with the company since incorporation. The promoters are Kamal Kumar Johari, Kamini Kamal Johari and Kamal Kumar Johari HUF. Orbit Investment Holdings Pte. Ltd. holds 36.71% and has a nominee director on the board.

The industry

The RedSeer report says penetration of adult absorbent hygiene products in India is below about 6.00% for severe incontinence as of 31 March 2026. Baby products serve about 113.10 million children aged 0 to 4 years, with penetration of 26.00% to 30.00%. The feminine category addresses about 375.70 million menstruating women, with penetration of 22.00% to 26.00%. The company sees feminine products as a natural extension because the raw materials, manufacturing processes and distribution channels are shared with its adult and baby lines.

Customer concentration: The draft does not give top customer concentration. Top five suppliers accounted for 25.72% of FY2026 revenue from operations in raw material cost.