HUHTAMAKI INDIA Q2 CONCALL: EXPECTS MARGIN RECOVERY FROM RAW MATERIAL PRICE PASS-THROUGH, COMPLETES BADDI PLANT CONSOLIDATION; TARGETS HIGHER VALUE-ADDED PACKAGING, SEES 2–3 YEARS OF CAPACITY HEADROOM & REPORTS 7% VOLUME GROWTH

• Revenue Growth Outlook: Management expects continued growth from higher packaging volumes, improved product mix and contractual raw material price pass-through. • Revenue Growth Guidance: Management did not provide a specific revenue growth target for CY2026 or CY2027. • Margin Improvement Outlook: Management expects profitability to benefit from recovery of raw material cost increases, higher-value products, manufacturing productivity and plant consolidation. • EBITDA Margin Guidance: Management did not provide a numerical EBITDA margin target for the coming quarters or the full year. • Q4 CY2026 Margin Outlook: Management expects some raw material inflation incurred during September to be recovered through customer pricing adjustments in subsequent months. • EBIT Margin Outlook: Management indicated that Q3 EBIT margin would have been above approximately 8% after adjusting for relevant one-time items. • Margin Sustainability: Management indicated that the underlying business has not experienced a major structural deterioration in profitability. • Medium-Term Margin Strategy: Management intends to improve margins through product premiumization, operating efficiencies and selective participation in higher-value packaging categories. • Price Increase Strategy: Management clarified that selling prices cannot be raised arbitrarily because raw material pass-through mechanisms are governed by customer contracts. • Raw Material Price Pass-Through: Company generally passes movements in raw material costs to customers according to contractual pricing arrangements. • Pricing Revision Timeline: Management indicated that price adjustments may occur immediately, after a few weeks or during the following month, depending on customer agreements. • September Cost Inflation: A sharp increase in raw material costs toward September-end affected Q3 margins because corresponding customer price increases were not fully implemented within the quarter. • Pricing Recovery: Management expects the delayed recovery of these costs to appear in subsequent periods as customer prices are revised. • Margin Volatility: Management expects some quarterly margin fluctuations because of differences in the timing of raw material price changes and customer pricing adjustments. • Raw Material Deflation: Management clarified that the same pricing mechanism can temporarily benefit the company when raw material prices decline before customer selling prices are adjusted. • Q3 Revenue Growth Drivers: Management attributed revenue expansion to higher volumes, improved product mix and inflation-related price increases. • Volume, Pricing & Mix Contribution: Management indicated that the three growth drivers contributed broadly comparable amounts, without providing a precise numerical breakdown. • Q3 Volume Growth: Packaging sales volumes increased approximately 7% YoY. • 9M Volume Growth: Volumes increased approximately 4% during January–September 2026. • Volume Growth Trend: Management highlighted that the business has returned to consistent quarterly volume growth after an extended period of stagnant volumes. • Market Share Outlook: Management believes its volume growth relative to slower customer-industry volume trends may indicate market share gains. • Market Share Position: Management indicated that Huhtamaki India's share of the fragmented domestic flexible packaging market remains below 10%. • Market Share Expansion Strategy: Company intends to capture more business through packaging innovation, reliable supply, technical capabilities and higher-value offerings. • Capacity Expansion Outlook: Management indicated that existing manufacturing infrastructure has sufficient capacity to support anticipated demand growth for the next approximately 2–3 years. • Major Capex Requirement: Management does not foresee a need for significant new manufacturing capacity investment over the next 2–3 years under its current demand expectations. • Capacity Utilization Strategy: Company is improving manufacturing productivity and efficiency to release additional capacity from existing facilities. • Full Capacity Revenue Potential: Management did not disclose a specific current capacity utilization percentage or maximum achievable revenue at full utilization. • Manufacturing Productivity: Management expects continuous operational improvement programmes to support higher production volumes without proportionate investment in new assets. • Baddi Plant Closure: Company announced the closure of its pressure-sensitive labels manufacturing facility in Baddi. • Baddi Closure Timeline: Management indicated that the closure process was nearing completion at the time of the October 30 call. • Baddi Restructuring Cost: Company recognized a one-time restructuring charge of approximately ₹9.6 Cr during Q3 CY2026. • Baddi Profitability: Management indicated that Baddi was the smallest of its three labels facilities and had been operating at a loss. • Labels Manufacturing Consolidation: Production previously undertaken at Baddi has been transferred to the company's Ambarnath and Bengaluru facilities. • Baddi Customer Continuity: Management confirmed that customer supply arrangements have been transferred without