# 1. Financial Performance ## A. Key Figures * Revenue (Q3 FY26): ₹10,483.71 Cr (record high, +16.53% YoY) · EBITDA Margin: 4.69% (ex. exceptional items) · PBT Margin: 3.46% (incl. ₹30.19 Cr labour code impact) * Revenue (9M FY26): ₹29,013.98 Cr (highest ever, +55% YoY) · EBITDA Margin: 4.93% · PBT Margin: ~3.84% * FMCG Segment Revenue (Q3 FY26): ₹3,248 Cr (+38.93% YoY, +12.31% QoQ) · EBITDA Margin: 10.88% * HPC EBITDA (Q3): ₹157 Cr (24.95% margin) · Biscuits EBITDA: ₹47 Cr (9.57% margin) · Foods EBITDA: ₹151 Cr (7.54% margin) · Edible Oil EBITDA: ₹175 Cr (2.4% margin) ## B. Revenue Growth * **Record Top-Line Expansion:** Robust double-digit revenue growth across quarters, with Q3 and 9-month periods marking all-time highs driven by strong segment momentum. * **FMCG Outperformance:** FMCG segment delivered exceptional growth and margin resilience, contributing significantly to overall revenue and profitability. * **Profitability Under Pressure:** PBT margin impacted by **₹19 Cr** exceptional item related to labour code implementation, though core earnings remain strong. ## C. Segment EBITDA * **Divergent Segment Margins:** Non-edible FMCG segments generated disproportionately high EBITDA (33% of total) relative to revenue share (31%), indicating superior margin efficiency. * **Edible Oil Contribution:** Despite low margin profile, edible oils remain central to scale, contributing 69% of segment revenue and 67% of EBITDA, now corrected to **₹87 Cr**. * **HPC as Profit Engine:** HPC emerged as the highest-margin business with **95% EBITDA margin**, underscoring its strategic profitability role. --- # 2. Volume & Pricing Trends ## A. Key Figures * **Biscuits Revenue:** **₹490 Cr** (Q3 FY26) (+4% YoY) * **Staple Revenue:** **₹1,255.67 Cr** (Q3 FY26) (+68.70% YoY) * **Ghee Revenue:** **₹467.64 Cr** (Q3 FY26) (+46.50% YoY, +21% QoQ) ## B. Product Category Growth * **Volume-Driven Biscuit Expansion:** Biscuit growth entirely attributable to volume gains, fueled by distribution reach and strong market velocity, with Doodh biscuits representing the dominant sub-category. * **High-Growth Staples & Ghee:** Staple and ghee categories delivered robust double-digit revenue growth, with ghee benefiting from seasonal demand; however, rapid staple expansion pressured segment margins. ## C. Price vs Volume Mix * **Pricing Hierarchy Maintained:** Sunflower and soybean oils positioned as premium offerings above palm oil, reinforcing brand premiumization in edible oils. * **No Price Inflation in Biscuits:** 4% biscuit growth achieved without price increases, as grammage adjustments for GST compliance were offset by disciplined pricing strategy. ## D. GST Impact on Pricing * **Near-Term Disruption, Long-Term Benefit:** GST 0 implementation caused temporary trade and inventory volatility in September–October, but stabilization resumed by November, with structural benefits expected from higher urban consumption. * **Pro-Consumer GST Pass-Through:** Company absorbed or passed on GST benefits via increased biscuit grammage and outright price reductions in shampoo and hair oil, enhancing value proposition. --- # 3. Channel & Distribution ## A. Key Figures * Retail Outlets: Over 2 million total presence (+0.2–0.25 million added) * **Revenue Mix:** **33%** from South India · **31%** North · **18%** East · **9%** Central · **9%** West * **Oil Palm Cultivation:** **108,164 Ha** planted · **+40,000 Ha** targeted by FY27 (20k NE, 20k South) ## B. Retail Outlet Expansion * **Distribution Strength:** Core competitive advantage reinforced with addition of **02 to 03 crore** new retail outlets last year, now spanning over **2 crore** nationwide. * **Regional Push:** Accelerated expansion in South India unlocking cross-selling potential, particularly in **HPC and food products**. ## C. Omni-Channel Reach * **Channel Diversification:** Strategic scaling across modern trade, e-commerce, and quick commerce via **Zepto, Big Basket, Amazon, and JioMart** to capture evolving consumer behavior. ## D. South India Penetration * **Regional Leadership:** South India is the top-performing