# 1. Financial Performance ## A. Key Figures * **Revenue from Operations (H1):** **₹18,564 Cr** (highest-ever) * Total EBITDA (H1): ₹937.50 Cr (6.13% margin) * Edible Oils Revenue: ₹13,653.72 Cr (+21% YoY) · EBITDA: ₹364.89 Cr (3.53% margin) * **Non-Food FMCG/HPC Revenue:** **₹659 Cr** · **EBITDA:** **₹182 Cr** (18% segment margin) * **Borrowings Increase (vs. Mar-25):** **₹2,108 Cr** (driven by working capital and credit facilities) ## B. Revenue Growth * **Record Performance:** Highest-ever quarterly and half-yearly revenue, EBITDA, and PAT achieved on standalone basis, reflecting strong operational scale. ## C. EBITDA & Margins * **Divergent Segment Margins:** EBITDA margins vary significantly—**Nutrela delivers ultra-high 81%**, edible oils at 53%, while core Foods and biscuits remain low at 4% and 8%, respectively. * **FMCG Segment Strength:** Non-food FMCG/HPC drives profitability with **₹182 Cr EBITDA** and 18% margin, underpinning consolidated margin resilience. * **PBT & PAT Dynamics:** PBT margin held at 13%; PAT growth partially boosted by prior-year tax refund, not operational earnings. ## D. Balance Sheet * **Working Capital-Driven Leverage:** Sharp rise in debt and cash due to expanded working capital limits and LC facilities, supporting business growth. * **Funding Mix:** Borrowings increased by ₹2,108 Cr, primarily via **working capital loan (₹1,376 Cr)**, **SBI London buyer’s credit (₹367 Cr)**, and **unsecured loan (₹360 Cr)**. --- # 2. Segment & Revenue Mix ## A. Key Figures * **Edible Oils Revenue:** **₹6,971 Cr** (17% YoY) * FMCG Revenue: ₹2,914 Cr Q2 FY'26 (+34.3% QoQ) · EBITDA Margin: 12.28% * **HPC Revenue:** **₹659 Cr** Q2 (+24–25% H1) · **EBITDA: ₹182 Cr** (Q2) * **Oil Palm Plantation Revenue:** **₹1,191 Cr** H1 FY'26 · **EBITDA Margin: 17%** * **Foods Revenue:** **₹1,583 Cr** ## B. Edible Oils * **Dominant Segment:** Edible oils remain the largest revenue contributor, accounting for **~68–70%** of total revenue, with strong growth driven by brand building and celebrity endorsements. * **Growth Drivers:** Momentum sustained by deep distribution reach and alignment with **Swadeshi and Atmanirbharta** sentiment, reinforcing market leadership. ## C. FMCG Portfolio * **Strategic Pivot:** Company now positioned as a focused FMCG player, consolidating food, HPC, and HPC categories to reflect integrated growth strategy. * **Profit Powerhouse:** Despite lower revenue share (~32%), FMCG contributes **60% of EBITDA**, with potential to deliver **~75% of profits** at 50:50 revenue parity due to superior margin profile. * **Structural Tailwinds:** 85% of FMCG portfolio now in 5% GST slab, boosting affordability and volume scalability across health, Ayurveda, and wellness-focused categories. ## D. HPC & Plantations * **HPC Integration on Track:** Acquired business fully integrated over three quarters, delivering strong QoQ revenue growth and margin expansion from **3% to ~28% EBITDA margin equivalent**. * **Plantation Scale-Up:** Oil palm cultivation exceeds **1 lakh hectares**, with H1 revenue of ₹1,191 Cr and rising yields as mature trees enter fruiting cycle, signaling durable growth runway. --- # 3. Volume & Pricing Trends ## A. Key Figures * **Branded Penetration:** **76%** of edible oils sales * Edible Oils Volumes: 4.82 lakh tons (QoQ growth ~5%) from 4.59 lakh tons * **Edible Oils Volume Trend:** **-7% YoY** · **3–4% expected growth** * **GST Exposure:** **~85%** of portfolio at 5% rate, including **~66%** in edible/vegetable oils ## B. Branded Penetration * **Core Brand Strength:** Branded products anchor edible oils performance, with **76% penetration** reflecting deep market acceptance and pricing power. * **Seasonal Momentum:** Festive demand lifted edible oils volumes QoQ, signaling improved consumer engagement after soft earlier quarters. ## C. Demand Recovery * **Urban-Rural Divergence:** Rural markets led recovery, though early urban demand stabilization emerged by September, supported by macro tailwinds and welfare policies. * **Structural Volume Headwinds:** Industry-wide edible oil demand remains **7% below prior-year levels** due to import contraction, limiting volume-driven growth potential. * **Biscuits Outperformance:** Segment delivered **robust double-digit YoY growth**, indicating strong category rebound and effective market positioning. ## D. GST Impact * **Transitional Drag:** GST 0 implementation triggered short-term destocking and demand deferral, particularly in non-edible FMCG, now largely resolved. * **Growth Catalyst Ahead:** Reform expected to boost **300–400 bps in future volumes**, especially in price-sensitive segments, enabling broader consumption expansion. * **Limited Direct Exposure:** Edible oils segment insulated from GST shifts, with rates unchanged at 5%, covering majority of business. --- # 4. Product & Category Performance ## A. Key Figures * **Biscuit Revenue:** **₹499.91 Cr** Q2 FY26 (+16.47%) · **Doodh Biscuit** accounts for **72%** of segment sales * **Ghee Sales:** **₹257 Cr** Q4 FY25 → **₹448 Cr** Q1 