Q1 2027 Manorama Industries Ltd Earnings Call

August 14, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to Manorama Industries Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to Manorama Industries Limited Q1 FY27 earnings conference call. As a reminder, all participant lines will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Hiral Keniya from EY LLP. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Hiral Kenya from EY LLP. Thank you, and over to you, sir.

Speaker #2: Thank you, Huda. Good afternoon, everyone. On behalf of Manorama Industries Limited, I welcome you all to the company's Q1 FY27 conference call. To discuss the performance of the company and to answer your questions, we have with us the management team comprising Mr. Ashish Saraf, Chairman and Managing Director; Mr. Ashok Jain, Director and CFO; Mr. Pankaj Rathi, DGM, Accounts and Finance; Ms. Eka Soni, AVP, Investor Relations; and Mr. Deepak Sharma, Company Secretary and Compliance Officer.

Hiral Keniya: Thank you, Huda. Good afternoon, everyone. On behalf of Manorama Industries Limited, I welcome you all to the company's Q1 FY27 conference call. To discuss the performance of the company and to answer your questions, we have with us the management team comprising of Mr. Ashish Saraf, Chairman and Managing Director, Mr. Ashok Jain, Director and CFO, Mr. Pankaj Rathi, DGM, Accounts and Finance, Ms. Ekta Soni, AVP, Investor Relations, and Mr. Deepak Sharma, Company Secretary and Compliance Officer. Before we proceed this call, I would like to draw your attention to the fact that today's discussion may contain forward-looking statements that are subject to various risks, uncertainties, and other factors which will be beyond management's control. We kindly request to bear in mind that there might be uncertainties while interpreting such statements. Please note that this conference is being recorded.

Speaker #2: Before we proceed with this call, I would like to draw your attention to the fact that today's discussion may contain forward-looking statements that are subject to various risks, uncertainties, and other factors, which will be beyond management's control. We kindly request that you bear in mind that there might be uncertainties while interpreting such statements.

Speaker #2: Please note that this conference is being recorded. We would now like to start the session with opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session.

Hiral Keniya: We would now like to start the session with opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I would now hand over the conference call to Ashish Ji for his opening remarks. Thank you, and over to you, sir.

Speaker #2: I would now hand over the conference call to Ashish Ji for his opening remarks. Thank you, and over to you, sir.

Speaker #3: Thank you, Hiral Jin. Good afternoon, everyone, and thank you for joining Manorama Industries Limited's Q1 financial year 2027 earnings conference call. We appreciate the continued trust and encouragement of our investors, analysts, and stakeholders.

Ashish Saraf: Thank you, Hiral Ji. Good afternoon, everyone, and thank you for joining Manorama Industries Limited Q1 FY27 earnings conference call. We appreciate the continued trust and encouragement of our investors, analysts, stakeholders. As we continue to strengthen our market position and expand our global presence, we remain focused on executing our long-term strategy, driving innovation and delivering consistent, sustainable value creation for all our stakeholders. We have entered FY27 with strong conviction and momentum, delivering a 39.5% year-on-year revenue growth in Q1 FY27 and crossing the INR 4,000 million quarterly revenue and EBITDA milestone for the first time. Our profitability grew by 67.6% year-on-year, reflecting sustained demand across key end use industries, deeper customer relationships, and the increasing contribution of our value-added specialty fats and butters portfolio.

Ashish Saraf: Thank you, Hiral-ji. Good afternoon, everyone, and thank you for joining Manorama Industries Limited Q1 FY27 earnings conference call. We appreciate the continued trust and encouragement of our investors, analysts, stakeholders. As we continue to strengthen our market position and expand our global presence, we remain focused on executing our long-term strategy, driving innovation and delivering consistent, sustainable value creation for all our stakeholders. We have entered FY27 with strong conviction and momentum, delivering a 39.5% year-on-year revenue growth in Q1 FY27 and crossing the INR 4,000 million quarterly revenue and EBITDA milestone for the first time. Our profitability grew by 67.6% year-on-year, reflecting sustained demand across key end use industries, deeper customer relationships, and the increasing contribution of our value-added specialty fats and butters portfolio.

Speaker #3: As we continue to strengthen our market position and expand our global presence, we remain focused on executing our long-term strategy, driving innovation, and delivering consistent, sustainable value creation for all our stakeholders.

Speaker #3: We have entered financial year '27 with strong conviction and momentum, delivering a 39.5% year-on-year revenue growth in Q1 financial year '27 and crossing the ₹4,000 million quarterly revenue and EBITDA milestone for the first time. Our profitability grew by 67.6% year-on-year, reflecting sustained demand across the end-use industries, deeper customer relationships, and the increasing contribution of our value-added specialty fats and butters portfolio.

Speaker #3: These results underscore the strength of our integrated business model, robust sourcing network, and our ability to capitalize on the expanding opportunities in the global specialty fats market.

Ashish Saraf: These results underscore the strength of our integrated business model, robust sourcing network, and our ability to capitalize on the expanding opportunities in the global specialty fats market. During the quarter, we achieved several strategic milestones that further strengthen our long-term growth platform. We expanded our sourcing footprint in West Africa through the incorporation of Manorama Savanna Agro Tchad Sarl in Chad, our wholly owned subsidiary in Chad. In addition, we acquired approximately 10 hectares, 24 acres of land in Burkina Faso for a shea nut and mango nut processing facility with regulatory approvals currently in the progress. These initiatives enhance sourcing security, traceability, supply chain resilience, and proximity to key customers, while reinforcing our leadership across the shea value chain. Innovation remains at the core of our growth strategy.

Speaker #3: During the quarter, we achieved several strategic milestones that further strengthen our long-term growth platform. We expanded our sourcing footprint in West Africa through the incorporation of Manorama Savanna Agrochat SAL.

Speaker #3: Our wholly-owned subsidiary in chart. In addition, we acquired approximately 10 hectares (24 acres) of land in Burkina Faso for a shea nut and mango nut processing facility, with regulatory approvals currently in progress.

Speaker #3: These initiatives enhance sourcing security, traceability, supply chain resilience, and proximity to key customers, while reinforcing our leadership across the Shea value chain. Innovation remains at the core of our growth strategy.

Speaker #3: Our Milcoa Research and Development Center, recognized by the Department of Scientific and Industrial Research (DSIR), Government of India, continues to drive product innovation and strengthen our competitive advantage.

Ashish Saraf: Our Milcoa Innovation & Research Center, recognized by the Department of Scientific and Industrial Research, DSIR, Government of India, continues to drive product innovation and strengthen our competitive advantage. Beyond product development, our R&D capabilities are playing a pivotal role in shaping our integration strategy as we advance both backward and forward integration initiatives. The upcoming seed processing and extraction facilities in Raipur and Burkina Faso, together with our exploration of downstream value-added opportunities, are expected to enhance value capture, improve margins, and drive sustainable growth across the value chain. The successful completion of our qualified institutional placement, QIP, marks another important milestone, strengthening our balance sheet and providing the financial flexibility to accelerate growth across manufacturing, sourcing, and high value-added segments. These investments align with our vision of building a globally integrated specialty ingredients platform with scalable and resilient supply chains.

Speaker #3: Beyond product development, our R&D capabilities are playing a pivotal role in shaping our integration strategy as we advance both backward and forward integration initiatives.

Speaker #3: The upcoming seed processing and extraction facilities in Raipur and Burkina Faso, together with our exploration of downstream value-added opportunities, are expected to enhance value capture, improve margins, and drive sustainable growth across the value chain.

Speaker #3: The successful completion of our Qualified Institutional Placement (QIP) marks another important milestone, strengthening our balance sheet and providing the financial flexibility to accelerate growth across manufacturing, sourcing, and high value-added segments.

Speaker #3: These investments align with our vision of building a globally integrated specialty ingredients platform with scalable and resilient supply chains. Looking ahead, we remain highly confident in the long-term prospects of our business.

Ashish Saraf: Looking ahead, we remain highly confident in the long-term prospects of our business. With an expanding portfolio of specialty ingredients, growing customer partnerships, and increasing presence in cocoa butter alternatives, and continued investments across sourcing, processing, innovation, and manufacturing, we are well-positioned to deliver profitable growth and strengthen our global market presence. Business is business has risk, but Manorama navigates and has built a robust model, and we are looking forward to build it further. We look forward to create a sustainable long-term value for all our stakeholders. With that, I will now hand over the call to our CFO and director, Mr. Ashok Jain, to take you through the financial and operational highlights for the quarter. Thank you.

Speaker #3: With an expanding portfolio, specialty ingredients, growing customer partnerships, and increasing presence in cocoa butter alternatives, along with continued investments across sourcing, processing, innovation, and manufacturing, we are well positioned to deliver profitable growth.

Speaker #3: And strengthen our global market presence. Business is business—business has risk—but Manorama navigates and has built a robust model, and we are looking forward to building it further.

Speaker #3: We look forward to creating sustainable long-term value for all our stakeholders. With this, I will now hand over the call to our CFO and Director, Mr. Ashok Jain, to take you through the financial and operational highlights for the quarter.

Speaker #3: Thank you.

Speaker #2: Thank you, Ashish sir, and good afternoon, everyone. Let me now take you through our financial performance for Q1 FY27. We delivered a strong quarter, with revenue increasing by 39.5% year-on-year to ₹404 crore, driven by a richer product mix of value-added offerings and higher utilization of our expanded facilitation capacity.

Ashok Jain: Thank you, Ashish sir, and good afternoon, everyone. Let me now take you through our financial performance for Q1 FY27. We delivered a strong quarter with revenue increased by 39.5% year-on-year to INR 404 crore, driven by a richer product mix of value-added offerings and higher utilization of our expanded capacity. Our export to domestic revenue mix stood at 60:40, reflecting the continued strength of our global customer base alongside healthy domestic demand. EBITDA grew by 42.2% year-on-year to INR 106 crore, while EBITDA margin expanded by 49 basis points to 26.3%, supported by disciplined cost management, operational efficiencies, and operating leverage. Profit after tax increased by 67.6% year-on-year, that is INR 79 crore, with profit after tax margin expanding by 326 basis points to 19.5%.

Speaker #2: Our export to domestic revenue mix is, true to form, 60:40, reflecting the continued strength of our global customer base alongside healthy domestic demand. EBITDA grew by 42.2% year-on-year to ₹106 crore, while EBITDA margin expanded by 49 basis points to 26.3%.

Speaker #2: Supported by disciplined cost management, operational efficiencies, and operating leverage, profit after tax increased by 67.6% year-on-year—that is, ₹79 crore—with profit after tax margin expanding by 326 basis points to 19.5%.

Speaker #2: This strong improvement in profitability reflects our continued focus on optimizing product mix, enhancing capacity tension, and driving efficiencies across operations. These results domesticate the resilience and security of our business model.

Ashok Jain: This strong improvement in profitability reflects our continued focus on optimizing product mix, enhancing capacity utilization, and driving efficiencies across operations. These results demonstrate the resilience and scalability of our business model, highlighting our ability to deliver robust growth and profitability while executing strategic expansion initiatives and managing the seasonal dynamics of our industry. We remain disciplined in our approach to capital allocation for ongoing strategic investment across India and Africa are carefully aligned with our long-term vision of building a globally integrated specialty fats platform. This investment will strengthen our sourcing and manufacturing capabilities, expand our global footprint, and further reinforce our leadership position in the rapidly growing cocoa butter equivalent and specialty fats butter market. Through these initiatives, we are creating a stronger foundation for sustainable growth, enhanced competitiveness, and long-term value creation for our stakeholders. That concludes my remarks.

