Key Financial Impact

  • Reported Q2 FY27 loss due to foreign exchange loss of INR 10.6 crore (INR 106 million)
  • Forex loss resulted from forward cover contracts booked to comply with RBI guidelines for export sales
  • Loss accounted under other expenses as per accounting standards

Operational Highlights

Shipping Delays and Recovery:

  • 3,300 metric tons of unshipped orders carried forward from Q2
  • 60% of backlog (approximately 1,980 MT) shipped in October 2026
  • Expect full clearance of spillover orders in Q3 FY27
  • Delays caused by container non-availability and high freight rates
  • No penalty costs as contracts are FOB basis

Division-wise Performance:

Spray Drying Division:

  • Record October 2026 sales of 100 metric tons (highest in company history)
  • H1 FY27 volume: 474 MT (15% volume growth)
  • H1 FY27 value: ~INR 11 crores (7% value growth)
  • H2 FY27 projection: 550+ MT volume (18-19% annual growth)
  • EBITDA margin: ~18%
  • Capacity expansion of 120 MT per annum underway, commercial production expected by end-January 2027

Frozen Foods Division:

  • Q2 FY27 volume growth: 27% year-on-year
  • Targeting 3x growth in frozen segment over next 3 years
  • Strong traction in US and GCC markets

Pulp Division:

  • Contributes 80%+ of total revenue
  • Mango, guava, papaya, tomato products

Capital Expenditure

  • INR 25 crores capital work in progress
  • Spray drying capacity expansion: 120 MT per annum (completion by January 2027)
  • Gujarat warehouse expansion completion expected mid-December 2026
  • Government capital subsidy of 35-38% available for frozen segment expansion

Borrowings and Financial Position

  • Long-term borrowings increased to INR 91 crores from INR 53 crores (March 2026)
  • Increase due to central bank long-term facility availed to overcome shipment delays
  • Facility repayment period: 4 years
  • Short-term borrowings expected to reduce by March 2027
  • No additional borrowing requirements anticipated

Government Subsidy

  • Subsidy recognized on cash basis when received
  • FY25 subsidy: ~INR 30 crores
  • 4-year total subsidy received: INR 84 crores
  • FY27 application submitted, under government consideration
  • DGFT extended compliance period by 45 days due to vessel non-availability issues

Strategic Initiatives

Cluster Development Program:

  • Selected among 12 companies for National Horticulture Board cluster development
  • Virtual inauguration by Prime Minister on 30th October 2026
  • Developing Nashik region with 15,000+ farmers
  • Ensures quality raw material through certified farming practices

Brand Expansion:

  • Green Top frozen brand launched in North India
  • Monthly sales: INR 60-70 lakhs with strong growth
  • Expansion to South India planned
  • Distribution reached up to Kashmir

Management Commentary

Forex Hedging Policy Change:

  • Discontinued forward cover contracts since April 2026
  • Decision based on consistent rupee depreciation trend
  • Planning post-Diwali banker meetings to address potential penal costs
  • Objective to avoid repetition of forex losses

Outlook:

  • Q3 FY27 expected to complete all delayed shipments
  • Softening freight rates and improved container availability
  • 17-18% volume growth projected for full year FY27
  • Frozen segment targeting 25-30% growth over next 3 years

Market Position

  • Self-claimed number 1 in mango pulp segment
  • No direct peer competition in combined business model (pulping + frozen + spray dry + Tetra Recart)
  • Hybrid model for spices business (white label + private label)