ADFFOODSNSEQ1 & FY 2025-26August 01, 2025

ADF Foods Limited

4,128words

83turns

12analyst exchanges

4executives

Download PDF ↗ADFFOODS stock page →

Management on call

Bimal Thakkar

CHAIRMAN AND MANAGING

Shardul Doshi

CHIEF FINANCIAL OFFICER – ADF FOODS LIMITED

Sumer Thakkar

GENERAL MANAGER, SALES

Ravi Udeshi

ERNST & YOUNG AB

Key numbers — 40 extracted

10%

Thank you, Ravi. Good evening, everyone. In Q1 FY '26, our consolidated revenue rose by around 10% year-on-year to INR132.9 crores, even as we faced global economic uncertainties, tariffs and seas

INR132.9 crore

Good evening, everyone. In Q1 FY '26, our consolidated revenue rose by around 10% year-on-year to INR132.9 crores, even as we faced global economic uncertainties, tariffs and seasonal fluctuations. Consolidated

INR23.5 crore

ed global economic uncertainties, tariffs and seasonal fluctuations. Consolidated EBITDA stood at INR23.5 crores, reflecting a healthy margin of 17.7% despite ongoing brand investments and rising input costs.

17.7%

easonal fluctuations. Consolidated EBITDA stood at INR23.5 crores, reflecting a healthy margin of 17.7% despite ongoing brand investments and rising input costs. These challenges were effectively mitig

9.3%

erformance. For Q1 FY '26, the company's consolidated revenues reached INR132.9 crores, marking a 9.3% increase year-on-year and a 16.5% decrease quarter-on-quarter. AB F

16.5%

mpany's consolidated revenues reached INR132.9 crores, marking a 9.3% increase year-on-year and a 16.5% decrease quarter-on-quarter. AB FOODS LTD. Consolidated EBITDA for

20%

AB FOODS LTD. Consolidated EBITDA for the quarter was INR23.5 crores, which is a 20% increase from the previous year, and the EBITDA margin was 17.7%, which has increased by 160 bps

160 bps

is a 20% increase from the previous year, and the EBITDA margin was 17.7%, which has increased by 160 bps year-on- year and 220 bps quarter-on-quarter. The consolidated PAT for the quarter was INR15.2 cro

220 bps

previous year, and the EBITDA margin was 17.7%, which has increased by 160 bps year-on- year and 220 bps quarter-on-quarter. The consolidated PAT for the quarter was INR15.2 crores. This represents a 5.

INR15.2 crore

by 160 bps year-on- year and 220 bps quarter-on-quarter. The consolidated PAT for the quarter was INR15.2 crores. This represents a 5.9% increase year-on-year and a 7.3% decrease quarter-on-quarter. The resu

5.9%

ps quarter-on-quarter. The consolidated PAT for the quarter was INR15.2 crores. This represents a 5.9% increase year-on-year and a 7.3% decrease quarter-on-quarter. The resulting PAT margin was 11.5%.

7.3%

idated PAT for the quarter was INR15.2 crores. This represents a 5.9% increase year-on-year and a 7.3% decrease quarter-on-quarter. The resulting PAT margin was 11.5%. In the first quarter of fiscal

Advertisement

Guidance — 20 items

Sumer Thakkar

opening

“We expect this to result in revenue growth in the coming quarters.”

Sumer Thakkar

opening

“With the refreshed packaging set to rollout in Q3 FY '26, we anticipate further momentum and increased brand traction.”

Sumer Thakkar

opening

“The expansion of the Surat Greenfield facility is progressing as planned and is on track to commence operations in the second half of FY '26.”

Sumer Thakkar

opening

“Looking ahead, we remain cautiously optimistic of sustaining our growth trajectory in the current financial year amidst global economic uncertainties and tariffs and expect to achieve meaningful scale across all business segments.”

Bimal Thakkar

“All these listings, I mean, the product will be available from September end, early October onwards.”

Shardul Doshi

“And we expect this plant to become operational in Q3.”

Shardul Doshi

“And I'll say half of that is also spent by now and balance will be spent in the current financial year.”

Bimal Thakkar

“That's why we did a revision on our 3-year forecast.”

Param Vora

“And what is the product mix we expect in that facility?”

Shardul Doshi

“So it will be around 10,000 metric tons capacity, and this is Phase 1, which we are constructing right now.”

Risks & concerns — 3 flagged

So all that was the reason why you had seen a slight slowdown on the Ashoka side, plus also our sales team reorganization happened in the U.S.

— Bimal Thakkar

And sir, impact of 25% duty on U.S., how it impacts us?

— Ravi Naredi

Typically, there is like a slowdown in the first quarter for us always historically as well.

