ADFFOODSNSEQ4 & FY 2025-26May 14, 2026

ADF Foods Limited

6,495words

140turns

18analyst exchanges

4executives

Download PDF ↗ADFFOODS stock page →

Management on call

Bimal Thakkar

PROMOTER, CHAIRMAN, MANAGING DIRECTOR AND CHIEF EXECUTIVE

Srinivas Ayyagari

CHIEF FINANCIAL

Sumer Thakkar

PROMOTER, VICE

Ravi Udeshi

E&Y

Key numbers — 40 extracted

INR196.7 crore

rformance in Q4 of the financial year '26 with consolidated revenues reaching an all-time high of INR196.7 crores, representing a robust 23.7% year-on-year growth. On a stand-alone basis, revenues increased by

23.7%

26 with consolidated revenues reaching an all-time high of INR196.7 crores, representing a robust 23.7% year-on-year growth. On a stand-alone basis, revenues increased by 11.6% year-on-year to INR150.3

11.6%

s, representing a robust 23.7% year-on-year growth. On a stand-alone basis, revenues increased by 11.6% year-on-year to INR150.3 crores. Despite prevailing challenges, including tariffs, West Asia conf

INR150.3 crore

st 23.7% year-on-year growth. On a stand-alone basis, revenues increased by 11.6% year-on-year to INR150.3 crores. Despite prevailing challenges, including tariffs, West Asia conflict and supply chain issues, o

INR34.3 crore

ur brand penetration and distribution across all our key markets. Our consolidated EBITDA reached INR34.3 crores with healthy margins of 17.4%. On a stand-alone basis, EBITDA increased by 24.8% to INR36.5 cror

17.4%

cross all our key markets. Our consolidated EBITDA reached INR34.3 crores with healthy margins of 17.4%. On a stand-alone basis, EBITDA increased by 24.8% to INR36.5 crores. This was driven by improv

24.8%

reached INR34.3 crores with healthy margins of 17.4%. On a stand-alone basis, EBITDA increased by 24.8% to INR36.5 crores. This was driven by improved product mix and continued focus on cost optimizati

INR36.5 crore

NR34.3 crores with healthy margins of 17.4%. On a stand-alone basis, EBITDA increased by 24.8% to INR36.5 crores. This was driven by improved product mix and continued focus on cost optimization. Our flagship

INR196.7 crore

dated performance for Q4 and FY '26. For Q4 FY '26, consolidated revenue reached a record high of INR196.7 crores, reflecting a strong growth of 23.7% year-on-year. Consolidated EBITDA stood at INR34.3 crores,

38.9%

reflecting a strong growth of 23.7% year-on-year. Consolidated EBITDA stood at INR34.3 crores, up 38.9% year-on-year with EBITDA margins at 17.4%, expanding by 190 bps over last year. Profit after tax

190 bps

EBITDA stood at INR34.3 crores, up 38.9% year-on-year with EBITDA margins at 17.4%, expanding by 190 bps over last year. Profit after tax was INR25.9 crores, registering a robust growth of 57.6% year-

INR25.9 crore

r-on-year with EBITDA margins at 17.4%, expanding by 190 bps over last year. Profit after tax was INR25.9 crores, registering a robust growth of 57.6% year- on-year with PAT margins at 13.2%. Coming to the f

Guidance — 20 items

Saurabh Beria

“And in FY '27 and also in coming years, when the plant operates at say, full capacity, what is the incremental delta revenue we expect?”

Bimal Thakkar

“And in Phase 2, which will be in quarter 3 of this fiscal year, there will be another product line which will start.”

Bimal Thakkar

“So we expect in terms of revenue around INR40 crores to INR50 crores contribution from the Surat facility in this fiscal year.”

Saurabh Beria

“Since the Surat plant also serves international markets, should we expect initial operating leverage to impact or what is the margin guidance on a consol basis?”

Bimal Thakkar

“So at its full capacity, we expect to maintain the similar kind of margins that we are getting from our existing facilities.”

Bimal Thakkar

“So it will be a combination of all these 2 things, which will help continue the growth of the brand.”

