The company announced a dividend of INR 3 per share for FY26.
FY26 export volume was 1.77 lakh metric tons, up from 1.73 lakh metric tons in FY25.
Q4 FY26 export volume was 44,500 metric tons, which represents a 9% decrease from the previous quarter (48,900 metric tons). Management attributed this drop to shipments being stuck due to the Iran-Israel war, with an expectation that these would be executed in Q1 FY27.
The management highlighted a 30% increase in international rice prices from November-December 2025 to March 2026.
The top 10 customers contribute approximately 35% of the company's revenue.
The working capital cycle is approximately 190 days, comprising 60 days for debtors and 140 days for inventory. Management stated they aim to maintain or improve this cycle.
Strategic Updates & Management Commentary
Inventory Strategy: The company credited its strong profitability to a strategic decision to build up a large inventory of paddy at lower prices at the onset of the season. This low-cost inventory allowed them to benefit significantly from the subsequent 30% price rise.
Impact of Iran-Israel War: The war has disrupted exports, particularly to Iran and Afghanistan, by making shipping processes slower. However, demand remains strong. The company has rerouted shipments through ports in Dubai (Khor Fakkan, Fujairah), Oman, and Jordan (Agaba). Higher ocean freight and insurance costs are largely being passed through to buyers. The company has filed claims for extra charges with ECGC, which is mandated by the Government of India to help exporters.
Growth Outlook: Management expressed a positive outlook. A large, reputed buyer from Saudi Arabia is visiting the company's facility next week, with a potential to share business of 30,000-40,000 tons. The company is focusing on growth in the USA and European markets and is also working to expand its domestic branded sales (“Maharani”) through new distributors and e-commerce platforms (Blinkit, Amazon), currently focused on the NCR region with plans for pan-India expansion.
New Capacity: Three new manufacturing units have been installed and are operational, currently running at about 50% efficiency. Each unit has the potential to generate sales of approximately INR 15-20 crores per month.
Future Diversification: While the primary focus remains on scaling rice exports, the company is considering adjacent categories in the future, such as spices and rice puffs.
Other Details
The customer base has been increasing, reducing concentration risk.
The company participates in international exhibitions (e.g., THAIFEX) to acquire new customers.
Management declined to provide specific EBITDA margin guidance for Q1 FY27 due to the dynamic situation but expressed confidence in future quarters based on the strong performance during the war-affected Q4.
The potential impact of El Nino on the upcoming crop was discussed, but management considered it too early in the season (May) to comment on procurement strategy or price impact.
