Hexagon Nutrition Ltd

Hexagon Nutrition Ltd

Incorporated in 1993, Hexagon Nutrition manufactures micronutrient premixes and branded clinical nutrition products. Its premix vertical supplies vitamin and mineral blends to FMCG companies for food fortification (51% of revenue). The branded B2C vertical sells PENTASURE, OBESIGO and PEDIAGOLD through pharmacies and hospitals (30%). It operates three plants in India and one in Uzbekistan. 

DRHP filed: 23rd Sept 2025

BRLM: Cumulative Capital, Catalyst Capital Partners

Auditor: S K Patodia & Associates LLP

Disclaimer - Delta Partners (public market division under Dexter Capital) is not a SEBI registered Investment Advisor and this report does not constitute a recommendation but is only prepared for educational purposes. We (our team members including our directors) may or may not apply to IPO. 

This note is not reviewed by our CIO - Devendra Agrawal, CFA. It is prepared by our team of Investment Analysts, and is reviewed by our senior team members. Any questions related to the IPO can be directed to shubham@deltainvest.in and we will come back. 

We at Delta Partners continue to analyze many business and IPOs. Investors interested to be part of this network are requested to fill the form & our team will reach out with more details. [Click Here]

Delta’s View : May Subscribe for Listing Gains

Hexagon nutrition’s core business, nutrition premixes has been flat over past years and is a commodity-like business. Hexagon’s growth is being driven primarily by its Pentasure brand (growing at ~21% CAGR), which already competes against leading brands (Abbott, Nestlé, and Fresenius Kabi) with higher sales forces & marketing spends. It also has much lower utilisation levels (28-31%) and margins compared to peers. An IPO ask valuation ~17x P/E (~12x EV/EBITDA) doesn’t look attractive enough to justify the growth & competitive advantage in the business. 

However, One can expect good listing gains as per current GMP ~36% (5th June 26), provided if it sustains

• The company’s revenue growth over the last 2 years was just ~8% (FY23-25 CAGR). The B2B2C premix segment (contributing 47–55% of revenue) was flat over this period and the revenue growth was driven primarily by the Branded nutrition (B2C) segment. 

• The premix vertical (B2B2C), which is the revenue majority, is a commodity-like business with decline in realisations per tonne over the past few years. It is a supply-contract business with large FMCG buyers who hold much of the pricing power. While there are very few listed peers, its private peers such as Sudeep Nutrition Pvt Ltd, P D Navkar Bio-Chem, Glanbia Performance Nutrition (India), etc have much higher margins as they sell more of the specialized nutritional mixes. 

• The B2C segment - which at ~28–30% of revenue is doing the heavy lifting for the entire company's margin story. PENTASURE alone spans 16 clinical disease-specific variants and has driven B2C revenue at a 21% CAGR (FY23: 62.7 cr → FY25: 92.1 cr). Being a higher-margin finished product, its growing revenue share has expanded consolidated gross margins from 39.6% in FY23 to 44.4% in FY25 (49.6% in 9M FY26) and EBITDA margins from 6.2% to 12.3% over the same period.

• The B2C segment is still a minority of revenue and entirely dependent on a single brand family to deliver it. PENTASURE competes directly against Abbott's Ensure and Glucerna, Nestlé's Resource and Novasource, and Fresenius Kabi's Fresubin, each backed by decades of hospital relationships, large dedicated medical sales forces, and marketing budgets that are multiples of Hexagon's total revenue. 

• Hexagon's marketing spend was 6.5 cr in FY25 and 7.7 cr in 9M FY26 - amounting to just 2.0-2.9% of consolidated revenue. Abbott, Nestlé, and Fresenius Kabi each deploy large dedicated nutritional sales forces with field force coverage, clinical study investments, and institutional marketing infrastructure that Hexagon's 167-member sales force reaching ~20,843 HCPs might not easily replicate. 

• Overall capacity utilisation has been rangebound at 28-31% (FY23–9M FY26). Across the five product categories, Dry Premix runs at 28-31%, Liquid Premix at 17-19%, MNP at 10-32%, and RUF at 27-29%. Only Clinical Nutrition shows a consistent upward trend, improving from 31% to 50%, the single category tied to the B2C growth story.

Business

• Hexagon Nutrition, founded in 1993, manufactures and markets nutrition products - micronutrient premixes for food fortification and branded clinical nutrition supplements & humanitarian therapeutic food. It operates 3 plants in India (Nasik, Chennai, Thoothukudi) and 1 in Uzbekistan.

• Premix B2B2C (51% of revenue): Hexagon makes customised vitamin and mineral blends that food companies add to their products — malted beverages, biscuits, dairy, edible oils. The FMCG company buys these "premixes," mixes them into their product, and sells them to end consumers.

• Branded B2C (30% of revenue): Own consumer brands sold through pharmacies, hospitals, and online. Key brands — PENTASURE (adult clinical nutrition: renal, hepatic, diabetic, ICU variants), OBESIGO (weight management), PEDIAGOLD (pediatric nutrition), and the newer NUTRONE range (healthy aging, men, women).

• RUF/MNP ESG segment (18% of revenue): Products supplied to UN agencies (WFP, UNICEF), governments, and NGOs for malnutrition treatment programs in Africa and Asia. Ready-to-Use Therapeutic Food (RUTF) is a peanut paste-based product for severe acute malnutrition. Micronutrient Powders (MNPs) are sachets distributed through home food fortification programs.

Issue Details

Offer For Sale size - Amount → 139 cr ; Shares → 30.8 mil shares

The IPO is entirely an OFS by four of the five promoters — Arun, Subhash, Nutan (Subhash's wife), and Aditya

Promoters and Leadership

• Arun Purushottam Kelkar (76, Chairman) and Subhash Purushottam Kelkar (66, Executive Director). Both are professionals-turned-entrepreneurs: Arun holds a B.E. from Nagpur University and worked at Siemens India and Castrol India; Subhash holds a B.Pharm from Bombay University and worked at Glaxo Laboratories, Ethnor, and Super Pharma.

• The business is essentially family-run across two generations - Arun's sons Vikram (44, MD; B.M.S + Masters in International Business, Auckland) and Nikhil (47, JMD; B.D.S+Diploma in Marketing, NMIMS) lead day-to-day operations, while Subhash's son Aditya (39) is a Non-Executive Director.

• The promoter group collectively holds 79.10% of the pre-IPO share capital

Shareholding Pattern

Financials