Speaker #2: Highlighting our ability to deliver robust growth and profitability while executing strategic expansion initiatives and managing the seasonal dynamics of our industry, we remain disciplined in our approach to capital allocation. Ongoing strategic investments across India and Africa are carefully aligned with our long-term vision of building a globally integrated specialty fats platform.

Speaker #2: This investment will strengthen our sourcing and manufacturing capabilities, expand our global footprint, and further reinforce our leadership position in the rapidly growing cocoa butter equivalent and specialty fat butter market.

Speaker #2: Through these initiatives, we are creating a stronger foundation for sustainable growth, enhanced competitiveness, and long-term value creation for our stakeholders. That concludes my remarks. We will now begin with questions and answers.

Ashok Jain: We would now begin with question and answer session.

Speaker #2: Session.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Ashok Jain: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kumar Saumya from Ambit Capital. Please proceed.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kumar Saumya from Ambit Capital. Please proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use a handset while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kumar Somya from Ambit Capital.

Speaker #1: Please proceed.

Speaker #4: Hi Sir, good afternoon. Firstly, I want to say, very commendable performance in a volatile macro environment. Just a couple of questions I have. Firstly, on the incremental capacity of 4,500 tons, which is expected to come from the debottlenecking activity.

Kumar Saumya: Hi, sir. Good afternoon. Firstly, just a very commendable performance in a volatile macro environment. A couple of questions are, firstly, on the incremental capacity of 4,500 ton, which is expected to come from the debottlenecking activity. When should we expect that to come online?

Speaker #4: When should we expect that to come online?

Speaker #1: Yes, thank you, Kumar, for the question. So, as we have previously communicated, we have undertaken the debottlenecking to enhance vaccination capacity. We have already completed a portion of our additional capacity of 7,500, which has already been operationalized.

Ashish Saraf: Yeah. Thank you, Kumar, for the question. As we have previously communicated, we have undertaken the debottlenecking to enhance fractionation capacity. We already have done a portion of our additional capacity of 7,500, which already has been operationalized. The balance is intending to be implemented in a manner during FY27, around Q3 of this financial year, subject to operational timelines.

Speaker #1: And the balance is intended to be implemented during FY27, around quarter three of this financial year, subject to operational timelines.

Speaker #4: Okay. And the incremental greenfield—when is that expected to hit in the next financial year?

Kumar Saumya: Okay. The incremental greenfield, when is that expected to hit, in the next financial year?

Speaker #1: So, this is regarding our new CapEx program?

Ashish Saraf: This is regarding our new CapEx program?

Speaker #4: Yes yes.

Kumar Saumya: Yes.

Speaker #1: Okay. So we have made meaningful progress as we move forward with our capex. The solvent fractionation 3 and our refinery are being targeted for commissioning around FY27-28, around Q3 of that financial year.

Ashish Saraf: We have made meaningful progress as we move on for our CapEx. On the solvent fractionation three, and our refinery are being targeted for commissioning around FY27, 28, around Q3 of that financial year. We already have bought a land, in Burkina Faso, which is around 10 hectares, approximately 24 acres bought. There are regulatory approvals which are awaiting. We are doing meaningful progress, in terms of our CapEx also.

Speaker #1: And we have already bought land in Burkina Faso, which is around 10 hectares, approximately 24 acres. The land has been bought and there are regulatory approvals which are awaited.

Speaker #1: So, we are making meaningful progress in terms of our capex as well.

Speaker #4: And next, on the downstream opportunity that Ashish sir mentioned in the opening remark, if you could throw some light on whatever downstream opportunities we are exploring currently.

Kumar Saumya: Next comes the downstream opportunity that Ashish mentioned in the opening remark. If you could throw some light on what are the downstream opportunities we are exploring currently.

Speaker #1: Sorry, can you repeat your question, please?

Ashish Saraf: Sorry. Can you repeat your question, please?

Speaker #4: Ashish sir, in the initial remark, mentioned about the downstream opportunities in the product value chain that you are currently exploring. If you could just throw some light on what those are?

Kumar Saumya: Ashish, in the initial remark, mentioned about the downstream opportunities in the product value chain that you are currently exploring. If you could just throw some light, what are those?

Speaker #1: So yes the expansion which we are currently doing one of our expansion also involves a CB a cocoa butter alternative product which will allow us to make a speciality value added product from our existing raw materials and we are also using a interested rights process from where we can make a value added product based on our co-product or by-product like olein and other specialty fats and butters.

Ashish Saraf: Yes, the expansion which we are currently doing, one of our expansion also involves a CBE cocoa butter alternative product, which will allow us to make a specialty value-added product from our existing raw materials. And we are also using interesterified process, from where we can make a value-added product based on our co-product or by-product like olein and other specialty fraction butters. We are around the clock. Our R&D team are working on those lines, making more and more value-added product from our existing product portfolio. And we are setting up a technology also, it is our CBE plant, which will help us to bring more and more value addition in our product lines.

Speaker #1: So, we are, round the clock, our R&D team are working on those lines, making more and more value-added products from our existing product portfolio. And we are setting up a technology also, which is our CBA plant, which will help us to bring more and more value addition in our product lines.

Speaker #4: Got it. Next, on this export share in the revenue, what was it in the last year, same quarter, Q1 FY25?

Kumar Saumya: Got it. Next one is export sharing the revenue. What was it in the last year, same quarter, compared to FY25?

Speaker #1: Export revenue was in the range of 55 to 60%. The range we can share with you was around 55 to 60% only, and it is approximately in that range—between 50 to 60% of export revenue.

Ashish Saraf: 55% to 60% approximately.

Ekta Soni: The range we can share with you was around 55% to 60% only, and it is approximately in the range only of 50% to 60% of export revenue.

Speaker #4: Okay. And lastly, on the LATAM progress—so what is the development over here, and when are we expected to see the ramp-up in the coming quarters?

Kumar Saumya: Okay. Lastly, on the LATAM progress. What is the development over here, and when are we expected to see the ramp-up in the coming quarters? Any color over there?

Speaker #4: Any color over there?

Speaker #1: So Kumar, we have started product production in the last quarter. We have sent some samples there, because that is the new facility we are working on.

Ashish Saraf: Kumar, we have started the production in the last quarter. We have sent some samples there because that is the new facility we are doing. That production has to go from our current facility, which is in India. We are also planning to move that scale gradually. As we move quarter to quarter, we can see a good amount of production going there further to manufacture from there. That will ramp up gradually over the quarters.

Speaker #1: So that production has to go from our current facility, which is in India. And we are also planning to move that scale gradually as we move quarter to quarter. We can see a good amount of production going there further to manufacture.

Speaker #1: From there, that will ramp up gradually over the quarters.

Speaker #4: Okay. And lastly, some indication on the pricing environment—how are you seeing the current pricing environment? Because most of the products are seeing a lot of volatility.

Kumar Saumya: Okay. Lastly, some indication on the pricing environment. How are you seeing the current pricing environment? Because most of the products are seeing a lot of volatility. How is your product value chain behaving, and any color on that front?

Speaker #4: So, how is your product value chain behaving, and any color on that front?

Speaker #1: So, Kumar, our products are more value-added products, which are formulated and based on certain specifications and recipes of the confectionery, chocolate, or cosmetics industries.

Ashish Saraf: Kumar, our products are more value-added products, which are formulated and based on certain specifications and recipes of the confectionery, chocolate, or cosmetics. Our pricing model, if you say, has remained stable largely, which is in line of our costing model as well. As per the macroeconomics are concerned, compared to that, our pricing has been largely stable.

Speaker #1: So our pricing model, if you see, has remained stable largely, which is in line with our costing model as well. As far as the macroeconomics are concerned, compared to that, our pricing has been largely stable.

Speaker #4: Got it. Thank you. That will be all I'll remember.

Kumar Saumya: Got it. Thank you. That is all. I join back the queue.

Speaker #1: Thank you.

Ashish Saraf: Thank you.

Speaker #4: Okay.

Ashish Saraf: Thanks. Thank you. The next question is from the line of Disha Tamria from Trident Asset Management. Please proceed.

Operator: Thanks. Thank you. The next question is from the line of Disha Chambia from Trinada Asset Managers. Please proceed.

Speaker #1: Thanks. Thank you. The next question is from the line of Disha Chambia from Sreyastha Asset Managers. Please proceed.

Speaker #5: Good afternoon, sir. Am I audible?

Disha Tamria: Good afternoon, sir. Am I audible?

Disha Chambia: Good afternoon, sir. Am I audible?

Speaker #2: Yes.

Ekta Soni: Yes.

Speaker #5: So, great set of numbers, sir. Thank you for the opportunity. A few questions I had from my side were regarding realization per tonne of CB and CDN.

Disha Tamria: Great set of numbers, sir. Thank you for the opportunity. A few questions I had from my side was, realization per ton of CBE and stearin. If you could give me that breakup. Is that available?

Disha Chambia: Great set of numbers, sir. Thank you for the opportunity. A few questions I had from my side was, realization per ton of CBE and stearin. If you could give me that breakup. Is that available?

Speaker #5: If you could give me that breakup, is that available?

Speaker #1: So, we generally don't share that kind of per-turn realization because our products are not one SKU; there are different products with different formulations and specifications for different customers.

Ekta Soni: We generally don't share that kind of a per ton realization because our products are not one SKUs. There are different products with different formulations, specifications for different customers. But we can share with you directionally that our pricing has been largely stable for our value-added products.

Speaker #1: But we can share with you, directionally, that our pricing has been largely stable for our value-added products.

Speaker #5: No problem, ma'am. And, of this 71.4% contribution of CB and CDN, what is the breakup of CB in it?

Disha Tamria: No problem, ma'am. Of this 71.4% of contribution of CBE and Stearin, what is the breakup of CBE in it?

Disha Chambia: No problem, ma'am. Of this 71.4% of contribution of CBE and Stearin, what is the breakup of CBE in it?

Speaker #1: Seventy-one percent of contribution and balance is the steering product. Both are technically the same. Yeah.

Ekta Soni: 71% of contribution and balance is the Stearin product. Both are technically the same. Yeah.

Speaker #5: Could you please repeat how much was CB?

Disha Tamria: Could you please repeat how much your CBE is?

Disha Chambia: Could you please repeat how much your CBE is?

Speaker #1: Sorry?

Ekta Soni: Sorry.

Speaker #5: How much was 30%?

Disha Tamria: How much your CBE is?

Disha Chambia: How much your CBE is?

Speaker #1: 30% 3030.

Ekta Soni: 30%. 30 30.

Speaker #5: Got it, ma'am. Got it. And could you please help me understand this new subsidiary that has been established in Chad, and what exactly it will contribute to the company?

Disha Tamria: Got it, ma'am. Got it. Could you please help me understand this new subsidiary that has been established in Chad, and what exactly will it contribute to the company? Will it see a margin expansion from it or is this helping from the backward integration? Could you get me somewhere?

Disha Chambia: Got it, ma'am. Got it. Could you please help me understand this new subsidiary that has been established in Chad, and what exactly will it contribute to the company? Will it see a margin expansion from it or is this helping from the backward integration? Could you get me somewhere?

