Financial Performance Summary

Standalone Financials Q1 FY27:

  • Revenue from operations: ₹11,337 crores (29% YoY growth)
  • Operating EBITDA: ₹543 crores
  • EBITDA margin: 4.80%
  • Profit before tax: ₹453 crores
  • PBT margin: 4%

Segmental Performance Breakdown

Edible Oil Segment:

  • Quarterly revenue: ₹8,505 crores (highest-ever quarterly revenue)
  • EBITDA margin: 5.22%
  • Growth primarily driven by mustard oil

Oil Palm Plantation:

  • Quarterly revenue: ₹740 crores (25% YoY growth)
  • Cultivated area: 1,15,861 hectares as of June 30, 2026
  • 37% of area in prime yielding phase (7-25 years)
  • Total allocated area: 6.63 lakh hectares

FMCG Segment:

  • Quarterly revenue: ₹2,938 crores
  • EBITDA: ₹190 crores
  • EBITDA margin: 6.45%
  • Contributed 26% of total revenue and 30% of EBITDA (excluding unallocable income)

FMCG Category-wise Performance:

  • Biscuits: Revenue ₹560 crores (27% YoY growth), EBITDA margin 15.35% vs 9.35% YoY
  • Consumer Staples: Revenue >₹1,000 crores
  • Textured Soya Products: Revenue ₹160 crores (14% YoY, 50% QoQ growth), EBITDA margin >18%
  • Beverages: Revenue ₹38 crores
  • Ghee: Revenue ₹219 crores (softer demand due to seasonal factors and Middle East geopolitical tensions)
  • Other Food Categories (honey, dry fruits, spices, condiments, herbal products): Revenue ₹203 crores
  • Nutraceuticals: Revenue ₹18 crores

Home and Personal Care (HPC):

  • Total revenue: ₹629 crores
  • Dental care: Revenue ₹325 crores
  • Skin care: Revenue ₹165 crores
  • Home care: Revenue ₹83 crores
  • Hair care and other products: Revenue ₹56 crores

Operating Environment and Strategy

Commodity Price Environment:

  • Experienced commodity price inflation in Q1 due to delayed monsoon and West Asia conflict
  • Inflation net positive for edible oils (long positions) but raised input costs for FMCG businesses
  • Palm oil prices firmed in March 2026, turned lower after de-escalation in latter part of quarter
  • Soya oil futures increased 40% by end-March, FOB prices corrected 6% by end-June
  • Wheat prices remained stable, milk prices trended upward, sugar prices stayed firm
  • Increased packaging, freight, and logistics costs during the quarter

Pricing Strategy:

  • Took calibrated price increases in edible oil segment
  • Used targeted discounts in FMCG portfolio to remain competitive
  • Introduced smaller pack sizes to address changing consumer needs
  • Pricing measures continuing in current quarter

Business Updates and Developments

Management Recognition:

  • CFO Kumar Rajesh received Best CFO of the Year award at Asia Business Leader of the Year Awards

Product Launches:

  • Rose Kanti soap
  • Dant Kanti Sensitive toothpaste
  • Super Dishwash liquid
  • Sweet Lime pickle
  • Almond and Chyawanprash cookies
  • Summer-focused launches including mango chutney, mango panna juice, and orange juice
  • New Dant Kanti variants targeting Gen Z requirements

Distribution Strategy:

  • Strengthening presence across e-commerce and quick commerce channels
  • Current contribution from modern trade and e-commerce/quick commerce: 15%
  • Target to increase to 20% over next 18 months
  • Growing at 25% YoY on these channels

Full-Year Guidance Reaffirmed

  • Edible oil margin construct: 3% to 5% volume growth
  • Food and FMCG growth: 8% to 10%
  • Beauty and personal care growth: ~15%
  • FMCG vertical EBITDA growth: 12% to 15%

Q&A Session Highlights

Competitive Dynamics:

  • Committed to dishwash category despite MNC exits
  • Biscuit business performing well with Doodh Biscuit brand doing ~₹1,300 crores annually
  • Maintaining INR5 and INR10 price points while exploring premium variants

Acquisition Clarification:

  • Acquired Patanjali Ayurved's HPC business on slump sale basis for ₹1,100 crores
  • Business generated ₹600 crores EBITDA last year
  • Acquisition cost represents less than 19 months of profitability
  • Previous acquisitions (biscuits, foods) also done on slump sale basis

Growth Drivers:

  • Three key structural drivers: oil palm plantation growth, margin expansion in high-profit businesses (HPC, Nutrela, biscuits), superior risk management in edible oils
  • Targeting ₹2,500 crores EBITDA on annualized basis over next 18 months

Cautious Outlook Factors:

  • El Nino impact uncertainty
  • Potential rural income and demand stress
  • Food inflation concerns
  • Potential policy reactions (commodities control order, essential commodities act)