Krishival Foods Ltd Q2 FY27 Results

Nuts ₹63.16 Cr, 19% YoY growth confirmed; EBITDA ₹10.44 Cr = 16.5% margin, not 17%

Ice cream EBITDA ₹3.53 Cr on ₹22.50 Cr = 15.7%; Q2 EBITDA 16% reported, but revenue only ₹22.50 (vs ₹13.67 Q1), growth ~65% YoY

Q2 revenue +28.5% YoY but PAT +19.1% YoY; QoQ revenue fell 3.7% (monsoon impact); NPM 7.8% vs prior OPM 13.9% — margin compression evident

Added 10 MT capacity in May (to 20 MT total). Management states only 25% utilization of additional capacity so far — confirms conservative ramp

Q2 ice cream +65% YoY; management now targets 50%–50% nuts/ice cream split by Mar 28 (was historically nuts-led)

Nuts capacity expanded to 20 MT (May 2026) with 40 MT target by Mar 28; ice cream facility added 20 MT milk production, 10 MT bakery capacity

First Melt & Co outlet coming Pune; plans 15 FOCO spokes + expansion to Navi Mumbai, Hyderabad (new vs prior pure B2B/wholesale play)

Nuts EBITDA 16.5% (vs 15–16% target attained), ice cream 15.7% (vs 8% historical but below guidance due to inventory drag); NPM fell to 7.8% (was higher pre-Q2)

Singapore ₹384k Q2; USA/Japan now explicit near-term targets (vs prior cautious stance); Vivek Kumar (CBO, ex-Tata Consumer) hire signals intent

Nuts capacity-constrained (expanded May, ramping slow). Ice cream lower-base grind-up; strong industry tailwinds. Nuts expected 20–25% next 2–3 qtrs; ice cream will nearly double nuts growth.

Sourcing, B2B pricing, inventory management (good procurement this quarter). Nuts EBITDA historically 14–16%; maintained high margin despite inflation. B2B partners (Prashant Corner, Meetha, Home Sweet Gurgaon) give high gross margin.

First outlet Pune Apte Road (~1,400 sq ft), then 15 FOCO spokes. Rationale: low capex (franchisee bears rent), full inventory control, brand experience. Asset-light vs company-owned.

Next 2 yrs ice cream will grow 2x+ faster than nuts. By Mar 28, expect 50%–50% split (nuts ₹750 Cr, ice cream ₹750 Cr). Ice cream seasonality (winter strong, summer monsoon weak) will smooth out.

Sound supply chain + vertical integration (own processing for nuts, own ice cream production). Managed well despite El Niño, inflation. Indexed pricing to B2B partners; careful inventory strategy. EBITDA targets: nuts 15–16%, ice cream 15–16% (vs 8% historical).

Tamil Nadu entry was opportunistic (inquiries from Andhra Pradesh). Good customer acceptance. Won't expand beyond ₹600 Cr ice cream top-line (to avoid overconcentration); focus on 5–6 metro states (MH, KA, TG, AP, TN).

Singapore successful, now 300+ retail touchpoints, USD 384k Q2 shipment. USA bullish expansion plan (target distribution in 2–3 yrs), then Japan. Vivek Kumar hire (ex-Tata Consumer, export experience) supporting push. Cautious build-out to avoid seasonality mismatch.

Transient. September is peak festive/Diwali season; ice cream sales tripled. Jul–Aug very slack (monsoon). Sept–Oct max sales month; receivables will normalize by year-end. Inventory build for El Niño hedging (raw material costs, crop uncertainty).

FY29 is inflection point. Current year (FY27) is ramp year — depreciation from ice cream freezer network expansion. As capacity utilization rises and debt/EBITDA optimizes, PBT margin will recover. FY29 target revenue ₹1,500 Cr (top-line).

Nuts segment: no further borrowing needed (mature). Ice cream: borrowing for capacity expansion (freezer network, chilling center). Will be managed via EBITDA growth. Debt will increase only in ice cream segment next year; nuts self-funding. Debt-to-EBITDA manageable given growth trajectory.

Multi-year ambition; implies ~40–50% CAGR FY27–FY29. Dependent on capacity ramp, distribution network, export traction

H1 FY27 at +50% revenue, +63% EBITDA already achieved; Q2 monsoon headwind for ice cream may moderate H2 growth

Capacity constraint; new 10 MT added, ramping to 40 MT by Mar 28. Gradual utilization to follow demand

Current Q2 showing 65% YoY; expect higher-growth trajectory vs nuts 19%. By Mar 28, 50%–50% nuts/ice cream split

Q2 nuts at 16.5%, ice cream at 15.7%; targets being met. Depends on input cost stability and capacity utilization

Management flagged FY27–FY28 as investment phase. PBT margin expansion contingent on scaling without further major capital spend

Depends on macro input cost environment and demand elasticity

May 2026 expansion completed (10 MT added); Mar 28 timeline for next phase; capex already in progress

On track; distributors being added (85 in Q2); target achievable

Retail inflation 5.4%, food inflation 7.74%, crop uncertainty (El Niño). Company dependent on global nut prices and milk supply. Pricing power limited in competitive segments.

Nuts capacity expanded to 20 MT in May; currently at only 25% utilization of new capacity. Gradual ramp-up required; if demand softer than expected, profitability could erode.

Major national FMCG/ice cream players entering with affordable pricing. Krishival competing on premium/health positioning; brand differentiation at risk if larger players discount.

H1 receivables spiked to ₹55 Cr (64% of Q2 revenue); inventory also built for hedging. Cash conversion cycle lengthening; working capital pressure near-term.

USA and Japan market entry targets 2–3 yrs. Requires localized distribution, regulatory compliance, capex. Success dependent on new CBO (Vivek Kumar, recently hired). Execution risk high.