Speaker #5: Will it be a margin expansion from it, or is this helping from the background integration? Please explain that to me from that perspective.

Ekta Soni: Well, our international subsidiaries, which are in Africa, including the recently incorporated in Chad, is mostly the vehicle from where we are sourcing our raw materials and butters from Africa region. So that Chad is basically for our increasing the value chain from there. It is one of vehicle through which we are going to source our shea nut and butter from there.

Speaker #1: Because all our international subsidiaries, which are in Africa, including the recently incorporated one in Chad, are mostly the vehicles from where we are sourcing our raw materials and butters from the Africa region.

Speaker #1: So, Chad is basically for our increasing the value chain from there. It's one of the vehicles through which we are going to source our shea nuts and butter from there.

Speaker #1: As there is no response, I'm taking the next question from the line of Rishabh from Demeter Advisors. Please proceed.

Ekta Soni: As there is no response, I am taking the next question from the line of Rishabh from Demeter Advisors. Please proceed.

Operator: As there is no response, I am taking the next question from the line of Rishabh from Demeter Advisors. Please proceed.

Speaker #4: Hi. So, my first query is around your contracts. Roughly, could you give us an idea of when you will be renewing some of your contracts?

[Analyst] (Demeter Advisors): Hi. My first query is around your contracts. Roughly, could you give us an idea of when you will be renewing some of your contracts? You will have a 9 to 12-month time frame. I just want to understand when the renewal, I mean, what percentage are coming up for renewal in this year or the coming quarters or so?

Rishabh Mehra: Hi. My first query is around your contracts. Roughly, could you give us an idea of when you will be renewing some of your contracts? You will have a 9 to 12-month time frame. I just want to understand when the renewal, I mean, what percentage are coming up for renewal in this year or the coming quarters or so?

Speaker #4: You'll have a 9- to 12-month time frame. I just want to understand, when are the renewals? I mean, what percentage are coming up for renewal this year or in the coming quarters or something?

Speaker #1: So, basically, our contracts are for 9 to 12 months, which is not specific to a certain quarter or certain month. So, it is an ongoing process.

Ekta Soni: Well, see, basically our contracts are 9 to 12 months, which is not specific to a certain quarter or certain month. It is an ongoing process. As and when the contract expire, it gets renewed. Some contracts could be for Q1, some contract could be for Q2, Q3 or Q4. It is generally an ongoing process with the customers. We cannot quantify that this much of contract will be renewed in this particular quarter. It is an ongoing process for us.

Speaker #1: So, when and as the contract expires, it gets renewed. Some contracts could be for Q1, some contracts could be for Q2.

Speaker #1: Three or four. So it's generally an ongoing process with the customers. So we cannot quantify that, with that mismatch, if the contract will be renewed in this particular quarter.

Speaker #1: So, it is an ongoing process for us.

Speaker #4: Got it. Secondly, what were the volumes in megatons of your value-added products—that is, general CBs and steering—this quarter?

[Analyst] (Demeter Advisors): Got it. Secondly, what were the volumes in metric tons of your value-added products, that is general CBEs and stearin, this quarter?

Rishabh Mehra: Got it. Secondly, what were the volumes in metric tons of your value-added products, that is general CBEs and stearin, this quarter?

Speaker #1: So, the utilized volume specific for our value-added products—we don't share that on a quarterly basis. We could guide you on an annual basis, which is what we have been doing in the past for quarters.

Ekta Soni: The utilized volume specific for our value-added products, we don't share on a quarter basis. We could guide you on an annual basis what we have been doing in the past for quarter. But what we can share with you, that we have done an utilization of around 80% on our capacity for this quarter.

Speaker #1: But what we can share with you is that we have achieved a utilization of around 80% of our capacity for this quarter.

Speaker #4: And any guidance on the folio number for utilization of your fractionation capacity?

[Analyst] (Demeter Advisors): And any guidance on the full year number for utilization of your fractionation capacity?

Rishabh Mehra: And any guidance on the full year number for utilization of your fractionation capacity?

Speaker #1: So we will also be doing the dewatering of our second plant, which will be around Q3. So, we expect our utilization to be around 80–85% for the full year this year.

Ekta Soni: We will be also doing the debottlenecking of our second plant, which will be around Q3. We expect that to be around 80% to 85% for full year for this year.

Speaker #4: Understood. Then I had a question. This your Burkina Faso plant, given that it will reduce your freight cost a little, what is the quantified impact this will have, say, on your gross profit?

[Analyst] (Demeter Advisors): Understood. I had a question, just around your Burkina Faso plant, given that it will reduce your freight cost, what is the quantified impact this will have today on your gross profits?

Rishabh Mehra: Understood. I had a question, just around your Burkina Faso plant, given that it will reduce your freight cost, what is the quantified impact this will have today on your gross profits?

Speaker #1: So this, of course, should help it because of the investments that we have, and we searched in particular for the Burkina Faso plant. So we see a payback period, which should be around three years once the plant is operational in Burkina Faso.

Ekta Soni: Of course, it should help it because the investments what we have envisaged, particularly for Burkina Faso plant. We see a payback period, which should be around 3 years, once the plant is operational in Burkina Faso. It should meaningfully impact on our bottom line as well, and it should improve our efficiency also. This is what we can guide you for that.

Speaker #1: So it should meaningfully impact our bottom line as well, and it should improve our efficiency also. So this is what we can guide you on for that.

Speaker #4: You're saying a three-year payback on the roughly ₹120 crore capex. Is that a fair way to describe it?

[Analyst] (Demeter Advisors): You are saying a three-year payback on the roughly INR 120 crore CapEx. Is that a fair way to describe it?

Rishabh Mehra: You are saying a three-year payback on the roughly INR 120 crore CapEx. Is that a fair way to describe it?

Speaker #1: Yes.

Ekta Soni: Yes.

[Analyst] (Demeter Advisors): Understood. I just want to understand that places like Nigeria, they had introduced an an export ban on shea nuts. Could you help sort of describe these risks and how you all will mitigate some of that kind of a risk?

Rishabh Mehra: Understood. I just want to understand that places like Nigeria, they had introduced an an export ban on shea nuts. Could you help sort of describe these risks and how you all will mitigate some of that kind of a risk?

Speaker #4: There is I just want to understand that in places like Nigeria they are instituted an export ban on Shianas. Could you help sort of describe these risks and how you all will mitigate some of that kind of a risk?

Speaker #1: So, see, Nigeria is one of the 22 such countries in Africa where the Shea nuts have grown and are available. And, as you have seen, we have multiple presences in African regions; we are operating our own wholly-owned subsidiaries in 10 different regions in Africa.

Ekta Soni: So see, Nigeria is one of the 22 such countries in Africa where the shea nuts are grown and available. As you have seen, we are having multiple presence in Africa regions. We are operating our own wholly owned subsidiaries in 10 different regions in Africa. We are also going to set up our own facility in Burkina Faso. So we are also bringing our seeds from there, and going forward, we will also import the butter form from there. So we also import butters from those regions. So that is one country which has put a temporary ban, so that doesn't materially impact our sourcing strategy from there, because our presence in that geography area is vast, which is substantial in Africa region.

Speaker #1: And we are also going to set up our own facility in Burkina Faso. So we are also bringing our seeds from there, and going forward, we will also import the butter from there.

Speaker #1: So, there, we also import butters from those regions. So, that is one country which has put a temporary ban. So, that doesn't materially impact our sourcing strategy from there because our presence in that geographic area is vast, which is substantial in the Africa region.

Speaker #4: Understood. Understood. And last question, if I may: Could you describe your CBA products? I mean, just some more color on what it is that you all are planning to launch, which is different from the current CBE and steering.

[Analyst] (Demeter Advisors): Understood. Last question, if I may. Could you describe your CBE product? I mean, just some more color on what it is that you all are planning to launch which is different from the current CBE and stearin.

Rishabh Mehra: Understood. Last question, if I may. Could you describe your CBE product? I mean, just some more color on what it is that you all are planning to launch which is different from the current CBE and stearin.

Speaker #1: So, we import a lot of butters also from West African regions. CBE, or Cocoa Butter Equivalent, is a product technology—what we can say is an alternative to cocoa butter.

Ekta Soni: We import lot of butters also from Africa regions. CBE. That CBE is a product technology, what we can say is an alternative on cocoa butters. Through a technology here in from India, from an ESOS plant, we will convert some of the oil liquid fractions into a hard fraction using some enzymes toward it. That would convert our liquid fraction into solid fractions that will help convert into a cocoa butter alternative segment, which will be called ECB, enzymatic cocoa butter equivalent. The applications of cocoa butter alternative within that which is ECB, will be of course, the application are same into the food segment part, into the chocolate, in confectionaries, into the HORECA market, wherever there is a food application. It is one technology.

Speaker #1: So, through a technology here in India from an ISOS plant, we will convert some of the oil liquid fractions into a hard fraction using some enzymes for it.

Speaker #1: So that would convert our liquid fraction into solid fractions. That will help convert it into a cocoa butter alternative segment, which will be called ECB.

Speaker #1: Enzymatic cocoa butter equivalent. So that applications of cocoa butter alternative within that which is ECB will be of course the application are same into the food segment part.

Speaker #1: Into the chocolate in confectioneries, into the HoReCa market—wherever there is a food application. So, it is one technology we are doing, an addition which we can say is a forward integration model, which will help us use our existing raw material also, and we could use other raw material also apart from the nuts, currently, which we import or buy locally from domestic markets.

Ekta Soni: We are doing an addition, which we can say is a forward integration model, which will help us use our existing raw material also, and we could use other raw material also apart from the nuts currently, which we import or buy locally from domestic markets.

Speaker #4: Understood. Thank you so much for your time.

[Analyst] (Demeter Advisors): Understood. Thank you so much for your time.

Rishabh Mehra: Understood. Thank you so much for your time.

[Analyst] (Demeter Advisors): Thank you. The next question is from the line of Roshan Nair from Antique Stock Broking. Please proceed.

Operator: Thank you. The next question is from the line of Roshan Nair from Antique Stock Broking. Please proceed.

Speaker #2: Thank you. The next question is from the line of Roshan Nair from Antic Stock Broking. Please proceed.

Speaker #4: Yeah, thanks a lot for the opportunity, and congratulations on a good set of numbers. So my question is regarding the Brazil partnership where you have started your first commercial production batch.

Roshan Nair: Yeah. Thanks a lot for the opportunity and congratulations on good set of numbers. My question is regarding the Brazilian partnership where you have started your first commercial production batch. So how much time would it take for the commercial production to fully ramp up? And how meaningful can Brazil become over next 2 to 3 years in terms of revenue and profitability?

Speaker #4: So how much time would it take for the commercial production to fully ramp up, and how meaningful can Brazil become over the next two to three years in terms of revenue and profitability?

Speaker #1: So we have already started our trial production in the last quarter of this year, and we are slowly dispatching our production to that Brazilian entity to process.

Ekta Soni: We already have started our trial production in the last quarter of this year, and we are slowly dispatching our production to that Brazilian entity to process. It will of course take some time because a lot of production has to go from an Indian plant as well. We see a good demand scenario, which is there for those products in Brazil as well. Slowly it will pick up maybe in another 2, 3, 4 quarters, we can see it should gradually ramp up quarter on quarter basis from there.