region, contributing **33%** of total edible oils and FMCG revenue, ahead of North (31%). * **Backward Integration:** Oil palm estate expansion on track, with **40,000 hectares** planned by FY27 through balanced regional allocation and full land utilization via farmer partnerships. --- # 4. Brand & Product Performance ## A. Key Figures * **Edible Oil Revenue:** **₹7,335.71 Cr** Q3 FY26 (+8.98% YoY) · **2.39% EBITDA margin** * **Dental Care Revenue:** **₹340 Cr** Q3 FY26 (vs. ₹116 Cr prior year) * **Ghee Sales:** **₹468 Cr** in Q3 FY26 * **Doodh Biscuit Sales:** **>₹1,000 Cr** 9M FY26 (exceeding FY25 full-year) ## B. FMCG Segment Sales * **Edible Oil Momentum:** Branded oils delivered near-doubling revenue with high-margin performance, led by **Sunrich**, which showed fastest growth on strong sunflower oil demand and ~12,000 TPM volume. * **Dental Care Surge:** Dental category saw substantial sales jump, driven by brand ambassadors, product innovation, and expanding reach in **B/C towns and rural markets**. * **Regional Expansion:** South India’s FMCG contribution growing at **15–18% YoY** from low base, now ~10% of segment sales, indicating successful regional penetration. * **Demand Resilience:** Ghee sales surged on festival demand, while **branded sunflower oil consumers show high loyalty and price inelasticity**, resisting commodity oil switches. ## C. New Product Launches * **Premium & Channel-Driven Innovation:** Launched **Date Almond Spread, Gond Katira, Yellow Mustard Oil**, and new HPC variants; **Kesh Kanti Saundarya** range gaining traction as premium play. * **Expansion Pipeline:** Multiple **premium biscuit SKUs** launching this quarter; **at least three HPC launches** expected in next 6 months across skincare, dental, and haircare. * **Packaging & Format Strategy:** Introduced **higher grammage packs** and continues tailoring SKUs for **e-com, quick-commerce, and modern trade** channels. * **No New Dairy Lines:** No plans for butter, cheese, or liquid milk; focus remains on **ghee variations** within dairy. ## D. Branded Share Growth * **High Branded Penetration:** **85% of edible oil sales** now branded, reflecting strong marketing execution and consumer shift toward trusted labels. * **Biscuit Brand Traction:** **Doodh biscuit** crosses ₹1,000 Cr in 9 months, outpacing prior full-year; **Nariyal biscuit** also gaining momentum. * **Endorsement Stability:** All five key brand ambassadors active; **MS Dhoni’s contract extended 2 years**, reinforcing long-term brand alignment. --- # 5. Input Cost & Margin Drivers ## A. Key Figures * Palm Oil Price Change: 12.6% YoY down · 3.7% QoQ down * **Oil Palm Plantation Revenue:** **₹416.23 Cr** Q3 · **₹1,607.33 Cr** 9M FY26 * Oil Palm Plantation EBITDA Margin: 22.81% Q3 · 21.60% 9M FY26 * **Edible Oil EBITDA (Q3 FY25):** **₹364 Cr** on ₹6,731 Cr revenue (5%) ## B. Palm Oil Price Trends * **Input Cost Relief:** Lower palm oil prices drove reduced input costs and enabled GST-pass-through pricing, enhancing consumer affordability. * **Near-Term Margin Tailwind:** Recent recovery in palm oil prices over the past three weeks is expected to support current quarter margins. * **High Plantation Profitability:** Oil palm segment delivered exceptional margins in Q3, significantly above year-to-date average, reflecting strong operational performance. ## C. Raw Material Volatility * **Stable Wheat Pricing:** Wheat prices remained range-bound due to adequate supplies and government intervention, limiting cost volatility. * **Firm Sugar Demand:** Sugar prices held firm in Q3, underpinned by seasonal festive demand and stable supply conditions. * **Margin Divergence in Food Portfolio:** Staples drive volume but carry lower margins; ethnic foods offer better margin potential despite being price-sensitive and seasonal. * **Gradual Mix Shift:** FMCG product mix to see progressive increase in ethnic foods, supporting improvement in overall food category margin structure. * **Targeted Margin Management:** Company aims to maintain a stable **8–10% blended margin** across staple and ethnic food lines amid