— Bimal Thakkar

Advertisement

Q&A — 12 exchanges

I had a couple of questions. One is that you were saying that Ashoka has got a new listings in the USA, UK. So which are these new listings?

Bimal Thakkar

So Shalini, this is Bimal Thakkar. The new listings, which we've got are in Australia, in UK and in the U.S. These are with large retail chains, club stores like Costco, that is for Australia and U.S. And we've got some additional listings in the UK in Tesco. Tesco. And sir, you said the same thing about Truly Indian. So if you could just speak about that also. AB FOODS LTD. So Truly India, we've got some additional listings in various supermarkets across America. And also, we've been able to get a listing in Costco in one of their divisions in the U.S. All these listings, I mean, the product

Sir, if we look at FY '25 number of Ashoka, like last 5 years looks good. But last year, we grew only at 5% in the Ashoka brand. And Q1, looking at the overall numbers also, it looks like a single-digit growth rate. And this was like one brand which was doing well and then we wanted to scale up 2 more brands. So why in Ashoka, the growth rate has not been at par? And what are the remedial measures we are taking? And how do things look like for the next 1 to 3 years?

Bimal Thakkar

So as we had mentioned earlier, we were doing some reorganization of some certain distributors, adding some more distributors in certain markets, taking out some existing distributors. So all that was the reason why you had seen a slight slowdown on the Ashoka side, plus also our sales team reorganization happened in the U.S. All that has happened now, and we're very confident in the coming -- I mean, we are already seeing results from this last quarter, things are getting better. And we are fairly confident about the growth in the next few -- next quarters for the Ashoka brand. Also, in this

So I have a question regarding the Surat facility, which is expected to commence in second half of financial year '26. So sir, what is the expected capacity? And what is the product mix we expect in that facility?

Bimal Thakkar

So in that facility, also, we are looking at certain frozen products, which are currently not being done in the Nadiad factory. So there's a new product line, which we are doing there. And some AB FOODS LTD. of the products which we are doing in Nadiad, we've enhanced capacity -- expanded capacity in the Surat factory. Shardul in terms of tonnage, do you want to let them know what the capacity is going to be? So it will be around 10,000 metric tons capacity, and this is Phase 1, which we are constructing right now. And how much time will it take to breakeven? So we expect to get in year 2 on a

Why your distribution margin probably increased year-on-year?

Shardul Doshi

So this -- I think what happens is in distribution business, which is primarily the business, which we are doing it over there. There are certain marketing incentives which we keep getting. And once they are approved, we book it. Also now we have now got a certain portion of our some -- these incentive in built into the pricing. So our margins have slightly improved over the period of time. However, I think from estimate perspective, you should still keep around -- between 12% to 14% yearly margin from the distribution business. This is one time? I think there will always be some fluctuations

Sir, currently, at which capacity utilization we are running?

Bimal Thakkar

So Mr. Ravi, we have various products, various product categories. So I'm going to say at an average overall, we should be at about 75% to 80%. In some products, we are above 100% or at 100% at somewhere 50%. So on a weighted average, I would say, at about 75% to 80%. Very nice good capacity, sir. And one more, U.S. godown inventory turnover can you tell how much stock were being maintained there and how much turnover we get from there? Shardul, do you want to get that? If you're referring, I think, see, we received the distribution rights for the West in the month of March, and we had to buy

This is regarding the distribution business. We had an increase in the TAM size, but still the growth is not there. So I wanted to understand when can we see the full growth potential for us?

Bimal Thakkar

Well, as Shardul mentioned, we've now received the full U.S. only from the last quarter onwards, right? So we will start seeing traction and growth in the coming quarters. Typically, there is like a slowdown in the first quarter for us always historically as well. So, from the second quarter onwards, we should start seeing the growth. And sir, my second question would be like in terms of Tesco. Over there, we have seen an increase to access to some more stores. Is there also an increase in the SKUs? And how is the traction for that? So the listings have just happened -- the additional listings

Yes, all of my questions have been answered.

Management

Sir, how much top line we get from Australia in quarter 1?

Bimal Thakkar

Shardul, do you want to get that? So Mr. Ravi, the new listings in Costco, as I mentioned, you will start seeing that effect only in Q3 onwards. So right now, for Australia it will be end September or1st week October. And how much PLI we received in this quarter? PLI, what we have booked is around INR2.5 crores in this quarter.

I just wanted to understand on this tariff part? So Deep kitchen is the market leader, and I understand for Indian foods in the U.S. So -- do they -- so how much percentage of the sourcing would be from India versus the U.S. itself?