Speaker #1: So, it will of course take some time because a lot of production has to go from an Indian plant as well. So, we see a good demand scenario which is there for those products within as well.

Speaker #1: So, slowly it will pick up. Maybe in another two, three, or four quarters, we can see a gradual ramp-up on a quarter-on-quarter basis from there.

Speaker #4: And what would be the maximum revenue that you can generate from the Brazil unit?

Roshan Nair: And what would be the max revenue that you can generate from the Brazil unit?

Speaker #1: So, we can guide you on specific contributions from Brazil once we have started meaningful operations there. Currently, we are doing trial production, but we can directionally guide you that we see a very good opportunity in that market through that unit.

Ekta Soni: We can guide you on specific contribution from Brazil once we have started the operation meaningfully from there. Currently, we are doing the trial production, but we can directionally guide you that we see a very good opportunity in that market through that unit.

Speaker #4: Understood. My next question is: I see that employee costs have come down by around 20% versus last quarter. So in the last quarter, I recall you had some initial setup costs for subsidiaries that resulted in higher employee and other expenses.

Roshan Nair: Understood. My next question is, employee cost has come down by around 20% versus last quarter. In last quarter, I recollect, you had some initial setup costs for subsidiaries that resulted in higher employee and other expenses. Is it fair to assume that this will be the run rate going forward or is there anything else that we should be looking at?

Speaker #4: So, is it fair to assume that this will be the run rate going forward, or is there anything else that we should be looking at?

Speaker #1: Right. So, last quarter there was some provision which was there that related to performance incentives as well. So, that was largely the reason for that employee cost going forward.

Ekta Soni: Right. Last quarter, there was some provision which was there, which related to performance incentive as well. That was largely the reason of that employee cost going forward. Currently, the run rate which we can take should be around 14 to 15 crores per quarter going forward. It should be generally in this line only.

Speaker #1: But currently, the run rate that we can take should be around ₹14 to ₹15 crore per quarter going forward. It should generally be in this range only.

Speaker #4: Understood. One last question from my side. So, other expenses have kind of jumped up by 16%. Is there anything you want to call out specifically here, or is it primarily due to higher freight and container costs?

Roshan Nair: Understood. One last question from my side. Other expenses have kind of jumped up by 16%. Anything you want to call out specifically here, or is it primarily due to higher freight and container costs?

Speaker #1: Yeah, that is right. It is primarily because of that only.

Ekta Soni: Yeah, that is right. It is primarily because of that only.

Speaker #4: Understood. Thank you. Thanks a lot for the opportunity.

Roshan Nair: Understood. Thank you. Thanks a lot for the opportunity.

Speaker #2: Thank you. The next question is from the line of Sandeep Abhange from LKP Securities. Please proceed.

Roshan Nair: Thank you. The next question is from the line of Sandeep Abhang from LKP Securities. Please proceed.

Operator: Thank you. The next question is from the line of Sandeep Abhange from LKP Securities. Please proceed.

Speaker #4: Hi. Of numbers, thanks for taking my question. So, I had a question regarding the gross margin. Gross margin has gone down this quarter mostly. What was the reason behind it, and how was the sourcing of Shea nuts and butter for FY27?

Sandeep Abhang: Hi, congratulations on set of numbers. Thanks for taking my question. I had a question regarding the gross margin. Gross margins have gone down this quarter. Firstly, what was the reason behind it, and how was the sourcing of shea nuts and butter for FY27? Is it totally done, or it will be done by the H1 FY27 quarter? How is the pricing scenario in your raw material sourcing?

Sandeep Abhange: Hi, congratulations on set of numbers. Thanks for taking my question. I had a question regarding the gross margin. Gross margins have gone down this quarter. Firstly, what was the reason behind it, and how was the sourcing of shea nuts and butter for FY27? Is it totally done, or it will be done by the H1 FY27 quarter? How is the pricing scenario in your raw material sourcing?

Speaker #4: Is it totally done, or will it be done by the H1 FY27 quarter? And how is the pricing scenario in your raw material sourcing?

Speaker #1: So largely with shea nuts, procurement largely has been done in the last quarter. If you see currently, we have done the procurement for our Indian domestic space, which is sal, mango, and other exotic seeds, and we buy shea nuts and butters from different countries of the African region.

Ekta Soni: Largely, the shea nuts procurement largely has been done in the last quarter. If you see currently, we have done the procurement for our Indian domestic seeds, which is sal, mango, and other exotic seeds. We buy shea nuts and butters from different countries of Africa region. We buy sal and mango from different parts of India as well. From pricing point of view, it is broadly same, but of course, whatever inflation rise is there, we have to take on the raw material cost, and that is how we build our costing model and come to our finished goods prices accordingly. Our gross margin broadly moves in the range of that range only of around 45% to 50% what we can say, because lot of time it depends on freight cost timing also and our by-product realization, which is the de-oiled cake.

Speaker #1: We buy sal and mango from different parts of India as well. Pricing, from a pricing point of view, is broadly the same, but of course, whatever inflation rise is there, we have to take on the raw material cost, and that's how we build our costing model and come to our finished goods prices accordingly.

Speaker #1: And our gross margin broadly moves in the range of that range only of around 45 to 50% what we can say because lot of time it depends on fret cost timing also and our by product realization which is a de oil cake.

Speaker #1: So, it will be best to look at it together with EBITDA margin, rather than in isolation of gross profit margin.

Ekta Soni: It will be best tracked together with EBITDA margin, rather than in isolation of gross profit margin.

Speaker #4: Okay. Okay. And on the raw material cost as a percentage of sales, as considered for H1, generally it is higher—somewhere around 75 to 80 percent—and for H2 it is comparatively lower.

Sandeep Abhang: Okay. On the raw material cost as percentage to sales is considered, for H1 generally it is higher, somewhere around 75% to 80%, and for H2 it is comparatively lower. On an overall basis, FY27, what kind of cost of raw materials we can expect for this year? Percentage to sales.

Sandeep Abhange: Okay. On the raw material cost as percentage to sales is considered, for H1 generally it is higher, somewhere around 75% to 80%, and for H2 it is comparatively lower. On an overall basis, FY27, what kind of cost of raw materials we can expect for this year? Percentage to sales.

Speaker #4: So, on an overall basis for FY27, what kind of cost of raw materials can we expect for this year, as a percentage of sales?

Speaker #1: So, it has always been around 50% only, but we are not able to see that it was around 75-80% in the first half, but as per us, it has always been around 50%, to our thing.

Ekta Soni: It has always been around 50% only, but we are not able to see that it was around 75%, 80% in H1. As per us, it has always been around 50% to our think. Approximately.

Speaker #1: Approximately.

Speaker #4: Okay, okay. That's all from my side. Thanks for asking.

Sandeep Abhang: Okay. That's all from my side. Thanks for the presentation.

Sandeep Abhange: Okay. That's all from my side. Thanks for the presentation.

Speaker #2: Thank you. The next question is from the line of Madhu Agarwal from Agarwal Family Office. Please proceed.

Sandeep Abhang: Thank you.

Operator: Thank you. The next question is from the line of Madhu Agarwal from Agarwal Family Office. Please proceed.

Ekta Soni: Thank you.

Ekta Soni: The next question is from the line of Madhu Agarwal from Agarwal Family Office. Please proceed.

Speaker #5: Hi. So, of the 39% growth we've seen this quarter, would you be able to break that down into how much was volume growth, how much was due to forex, and then how much was ultimately realization?

Madhu Agarwal: Hi. So of the 39% growth we have seen this quarter, would you be able to break that down into how much was volume growth, how much was due to forex, and then how much was ultimately realization?

Speaker #1: See, 39% growth is a year-over-year growth, which is compared to the same quarter of last year and this quarter, and it is largely volume-led.

Ekta Soni: See, 39% growth is a year-over-year growth, which is there comparatively same quarter of last year compared to this, and it is largely volume led. We can say 80%, 85% growth if you compare year-over-year, has been approximately from the volume growth.

Speaker #1: So we can say 85% growth if you compare year-over-year has been approximately from the volume growth.

Speaker #5: Okay, lovely. And then my next question is on the existing capacity. Could you please clarify what is the incremental capacity you're expecting from the debottlenecking at the second round?

Ekta Soni: Okay. My next question is on the existing capacity. Could you please clarify what is the incremental capacity we are expecting from the debottlenecking at the second plant?

Madhu Agarwal: Okay. My next question is on the existing capacity. Could you please clarify what is the incremental capacity we are expecting from the debottlenecking at the second plant?

Speaker #1: So, approximately, we are expecting an additional 4,500 tons of de-bottom licking in this financial year—additional. So, our current capacity of 47,500 will be going to approximately around 52,000 tons per annum.

Ekta Soni: Approximately we are expecting additional 4,500 tons of debottlenecking in this financial year, additional. Our current capacity of 47,500 will be going to approximately to around 52,000 tons per annum.

Ekta Soni: Understood. Copy. In terms of the margins that we have seen this quarter, would you say they are sustainable or was this an exceptionally good quarter?

Madhu Agarwal: Understood. Copy. In terms of the margins that we have seen this quarter, would you say they are sustainable or was this an exceptionally good quarter?

Speaker #5: Got it. And in terms of the margin that we've seen this quarter, would you say they're sustainable, or was this an exceptionally good quarter?

Speaker #1: Sorry, can you repeat your question please?

Ekta Soni: Sorry, can you repeat your question, please?

Speaker #5: For the margins that we've seen in Q1, would you say they are sustainable, and, you know, should we—or would you—guide for similar margins going forward, or was this an exceptionally good quarter?

Ekta Soni: For the margins that we have seen in Q1, would you say they are sustainable and would you guide for similar margins going forward, or was this an exceptionally good quarter?

Madhu Agarwal: For the margins that we have seen in Q1, would you say they are sustainable and would you guide for similar margins going forward, or was this an exceptionally good quarter?

Speaker #1: See. Margins can see modest quarter to quarter movement depending on makes and one of items. But the underlying lend range is expected to hold broadly stable.

Ekta Soni: See, margins can see modest quarter-to-quarter movement depending on mix and one-off items, but the underlying range is expected to hold broadly stable. At the same time, business has risk also, but we say it should hold the current range in broad terms.

Speaker #1: So at the same time, business is business—business has risk also. But we say it should hold the current range in broad terms.

Speaker #5: Understood. Okay, that's all from me. Thank you.

Ekta Soni: Understood. Okay, that is all from me. Thank you.

Madhu Agarwal: Understood. Okay, that is all from me. Thank you.

Speaker #2: Thank you. The next question is from the line of Akhil from 361 Capital. Please proceed.

Ekta Soni: Thank you. The next question is from the line of Akhil from 361 Capital. Please proceed.

Operator: Thank you. The next question is from the line of Akhil from 360 ONE Capital. Please proceed.

Speaker #4: Yeah. Thanks for the opportunity, and many congratulations on a good set of numbers. My first question is on the subsidiary part. If I look at consol minus standalone, the revenues are close to zero, and the tax losses have declined from ₹8 crore to ₹3 crore this quarter, basically.

[Analyst] (361 Capital): Yeah, thanks for the opportunity and many congratulations on the good set of numbers. My first question is on the subsidiary part. If I look at consolidated minus standalone, the revenues are close to zero and our tax losses have declined from INR 8 crore, INR 3 crore this quarter, we see it happened. Subsidiary revenue is probably around INR 8 crore, and the losses were INR 8 crore. If you can help tie up these two things basically.