Bimal Thakkar

“So the Indian category is at this inflection point where we feel over the next few years, it will just -- there will be a huge growth in this category and which is where we feel Truly Indian is poised to grow in this space.”

Charchit Maloo

“And like with Surat plant getting started, what kind of utilization are we expecting going forward in F '27 and FY '28?”

Bimal Thakkar

“So the Phase 1, we would expect about close to 35% to 40% capacity utilization in Phase 1.”

Bimal Thakkar

“Phase 2 will be towards the third quarter of this financial year.”

Risks & concerns — 4 flagged

I just wanted to ask you, are we seeing any impact of at least in U.S.

— Dhananjai Bagrodia

So at the moment, for us, our biggest challenge has been servicing the Middle East market, the GCC market because there is no availability of ships.

— Bimal Thakkar

And if there is -- what was -- if you can quantify what was the impact of the export to the GCC countries?

— Rishi Maheshwari

So out of, let's say, INR200 crores on a run rate basis, INR30 crores is where there is a bit of a potential risk on a quarterly run rate basis.

— Ankur Gulati

Q&A — 18 exchanges

First of all, congratulations for a great set of numbers. I just wanted to know, since we just commenced the Surat facility, what is the current utilization? And what is the ramp-up timeline you are expecting? And in FY '27 and also in coming years, when the plant operates at say, full capacity, what is the incremental delta revenue we expect?

Bimal Thakkar

Yes. Is there any other question or should I answer this for you? Yes, you can answer this one. Okay. So the Surat plant, as mentioned by Srini, we just started production in the third week of March. So the last fiscal year, we barely executed 2 containers because we just had nearly only 10 days of operations. This year, the plant is going to be done in 2 phases. The Phase 1 is 2 product lines, which have been put in. And in Phase 2, which will be in quarter 3 of this fiscal year, there will be another product line which will start. So we expect in terms of revenue around INR40 crores to INR50

Sir, I have only 2 questions. First was that Ashoka continues to deliver strong growth despite already being a well-established diaspora brand globally. So what according to the management are the key levers that can sustain the guided 20%, 25% growth trajectory from here and especially considering the large revenue base now? So is the next phase of growth likely to come more from deeper penetration within existing geographies or from entering new consumption occasions and product categories?

Bimal Thakkar

So it will be a combination of both. I mean we are still looking at widening our penetration in our existing core markets, adding on new markets. And of course, continuous product development and adding new product lines. So it will be a combination of all these 2 things, which will help continue the growth of the brand. Okay. Fair enough. And sir, my second question is around like Truly Indian seems to be gaining strong traction in the U.S. mainstream channel with presence across nearly 3,000 stores now. So could you help us understand whether the growth is currently being driven more by dist

Congratulations on a very strong set of numbers. I just wanted to ask you, are we seeing any impact of at least in U.S. and people talking about Ozempic. Are we hearing anything from any of these players accordingly?

Bimal Thakkar

Sorry, can you just repeat that? Any impact from any of these players? Are they speaking about like Ozempic and GLP-1s reducing the intake for these kind of foods? No, no. We are not seeing any kind of impact on that. And in fact, our whole product range is vegetarian and vegan. So if anything, it will lure the consumers towards these kind of products when compared to meat and other things. Okay, fine. And maybe I missed this, but how is it -- how is the numbers coming along in Middle East considering the whole war situation? So the Middle East has been -- I mean, because of the current situat

Congratulations on a good set of numbers. Sir, what was the capacity utilization as of FY '26?

Bimal Thakkar

So we have different lines, different product lines. So at an average, I would say we were anywhere between 70% to 75% capacity utilization. Okay. And like with Surat plant getting started, what kind of utilization are we expecting going forward in F '27 and FY '28? So as I mentioned, Surat is going to be done in 2 phases. So the Phase 1, we would expect about close to 35% to 40% capacity utilization in Phase 1. Phase 2 will be towards the third quarter of this financial year. So that would hardly be 10%, 15% capacity utilization for this financial year. Understood. And just one more thing, li

A couple of questions, Bimal. Firstly, the current revenue for Q4, can you break it down versus volume and value given the benefit of rupee depreciation that you would have also witnessed in this quarter? And if there is -- what was -- if you can quantify what was the impact of the export to the GCC countries?