Bimal Thakkar

So I wouldn't have data on how much -- how the revenue split is between India and this, but majority of their vegetarian products are all being made in India. So they focus on their nonvegetarian range and manufacture that in the United States. So this will also definitely impact AB FOODS LTD. them, I mean whatever it is. It's going to impact every Indian company, right? So it will obviously impact Deep as well.

Sir, as you have given revenue guidance of INR1,000 crores by FY '27. Can you give color on how the margins will fare in the time and as well as any guidance about how -- what kind of PLI benefits company can gain?

Bimal Thakkar

So to answer your PLI question, we've got INR63 crores, which has been sanctioned to us by the government. And we hope to utilize the entire INR63 crores in these 5 years that we can -- as per the sanction. And in terms of the margin guidance, I mean, as of now, we remain fairly confident of achieving the same kind of margins that we have up for getting to the INR1,000 crores.

Yes. I just wanted some listing on our advertising and marketing budget, like how does it look in terms of percentage of revenue? And second would be freight costs.

Bimal Thakkar

So Shardul, I'll let you get that, please. Yes. So marketing cost, our budget will remain in the level of 7% to 8% of our top line. That's what we expect, because right now, our investment mode is on as well as both the brands, Truly Indian and Soul are concerned, and we continue to spend money even on the Ashoka brand. And secondly, on the freight cost, there is no, see, budget-wise, we have maintained around 6% to 7% for it. In quarter 1, it was around 6% for us. But this is variable. I think what we have seen is this keeps going up and down. So on an overall basis, if it remains below 8%, t

Thank you, everyone, for the attendance and questions, and we look forward to catching up again in the next quarter. Thanks, and have a good day.

Shardul Doshi

Thank you. Bye-bye.

Speaking time

Bimal Thakkar

Moderator

Shardul Doshi

Pallavi Deshpande

Shalini Gupta

Ravi Naredi

Subhanu Bangal

Sumer Thakkar

Kumar Saurabh

Param Vora

Advertisement

Opening remarks

Ravi Udeshi

Thank you, Shruti, and good afternoon, everyone. We welcome you to the Q1 FY '26 Earnings Conference Call of ADF Foods Limited. To take us through the results and to answer your questions, we have with us the top management of ADF Foods Limited, represented by Mr. Bimal Thakkar, the Promoter and also the Chairman and Managing Director; Mr. Sumer Thakkar, the General Manager, Sales and Strategy; and Mr. Shardul Doshi, the Chief Financial Officer. We will start the call with an overview of the business and the recent business updates by Mr. Sumer Thakkar, and then Mr. Shardul Doshi will give his comments on the financials. As usual, the standard Safe Harbor clause applies while we start the call. With that said, I will now hand over the call to Sumer. Over to you, Sumer.

Sumer Thakkar

Thank you, Ravi. Good evening, everyone. In Q1 FY '26, our consolidated revenue rose by around 10% year-on-year to INR132.9 crores, even as we faced global economic uncertainties, tariffs and seasonal fluctuations. Consolidated EBITDA stood at INR23.5 crores, reflecting a healthy margin of 17.7% despite ongoing brand investments and rising input costs. These challenges were effectively mitigated through disciplined cost management and enhanced operational efficiencies. The strategic reorganization of our sales team in the U.S. and the formation of a new team in Australia in previous quarters have started to yield positive outcomes in terms of new listings. We expect this to result in revenue growth in the coming quarters. We successfully completed a brand refresh for Truly Indian and showcased the updated identity at a prominent food exhibition receiving encouraging feedback from the trade as well as the consumers. With the refreshed packaging set to rollout in Q3 FY '26, we anticipate

Shardul Doshi

Thank you, Sumer, and good evening to everyone. I'll first share the consolidated performance. For Q1 FY '26, the company's consolidated revenues reached INR132.9 crores, marking a 9.3% increase year-on-year and a 16.5% decrease quarter-on-quarter. AB FOODS LTD. Consolidated EBITDA for the quarter was INR23.5 crores, which is a 20% increase from the previous year, and the EBITDA margin was 17.7%, which has increased by 160 bps year-on- year and 220 bps quarter-on-quarter. The consolidated PAT for the quarter was INR15.2 crores. This represents a 5.9% increase year-on-year and a 7.3% decrease quarter-on-quarter. The resulting PAT margin was 11.5%. In the first quarter of fiscal year 2026, stand-alone revenues were INR100.3 crores reflecting a 3.4% year-on-year growth and 25.5% quarter-on-quarter decrease. The company's EBITDA for the quarter was INR22.5 crores, which is a 1.3% decrease year-on-year and a 23.3% decrease from the previous quarter. The EBITDA margin was 22.4%, a decrease o

Advertisement

← All transcripts ADFFOODS stock page →

ADF Foods Limited

Market Movers