Akhil Parekh: Yeah, thanks for the opportunity and many congratulations on the good set of numbers. My first question is on the subsidiary part. If I look at consolidated minus standalone, the revenues are close to zero and our tax losses have declined from INR 8 crore, INR 3 crore this quarter, we see it happened. Subsidiary revenue is probably around INR 8 crore, and the losses were INR 8 crore. If you can help tie up these two things basically.

Speaker #4: While subsidiary revenues were probably around ₹8 crore and the losses were ₹8 crore. So, if you can help tie up these two things, basically.

Speaker #1: So, maybe consolidate it. Turnover, if you talk about it, I guess there is a difference of around 4 to 5 lakhs which has been reported in the numbers.

Ekta Soni: Well, maybe consolidated turnover, if you talk about, I guess there is a difference of around INR 4 to 5 lakhs, which has been reported in the numbers compared to standalone and consolidated for this quarter.

Speaker #1: Compared to standalone and consolidated for this quarter.

Speaker #4: No, it's not a question. Like, for this quarter, revenue is probably just 4 or 5 lakhs, while the losses have reduced dramatically from 8 crore in the fourth quarter of '26 to 3 crore.

[Analyst] (361 Capital): No, it is not a question really. This quarter, revenue is probably just INR 4 or 5 lakhs, while the losses have reduced dramatically from INR 8 crore in Q4 of 2026, to INR 3 crore.

Akhil Parekh: No, it is not a question really. This quarter, revenue is probably just INR 4 or 5 lakhs, while the losses have reduced dramatically from INR 8 crore in Q4 of 2026, to INR 3 crore.

Speaker #1: Yeah.

Ekta Soni: Yeah.

Speaker #4: So why has that been the case in the quarter?

[Analyst] (361 Capital): Why that has been the case?

Akhil Parekh: Why that has been the case?

Speaker #1: Yeah. Last time as we have explained there was there last time there was one time cost which has incurred in some of our subsidiaries.

Ekta Soni: Last time, as we have explained, last time there was one time cost, which has incurred in some of our subsidiaries. As we have explained earlier also, last time in the call because of that, and this time we see this cost what have affect is on a normal operational cost basis, which is there for our different subsidiaries.

Speaker #1: As we have explained earlier, also last time in the call, because of that, and this time we see this cost, what has occurred is on a normal operational cost basis.

Speaker #1: Which is there for our different subsidiaries.

Speaker #4: So, is it fair to assume—yeah, sorry. Is it fair to assume that the losses will now reduce as we move forward, basically from subsidiaries?

[Analyst] (361 Capital): Is it fair to assume

Akhil Parekh: Is it fair to assume

Ekta Soni: Yeah.

[Analyst] (361 Capital): Sorry. Is it fair to assume that the losses will now reduce as we move forward, basically from subsidiaries?

Akhil Parekh: Sorry. Is it fair to assume that the losses will now reduce as we move forward, basically from subsidiaries?

Speaker #1: Because our overseas subsidiaries are at different stages of maturity, and the West African entities are mostly for cost procurement purposes, with no standalone revenue. So, consolidation carries some operating costs without a corresponding top line.

Ekta Soni: Because our overseas subsidiaries are at different stages of maturity. West African entities are mostly for cost procurement vehicles with no standalone revenue. Consolidation carries some operating costs without corresponding top line. Brazil also is in a build-out phase as we establish commercial volumes. These are deliberate funded investments in the long-term capability. We see as these entities scale, directionally, their drag on consolidated margins should reduce, and over time, turn into a contributor.

Speaker #1: So Brazil is also in a build-out phase as we establish commercial volumes. These are deliberate, funded investments in our long-term capability.

Speaker #1: And we see, as these entities scale, directionally their drag on consolidated margin should reduce and, over time, turn into a contributor.

Speaker #4: So, two more questions. One, the other income part—it has gone up significantly. Is it to do with the QIP money, and how should one look at it for the second quarter?

[Analyst] (361 Capital): Sure. Two more questions. One on the other income part. It has gone up significantly. Is it to do with the QIP money and how should one look at it for a-

Akhil Parekh: Sure. Two more questions. One on the other income part. It has gone up significantly. Is it to do with the QIP money and how should one look at it for a-

[Analyst] (361 Capital): Akhil sir, sorry to interrupt, but can you please stay in the quiet room? There is a lot of disturbance from your side.

Operator: Akhil sir, sorry to interrupt, but can you please stay in the quiet room? There is a lot of disturbance from your side.

Speaker #2: Akhil, sorry to interrupt, but can you please stay in the quiet room? There's a lot of disturbance from your side.

Speaker #4: Sure. Just is it better?

[Analyst] (361 Capital): Sure. Is it better?

Akhil Parekh: Sure. Is it better?

Speaker #2: Yeah. Continue.

[Analyst] (361 Capital): Yeah, continue.

Operator: Yeah, continue.

Speaker #4: Yeah, so my second question was on the other income part, right? We did around ₹16 crore for this quarter. So how should one look at it on a full-year basis? And the third question is, if you can give a ballpark capex guidance for this year and next year.

[Analyst] (361 Capital): Yeah. My second question was on the other income part. We did around INR 60 crore for this quarter. How should one look at it on a full year basis? The third question is, if you can give a ballpark CapEx guidance for this year and next year.

Akhil Parekh: Yeah. My second question was on the other income part. We did around INR 60 crore for this quarter. How should one look at it on a full year basis? The third question is, if you can give a ballpark CapEx guidance for this year and next year.

Speaker #1: So, ballpark capex guidance for this year should be around ₹225 to ₹250 crore of investment, approximately, in financial year '27.

Ekta Soni: The ballpark CapEx guidance for this year should be around INR 225 to 250 odd crores of investment approximately in financial year 2027. Likewise, the other income is largely because of freight and other-

Speaker #1: And likewise, the other income is largely because of freight and other income. Other income is mainly from FDR income and forex gains, so it is not related to the QIP amount as you mentioned, because that amount has been received in this quarter.

[Analyst] (361 Capital): FDR interest. Other income.

Akhil Parekh: FDR interest. Other income.

Ekta Soni: Other income is largely for

[Analyst] (361 Capital): FDR income.

Akhil Parekh: FDR income.

Ekta Soni: FDR income and Forex gains. It is nothing related to the QIP amount as you mentioned for that.

[Analyst] (361 Capital): Okay.

Akhil Parekh: Okay.

Ekta Soni: Because that amount we have received in this quarter.

Speaker #4: Okay. Okay. So it should get normalized probably, then.

[Analyst] (361 Capital): Okay. It should get normalized probably then.

Akhil Parekh: Okay. It should get normalized probably then.

Speaker #1: Yes. Yes.

Ekta Soni: Yes.

Speaker #4: Okay. Okay. Great. That's all from my side, and best of luck for the coming quarters.

[Analyst] (361 Capital): Okay, great. That is all from my side, and best luck for earning calls.

Akhil Parekh: Okay, great. That is all from my side, and best luck for earning calls.

Speaker #1: Thank you so much.

Ekta Soni: Thank you so much.

Speaker #2: Thank you. The next question is from the line of Nishita from Sapphire Capital. Please proceed.

Ekta Soni: Thank you. The next question is from the line of Nishita from Sapphire Capital. Please proceed.

Operator: Thank you. The next question is from the line of Nishita from Sapphire Capital. Please proceed.

[Analyst] (Sapphire Capital): Yes. Am I audible?

Speaker #3: Yes. Am I audible?

Speaker #1: Yes.

Ekta Soni: Yes.

Speaker #2: Yes.

[Analyst] (Sapphire Capital): Yes. I just wanted to understand the CapEx that you just mentioned of around INR 225 to 250 crores. What are we going to use that for? Like for de-bottlenecking, how much CapEx are we going to use, and what is the rest of the amount? Where are we going to use that?

Speaker #3: Yeah, so I just wanted to understand the capex that you just mentioned of around ₹225 to ₹250 crores. What are we going to use that for? Like, for debottlenecking, how much capex are we going to use, and for the rest of the amount, where are we going to use that?

Speaker #1: So this 225 to 250, approximately, amount will be used for our new capex proposed, which is there. We are expanding our solvent fractionation capacities, refinery capacity, and the backward integration project in Burkina Faso.

Ekta Soni: This INR 225, 250 approximately amount will be used for our new CapEx proposed, which is there, where we are expanding our solvent fractionation capacity, refinery capacity, and the backward integration project in Burkina Faso. That de-bottlenecking capacity is hardly a cost of around INR 5 to 6 crores, which will be there to de-bottleneck. Apart from that, all that money is going to be invested in our new proposed CapEx plan.

Speaker #1: So that debottlenecking capacity is hardly a cost of around ₹5 to ₹6 crores, which will be there to debottleneck. Apart from that, all that money is going to be invested in our new proposed capex plan.

Speaker #3: Right. Okay. So, from what I understand, this solvent vaccination and refinery capacity—this is coming in our Indian facility, right? Hello?

[Analyst] (Sapphire Capital): Right. Okay. From what I understand is, this solvent fractionation and refinery capacity, this is coming in our Indian facility, right? Hello?

Speaker #1: Yeah. It is coming in India—refinery and solvent extraction. And extraction and expelling capacity in Burkina Faso, Africa.

Ekta Soni: Yeah. It is coming in India. Refinery and solvent fractionation.

[Analyst] (Sapphire Capital): Okay.

Ekta Soni: And extraction and expelling capacity in Burkina Faso, Africa.

Speaker #3: Okay, so if you could bifurcate the capex there—how much are we going to use for the Burkina Faso facility and then the Indian facility?

[Analyst] (Sapphire Capital): Okay. If you could bifurcate the CapEx there. How much are we going to use for the Burkina Faso facility and then the Indian facility?

Speaker #1: So that Burkina Faso facility will be around ₹120 to ₹130 crore approximately, and the balance should be for Indian projects—out of ₹460 crore of our proposed capex plan.

Ekta Soni: That Burkina Faso facility will be around 120, 30 odd crores approximately, and the balance should be for Indian projects, out of INR 460 crores of our proposed CapEx plan.

Speaker #3: And this will be operational by Q3 FY28, right?

[Analyst] (Sapphire Capital): This will be operational by Q3 FY28, right?

Speaker #1: Tentatively. Yes.

Ekta Soni: Tentatively, yes.

Speaker #3: Both the facilities.

[Analyst] (Sapphire Capital): Both the facilities?

Speaker #1: Yeah. Our capex program. Yes.

Ekta Soni: Our CapEx program, yes.

Speaker #3: Okay, okay. My next question is, if you can give the revenue bifurcation from shea butter and then, the palm and mango seeds— is there a revenue bifurcation?

[Analyst] (Sapphire Capital): Okay. My next question is on if you can give the revenue bifurcation from shea butter and then the sal mango seeds, if there is a revenue bifurcation.

Speaker #1: So, our revenue contribution from each of the raw materials is significant. If you want a bifurcation, it will be around 50–60% from imported seeds, and the remaining 50% is from domestic seeds.

Ekta Soni: Our revenue contribution from each of the raw material is significant. If you want a bifurcation, it will be around 50%, 60% from imported seeds and 50% around from domestic seeds and butters. We import butters also and seeds also from different parts of the world, and we source some seeds and all also from domestic. The bifurcation will be around 50%, 60%, largely the same.

