Mr. Ashok Jain – Director & Chief Financial Officer
Mr. Pankaj Rathi – Deputy General Manager, Accounts and Finance
Ms. Ekta Soni – Associate Vice President, Investor Relations
Mr. Deepak Sharma – Company Secretary & Compliance Officer
Financial Highlights Q1 FY27
Revenue increased by 39.5% year-on-year to ₹404 crores, crossing the ₹4,000 million quarterly revenue milestone for the first time.
EBITDA grew by 42.2% year-on-year to ₹106 crores.
EBITDA margin expanded by 49 basis points to 26.3%.
Profit After Tax (PAT) increased by 67.6% year-on-year to ₹79 crores.
PAT margin expanded by 326 basis points to 19.5%.
Export to domestic revenue mix stood at 60:40.
Other income was ₹16 crores, comprising ₹13 crores from forex gains and ₹3 crores from FDR income.
Employee cost run rate is expected to be ₹14-15 crores per quarter going forward.
Operational and Strategic Highlights
The growth was driven by a richer product mix of value-added offerings and higher traction of expanded fractionation capacity.
The company incorporated a wholly owned subsidiary, Manorama Savannah Agro Chad Sarl in Chad, to expand its West African sourcing footprint.
Acquired approximately 10 hectares (24 acres) of land in Burkina Faso for a shea nut and mango nut processing facility, with regulatory approvals in progress.
The MILCOA Research and Development Center, recognized by DSIR, Government of India, continues to drive product innovation.
The company is exploring downstream value-added opportunities, including a Cocoa Butter Alternative (CBA) product using enzymatic interesterification (ECBE).
The successful completion of a Qualified Institutional Placement (QIP) strengthened the balance sheet.
Capacity Expansion and Utilization
Current fractionation capacity: 47,500 tons per annum.
Debottlenecking activity will add 4,500 tons of capacity, targeted to be operational by Q3 FY27, bringing total capacity to approximately 52,000 tons.
Utilization for Q1 FY27 was approximately 80%.
Full-year FY27 utilization is targeted at 80-85%.
New capex includes Solvent Fractionation 3 and Refinery in India, and a processing facility in Burkina Faso, with commissioning targeted for Q3 FY28.
Capex Guidance
FY27 capex guidance: ₹225-250 crores.
Total proposed capex plan: ₹460 crores.
Amount spent until Q1 FY27: Approximately ₹70 crores.
Burkina Faso project allocation: Approximately ₹120-130 crores, with an expected payback period of 3 years.
Debottlenecking cost: ₹5-6 crores.
Product and Sourcing Details
Value-added products (CBE and stearin) contributed 71.4% to revenue, with CBE alone contributing 30%.
Raw material sourcing: 50-60% from imported seeds/butters, 50% from domestic seeds/butters.
Sourcing is diversified across multiple African countries and suppliers. A temporary export ban in Nigeria does not materially impact the overall sourcing strategy.
The company maintains a natural hedge for forex exposure, historically hedging 50-60% of net exposure.
Geographic Expansion
Brazil facility: Trial production started in the last quarter. Commercial production is expected to ramp up gradually over the next 2-4 quarters.
LatAm progress: Trial production has begun, with gradual ramp-up expected quarter-on-quarter.
Contract and Pricing Environment
Customer contracts are typically 9-12 months and renewed on an ongoing basis throughout the year.
Pricing for value-added products has remained largely stable, based on a costing model aligned with customer specifications and recipes.
Working Capital and Funding
The recent QIP raised approximately ₹500 crores.
The company holds approximately ₹150 crores in FDRs (excluding QIP funds).
Additional working capital requirements for future expansion are expected to be met through existing banking relationships and sanctioned limits, with State Bank of India as the lead banker. No further equity dilution is planned in the near term.