Bimal Thakkar

So I would say the growth is more 60%, 65% towards the volume growth. There has been some benefit with the devaluation, but majority of the growth has come through with volume growth. And the Middle East business, as I mentioned, I mean, March was literally -- we didn't have any shipments go into the Middle East in the month of March. April has started off with 1 or 2 ports. The GCC overall accounts for about a little under 15% of our overall revenues. So that’s the markets which we are struggling with at the moment. So they haven't contributed at all for March and April. And we hope the situa

So sir, my first question is Ashoka brand, we have roughly INR300 crores of top line currently and the reach of roughly 3,000 stores. So what sort of store additions do we anticipate to be adding per year?

Bimal Thakkar

No. So the Ashoka brand is not 3,000 stores. Ashoka is much more than that. 3,000 stores is for the Truly Indian brand, which is what we've achieved. So Ashoka continues -- as I mentioned, the growth on Ashoka is going to come from deeper penetration within the existing stores across all our main markets, new product categories, new products that we will introduce and new markets which we are going to open. And if you could just mention, I believe core markets would be U.S.A., but apart from that, which market? North America is -- which includes Canada is our core market. U.K. and Europe is ou

In Q4, I guess you said there's no Middle East revenue in March. So what was the Jan and Feb billing?

Bimal Thakkar

Only in the month of March, there was no shipments in the Middle East. Yes. So what was the revenue from Middle East in Jan, Feb out of INR197 crores of revenue? I don't know the exact number. But as I mentioned, the GCC accounts overall for about under 15% of our revenues. Okay. So out of, let's say, INR200 crores on a run rate basis, INR30 crores is where there is a bit of a potential risk on a quarterly run rate basis. Is that fair? Yes. Okay. Second, what is the increase in logistic cost for the entire quarter, which I'm assuming escalation happened in March, but if you can give me the inc

Bimal ji, in this adverse situation, ADF Food has done very well in this March quarter and for the full year. I am shareholder in last 10 years, I never saw such an energetic number in our company, which you deliver now. Sir, how much PLI incentive we received from government in quarter 4 or full year of 2026?

Bimal Thakkar

Srini, do you want to get that, please? Thank you, Ravi-ji. Thank you for your encouragement. Just one second. Yes. So from a PLI perspective, for the full year, our number is roughly around INR16 crores for FY '26. Okay. Sir, U.S. warehouse working at what level of our capacity? Can you tell in that way? So I mean, there's -- in terms of utilization of the -- we have -- the warehouse is split between freezers and ambient products. Freezer is in excess of 100%. So I mean, we, in fact, are using outside storage because our freezer space is small, small -- I mean, it's less compared to what the

Can you hear me? Okay. So my question is on this Surat facility, the ramp. Can you -- both the phases we talked about, right? So can you tell me the peak revenue potential for each of these phases and how the ramp-up of the utilization will happen timelines-wise?

Bimal Thakkar

So as I mentioned earlier, at full capacity and with the second phase being executed, the Surat facility will give upwards of anywhere between INR200 crores to INR250 crores in top line. Okay. Okay. And how the ramp-up we should expect over the next couple of years? So we are hoping to get to full capacity utilization in year 3. Okay so this year FY27 we are expecting around 35%and then gradually ramp up to full capacity utilization. Yes. All right. So the next question I have is on the Middle East. As you said, almost 15% of your revenues come from there. So it's a sizable portion of the reve

Sir, first question was on the distribution -- agency distribution business. So for the last 2 quarters, we are seeing strong growth over there. So if you could just help us understand what is leading to this growth? And what is the outlook for this business? Have you added any new customers?

Bimal Thakkar

So we've added some new brands on to the distribution. It's not just the tea brands that we had. There are a couple of new brands which have been added on, which has helped in growing the business. And these are, again, brands which are complementary to our current product line, where there's synergy with the distribution. So we continue to look out for adding on some more brands. That's what the plan is, again, which are complementary, not conflicting with our products and where there's synergy in distribution. Understood. So are these brands larger brands like the tea brand which we have or

Am I audible? So this 12% to 15% revenue growth that you've mentioned, that is for FY '28 or FY '27?