Speaker #1: And butter. So we import butters also and seeds also from different parts of the world, and we source some seeds and all also from domestic.

Speaker #1: So the bifurcation will be around 50–60%, largely the same.

Speaker #3: Right. And my last question is on, so on chat, to achieve our guidance for this year — you earlier provided a guidance of around ₹1,600 to ₹1,800 crores.

[Analyst] (Sapphire Capital): Right. My last question is on, are we on track to achieve our guidance for this year? You earlier provided a guidance of around INR 1,600 to INR 1,800 crores.

Speaker #1: Sorry, when have we provided this guidance?

Ekta Soni: Sorry, when we have provided this guidance?

Speaker #3: In one of the conferences—the Ashika conference—that was way back in November. So, I just wanted to check if we are still on track for that.

[Analyst] (Sapphire Capital): In one of the conferences, the Ashika conference, that was way back in November. I just wanted to check if we are still on track for that.

Speaker #1: No, because see, we have given our guidance on the utilization of our facilities. So, in terms of numbers, you can extract the numbers or model it as per your calculations.

Ekta Soni: No, because, see, we have given our guidance on the utilization for our facilities. In terms of numbers, you can extract the numbers or model it as per your calculations. What guidance we are giving on the utilization basis, which should be around 80% of utilization on 52,000 tons of plant capacity for this year.

Speaker #1: So, what guidance we are giving on the utilization is that we should be around 80% utilization on the 52,000 tons plant capacity for this year.

Speaker #3: Okay, understood. Thank you so much.

[Analyst] (Sapphire Capital): Okay. Understood. Thank you so much.

Ekta Soni: Thank you.

Speaker #1: Thank you.

Speaker #2: Thank you. The next question is from the line of Utkarsh Chanana from SMC Private Wealth. Please proceed.

Ekta Soni: Thank you. The next question is from the line of Utkarsh Chanana from SMC Private Wealth. Please proceed.

Operator: Thank you. The next question is from the line of Uttkkarsh Chanana from SMC Private Wealth. Please proceed.

Speaker #4: Hello. Am I audible?

Utkarsh Chanana: Hello, am I audible?

Uttkkarsh Chanana: Hello, am I audible?

Speaker #2: Yes.

Utkarsh Chanana: Yes.

Operator: Yes.

Ekta Soni: Yes, you are audible.

Speaker #1: Yes.

Speaker #4: Hi. So I just wanted to ask about the recent development which you had posted the day before yesterday. So, in context of that, has the supplier accepted the liability or is he willing to pay the amount for which you have created a debit note?

Utkarsh Chanana: Hi. I just wanted to ask about the recent development which you had posted a day before yesterday. In context of that, has the supplier accepted the liability or is he willing to pay the amount which you have created a debit note for? Can you also confirm whether the company will be sourcing from the same supplier, or are we diversifying the supplier base?

Uttkkarsh Chanana: Hi. I just wanted to ask about the recent development which you had posted a day before yesterday. In context of that, has the supplier accepted the liability or is he willing to pay the amount which you have created a debit note for? Can you also confirm whether the company will be sourcing from the same supplier, or are we diversifying the supplier base?

Speaker #4: And can you also confirm whether the company will be sourcing from the same supplier, or are we diversifying the supplier base?

Speaker #1: So we already have very diversified suppliers for this material. We import from a couple of countries with different suppliers. That is one supplier from that region, and we are not currently dependent particularly on that particular supplier.

Ekta Soni: We already have a very diversified suppliers for this material. We import from a couple of countries with different suppliers. That is one supplier from that region, and we are not currently based particularly on that particular supplier.

Utkarsh Chanana: Manufacturer.

Uttkkarsh Chanana: Manufacturer.

Speaker #4: Manufacturers.

Speaker #1: Manufacturing suppliers.

Ekta Soni: Manufacturer and supplier.

Speaker #4: So, at the recovery stage, how much amount can we, or what percentage are we confident that we will be able to recover from the supplier?

Utkarsh Chanana: At the recovery, how much amount can we, or how much percentage are we confident that we will be able to recover the amount from the supplier?

Uttkkarsh Chanana: At the recovery, how much amount can we, or how much percentage are we confident that we will be able to recover the amount from the supplier?

Speaker #1: So this is, of course, as you have seen in the exchange notification. Also, we are in the process—or we already have—raised our debit note, and we are claiming the full amount from the manufacturer and the supplier of that product.

Ekta Soni: This is, of course, as you have seen in the exchange notification also, we are in the process of. We already have raised a debit note, and we are claiming the full amount from the manufacturer and the supplier of that product. And we are in the process. And with a certain time, we are confident when we should be fully see what we can do in terms of our recovery from that manufacturer and supplier, and we will update you from time to time what has been the progress, as per our SEBI regulation. Thank you.

Speaker #1: And we are in the process, and within a certain time we are confident we will be able to fully see what we can do in terms of our recovery from that manufacturing supplier. We will update you from time to time on our progress, as per our regulations.

Speaker #1: Thank you.

Speaker #4: Thank you so much. And secondly, are we dependent on any particular shipping route for our import or exports of raw materials or finished goods? Because as we can see, there are a lot of geopolitical disruptions.

Utkarsh Chanana: Thank you so much. Secondly, are we dependent on any particular shipping route for our import or exports of raw material or finished goods? Because, as we can see, there is a lot of geopolitical disruptions. So, if we are dependent on a particular route, how are we going to mitigate the impact?

Uttkkarsh Chanana: Thank you so much. Secondly, are we dependent on any particular shipping route for our import or exports of raw material or finished goods? Because, as we can see, there is a lot of geopolitical disruptions. So, if we are dependent on a particular route, how are we going to mitigate the impact?

Speaker #4: So, if we are dependent on a particular route, how are we going to mitigate the impact?

Speaker #1: See, we are dealing with multiple geographies. If you see, we are supplying to more than 30 countries in the world, and there are different routes for different countries.

Ekta Soni: See, we are dealing with multiple geographies. If you see, we are supplying to more than 30 countries in the world, and there are different routes for different countries. We import a lot of materials from Africa, Malaysia, Indonesia, and a couple of other countries as well. So that's why if you see our diversification is very much high in terms of our exports also and in terms of our sourcing also for our raw materials. So it should not that way materially impact our sourcing strategies for any of our raw material base.

Speaker #1: We import a lot of materials from Africa, Malaysia, Indonesia, and a couple of other countries as well. So that is why, if you see, our diversification is very high in terms of our exports also, and in terms of tons of our sourcing as well.

Speaker #1: For our raw materials, so it should not, in that way, materially impact our sourcing strategies for any of our raw material base.

Speaker #4: All right. Thank you so much. All the best.

Utkarsh Chanana: All right. Thank you so much. All the best.

Uttkkarsh Chanana: All right. Thank you so much. All the best.

Speaker #1: Thank you.

Ekta Soni: Thank you.

Speaker #2: Thank you. A request to all participants: Please restrict your questions to two questions per participant. For more questions, please rejoin the queue. The next question is from the line of Devyansh Thakur.

Ekta Soni: Thank you. A request to all participants. Please restrict your questions to two questions per participant. For more questions, please rejoin the queue. The next question is from the line of Divyansh Thakur from Pincquest Capital. Please proceed. Mr. Thakur, are you there?

Operator: Thank you. A request to all participants. Please restrict your questions to two questions per participant. For more questions, please rejoin the queue. The next question is from the line of Divyansh Thakur from FINTEREST CAPITAL. Please proceed. Mr. Thakur, are you there?

Speaker #2: From Pinterest Capital. Please proceed. Mr. Thakur, are you there?

Speaker #4: Yeah. Am I audible?

Divyansh Thakur: Yeah. Am I audible?

Speaker #2: Yeah.

Divyansh Thakur: Yeah.

Operator: Yeah.

Speaker #4: Yeah. First of all, sir, congratulations on a great set of numbers. I can see in the presentation that we had uploaded on the exchanges yesterday that, you know, you have mentioned around 85% to 90% utilization of the expanded capacity, like the added 4,500 debottlenecking and the 47,500 already there.

Divyansh Thakur: Yeah. First of all, sir, congratulations on a great set of numbers. I can see in the presentation that we had uploaded on the exchanges yesterday that you have said around 85% to 90% utilization of the expanded capacity, like that added the 4,500 debottlenecking and the 47,500 already there. Now we are seeing that it is going to be around 80%, if you can just verify on that.

Speaker #4: So, and now we are seeing that it's going to be around 80%. If you can just clarify on that.

Speaker #1: Only execute the executing target for the companies, but for our stakeholders we can take 80%, and whatever improvement is there will be shown and will be shared to our stakeholders.

Ekta Soni: Currently executing target for the company is that, but for our stakeholders, we can take 80%, and whatever improvement is there will be shown and will be shared to our stakeholders.

Speaker #4: Multiple plans. Okay, sir. Okay. Thank you, ma'am. And also, are we confident of, like, you know, having the same quarterly growth, or year-on-year growth if I put it that way? And how is the external environment shaping up?

Divyansh Thakur: Okay, sir. Okay. Thank you, ma'am. Are we confident of having the same quarterly growth or year-on-year growth, if I put it? How is the external environment shaping up? There are many geopolitical tensions, also the ban on the export. Do we see is that a whole Africa or it is just a specific country?

Speaker #4: You know, there are many geopolitical tensions, and also the ban on the exports. So, do we see that as affecting the whole of Africa, or is it just a specific country?

Speaker #1: To just repeat what we have been saying, this ban, of course, we are talking about now for a couple of quarters. We are seeing these macroeconomic and geopolitical tensions going around for a couple of quarters now in the past.

Ekta Soni: To just repeat what we have been saying, these bans, of course, we are talking now for a couple of quarters now. We are seeing this macroeconomic geopolitical tension going around for couple of quarters now in the past. But the company, of course, we are a part of the industry, we are part of this full fraternity. We cannot say that it will not impact us directly. But of course, there is an indirect impact which is there in terms of freight, logistic, or could be other macroeconomic impact could be there. But as a company, we always navigate it and balance it out on what possible ways we could do in terms of our sourcing, exports, managing our productions, and keeping our checks and internal things in line, which should help us in meeting our goals and targets.

Speaker #1: But the company, of course, we are part of the industry, we are part of this whole fraternity, and we cannot say that it will not in any way not impact us directly. But of course, there is an indirect impact which is there in terms of freight logistics, or it could be other macroeconomic impacts that could be there.

Speaker #1: But as a company, we always navigate it and, you know, balance it out—at what cost. Civil waste we could do in terms of our sourcing, exports, managing our productions.

Speaker #1: And keeping our checks and internal things in line, which should help us in meeting our goals and targets.

Speaker #4: Okay ma'am. And also on the the last question is that if I heard it right you mentioned that you know the new capex of 460 crores is going to be coming live in the quarter three of the next fiscal year.

Divyansh Thakur: Okay, ma'am. My last question is that if I heard it right, you mentioned that the new CapEx of INR 460 crores is going to be coming live in Q3 of the next fiscal year, that is 2028. Can I correct it directly that it will start contributing to our top line from Q3?

Speaker #4: That's 28. So, can I correct it directly that you know, it will start contributing to our top line from Q3 only?

