# 1. Financial Performance ## A. Key Figures * **Total Income:** **₹21.84 Cr** (H1 FY26) (+96.87%) · **₹11.09 Cr** (H1 FY25) * EBITDA: ₹3.31 Cr (H1 FY26) (+105.13%) · ₹1.61 Cr (H1 FY25) (15% of revenue) * PBT: ₹2.65 Cr (H1 FY26) vs. ₹1.34 Cr (H1 FY25) * PAT: ₹1.95 Cr (H1 FY26) vs. ₹1.01 Cr (H1 FY25) (+94.35%) * EPS: 4.78 (H1 FY26) vs. 2.86 (H1 FY25) (+67.13%) ## B. Revenue Growth * **Explosive Top-Line Acceleration:** Revenue nearly doubled year-on-year, reflecting strong market demand and successful brand expansion across domestic and export channels. * **Operational Efficiency Gains:** EBITDA growth outpaced revenue expansion, driven by cost discipline and improved operating leverage despite rising capex. ## C. Profitability Trends * **Divergent Channel Margins:** B2C delivers **10% EBITDA margin**, outperforming B2B’s current **6%-7%**, with both expected to improve on scale—targeting **8%-9%** (B2B) and **15%-20%** (exports). * **Margin Management Focus:** Strategic pricing in B2B supports market share capture, while export profitability is on track to scale without diluting PAT. * **Sustainable Profit Growth:** Management expects PAT growth to align with revenue, as higher expenses and capex limit operating leverage in near term. ## D. Margin Analysis * **Capital-Efficient Model:** Limited online marketing preserves working capital, enhances purchasing power, and underpins **strong profit margins** across segments. --- # 2. Sales Channel Mix ## A. Key Figures * Revenue Mix: **54%** B2C · **37%** B2B · **8.23%** Exports * **B2B Share:** **70%** segment share * **Digital Platform Sales:** **5%-6%** of total revenue * **Export Volume:** **10 containers** shipped to UK, first US container imminent ## B. B2C & Retail * **Premium Positioning:** B2C strategy targets only **40% of the consumer base**, focusing on premium segment with pricing power and brand differentiation. * **Quick Commerce Launch:** Operations live on **Blinkit** in Delhi-NCR and Haryana, showing **positive early traction** within the first fortnight. * **Owned Digital Push:** E-commerce expansion prioritized via company-owned app and website, currently serving **~16,000 direct retail customers**, with strategic emphasis on avoiding third-party margin dilution. * **Capital-Efficient Branding:** Management favors **offline branding and direct engagement** over digital spend, aligning with capital conservation goals post-Vidisha plant launch. ## C. B2B Distribution * **Distributor-Led Scale-Up:** Transitioned from direct to distributor model; each covers **250–300 stores**, targeting **5,000 retail outlets by FY26** to accelerate B2B volume growth. * **National Expansion Momentum:** B2B footprint expanding across **Maharashtra, South (Bangalore), Madhya Pradesh, Gujarat, Delhi**, and Tier 2 cities. * **Strategic Partnerships:** Ongoing collaboration with **Country Delight** and presence in retail counters reinforce B2B channel strength. * **Quality-Driven Differentiation:** Focus on **above-average product quality** supports dominance in B2B, where company holds **70% share**. ## D. Export Revenue * **Global Expansion Institutionalized:** Launched **HOAC Exports Private Limited** as dedicated subsidiary, signaling long-term commitment to international markets. * **Diversified Export Demand:** Strong UK demand for **spices, oils, besan, and healthy flours**; US market entry initiated with active deal and first shipment scheduled. * **Experienced Export Team:** Dedicated division staffed with professionals having **15–20 years of industry experience** to scale overseas operations. * **Strategic Rebranding:** Export growth is repositioning HOAC from traditional flour player to **organized, automated, multi-segment FMCG exporter**. --- # 3. Store & Outlet Expansion ## A. Key Figures * **Retail Outlets:** **19** total (7 company-owned, 12 franchisee) * **Store Openings:** **3–4** new stores to open by March, exceeding annual target · **7–8** new stores planned annually going forward * **Break-even Period:** **3–4 months** for recent outlets (improved from 6–7 months) ## B. Franchise Growth * **Strategic Shift to Franchising:** Post-2020 pivot to franchise-led expansion enables scalable growth, with most new outlets following this model. * **Logistics-Led Southward Expansion:** Entry into South India supported by a new **50,000 sq. ft. facility** in Vidisha, acting as a central hub for efficient distribution. * **Revised Growth Ambition:** Long-term outlet target revised downward to **10–11 per year**, prioritizing sustainable, profitable expansion over aggressive scale. * **Emerging Export Traction:** B2B exports now contributing to H1 revenue after negligible base, with **5–6 containers en route