Bimal Thakkar

No, no. Firstly, this 12% to 15% is if the Middle East contribution is 0 altogether, okay? And that's for FY '27. If we are able to resume business with the Middle East as normal, then we are looking at a much higher growth, which is in the range of around 30% plus. Okay. So this 12% to 15% will give us around INR925 crores to INR1,000 crores revenue, right, for this year? No, 12% to 15% will not get us to that, right? That will get us to more towards the INR800 crores to INR850 crores kind of number. When it gets up to the upwards of 30%, that's when we will come to the INR925 crores to INR1,

Congratulations on good set of numbers, first of all. Kudos to the whole team. And my question is, do we have any plans of entering Costco in the U.K.

Bimal Thakkar

So we are -- based on the success we've had in the U.S., our team in the U.K. is connecting with the Costco buyers and presenting the products there. So yes, we do have plans. We have already entered in Costco in Australia. We are also pitching for Costco in Canada. So yes, we are going to go try and pitch for Costco everywhere. Fantastic. Because one of our competitors are already in there. So I was just wondering if we have any plans. Good to know that. And also in the Surat facility, do we have any plans of like making any pizza products like frozen pizza, pizza pockets kind of stuff? So we

Congratulations on great numbers, sir. Just one question. Sir, you mentioned in your opening remarks, you spent about INR124 crores capex in the last 2 years. All of that has been gone into the Surat plant, including land building, machinery, everything? And how much are we going to spend on the Phase 2?

Bimal Thakkar

No, no. So INR124 crores has been spent over the last 2 years, which includes our brownfield, which is Nadiad and Nashik facility and Surat. Surat total investment in Surat with Phase 2 completion will be a little above INR100 crores. The balance amount has gone towards the existing factories where we've increased capacities and done some modernization. Is there still some portion of capex spending for the Phase 2? Yes. Srini, do you want to let them -- take that question, please, of how much is still pending in Phase 2? Yeah. So basically, if you look at our overall capex, the spends have bee

There is a directive from the Supreme Court on the refund of the tariff, which you may have been charged earlier. Is there any benefit that has already arrived to ADF via its subsidiaries or anything that is in prospective that we should assume?

Bimal Thakkar

Yes. That's a great question, Rishi. Firstly, no, nothing has been received in this last fiscal year. We have made applications for refund, and we are keeping our fingers crossed that we get it in this financial year. So when it does come in, we will accrue it in this fiscal year. And how much is that application amount for? So it's upwards of $1.5 million. And initially, you mentioned the benefit of rupee depreciation I asked in the colour of revenue for Q4. You mentioned 60% to 65% was volume growth. Was the balance on account of rupee depreciation or have you taken pricing improvements as w

Sir, you mentioned that we had INR16 crores of PLI incentive this year. I believe this is the last year for this PLI incentive. So would this amount be 0 next year?

Bimal Thakkar

So this financial year '27 is -- yes, this year will be the last year. And then yes, after that, I don't know what -- if there are any new schemes, which will come in from the government. The PLI scheme, which we got was for marketing expenses. So whatever marketing monies we spent, 50% of that was given to us by the government. So that is how -- that was the scheme we got. We did not get anything under the capital expenditure or anything of that sort. Understood. And how much we are expecting for FY '27? Yes, it should be in the same range.

I just wanted to understand one thing. You guided FY '27 revenue to be in the 15% range if there is 0 contribution from the Middle East, but if the contribution is there, 30% growth. Am I right on this part?

Bimal Thakkar

Yes, sir. But the Middle East contributes 15% to the total revenue. So I don't understand the math behind if the Middle East is not contributing, we are able to grow at 30%. Sorry. Srini, do you want to just? Yes. So no. So the question from one of the participants was what would be the contribution for Middle East. So here, what Mr. Bimal answered that if there is 0 contribution from the Middle East, then you go down to 15% in terms of your growth rate. But if the situation holds good in the next couple of months, we are on the target to grow at upwards of 30%. Overall, not just Middle East,

Sir, what's mentioned -- you mentioned about 60%, 65% of growth coming from volume growth. What percentage of that growth has come from debottlenecking activities at Nadiad and Nashik in FY '26? And how much are we looking to debottleneck further in existing capacities in FY '27?