Speaker #1: It could be, of course, that this is the next expected one, tentatively set to commission around that quarter. So it should start contributing gradually from that period. But the full impact will be more visible in FY29 as we ramp up, because all these are technical plants and their utilization takes place gradually.

Ekta Soni: Of course, that is been expected tentatively to commission around that quarter. So it should start contributing gradually from that period. But that full impact will be more visible in FY29 as we ramp up, because all these are technical plants and utilization takes place gradually. So you can see that it is more visible in the year of FY29.

Speaker #1: So that you can see that it is more visible in the year of FY29.

Speaker #4: Okay, thank you so much for answering my question, and ma'am, all the best for the future.

Divyansh Thakur: Okay. Thank you so much for answering my question. All the best for the future initiatives. Thank you.

Speaker #2: Thank you. The next question is from the line of Deepali Bansal from Ventura Enterprises. Please proceed.

Divyansh Thakur: Thank you. The next question is from the line of Deepali Bansal from Ventura Securities. Please proceed.

Operator: Thank you. The next question is from the line of Deepali Bansal from Ventura Enterprises. Please proceed.

Speaker #4: Hello, good afternoon everyone. Ma'am, my first question is regarding how much capex we have already spent in this quarter, out of the 225 to 250 that we have planned.

Deepali Bansal: Hello. Good afternoon, everyone. My first question is regarding how much CapEx have we already spent in this quarter out of the 225, 250 that we have planned?

Speaker #1: So, if we talk about just for this quarter, we have spent around ₹20 crore through Manorama and our subsidiaries, and till today we have spent around ₹70 crore out of our total proposed capex plan.

Ekta Soni: If we talk about just for this quarter, we have spent around 20 odd crores through Manorama and our subsidiaries. Till today we have spent around 70 crores out of our total proposed CapEx plan. We intend to spend approximately around 220 odd crores more in this financial year for our CapEx.

Speaker #1: And we intend to spend approximately ₹220 crore more in this financial year for our capex.

Speaker #4: Would you be able to tell us how much money you spent to purchase the 24-acre plot for the backward integration plant?

Deepali Bansal: Would you be able to give us how much money you spent to purchase the 24 acre plot for the backward integration plant?

Speaker #1: But we would not like to specify, you know, maybe on a part-to-part basis. We have already communicated that we are going to spend around ₹120 crore toward the Burkina Faso project.

Ekta Soni: But we would not like to specific, maybe on part to part. We already have communicated that we are going to spend around INR 120 odd crores toward Burkina Faso project, but we would, as a company, not be comfortable to share all the finances.

Speaker #1: But we, as a company, would not be comfortable sharing all the finances for each of our investments. Thank you.

Deepali Bansal: No problem.

Ekta Soni: for each of our investments. Thank you.

Speaker #4: Do we have any numbers regarding the Decade Corporation? I mean, we don't have any numbers, like revenue or margins, for Decade.

Deepali Bansal: Do we have any numbers regarding the Dekel corporation? We don't have any numbers. What revenue?

Ekta Soni: For?

Speaker #1: For the decade, as of now, we have not started, and currently, we don't have any specific numbers to share with you, particularly regarding revenue from the decade environment.

Deepali Bansal: What margins?

Ekta Soni: For Dekel? As of now, we have not done, started. Currently, we don't have any specific numbers to share with you, from the particularly revenue from the Dekel environment. But one thing we need to understand that Dekel, there is a processing facility. The production is going to be going from the Indian plant only. So that revenue will be more visible from the Indian plant, and that Dekel facility is a processing facility just for a material going from Manorama Industries Limited, India.

Speaker #1: But one thing we need to understand is that, for this decade, there is the processing facility. The production is going to be coming from the Indian plant only.

Speaker #1: So, that revenue will be more visible from the Indian plant, and that Decade facility is the processing facility just for material going from Manorama Industries Limited, India.

Speaker #4: All right, ma'am. Thank you. That's it from my end.

Deepali Bansal: All right, ma'am. Thank you. That's it from my end.

Speaker #2: Thank you.

Speaker #1: Thank you.

Deepali Bansal: Thank you. The next question is from the line of Akshay from AK Investment. Please proceed.

Operator: Thank you. The next question is from the line of Akshay from AK Investment. Please proceed.

Speaker #2: The next question is from the line of Akshay from AK Investment. Please proceed.

Speaker #4: Hi. Thanks for the opportunity. First of all congratulations on the great set of number. Ma'am my question was about around the capex. So as you already highlighted the 460 crore capex will be spent till quarter three of FY 28 and then contribution will start from gradually.

[Analyst] (AK Investment): Hi. Thanks for the opportunity and first of all, congratulations on the great set of numbers. Ma'am, my question was around the CapEx. As you already highlighted, the INR 460 crore CapEx will be spent till Q3 of FY28, and then contribution will start gradually. My question is currently our asset turn is around 7x, so can we expect the same 7x asset turn going forward in FY29, FY30, when this new facility will be fully ramped up?

Akshay Kaila: Hi. Thanks for the opportunity and first of all, congratulations on the great set of numbers. Ma'am, my question was around the CapEx. As you already highlighted, the INR 460 crore CapEx will be spent till Q3 of FY28, and then contribution will start gradually. My question is currently our asset turn is around 7x, so can we expect the same 7x asset turn going forward in FY29, FY30, when this new facility will be fully ramped up?

Speaker #4: Right. So my question is, currently our asset turn is around 7x. So can we expect the same 7x asset turn going forward in FY29 or FY30, when this new facility will be fully ramped up?

Speaker #1: Actually, we have always intended to reach a higher asset turn. But to guide you that it will be 7x, 8x, or 9x currently, today, would not be feasible for us.

Ekta Soni: Well, we always have intended to reach on a higher asset turn thing. To guide you that it will be 7x, 8x, 9x currently today, will be not feasible for us. What we can say is historically what has been there in terms of our CapEx investment, the company will be aiming to perform on that direction only going forward. We are very much positive that our new investments, in terms of our proposed CapEx plan, should give us a good, steady, healthy growth for our near-term vision for our three to five years. For FY30, FY31, we should be there.

Speaker #1: But what we can say historically what has been there in terms of our capex aiming to perform on that direction only going forward. But we are very much positive that our new investments in terms of our proposed capex plan should give us a good steady healthy growth for our near term vision for our 2 3 to 5 years.

Speaker #1: For FY30-31, we should be there.

Speaker #4: Okay ma'am. And my my second second question is around the full year top line expectations. So do we have any internal expectation not absolute number but in the percentage terms do we have any range for the growth and also the EBITDA margins can we expect the same EBITDA margin going forward in the next three quarters for FY 27.

[Analyst] (AK Investment): Okay, ma'am. My second question is around the full year top line expectations. Do we have any internal expectations? Not for absolute number, but in the percentage terms. Do we have any range for the growth and also the EBITDA margin? Can we expect the same EBITDA margin going forward in the next three quarters for FY27?

Akshay Kaila: Okay, ma'am. My second question is around the full year top line expectations. Do we have any internal expectations? Not for absolute number, but in the percentage terms. Do we have any range for the growth and also the EBITDA margin? Can we expect the same EBITDA margin going forward in the next three quarters for FY27?

Speaker #1: Set directionally, what we can guide you as of today is that yes, we have started FY27 on a very healthy note, as you have seen in the performance.

Ekta Soni: Sir, directionally, what we can guide you as of today is that, yes, we have started FY27 on a very healthy note, as you have seen in the performance, what we have published yesterday. With the Q1 performance providing a good base, establishing a good run rate for the year, we also see further scope of improvement as the year progresses. That are supported by capacity ramp up. Debottlenecking is to be done, and a good utilization is to be done from our plant. We also are very confident on delivering healthy top line growth in FY27 as well.

Speaker #1: What we published yesterday—and with the Q1 performance providing a good base, establishing a good run rate for the year—we also see further scope for improvement as the year progresses.

Speaker #1: There is support by capacity ramp-up; the bottlenecking is to be done. And good utilization is to be achieved from our plant. So, we are also very confident about delivering healthy top-line growth in FY27 as well.

Speaker #4: Okay, ma'am. And lastly, you have said that the 40,450 MTPA that we are de-bottlenecking, so the 85% utilization is on that improved capacity?

[Analyst] (AK Investment): Okay, ma'am. Lastly, you have said that 4,500 MTPA that we are debottlenecking, so 85% utilization is on that improved capacity, right? In the full year.

Akshay Kaila: Okay, ma'am. Lastly, you have said that 4,500 MTPA that we are debottlenecking, so 85% utilization is on that improved capacity, right? In the full year.

Speaker #4: Right. In the full year.

Speaker #1: Yes. That you can say that 80 85% the management internal target is around that execution level. But as a stakeholder you should take around 80% of utilization any improvement which is there around 85 or 90% will be shown and communicated to our shareholders accordingly.

Ekta Soni: Yes. You can say that 80%, 85%, the management internal target is around that execution level. But as a stakeholder, you should take around 80% of utilization. Any improvement which is there around 85% or 90% will be shown and communicated to our shareholders accordingly.

Speaker #4: Okay, ma'am. Okay, thank you so much, and all the best.

[Analyst] (AK Investment): Okay, ma'am. Okay. Thank you so much and all the best.

Akshay Kaila: Okay, ma'am. Okay. Thank you so much and all the best.

Speaker #1: Thank you.

Speaker #2: Thank you. A request to all participants: please restrict your questions to one per participant. For more questions, please rejoin the queue. The next question is from the line of Abhijan.

Ekta Soni: Thanks.

Ekta Soni: Thank you. A request to all participants, please restrict your question to one question per participant. For more questions, please rejoin the queue. The next question is from the line of Abhijay from AJ Capital. Please proceed.

Operator: Thank you. A request to all participants, please restrict your question to one question per participant. For more questions, please rejoin the queue. The next question is from the line of Abhijay from AJ Capital. Please proceed.

Speaker #2: From AJ Capital. Please proceed.

Speaker #4: Hi. Good afternoon. Am I audible?

[Analyst] (AJ Capital): Hi. Good afternoon, hope I'm audible.

Speaker #2: Yes sir.

Speaker #4: So in this following up on the question of you know maintaining the asset term that you have been you have been able to achieve in FY 26.

[Analyst] (AJ Capital): Yes, sir.

Operator: Yes, sir.

[Analyst] (AJ Capital): I'm just following up on the question of maintaining the asset turn that you have been able to achieve in FY26. As this CapEx of INR 460 odd crores comes on board by FY28 or the first half of FY29, apart from the revenue, my second question was on the working capital. If I look at the past history of Manorama, if this INR 460 crores of CapEx produces a 7x asset turn, it will also require close to about INR 900 odd crores to INR 1,000 odd crores of working capital as per my calculations. Can you help us guide or understand how do you see additional working capital that you'll be requiring over the next two years and any plan on fundraise or how do you manage it? Some guidance or some hint around that.

Speaker #4: Now, as this capex of ₹460-odd crores comes on board by FY28, or the second half of FY29, or the first half of FY29.

Speaker #4: Apart from the revenue, my second question was on the working capital. So if I look at the past history of Manorama, right, if this ₹460 crores of capex produces a 7x asset turn…

Speaker #4: It will also require close to about ₹900 crore to ₹1,000 crore of working capital, as per my calculation. So, any helpful guidance or understanding on how you see the additional working capital that you will require over the next two years, and any plans on fundraising or how you intend to manage it?