material disruption. • Labels Capacity Availability: Management indicated that the remaining two plants have adequate capacity to absorb the Baddi facility's production volumes. • Baddi Cost Savings: Management expects the closure to improve operating efficiency and reduce costs by eliminating an underperforming manufacturing location. • Baddi Margin Benefits: Management expects future profitability to benefit from better capacity utilization and lower operating costs in the labels business. • Additional Plant Closures: Management confirmed that no further factory restructuring or closure is currently planned. • Manufacturing Footprint Strategy: Management will continue evaluating capacity expansion or consolidation depending on market demand and operational economics. • Product Mix Strategy: Company is progressively increasing its focus on technically complex, differentiated and higher-margin packaging products. • High-Value Packaging Contribution: Management indicated that most of the recent volume growth came from products offering a stronger value proposition, although no exact percentage was disclosed. • Commodity Packaging Strategy: Company is being selective in lower-complexity, commoditized packaging categories where pricing competition is more intense. • Customer Selection Strategy: Management is prioritizing customers requiring higher quality, innovation, technical development and reliable packaging supply. • Premiumization Outlook: Management expects increasing demand for complex packaging structures and sustainable alternatives to support its product mix over time. • Pharmaceutical Packaging Opportunity: Management sees additional growth potential in pharmaceutical packaging, where higher technical requirements may support differentiated offerings. • FMCG Packaging Strategy: Company continues serving food, consumer products and other end markets, with product selection driven primarily by technical value and profitability. • Low-Complexity Packaging: Management indicated that simple single-layer packaging applications are generally less attractive because of intense competition. • Customer Acquisition Timeline: New packaging customer commercialization can take approximately three months to two years, depending on product complexity and qualification requirements. • Large Customer Approvals: Management indicated that larger customers generally require longer product testing, internal validation and commercialization cycles. • Existing Customer Expansion: Management expects additional business from existing clients to be easier and faster to secure than completely new customer relationships. • New Product Development: Customer commercialization typically involves artwork development, prepress, material selection, technical trials and product approvals. • Packaging Innovation Strategy: Company is developing packaging solutions that reduce material consumption while retaining product protection and functional performance. • Sustainable Packaging Outlook: Management considers rising adoption of recyclable packaging and more stringent sustainability requirements an important long-term growth opportunity. • Recycled Plastic Regulations: Management highlighted requirements for post-consumer recycled content in certain plastic packaging categories, with obligations varying by material structure. • Recycled Content Opportunity: Company expects changing recycled-content requirements to create opportunities for product redesign, material substitution and new packaging specifications. • Regulatory Implementation: Management emphasized that the pace of customer adoption and enforcement of sustainability regulations will influence the commercial opportunity. • Mono-Material Packaging: Company is developing recyclable mono-material packaging structures as alternatives to conventional multi-layer laminates. • BlueLoop Packaging: Management highlighted its BlueLoop portfolio, which focuses on recyclable packaging and material efficiency. • Material Reduction Strategy: Management is working to reduce the number of packaging layers and the overall material used in selected products. • Aluminium Foil Replacement: Company has developed packaging structures that eliminate aluminium foil while maintaining required barrier performance in specific applications. • Customer Cost Savings: Management indicated that packaging redesign can reduce material consumption and help customers lower packaging costs. • Sustainable Product Adoption: Management expects commercial benefits from sustainability innovation but acknowledged that some customers remain sensitive to the higher cost of certain alternatives. • Packaging Regulation Readiness: Management indicated that the company is prepared to adapt products as recycled-content and other packaging requirements evolve. • IFCA Packaging Awards: Company received three Indian Folding Carton and Flexible Packaging Association awards for innovative packaging products. • Award-Winning Packaging: Management highlighted an improved cocoa powder pouch, a redesigned ketchup sachet and a specialized metallic-film label for an overseas customer. • Ketchup Sachet Innovation: The redesigned structure reduced plastic layers and eliminated aluminium foil while maintaining the required functionality. • Export Product Innovation: Company continues developing technically differentiated packaging products for international customers. • Product Development