Paperboat maker reports strong turnaround after two years of losses, driven by higher third-party manufacturing revenue and improved margins
Hector Beverages, the maker of the Paperboat brand, reported a net profit of Rs 46 crore for FY25, compared with a loss of Rs 334.1 crore in FY24, according to its latest regulatory filings. Revenue from operations rose 16.3 per cent year-on-year to Rs 668.3 crore, while total income stood at Rs 682.4 crore for the year ended 31 March 2025.
Ebitda was Rs 68.5 crore, and the gross margin stood at Rs 33.5 crore, reflecting improved operating efficiency.
Revenue from products manufactured by third parties increased 45 per cent to Rs 441.43 crore, accounting for 66 per cent of total operating income. Revenue from in-house manufacturing declined 16 per cent to Rs 225.72 crore, contributing 34 per cent of operating income. Non-operating income, largely from interest on bank deposits, stood at Rs 14.2 crore.
The company’s FY25 performance marks a clear turnaround from previous years. Hector Beverages had reported a loss of Rs 90.56 crore in FY23, which narrowed to Rs 47.14 crore in FY24 before turning profitable.
Founded in 2009 by former Coca-Cola executives Neeraj Kakkar and Niraj Biyani, the company launched the Paperboat brand in 2013 after earlier experimenting with Frissia, a protein drink, and Tzinga, an energy drink. The Paperboat range now includes over 70 stock-keeping units (SKUs), offering traditional Indian beverages such as Aam Panna, Jaljeera, Aam Ras, Kokum, Jamun Kala Khatta, Chilled Rasam, Neer More and coconut water.
Hector Beverages has also diversified into traditional Indian snacks, including dry fruits, nuts, chikkiand other healthy snacking products, expanding its presence in the packaged foods category.