Bimal Thakkar

So in the debottlenecking, there were certain lines which we were totally full up on capacity. So that has helped us get this growth coming in. So these are certain flat breads, snack lines, which have helped in growing. So most of the growth has come from debottlenecking and addition of these capacities. Any further debottlenecking in FY '27? Yes, we are -- as Srini mentioned, there is about close to INR15 crores -- INR15 crores to INR20 crores, which will further be invested this year in both these plants. Some will be, again, debottlenecking and some will be for modernization.

Well, thank you, everyone, and hope to catch up with you all in the next earnings call. Thanks once again, and have a great day.

Management

Speaking time

Bimal Thakkar

Moderator

Srinivas Ayyagari

Ankur Gulati

Saurabh Beria

Shialditya Chaudhury

Rishi Maheshwari

Ravi Naredi

Anupam Agarwal

Charchit Maloo

Opening remarks

Ravi Udeshi

Thank you, Sagar, and good afternoon, everyone. We welcome you to the Q4 and FY '26 Earnings Conference Call of ADF Foods Limited. To take us through the results and to answer your questions, we have with us today the top management of ADF Foods Limited, represented by Mr. Bimal Thakkar, the Promoter, Chairman, Managing Director and CEO. Mr. Sumer Thakkar, the Promoter, Vice President, Sales and Strategy; and Mr. Srinivas Ayyagari, the Chief Financial Officer. We will start the call with an overview of the business and the recent updates by Mr. Bimal Thakkar, and then Mr. Srinivas will give his comments on the financials. As usual, the standard safe harbour clause applies while we start the call. With that said, I now hand over the call to Bimal. Over to you, Bimal.

Bimal Thakkar

Thank you, Ravi. Good afternoon, everyone. On the results front, we delivered a strong performance in Q4 of the financial year '26 with consolidated revenues reaching an all-time high of INR196.7 crores, representing a robust 23.7% year-on-year growth. On a stand-alone basis, revenues increased by 11.6% year-on-year to INR150.3 crores. Despite prevailing challenges, including tariffs, West Asia conflict and supply chain issues, our business saw continued momentum fueled by significant traction from listings secured in the past few years and strengthening of our brand penetration and distribution across all our key markets. Our consolidated EBITDA reached INR34.3 crores with healthy margins of 17.4%. On a stand-alone basis, EBITDA increased by 24.8% to INR36.5 crores. This was driven by improved product mix and continued focus on cost optimization. Our flagship brand, Ashoka, continues to strengthen its presence driven by strong diaspora demand and our mainstream brand, Truly Indian has

Srinivas Ayyagari

Thank you, Bimal, and good afternoon, everyone. I'll begin with the consolidated performance for Q4 and FY '26. For Q4 FY '26, consolidated revenue reached a record high of INR196.7 crores, reflecting a strong growth of 23.7% year-on-year. Consolidated EBITDA stood at INR34.3 crores, up 38.9% year-on-year with EBITDA margins at 17.4%, expanding by 190 bps over last year. Profit after tax was INR25.9 crores, registering a robust growth of 57.6% year- on-year with PAT margins at 13.2%. Coming to the full year performance, consolidated revenue stood at INR683.2 crores, up 15.9% year-on-year. EBITDA increased 32.8% to INR130.7 crores, while EBITDA margins improved to 19.1%, an expansion of 240 basis points. PAT, excluding exceptional items, stood at INR96.8 crores, up 39.7% year-on-year, translating into a PAT margin of 14.2%. Now I move to the stand-alone performance. For Q4 FY '26, stand-alone revenues were INR150.3 crores, reflecting a healthy growth of 11.6% year-on-year. EBITDA for th

← All transcripts ADFFOODS stock page →

ADF Foods Limited

Market Movers