Strategy: Management expects customer-specific packaging innovation to support retention, new business opportunities and higher-value sales. • Renewable Energy Expansion: Company's captive solar power project at Khopoli commenced contributing during August 2026. • Renewable Electricity Contribution: Management indicated that renewable sources now account for approximately 23% of the company's electricity requirements. • Energy Cost Optimization: Management expects renewable electricity and efficiency initiatives to support energy cost management. • Sustainability Commitments: Company continues implementing measures supporting its 2030 Scope 1 and Scope 2 emissions commitments. • Water Management: Management highlighted water treatment, recycling and rainwater harvesting initiatives across manufacturing operations. • FSC Certification: Management indicated that its labels manufacturing facilities hold Forest Stewardship Council certification. • Operational Safety: Company reported no first-aid, medical-treatment or lost-time safety incidents during Q3 CY2026. • AI-Based Productivity: Management confirmed that the company is implementing AI-related initiatives to improve productivity, product quality and operational performance. • AI in Manufacturing: Projects under development include operational efficiency, quality improvements, customer service and workplace safety applications. • AI Commercial Benefits: Management indicated that some initiatives are beginning to show results but did not quantify cost savings or profitability benefits. • Operating Cost Inflation: Management highlighted higher power and fuel expenses associated partly with geopolitical disruptions. • CSR & Other Expenses: Additional CSR-related expenditure and provisions also contributed to the increase in reported operating expenses. • Cost Optimization Programme: Management indicated that annual productivity improvement plans are progressing according to internal targets. • Pricing Discipline: Management intends to preserve profitability through appropriate contractual cost recovery rather than broad discretionary selling price increases. • Daman Land Sale: Company is evaluating offers for a property in Daman previously used as a manufacturing facility. • Daman Property Valuation: Management did not disclose an expected sale price because discussions with potential buyers remain ongoing. • Daman Land Monetization: Management indicated that any completed property sale would be disclosed through the appropriate market announcements. • Other Land Assets: Management did not disclose a detailed acreage breakdown or independent market valuation of its broader land holdings. • Depreciation Adjustment: Company recorded approximately ₹8.8 Cr of prior-period depreciation correction during Q1 CY2026. • Depreciation Tax Treatment: Management clarified that the accounting correction did not require a corresponding change to tax depreciation. • Prior-Year One-Time Benefits: Management indicated that Q3 CY2025 profitability included benefits from employee retirement-related reversals and valuation adjustments. • Reported Profit Comparability: Management cautioned that these prior-year benefits make reported operating profit growth less representative of underlying performance. • Q3 Net Sales: Sales increased approximately 23.7% YoY to ₹748 Cr, representing one of the company's highest quarterly revenue levels in recent years. • Q3 Reported EBITDA: Management indicated reported EBITDA increased approximately 1.2% YoY. • Q3 Reported EBIT: Management indicated reported EBIT increased approximately 0.1% YoY. • Q3 Comparable Operating Profit: Excluding prior-year one-time benefits, management indicated approximately 18% YoY growth on a comparable operating-profit basis. • Q3 EBITDA Margin: During Q&A, management discussed margins of approximately 8%, compared with around 10% in the preceding quarter, primarily reflecting raw material price pass-through timing. • Q3 Adjusted EBIT Margin: Management indicated that the EBIT margin would exceed approximately 8% after adjusting for the relevant one-time effects. • Q3 Net Profit: PAT declined approximately 19% YoY to around ₹30 Cr, compared with approximately ₹37 Cr. • Q3 PAT Decline: Management attributed most of the reported profit decline to the ₹9.6 Cr one-time Baddi restructuring charge. • 9M EBITDA: EBITDA stood at approximately ₹204 Cr during the nine months ended September 2026. • 9M EBITDA Growth: Management indicated approximately 25% YoY growth in EBITDA, compared with approximately 16% revenue growth. • 9M EBITDA Margin: Margin stood at approximately 10%, compared with around 9.2% in the previous-year period. • 9M EBIT: Management reported approximately ₹153 Cr of EBIT, representing around 22% YoY growth. • 9M Profit Before Tax: PBT increased to approximately ₹133 Cr from ₹117 Cr in the corresponding previous-year period. • 9M Net Profit: PAT increased approximately 13% YoY despite the Q3 restructuring charge. • 9M Earnings Per Share: Management indicated approximately 13% YoY growth in EPS. • Key Challenges: Raw material inflation, customer pricing adjustment delays, geopolitical disruptions, higher energy expenses, pricing competition in commodity packaging, slower adoption of sustainable packaging and new-product qualification timelines remain important operating factors.

HUHTAMAKI INDIA LIMITED

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