Speaker #4: So, some guidance or some hint around that.

Speaker #1: So yes, there is a requirement of around 50% in terms of raw materials for our business and the kind of asset turnover that you have mentioned, and what we have done over the past.

Ekta Soni: So yes, there is a requirement of around 50% in terms of raw material for our business and the kind of asset turn which you have mentioned and what we have done over the past. For that, we are very much lined up with our existing bankers. Recently also, if you see, we have successfully completed our fundraising QIP, which was around INR 500 crores. All the money what we have, we also have INR 150 odd crores FDR in form of FDR in company with us excluding the QIP component. Apart from that, we have sanctioned bank limits with us, where State Bank of India is our lead banker. So we are very much aligned with our near-term vision for this CapEx plan as well in terms of working capital requirement.

Speaker #1: For that, we are very much lined up with our existing tankers, and recently also, if you see, we have successfully completed our fundraising QIP.

Speaker #1: Which is, which was around Rs. 500 crore. That’s all the money that we have. We also have around Rs. 150 crore in the form of FDR in the company with us, excluding the QIP component.

Speaker #1: And apart from that, we have sanctioned bank limits with us, where State Bank of India is our lead banker. So, we are very much aligned with our near-term vision for this capex plan as well, in terms of working capital requirements.

Speaker #4: So sorry. So, you're saying any additional working capital over the next two years will be raised by debt, and not necessarily by equity dilution.

[Analyst] (AJ Capital): So sorry. So you are saying any additional working capital over the next two years will be met by debt and not necessarily by equity dilution. Is that a fair understanding?

Speaker #4: Is that a fair understanding.

Speaker #1: So, we have already done the equity dilution in the last quarter, right? We raised ₹500 crore for that. So, of course, we don't need that equity dilution again in a quarter or two for that.

Ekta Soni: We already have done the equity dilution in the last quarter. Right?

[Analyst] (AJ Capital): Yes.

Ekta Soni: We have raised INR 500 crores for that.

[Analyst] (AJ Capital): Yes.

Ekta Soni: So of course, we don't need that equity dilution again in a quarter or two for that. That is not there in the plan, of course not.

Speaker #1: So, that is not there in the plan, of course not.

Speaker #4: Okay. All right. Thank you, and all the best. Great set of numbers—keep delivering what you have been delivering over the past five years.

[Analyst] (AJ Capital): Okay. All right. Thank you and all the best and great as a member. Keep delivering what you've been delivering over the past 5 years. So congratulations.

Speaker #4: So congratulations.

Speaker #1: Thank you so much for that.

Speaker #2: Thank you. The next question is from the line of Rohan Mehta from Fecom Family Office. Please proceed.

Ekta Soni: Thank you so much for that.

Ekta Soni: Thank you. The next question is from the line of Rohan Mehta from Pikon Family Office. Please proceed.

Operator: Thank you. The next question is from the line of Rohan Mehta from Ficom Family Office. Please proceed.

Speaker #5: Hi. Am I audible.

Speaker #2: Yes.

Rohan Mehta: Hi, am I audible?

Speaker #5: Perfectly. Thank you so much for the opportunity. So, on the other income of about ₹16-odd crores, could you break that down—how much of it was from forex gain?

Rohan Mehta: Yes.

Operator: Yes.

Rohan Mehta: Perfectly. Thank you so much for the opportunity. On the other income of about 16 crore, could you break that down how much of it was from ForEx gain? On your hedging policy, as per last quarter, about 60% is currently hedged. I am just trying to understand the rationale of why not move towards fully hedged position instead.

Speaker #5: And on your hedging policy, as per last quarter, about 60% is currently hedged. So I'm just trying to understand the rationale for not moving towards a fully hedged position instead.

Speaker #1: The historical business policy is that we have always been hedging 50–60% of the net exposure that we have, because we already do a lot of imports and exports.

Ekta Soni: The historical business policy, we always have been hedging 50%, 60% of the net exposure what we have, because already we do lot of import and export. We are a natural hedge company as well. Whatever net exposures are left as a policy historically, we have been hedging 50%, 60% and that has been in line what the management requirement is. Out of 16 crore of other income gain, 13 crore gain was from ForEx part and the rest, 3 crore, was in the form of other income, part of FDR.

Speaker #1: So, we are a natural hedge company as well. So, whatever net exposures are left, as a policy, historically we have been hedging 50 to 60%.

Speaker #1: And that has been in line with what the management requirement is. And out of ₹16 crore of other income gain, ₹13 crore gain was from the forex part.

Speaker #1: And the remaining ₹3 crore was in the form of other income, part of FDR.

Speaker #5: Okay. Okay. And on de-bottlenecking, I just want to understand.

Rohan Mehta: Okay. On the de-bottlenecking, I just want to understand.

Speaker #2: Sorry to interrupt you, Mr. Mehta, but could you please rejoin the queue? Thank you. The next question is from the line of Onkar from Sree Investment.

Rohan Mehta: Sorry to interrupt you, Mr. Mehta, but can you please rejoin the queue? Thank you. The next question is from the line of Omkar from Shree Investment. Please proceed.

Operator: Sorry to interrupt you, Mr. Mehta, but can you please rejoin the queue? Thank you. The next question is from the line of Omkar from Shree Investment. Please proceed.

Speaker #2: Please proceed.

Speaker #6: Yeah, my question is on the margin trajectory. With the additional capacities coming on—that is, the new capex I am talking about—and with the size getting bigger...

[Analyst] (Sri Investment): Yeah. My question is on the margin trajectory. With the additional capacities coming on, I mean, the new CapEx I am talking about, and the size getting bigger, how do you see operating leverage kicking in the next 2, 3 years for the company? And also the improvement in the sourcing front. Yeah, that is it.

[Analyst] (Shree Investment): Yeah. My question is on the margin trajectory. With the additional capacities coming on, I mean, the new CapEx I am talking about, and the size getting bigger, how do you see operating leverage kicking in the next 2, 3 years for the company? And also the improvement in the sourcing front. Yeah, that is it.

Speaker #6: How do you see operational operating leverage peaking in the next two to three years for the company? And also, the improvement on the sourcing front?

Speaker #6: Yeah. That's it.

Speaker #1: See. To guide you what will be there in the two three years. Today will be very difficult for us. But directionally what we can say we are in a good shape.

Ekta Soni: See, to guide you what will be there in the 2, 3 years, today will be very difficult for us. But directionally, what we can say, we are in a good shape, and operating leverage should come into the picture. We are going to expand our capacities further. We are improving on our product mix as well. Historically, if you see the company has performed over the last 3, 4 years, it has been 20, 25 consistent quarters where the company has given a good performance in terms of their top line or be it on a margin front. We have always guided our stakeholders that business is business and business has always risk.

Speaker #1: And operating leverage should come into the picture. We are going to expand our capacities further. If we are improving on our product mixes as well.

Speaker #1: Historically, if you see how the company has performed over the last three or four years, it has been 20 to 25 consistent quarters where the company has given a good performance.

Speaker #1: In terms of their top line, or be it on a margin front, we have always guided our stakeholders that business is business, and business always has risk.

Speaker #1: But we are always working round the clock to optimize the full efficiency of our production, the value-added makes, and everything. We remain confident in performing a good set of production going forward.

Ekta Soni: But we are always working round the clock to optimize the full efficiency of our production, the value-added mix and everything, and we remain confident on performing a good set of production going forward, and it should improve the efficiencies of the company as well. So from a margin point of view, we will say that whatever the company has been doing historically should be considered directionally as a margin thing, and whatever movements are there, we would be able to share you on a quarter-to-quarter basis going forward.

Speaker #1: And it should improve the efficiencies of the company as well. So, from a margin point of view, we will say to you that whatever the company has been doing historically,

Speaker #1: This should be considered directionally, as a margin thing. And whatever movements are there, we will be able to share with you on a quarter-to-quarter basis going forward.

Speaker #4: Correct. But I am not asking for any specific number, but directionally, with all those things which you mentioned. And I asked about whether the margin should go up from here.

[Analyst] (Sri Investment): Correct. But I am not asking for any specific number, but directionally with all those things which you mentioned and I asked about, the margin should go up from here, right? Not a quarterly basis thing for that, but on a yearly or two yearly basis, the direction should be upwards, right?

[Analyst] (Shree Investment): Correct. But I am not asking for any specific number, but directionally with all those things which you mentioned and I asked about, the margin should go up from here, right? Not a quarterly basis thing for that, but on a yearly or two yearly basis, the direction should be upwards, right?

Speaker #4: Right, not on a quarterly basis or anything like that, but on a yearly or two-yearly basis, the direction should be upwards. Right?

Speaker #1: So, we would direct you for us, more sustainable margin. We, at this moment, can guide you this only for that. Of course, there are multiple rivers.

Ekta Soni: We would direct you for a more sustainable margin. At this moment, we can guide you this only for that. Of course, there are multiple levers which are there, which are going to be there, which should take company in an improving trajectory only. But to guide you anything today will be little difficult for us. So once we are there, we will guide you for that.

Speaker #1: Which are there. Which are going to be there. Which should take the company in an improving trajectory only. But to guide you on anything today will be a little difficult for us.

Speaker #1: So once we are there, we will guide you for that. Sure. Thank you. Thank you.

[Analyst] (Sri Investment): Sure. Thank you.

[Analyst] (Shree Investment): Sure. Thank you.

Speaker #2: Thank you, ladies and gentlemen. Due to time constraints, that was the last question for today. I now end the conference and hand it over to the management for closing comments.

Ekta Soni: Thank you.

Ekta Soni: Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments.

Speaker #3: We are steadily advancing our aspiration of becoming the partner of choice for the world's leading food, confectionery, and cosmetic companies through strategic investments in research and development.

Ashish Saraf: We are steadily advancing our aspiration of becoming the partner of choice for the world's leading food and confectionery and cosmetic companies through strategic investments in research and development, sourcing, manufacturing, and market expansion. Backed by a strong balance sheet, deep sourcing capabilities, and increasingly integrated value chain, we are well-positioned to scale our operations, enhance customer partnerships, and capture the significant opportunities emerging in the global specialty ingredients market. As we move forward, our commitment remains unwavering to drive sustainable growth, center our global footprint, and build a resilient, innovation-led business that consistently delivers value to all stakeholders. On behalf of Manorama Industries, I thank you all for joining the call, and we look forward to serve our stakeholders, our suppliers, our forest dwellers, our customers, and all people connected with Manorama. Thank you.

Speaker #3: Investments in research and development, sourcing, manufacturing, and market expansion. Backed by a strong balance sheet, deep sourcing capabilities, and an increasingly integrated value chain, we are well positioned to scale our operations.

Speaker #3: Enhanced customer partnerships, and capture the significant opportunities emerging in the global specialty ingredients market. As we move forward, our commitment remains unwavering to drive sustainable growth.

Speaker #3: Strengthen our global footprint and build a resilient, innovation-led business that consistently delivers value to all stakeholders. On behalf of Manorama Industries, I thank you all for joining the call.

Speaker #3: And we look forward to serving our stakeholders—our suppliers, our forest dwellers, our customers, and all people connected with Manorama. Thank you.

Speaker #2: Thank you. On behalf of Manorama Industries Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.

Ashish Saraf: Thank you. On behalf of Manorama Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of Manorama Industries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Manorama Industries Ltd Earnings Call

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