Strong growth offset by margin compression and near-term headwinds

Basmati 22% YoY in H1 (26% value, 11% volume); 21% value Q2 but modest 6% QoQ volume

Q2 EBITDA margin 11%, down from 11.4% YoY; H1 at 11.2% vs 11.7% prior year

Middle East grew 25% in H1 but supply disruptions constrained inventory flow and inflated freight by $200/ton

Inventory days 159 vs 187; payable days 26 vs 29; WC days 143 vs 174 — confirmed

Ad spend +70bps to 2.5% of revenue; household reach 56.2→67.5 lakh; branded portfolio up 1.3% with 140bps market share gain

Prior call implied hold at 11%+ EBITDA; now deferred to 13%-14% 'once sectors scale,' no FY27 target reaffirmed

22% H1 exceeds prior 10-12% core basmati guidance but QoQ sequential slower (6% volume) vs YoY (11%)

From 15% growth track to 25% growth with material freight inflation ($50-$200/ton) and inventory flow constraints

Prior guidance: breakeven at ₹400 Cr; now: breakeven 'next year' (FY28), facility still ramping

Paddy inventory 82k tons at ₹43/kg; rice 260k at ₹60/kg; crop prices up 22-25% but business model covered for 2025 crop.

Q2 volume growth 11% YoY, 6% QoQ; value growth 21% YoY, 5% QoQ. Sequential modest due to seasonal patterns.

Promotions running in RTH/RTC segment per plan; sampling reduced; impact ₹2 Cr on PAT.

We're very confident on business model. Margins 13%-13.5% to 14% once Europe, Middle East, Organic scale up. Fundamentals strong.

Basmati specialty value up 26%, volume up 11.5%. Per-ton increase ~13% (price). Forex included in rupee terms.

Seasonal; non-peak procurement period. Cash released will be deployed in paddy procurement coming quarters.

Providing growth %; volume and value growth both shared. Competitive reasons to not disclose absolute volume.

Ad spend 2.3% of revenue annually; this quarter spiked to 2.5%-2.6% due to new launches. Will stabilize at 2.3%.

Middle East contributes 9-10% revenue, impacted by supply/freight. Future quarters will show benefit of mitigation steps.

UK is part of strategy as basmati company. Scale will come; next year we expect profitability.

Crop started in early September; price increases already passed in India. Will pass through as inventory sells.

Partly received; still in discussion with customer. Expected clear by year-end.

50-50 hedge policy ongoing 10 years. Rupee depreciation benefits as exporter; roughly 4%-5% of cost value impacting.

H1 delivered 27% basmati revenue growth, exceeding guidance. Momentum to continue with geographic expansion.

Basmati sequential volume growth slowed to 6% QoQ; management cautious on 'maintaining momentum' language

Currently at 11%; margin target deferred to 'when 3-4 investment sectors scale' (Europe, Middle East, RTH, Organic). No commitment to FY27.

Freight cost and brand spend identified as temporary; sequential quarters expected to show full mitigation benefit

Shipping costs in Middle East up $50-$200/ton; consolidated freight impact +40bps on EBITDA. Pass-through to customers uncertain in timeframe.

Basmati volume growth slowed to 6% QoQ (vs 11% YoY); analyst flagged 'modest sequential growth.' Higher paddy prices may be hitting demand elasticity.

No explicit FY27 EBITDA margin target reaffirmed. Target 13%-14% is multi-year deferral. Current 11% faces headwinds (freight, brand spend). Path to recovery unclear.

RTH facility ₹400 Cr breakeven target now expected 'next year' (FY28, not FY27). Investment-phase drag on consolidated margins continues longer.

Remodeling from sourcing/ingredient business to consumer-focused organic platform. Near-term revenue pressure as intermediary-led model phased out. Structural margin upside post-transition unclear.