FY26 (+₹191 Cr sequential) * **Total Revenue:** **₹2,914 Cr** (Biscuits: ₹500 Cr, Ghee: ₹448 Cr, Soya: ₹159 Cr, HPC: ₹659 Cr) * TSP & Nutraceuticals Revenue: ₹159.42 Cr (TSP) · ₹13.45 Cr (Nutraceuticals) * Honey Sales: +₹78 Cr YoY ## B. Biscuits & Ghee * **Doodh Biscuit Dominance:** Biscuit segment driven by **Doodh Biscuit**, which contributes the vast majority of sales and is on a path toward **₹1,000 Cr** target. * **Ghee Momentum:** Ghee achieved a substantial sequential sales jump, reflecting successful strategy pivot and strong **festive demand** across dry fruits, spices, and condiments. * **Broad-Based Strength:** Emerging channels and marketing investments underpinned robust growth, with positive trends also seen in mustard, beverages, and Chyawanprash. ## C. Soya & Nutraceuticals * **Growth Category Validation:** Nutraceuticals and TSP delivered solid quarterly performance despite past supply constraints, with **Nutrela posting 12% QoQ growth**. * **Innovation Traction:** Renal care product launch and influencer-led marketing are gaining early momentum, reinforcing strategic focus on high-margin, health-oriented categories. ## D. New Launches * **Premiumization Push:** Company is expanding beyond core with premium cookies, rusks, and cream crackers, leveraging **Noida manufacturing plant** to support agility and scale. * **Startup-Like Agility:** R&D, supply chain, and distribution integration enables rapid product innovation, positioning the company to sustain competitive growth. --- # 5. Input Cost & Margin Risks ## A. Key Figures * **Palm Oil Price Change:** **+35% YoY**, **+20% QoQ** * **Edible Oil Margin Trend:** **Nearly 25% spike in palm oil costs (H1)** leading to **lower margins vs. prior year** * **Biscuit Margins:** **~14.6% in H1 FY25**, with typical range of **10%–12%+**; **Doodh Biscuits capped below 10%–12%** * Non-Food EBITDA Margin: **27.7% currently**, expected to normalize to **18%–20%** ## B. Palm Oil Volatility * **Severe Input Cost Pressure:** Palm oil prices surged sharply, triggering record import substitution—**soybean oil imports at highest since July '22**, **palm oil imports at lowest since May '25**. * **Margin Erosion in Edible Oils:** Despite tactical price pass-through within a **one-week lag**, edible oil margins declined YoY due to **unfavorable cost environment and limited inventory gains** (3–6 day benefit window). * **Pricing Strategy Divergence:** While vegetable oils allow rapid price adjustments, **core FMCG segments require gradual increases** to balance competitiveness and margin protection. ## C. Commodity Exposure * **Broad Commodity Risk:** Margin volatility driven by **palm oil, sunflower oil, rice, and pulses**, with government interventions amplifying uncertainty; **soybean off-season supply disruption** further pressured refining and branded operations. * **Offsetting Margin Initiatives:** Company deploying **strategic hedging, inventory management, and efficiency investments** to de-risk input exposure and stabilize long-term profitability. * **Non-Food Margin Outlook:** Recent **7% EBITDA in non-food** reflects temporary uplift from order timing, not structural shift; **18%–20% is expected normalized level**. --- # 6. Guidance & Outlook ## A. Key Figures * FMCG Revenue Contribution: 29.44% in Q2 FY'26 · 27.10% in H1 FY'26 * **Edible Oil Seasonality:** **60–65%** of annual business in Q3–Q4 * **Target Revenue Split:** **50:50** between FMCG and edible oils within four years ## B. Growth Targets * **Segment Growth Ambitions:** Management targets **8%–10%** growth in food and **15%** in HPC, underpinned by innovation and market expansion despite competitive intensity. * **GST Tailwind:** Anticipates **300–400 bps uplift** in FMCG growth from favorable GST rate revisions, enhancing overall category momentum. * **Seasonal Recovery Expected:** Edible oils poised for rebound in H2 FY'26, driven by festival and winter demand cycles and improved soybean supply. * **Premiumization Imperative:** Sustained **15%–18% category growth** hinges on scaling premium biscuit and cookie offerings beyond core Doodh Biscuit sales. ## C. Margin Recovery * **H2 Margin Rebound in Sight:** Despite seasonally leaner oil palm profitability, early Q3 trends indicate recovery trajectory, supported by demand strength and pricing actions. * **Profitability Leverage:** Two-thirds of edible oil volume concentrated in high-demand H2 period, enabling margin recapture through volume absorption and price realization. ## D. 50:50 Revenue Goal * **Strategic Recalibration:** FMCG already generates **nearly 60% of EBITDA** despite lower revenue share, highlighting superior margin profile and strategic importance. * **Diversification Roadmap:** Targeting balanced 50:50 revenue mix within four years via accelerated FMCG expansion, even as edible oils grow at a slower **2%–4%** pace. * **Product Portfolio Expansion:** Broadening offerings across mass and premium tiers to capture evolving consumer demand and drive share gains in key FMCG categories.