to the US** and resilient demand despite cost pressures. ## C. Store Profitability * **Strong Unit Economics:** Outlets opened last year are showing **doubled performance year-on-year**, reflecting robust customer adoption and operational ramp-up. --- # 4. Product & Segment Performance ## A. Key Figures * **Revenue Mix:** **45%-50%** flour · **11%-12%** spices · **9%-10%** oil * **Product Portfolio:** **200+ SKUs** with **135+ in-house manufactured** * **Customer Retention:** **85% retention rate** and **65% repetition rate** post sampling ## B. Flour & Spices * **Quality as Differentiator:** Flour positioned as **100x superior to Hariom**; export success driven by unadulterated, authentic Indian spices with sorting/grading, no blending. * **Seasonal Demand Strength:** Winter drives robust sales of healthy flour variants (multigrain, chickpea, soya, ragi, jowar), with consumers blending **0.5 kg each of chickpea and soya per 10 kg wheat flour**. * **E-commerce Expansion:** Only **C. P. Sharbati atta** currently on Blinkit; **haldi, mirchi, dhaniya, and haldi flours** to launch in **2–2.5 months**. * **Strong Consumer Pull:** Offline sampling drives high conversion, with most trial customers repurchasing monthly, reflecting **product-led growth and loyalty**. ## C. Portfolio Expansion * **Diversified Product Basket:** Expanded into spices, pulses, healthy flours, rice, grains, and oils, enhancing category reach and cross-sell potential. * **Premium Positioning via Integrity:** Focus on **authentic taste, consistent quality, and fair pricing** resonates with Indian diaspora in US, UK, Europe; now expanding to **Hong Kong, Germany, Toronto, Abu Dhabi** with tailored margin strategies. --- # 5. Manufacturing & Capacity ## A. Key Figures * **Capacity Potential:** ₹100 Cr revenue at full utilization * **Facility Size:** 12,000 sq. ft. Gurgaon (combined) · 50,000 sq. ft. Vidisha (total land) · 20,000 sq. ft. initial phase ## B. Plant Utilization * **Operational Volatility:** Recent sharp decline in utilization to **15%** reflects temporary lull, with normal range maintained at 80–85%; current operating rate remains at 30–35%. * **Scalability Constraints:** Existing Gurgaon plants can efficiently support 100–150 Delhi NCR outlets under full automation; further expansion requires incremental capex to maintain operational control. * **Demand-Supply Gap:** Unmet demand is causing **1–2 day fulfillment delays**, indicating underutilization is not due to weak demand but operational pacing. * **New Facility Timeline:** Vidisha mega plant set to become operational in **2.5 to 3 months**, enabling next-phase capacity absorption and efficiency gains. * **Phased Capex Strategy:** Initial 20,000 sq. ft. rollout in Vidisha minimizes upfront investment and strengthens working capital flexibility for scalable growth. --- # 6. Input Cost & Regulatory Risks ## A. Export Restrictions * **UK Flour Export Ban Limits Market Access:** Full ban on regular flour exports to the UK constrains opportunities, though demand for alternative flour-based products is emerging. ## B. Pricing Pressures * **Resilient US Demand Despite Cost Pass-Through:** Consumers absorbing higher prices driven by elevated customs duties and taxes, with **demand for Indian products remaining strong**. ## C. Seasonal Demand * **Winter Dominates Seasonal Sales Performance:** Company experiences consistently stronger demand in winter months, reflecting seasonal consumption patterns in key markets. --- # 7. Guidance & Outlook ## A. Key Figures * **Revenue Guidance:** **₹55 Cr** full-year target (no change) · **₹21 Cr** achieved in current fiscal (as of update) ## B. Revenue Targets * **Guidance Reaffirmed:** Full-year revenue outlook unchanged at ₹55 Cr despite strong momentum, as management prioritizes **quality of growth** over aggressive scaling. * **Investor Confidence:** Management reiterated commitment to original target, addressing investor queries with clear confirmation of forecast stability. ## C. Growth Projections * **Store-Led Expansion:** Sales growth expected to scale **in line with new store openings**, supported by enhanced retail execution and broader market reach. * **Export Opportunity:** Global markets represent a **large untapped growth vector**, with strong demand signals and positive customer feedback, despite minimal current contribution. * **Robust Forward Outlook:** Next fiscal year projected to deliver **75%-80% revenue growth**, sustaining current momentum, though formal guidance not yet quantified. ## D. Capital Needs * **Self-Sustaining Growth:** No plans for debt or equity raises over the next **1.5–2 years**, indicating strong internal cash generation and disciplined capital structure.