Foods & Inns Q2 Net Loss of ₹4.96 Crore

Key Financial Figures (Standalone - ₹ in Lakhs)

Quarter Ended September 30, 2026:

Revenue from Operations: ₹16,481.63
Other Income: ₹257.92
Total Income: ₹16,739.55
Total Expenses: ₹17,366.98
Loss Before Tax: ₹(627.43)
Tax Expense: ₹(200.07) [Current Tax: ₹(110.50), Deferred Tax: ₹(89.57)]
Net Loss After Tax: ₹(427.36)
Other Comprehensive Income: ₹1.30
Total Comprehensive Loss: ₹(426.06)
Basic EPS: ₹(0.58)
Diluted EPS: ₹(0.58)

Half Year Ended September 30, 2026:

Revenue from Operations: ₹31,719.25
Other Income: ₹514.60
Total Income: ₹32,233.85
Total Expenses: ₹32,250.53
Loss Before Tax: ₹(16.68)
Tax Expense: ₹(2.53)
Net Loss After Tax: ₹(9.15)
Other Comprehensive Income: ₹11.27
Total Comprehensive Income: ₹2.12
Basic EPS: ₹(0.01)
Diluted EPS: ₹(0.01)

Key Financial Figures (Consolidated - ₹ in Lakhs)

Quarter Ended September 30, 2026:

Revenue from Operations: ₹17,023.02
Other Income: ₹217.61
Total Income: ₹17,240.63
Total Expenses: ₹17,500.01
Loss Before Share of Joint Venture: ₹(659.38)
Share of Loss of Joint Venture: ₹(35.06)
Loss Before Tax: ₹(694.44)
Tax Expense: ₹(198.87) [Current Tax: ₹(110.50), Deferred Tax: ₹(88.37)]
Net Loss After Tax: ₹(495.57)
Other Comprehensive Income: ₹1.35
Total Comprehensive Loss: ₹(494.22)
Basic EPS: ₹(0.67)
Diluted EPS: ₹(0.67)

Half Year Ended September 30, 2026:

Revenue from Operations: ₹32,771.76
Other Income: ₹426.64
Total Income: ₹33,198.40
Total Expenses: ₹33,250.00
Loss Before Share of Joint Venture: ₹(55.61)
Share of Loss of Joint Venture: ₹(69.13)
Loss Before Tax: ₹(124.74)
Tax Expense: ₹(12.28)
Net Loss After Tax: ₹(112.46)
Other Comprehensive Income: ₹11.37
Total Comprehensive Loss: ₹(101.09)
Basic EPS: ₹(0.15)
Diluted EPS: ₹(0.15)

Management Changes

The Board of Directors, based on the recommendation of the Nomination and Remuneration Committee, made the following appointments:

1. Mrs. Komal Kartik Patwa (Mem. No. A38990) appointed as Company Secretary & Compliance Officer, designated as Key Managerial Personnel, effective November 05, 2026. She is a qualified Company Secretary with approximately 10 years of experience in various fields of secretarial work, SEBI compliances, investor relations, and other regulations.

2. Mr. Nitin Agarwal offered and accepted the post of Chief Financial Officer, designated as Key Managerial Personnel, effective November 05, 2026. He is a CA with experience in handling complete Accounts & Finance, direct and indirect taxation, financial statements, audits, and statutory compliances. He was previously General Manager - Head of Accounts and Finance at Vadilal Industries Limited (from February 2023) and has worked with Welspun Transformation Services Limited.

Business Commentary

Sales Performance:

Q2 export sales volumes were significantly impacted by high export freight and container availability issues, exacerbated by the continuing war situation.
Approximately 3,300 MT of finished goods (₹32 Crores) against confirmed orders could not be shipped and has spilled over to the next quarter.
Average realizations declined by 12% YoY, reflecting sales of inventory manufactured during the 2025 crop season at substantially lower raw material costs.
Domestic market experienced a surge in demand for processed Tomato products.

Segment-wise Performance:

Fruit & Vegetable Pulps: Expect significant demand for guava products due to El Nino effect causing irrigation water shortage. Tomato crop period expected to be shorter this year.
Spray Dried powders: Recorded 8% YoY volume growth in Q2 (14% growth half-yearly). Plant running at full capacity with expanded capacity construction underway, targeting commercial production in January 2027.
Frozen Food: Volumes up ~11% and value up ~27% YoY in Q2 FY27. Strong growing demand from US and GCC markets with healthy order position.
Kusum Spices: Registered 0.7% YoY growth in Q2 FY27 (7.3% growth half-yearly). Expecting to grow as per target with business restructuring to help increase overall margin.
Tetra Recart: Continuing to expand international presence while evaluating additional avenues to enhance capacity utilization.

Financial Update:

Profitability impacted by unforeseen foreign exchange loss of ₹10.62 Crore debited to Statement of Profit & Loss Account.
The loss resulted from forward bookings entered in previous financial year against export sales of current financial year, with adverse rupee depreciation due to West Asia war over the last nine months.
Described as a one-time transaction loss not experienced in previous years due to such wide volatility.

Significant Event

Online Launch of National Horticulture Board Cluster Development Programme at Foods and Inns Limited, Gonde on October 30, 2026.
The inauguration was virtually launched by the Hon'ble Prime Minister of India, Shri Narendra Modi.
The company is the implementing agency for this cluster program, selected and acknowledged for lead in farming sustainability initiatives over the last decade.
The programme aims to strengthen India's horticulture sector through modern technologies, enhanced productivity, value addition, export promotion, and improved farmers' income.

Auditor Review

G.M. Kapadia & Co., Chartered Accountants conducted limited review of both standalone and consolidated financial results.
Issued unmodified conclusion stating nothing has come to their attention that causes them to believe the statements contain any material misstatement.
For consolidated results, included unaudited interim standalone financial results of one subsidiary (Udhyaan Agroproduct and Trading Private Limited) reviewed by other auditor, and joint venture (LBeyond Mango Private Limited) results certified by management.

Seasonal Business Nature

The company's business is seasonal in nature with major raw material (mainly mango) procured and processed during first and second quarters.
This results in higher inventory levels and working capital requirements during the first half of the year.
Sales are spread across the year, making quarterly and half-yearly results not indicative of full-year results.