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Paper Boat | Revenue up 13.8%, net profit down 96% in FY2026

2026.03.26

Article summary

Paper Boat is a brand of traditional Indian drinks run by Hector Beverages Private Limited, established in Bengaluru in 2009. Its founders were Neeraj Kakkar, Neeraj Biyani, Suhas Misra, and James Nuttall; the latter two left in 2014 and 2015. Operating revenue for FY2026 (fiscal year ending March 2026) was ₹760 crore (1 crore = 10 million rupees), up 13.8% from the previous term, but EBITDA fell 39.7% to ₹41.4 crore and net profit dropped 96% to ₹2 crore. Traded goods bought in and resold account for 75% of operating revenue (₹574 crore), while goods made in house fell 18.6% to ₹184 crore.

This article is based on what we could verify As of September 19, 2026 This page is based on the disclosures and news reports from each company that we were able to confirm as of that date. Amounts in the text follow the notation commonly used in India, with ₹1 crore = 10 million rupees, and yen figures are approximations calculated at a little over 1.7 yen to the rupee. Store counts, funding raised, and results at Indian companies change over short periods, so when making a business decision, please check the latest information in primary sources such as each company's own announcements.

Paper Boat is a brand that packs drinks long made in Indian homes under their own names. In the fiscal year ending March 2026, revenue grew while net profit all but disappeared.

Company profile

Item	Details
Operating company	Hector Beverages Private Limited (established 2009)
Headquarters	Bengaluru (Karnataka)
Founder	Neeraj Kakkar, Neeraj Biyani, Suhas Misra, James Nuttall (Misra and Nuttall left in 2014 and 2015 respectively)
Revenue (operating revenue)	₹760 crore (FY2026 = fiscal year ending March 2026; up 13.8% from ₹668 crore the previous term)
Net profit	₹2 crore (down 96% from ₹46 crore the previous term)
Plants	Manesar (Gurugram, operating since 2010), Mysuru (Karnataka, operating since 2014)
Main investors	Catamaran Ventures, Peak XV Partners, Footprint Ventures
Listing	Unlisted

The share made in house is falling

In the fiscal year ending March 2026, sales of traded goods bought in and resold rose 30.2% to ₹574 crore and accounted for 75% of operating revenue. Goods made in house, by contrast, fell 18.6% to ₹184 crore. As it widened into food categories such as chikki (nut brittle), golgappa, aam papad, and nuts and seeds, the weight has shifted away from its own beverage production.

The trend of brand owners moving production outside is also where OEM inquiries are born. Paper Boat holds two plants, yet covers the categories that are growing through outside sourcing. Seen from a Japanese food manufacturer, this is a picture of a brand with shelf space in India looking for somewhere to produce.

Profit all but disappeared

Operating revenue grew 13.8%, but EBITDA fell 39.7% to ₹41.4 crore and the margin dropped from 10.3% to 5.4%. Net profit was ₹2 crore, down 96% from ₹46 crore the previous term.

Advertising and promotion costs rose 55.6% to ₹28 crore and selling and logistics costs rose 15.5% to ₹67 crore, so the cost of selling swelled first. Total costs rose 22% to ₹776 crore. Cash on hand fell 29% to ₹101 crore.

It turned the taste of the home into the product name

Aam Panna, Jaljeera, Aamras, Thandai, Kokum, Neer More. All of them are drinks long made in Indian homes, and Paper Boat moved them into packs without changing the names. Rather than creating a new category, it turns something everyone already knows the taste of into an industrial product.

A product that needs no explanation of its taste should have been able to keep advertising costs down. In practice, the promotion needed to win shelf space has become heavy, and the numbers for the fiscal year ending March 2026 show that name recognition alone does not hold a place on the shelf.