raw material sensitivity. ## D. Mark-to-Market Impact * **Non-Recurring Gain:** Q3 FY25 edible oil margins included a one-time benefit from a **22% import duty hike**, inflating EBITDA and not reflective of sustainable margins. * **Accounting Volatility:** Reported edible oil margins subject to mark-to-market fluctuations based on quarter-end pricing, creating potential for short-term swings. * **Inventory Revaluation Benefit:** Inventory marked down at quarter-end creates upside if prices rise thereafter, providing a tailwind in rising markets. --- # 6. Risks & Commodity Exposure ## A. Key Figures * Palm Oil Imports: 20% decline in December '25 (8-month low) · Soybean Oil Imports: +20.2% ## B. Edible Oil Price Swings * **Demand Shifts Driving Import Mix:** Significant drop in palm oil imports due to seasonal demand and substitution toward soya and sunflower oils, reflecting price-sensitive consumer and industrial behavior. * **Near-Term Cost Pressures Expected:** Despite current benefits from lower palm oil prices, global supply tightening is anticipated to sustain pricing pressures, with exposure to future import cost absorption. * **Procurement Resilience in Ghee:** Stable ghee demand and a diversified vendor base support consistent supply with minimal price volatility. ## C. Competitive Intensity * **Heightened Promotional Activity in Toothpaste:** Category marked by aggressive competition, including LUP adjustments and grammage increases by key players, though recent volume trends were not disclosed. * **Branded Consolidation Favors Scale:** Edible oil market shift toward branded players enhances advantages in working capital, treasury, and risk management for larger firms. * **Industrial Buyers Remain Price-Sensitive:** B2B customers actively switch oil types based on relative pricing, as seen in the palm-to-soybean shift during prior price spikes. ## D. Regulatory Transitions * **Long-Term Land Access Secured:** Oil palm cultivation land is leased from the government for 35 years—aligned with tree lifecycle—with effective perpetuity through replanting and renewal rights. * **Zero Lease Cost Model:** Land remains farmer-owned, and the company incurs no lease expenses, supported by government-backed, cost-free long-term collaboration. --- # 7. Guidance & Outlook ## A. Key Figures * **HPC Growth Target:** **15% annualized** (margin/growth benefits in 18 months) * **Edible Oil Volume Growth:** **3% to 4%** · **EBITDA Margin Target:** **2% to 4%** * **Food Segment EBITDA Margin Target:** **8% to 10% long-term** ## B. Growth Targets by Segment * **Strategic Rebalancing:** Targeting a 50-50 revenue split between edible and non-edible oils, driven by **high-teens growth in FMCG and non-food businesses**. * **HPC as Growth Engine:** HPC segment remains central to outperformance, with **double-digit growth targets** and improving margin profile over 18 months. * **Edible Oils Steady State:** Edible oil business focused on modest volume gains and margin stabilization near the **4% EBITDA target**. ## C. Margin Expectations * **Food Segment Upside:** Long-term food business growth expected at **8–10%**, with structural margin expansion toward the **mid-teens EBITDA range** as mix shifts toward higher-margin offerings. ## D. Demand Forecast * **Broad-Based Demand Recovery:** Urban demand rebounding on **rising disposable incomes and tax reforms**, while rural markets extend **seven-quarter streak of outperformance**. * **Festive Momentum:** Diwali-driven demand surge supported by **positive sentiment and GST-related affordability**, boosting near-term sales across categories. * **Structural Shifts Accelerating:** Positive outlook for FY26 underpinned by **migration to branded products, expanded distribution, and macro tailwinds**. * **Regional Growth Catalyst:** **South India FMCG expansion** gaining traction, with increased distribution and product acceptance driving confidence in accelerated growth. * **Nutraceuticals Traction:** General nutrition segment gaining customer adoption; **Vaidya enrolment programme** on track to boost future growth.