Ref: KRBL/SE/2026-27/61 November 11, 2026

Key Financial Figures (Consolidated)

Quarter Ended September 30, 2026 (Q2 FY27):

  • Total Income: INR 1,768 crores (up 15% YoY)
  • Revenue from Operations: INR 1,727 crores (up 14% YoY)
  • Domestic Revenue: INR 1,390 crores (up 33% YoY)
  • Export Revenue: INR 297 crores (down 31% YoY, but up 22% QoQ)
  • Gross Margin: 34.5% (vs. 29.2% in Q2 FY26)
  • EBITDA Margin: 21.1% (vs. 16.6% in Q2 FY26)
  • PAT: INR 159 crores (PAT Margin: 14.6% vs. 11.2% in Q2 FY26)

Half Year Ended September 30, 2026 (H1 FY27):

  • Total Income: INR 3,329 crores (up 6% YoY)
  • Domestic Revenue: INR 2,612 crores (up 24% YoY)
  • Export Revenue: INR 541 crores (down 41% YoY)
  • Gross Profit Margin: 35.3%
  • EBITDA Margin: 22.4%
  • PAT Margin: 15.6%

Business Performance and Operational Highlights

Domestic Business (Head: Mr. Ayush Gupta):

  • Achieved highest-ever quarterly domestic revenue (ex-power) of INR 1,390 crores.
  • Branded rice sales grew 23% YoY to INR 1,134 crores in Q2.
  • Unbranded rice sales increased to INR 166 crores from INR 53 crores, including a selective bulk sale of INR 102 crores.
  • Consumer pack volume growth accelerated to 18% YoY in Q2 (from 7% in Q1).
  • Modern trade and e-commerce grew consumer pack volumes by 31%.
  • General trade consumer pack volumes grew 10% in Q2 (recovering from a 5% decline in Q1).
  • Branded bulk pack volumes grew 11% YoY in Q2, with strong recovery continuing in October.
  • Regional rice volumes grew 42% YoY in Q2 (H1 growth: 32%).
  • Market share leadership maintained: 36% in general trade, 39.6% in modern trade, and 41.1% in e-commerce.
  • Domestic realizations averaged INR 80 per kg in Q2 (up 12% YoY).
  • Price increases taken across the portfolio in Q3 (approx. 15-18% increase).

Export Business (Head: Mr. Akshay Gupta):

  • Decline primarily in bulk exports to the Middle East due to three factors: difficult payment channels, restricted movement through Strait of Hormuz, and conscious decision to avoid high-risk opportunities.
  • Exports to markets outside the Middle East grew 14% in H1.
  • Branded exports remained stable.
  • Export realizations were approx. INR 1.32 lakhs per ton (INR 132 per kg).

Industry and Market Context (Chairman: Mr. Anil Kumar Mittal)

  • Global rice production for 2026-27 estimated at 537 million tons (down from 546 million tons last year), with India accounting for most of the decline.
  • Indian basmati crop estimated to be modestly above last year's, but unseasonal rains in Punjab caused localized damage.
  • Basmati paddy prices sharply higher: INR 4,500-5,200 per quintal for major varieties (vs. approx. INR 3,500-4,200 last year).
  • Reasons for high paddy prices: minimal carryover stock, high export realizations, and need for Middle East buyers to rebuild depleted inventories.
  • India's basmati exports between April-August 2026: 2.5 million tons (vs. 2.7 million tons last year), but rupee value rose 12% due to 21% higher realizations.
  • Gulf situation remains unsettled: intermittent transit through Strait of Hormuz, elevated freight and war risk premiums.
  • Iran market particularly affected by tightened U.S. sanctions in August, making payment channels difficult.

Balance Sheet Highlights (CFO: Mr. Ashish Jain)

  • Total Inventory as of September 30, 2026: INR 2,203 crores
  • Paddy Inventory: INR 146 crores (31,000 tons) vs. INR 123 crores (33,000 tons) last year
  • Rice Inventory: INR 1,900 crores (278,000 tons) vs. INR 1,995 crores (304,000 tons) last year
  • Cash and bank balance (including treasury investments): INR 2,895 crores (vs. INR 2,157 crores last year)

Management Outlook and Guidance

  • Exports: Expect progressive recovery through H2, contingent on Gulf situation normalization. Potential to double exports if U.S.-Iran agreement is reached. Full-year export revenue expected to match or exceed last year's INR 1,550 crores.
  • Domestic: Committed to 10% volume growth for FY27. Focus on sustaining volume growth while protecting gross margins as higher paddy costs work through the business.
  • Margins: EBITDA margin guidance of 17-19% for full year FY27. Q3 EBITDA expected to be between 16-20%, likely nearing 20%.
  • Dividend: Policy of paying 15% of profit, but considering higher payout given surplus cash position.
  • Procurement: Planning to procure approx. 750,000 tons of paddy this year (prices up 20% YoY).

New Initiatives and Brand Building

  • India Gate Poha: Launched recently, reached 44% of existing rice outlet base in launch towns by mid-September. 30% of retailers placed repeat orders.
  • Masalas: H1 sales increased to approx. INR 4.5 crores from INR 3.1 crores. Target annualized run rate of INR 25 crores by FY27 exit.
  • Edible Oils: Uplife Heart Balance Pack addressing everyday needs. Q2 revenue approx. INR 6 crores.
  • Grains of Hope: Nutrition campaign reached over 70 lakh children in its third year.

Q&A Session Key Takeaways

  • Export recovery dependent on Middle East situation normalization, particularly Strait of Hormuz access and Iran payment channels.
  • Domestic volume growth of 10% considered achievable for FY27.
  • Full-year revenue potential of INR 7,500 crores with 16-17% PAT margin if exports recover to previous levels.
  • Quick commerce contributes 8-9% to domestic business with 41.1% market share.
  • Company considering capital return options (buyback) beyond dividend policy due to strong cash position.
  • Beyond Middle East, focusing on African markets and Europe (which imports ~400,000 tons of brown rice).