Management Participants

  • Mr. Shrikant Kanhere – Chief Executive Officer & Managing Director
  • Mr. Saumin Sheth – Executive Director & Chief Operating Officer
  • Mr. Pankaj Goyal – Interim Chief Financial Officer
  • Moderator: Mr. Ashutosh Joytiraditya – ICICI Securities Ltd.

Financial Performance Summary

Consolidated Q1 FY27 Results:

  • Revenue: ₹20,048 crore, up 18% year-on-year
  • Underlying volume growth: 7% across portfolio
  • Operating EBITDA: ₹693 crore, up 34% year-on-year
  • Profit Before Tax: Up 48% year-on-year
  • Profit After Tax: Up 40% year-on-year

Segment-wise Performance:

Food & FMCG Business:

  • Revenue: ₹1,726 crore, up 22% year-on-year
  • Segment EBITDA: ₹104 crore
  • EBITDA margin: 6%
  • Rice category grew over 40% year-on-year
  • Tops range (sauces, pickles, convenience food) grew 23% year-on-year
  • Wheat flour, pulses, besan, poha categories showed healthy demand
  • Madhur brand integration completed (licensed from Shree Renuka Sugars)

Edible Oil Business:

  • Volume growth: 2% year-on-year
  • Revenue growth: 15% year-on-year
  • EBITDA per metric ton: Up 33% year-on-year
  • Faced temporary channel de-stocking due to global edible oil price volatility

Industry Essentials Business:

  • Volume growth: 13% year-on-year
  • Revenue growth: 28% year-on-year
  • EBITDA growth: 47% year-on-year
  • Oleochemical and specialty chemicals contribute over 40% of segment revenue
  • Expanding capacity at southern manufacturing facility

Channel Performance

  • Alternate channels (modern trade, e-commerce, quick commerce): Grew 27% year-on-year
  • Quick commerce: Grew 56% year-on-year
  • HoReCa and branded exports: Strong performance
  • Direct reach: Close to 970,000 outlets
  • Total reach: 2.6 million outlets (Nielsen)
  • Rural presence: Across more than 63,000 towns

Strategic Updates

Madhur Brand Integration:

  • Licensed from Shree Renuka Sugars with 0.5% royalty on sales
  • Current sales: Approximately 15,000 tons per month
  • Target: Scale to 20,000 tons per month by year-end
  • Expected annual revenue: ₹700-800 crore
  • Margin profile aligned with overall Food segment

Distribution Strategy Evolution:

  • Focus shifting from outlet expansion to throughput and distribution productivity improvement
  • Cross-selling opportunities between edible oil and food products being leveraged

Future Outlook & Guidance:

Food & FMCG:

  • Target mid-teen revenue growth
  • Maintain EBITDA margin in 3%-4% range
  • Continued investment behind brands, distribution, and category expansion

Edible Oils:

  • Expect volume growth of 5%-6%
  • EBITDA expected in range of ₹4,000-₹4,500 per metric ton

Industry Essentials:

  • Expect volume growth of 8%-9%
  • Sustain EBITDA in range of ₹3,000-₹3,500 per metric ton

Disclosure Methodology Changes

Beginning Q1 FY27, the company refined segment reporting:

  • Food & FMCG: Focus on revenue, underlying volume growth, and EBITDA margin
  • Edible Oils and Industry Essentials: Continue per ton basis reporting
  • Continue disclosing segment-wise EBITDA on consolidated basis
  • Continue disclosing segment-wise return on capital employed on standalone basis

Raw Material & Sourcing Details

  • Edible oil import dependency: Approximately 70%
  • Of imports, approximately one-third sourced from Wilmar
  • Palm portfolio: 30% of total oil volumes
  • Raw material stock days: 30-35 days
  • Oil business mix: 30% palm, 30-35% soya, 20% sunflower, 15% local oils (mustard, groundnuts, cotton, rice bran)

Business Mix

  • Food segment: 80% B2C, 20% B2B
  • Edible oil institutional clients also requiring food products (wheat, flour, rice)

Long-term Vision

  • 2030 target: Cross ₹100,000 crore revenue, ₹4,000 crore EBITDA
  • Annual CAPEX: Approximately ₹700 crore
  • Current edible oil refining capacity utilization: 60-61%
  • Food business: 50% from contractual/tolling operations, aiming to convert to own operations

Agricultural Initiatives

  • Direct farmer procurement: 18-19% of castor seed procurement
  • Mustard farming program with Solidaridad NGO in association with SEA: 3,500 model mustard farms

Risk Management

  • Mark-to-market accounting done quarterly as per Indian Accounting Standards
  • Hedging through forward sales
  • Brand strength acts as natural hedge against volatility