Strong revenue offset by staples loss, guidance held despite macro headwinds

Delivered 11,337.5 Cr, actual YoY growth 27.4%, not 29%

OPM 4.8% confirmed, NPM 3.0% (₹335.7 Cr PAT ÷ ₹11,337.5 Cr revenue)

Delivered ₹560 Cr revenue with 27% growth; margin improvement corroborated by management claim

Segment generated negative EBITDA of -₹59 Cr despite >₹1,000 Cr revenue; loss-making, not challenged

Disclosed specifically in Q&A; growth driven by inflation not demand; volume growth above 3-4% oil guidance but below overall food 8-10% annual guidance

Segment now negative ₹59 Cr EBITDA vs prior implied profitability; weather, geopolitical, food inflation cited as factors; management cautious on recovery vs. peers positive

Management cited El Niño impact unclear and rural income/demand contraction risk; explicitly more cautious than industry peers on Q2-Q3 staples growth despite 8-10% annual guidance maintained

Packaging, freight, logistics costs increased during quarter; FMCG margins pressured despite pricing; offset by edible oils inflation boost but net impact mixed for consolidated margins

Commodity inflation working in favor; current margin 5.22% vs prior guidance 2-4%, momentum toward 5%+ target achieved but dependent on price levels remaining elevated

EBITDA margin expanded to 15.35% from 9.35% YoY; Doodh Biscuit brand driving ₹1,300 Cr annual business; competitive exits (low-cost players) reducing pricing pressure

No intention to exit or slow down; strong category, continue launching variants; market expanding. Did not provide dishwash-specific revenue.

Doodh Biscuit ₹1,300 Cr annual business, quality-focused, EBITDA margin 15%+ expanding QoQ/YoY; committed to INR5/INR10 price points; premium variants under development.

Two factors: (1) El Niño impact on production/availability & food inflation unclear, (2) rural income/demand contraction risk. Policy response on commodity controls pending. Overall 8-10% guidance maintained.

5% volume growth, 12% pricing inflation in foods segment; buoyancy from Kesar/rice focus and new variants; margin lower but reach/kitchen presence priority.

Ethnic foods ₹9 Cr, HPC ₹122 Cr, Staples -₹59 Cr (loss). Disclosed willingly but negative EBITDA not emphasized.

Matter sub judice; can discuss post-call via SGA advisors.

No specifics on Bain deal; generic comment that nutraceuticals is fastest-growing health segment; Patanjali reconstructed portfolio, turned positive from negative, intends to grow segment.

TSP 'tends to do not so good' at high inflation because soya bean prices spike and price pass-through limited; Nutrela 40% market share, ₹160 Cr Q1 revenue, 18%+ margin; confident maintaining 16-18% guidance.

Last year ₹11,000+ Cr, this year expecting ₹12,500 Cr (10%+ growth); guidance 10-12% overall but implicit higher for FMCG implied.

Three factors: (1) Oil palm 15%+ momentum, structural margin generator, (2) HPC/Nutrela/biscuits margin expansion, (3) Edible oils margin move from 2-4% toward 5%+. Target ₹2,500 Cr EBITDA in 18 months.

60% success rate on launches (30-35% fail/tweak); HPC pipeline strong with dental care/skin care variants; Dant Kanti Gen Z variants performing well; slew of HPC launches coming next quarter.

Currently 15% of revenue (modern trade + e-comm + QC combined), growing 25% YoY, targeting 20% in 18 months. Moved from 12% to 15% in last 15 months.

No earnings multiple; business was ₹2,900 Cr revenue, ₹600 Cr EBITDA; ₹1,100 Cr is <19 months payback, already repaid in 18 months; slump sale basis (assets + inventory only), no valuation methodology, almost gifted by parent.

Guidance maintained: foods 8-10%, HPC 15%, oils 2-4% volume, EBITDA margin growth 10-12% basis. Performance subject to market conditions.

Reaffirmed in call; Q1 delivered ~17% (5% volume + 12% pricing inflation); volume growth above guidance but dependent on price pass-through sustainability

Biscuits, skin care emerging as growth drivers; HPC acquisition full-year consolidation starting Q2 FY27 (acquired July 2024) will accelerate segment

Q1 volume growth 5% (above guidance); commodity inflation masking true volume; if inflation reverses, volume target at risk

Implied 12%+ growth (vs stated 10-12% guidance); achievable if HPC acquisition runs for full 9 months (July-Mar) and high-margin categories expand

Current 5.22% at peak commodity levels; dependent on price levels staying elevated; margin compression risk if oil prices normalise

Implied from HPC strong margins (6.45%) and acquisition baseline ₹600 Cr; but staples loss (-₹59 Cr) creates drag; dependent on staples recovery

Q1 EBITDA only ₹543 Cr on ₹11,338 Cr revenue = 4.8% (implied ~₹1,100-1,300 Cr annual target); requires oil palm, HPC, edible oils expansion; mid-term target not clearly defined

Q1 delivered 18%+ at 40% market share; confident maintaining despite commodity inflation headwind (limited price pass-through)

1.15 Lakh hectares cultivated (6.63 Lakh allocated), 37% in prime yielding phase; strategic expansion to support 15% growth; capex implied but not quantified

Consumer staples revenue >₹1,000 Cr generating negative EBITDA of -₹59 Cr Q1; management cites weather, geopolitical, food inflation; caution on rural income stress could deepen losses

Edible oils at 5.22% EBITDA margin benefiting from commodity inflation (Q1 tailwind); PAT growth 86% driven partly by long edible oil positions; if prices normalise, margin compression risk

Management explicitly cautious on rural income and rural market demand contraction; El Niño unclear impact on production; staples segment vulnerable to volume loss if rural purchasing power declines

Management disclosed 'abundant caution' inventory markdown for 'certain quality issues' in pulses stocks; suggests process lapses in core food category; could impact brand trust and category growth

Packaging, freight, logistics costs up Q1; FMCG pricing limited by competition; TSP margin pressure at commodity inflation (limited soya bean price pass-through); blended margin risk if cost inflation persists