Selling Prices: The average domestic selling price was ₹64 per kg, while the average export selling price was ₹98 per kg, noted as the highest for the company.
Revenue Composition: Export revenue constitutes approximately 90% of total revenue, with domestic sales making up the remaining 10%.
Historical Context: For FY23, total turnover was ₹1,387 crore with export sales of ₹1,011 crore (73%). For FY26, total turnover was ₹1,399 crore (after adjusting for other operating income) with export sales of ₹1,268 crore (91%).
Operational & Strategic Updates
Geopolitical Impact: Management stated operations were completely unaffected by the Iran-USA war due to a highly diversified export strategy spanning the US, Canada, New Zealand, Europe, Russia, and Africa. The company had zero shipments to Iran in the last quarter.
New Customer Acquisition: The company has secured a new, significant customer, the Saudi-based Al-Muhaidib group, which procures approximately 250,000 tons annually. The first trial shipment of 500 tons is scheduled and has been highly profitable due to existing low-cost inventory.
Inventory & Procurement: The company is holding a "reasonable quantity" of low-cost inventory procured from the start of the season until mid-January, which is a key driver of current strong margins. Procurement is an ongoing process, taking advantage of price fluctuations.
Capacity & Utilization: Packing capacity is stated at 500 tons per day, which can be scaled up to 800 tons per day. All plants are reported to be running at full swing. Inventory mix is approximately 30-45% paddy and the rest is processed rice.
Domestic Sales Focus: A strategic shift towards increasing domestic sales was emphasized. Management acknowledged the need to personally engage with and revive old distributors to grow this segment.
Brand Portfolio: Flagship brand is Maharani. Other strong brands include Mithas, Begum, Anarkali, Diwan, and Royal India, which have significant presence in specific international markets like Nigeria.
Forward-Looking Commentary (Explicitly Stated)
Management expects strong profitability and similar EBITDA margins to be sustained in Q2 FY27 and beyond, supported by the low-cost inventory position.
Revenue growth is anticipated organically, with a target of reaching ₹1,800 crore and potentially ₹2,000 crore for the year, driven by new customer conversions like Al-Muhaidib.
The demand for basmati rice is described as strong because it is an essential product, though logistics (ocean freight, geopolitical disruptions) remain a variable for volume growth.
Risks & Challenges Discussed
Ocean Freight: Costs remain elevated due to geopolitical issues. The company's strategy is to quote FOB and then add actual freight costs to arrive at a CIF price, which is passed through to buyers.
Customer Concentration: The new large customer (Al-Muhaidib) is known to pressure suppliers on margins. Management has set a principle of not working without profitability and will prioritize margins over volume with this client.
Miscellaneous Details
The company operates over 300 private-label brands for its customers.
A dedicated team of over 20 people works on new buyer development, generating approximately 10 customer queries per day.
The monsoon was noted as initially concerning but is now raining well across regions. The early basmati crop (C9 variety) from UP is reported as normal, with no visible El Nino impact on the crop as of now.
