Integ. Industrie

Nurture Well Industries Limited reported robust financial results for Q3 FY26, with revenue from operations growing by 45.80% year-on-year to INR 289.77 crores. EBITDA saw an even stronger increase of 93.80% to INR 33.19 crores, leading to an EBITDA margin expansion to 11.45% from 8.65% in the prior year. Net profit surged by 95.04% to INR 34.60 crores, with diluted EPS at INR 1.19. For the nine months ended FY26, revenue reached INR 826.48 crores (up 57.28% YoY) and net profit rose by 104.20% to INR 92.32 crores, demonstrating consistent growth across the fiscal year.

The company is actively pursuing expansion in the domestic market, targeting new geographies such as Uttar Pradesh, Madhya Pradesh, and Bombay. This is complemented by a significant broadening of its product basket, including the addition of donuts, rusk, khari biscuits, kulcha, bread, and puff variants. Management also indicated plans to introduce noodles, cornflakes, and chocolate products, with trial runs already underway and official launches expected within the next 1-2 months. This strategy aims to enhance opportunities across both retail and institutional channels.

To support its growth ambitions, Nurture Well Industries is undertaking substantial capacity expansion. The existing Neemrana facility, currently operating at 65-70% utilization (2,000 tons/month), is targeted to reach 80-85% utilization and will see additions of 2-3 new lines in FY26-27, costing INR 15-20 crores. A new manufacturing unit in Secunderabad is planned with a total investment of INR 400 crores (INR 300 crores for capex and INR 100 crores for working capital). This new unit is expected to commence commercial operations in FY28-29, with trial runs by the end of FY27. The total capex for the next two years is projected at INR 400-450 crores, to be funded through promoters' contributions, internal accruals, and capital market equity raises, with no long-term debt planned.

The company's overseas business, primarily contract manufacturing in Malaysia, currently accounts for approximately 80% of total revenue. It operates through consolidators and super stockists in the UAE and Middle East, who then cater to African markets. While the overseas segment currently yields a 10% margin and is tax-exempt, the Indian segment's margin is 6-8%. With the new unit focusing on premium products, the Indian gross margin is expected to jump from 10-13% to 25-30%, leading to an overall EBITDA margin improvement from 10% to 15% in the next 2-3 years. The overseas margin is also targeted to increase to 11-11.5%.

Nurture Well Industries has set an ambitious target of achieving INR 2,500 crores in total business by FY29, once the new Secunderabad unit is fully operational. The Indian business alone is projected to contribute INR 1,200-1,300 crores to this total. The company aims to shift its revenue mix to a 50-50 split between Indian and overseas business within three years, significantly increasing the domestic contribution from the current 20% to 50-60% of total turnover. This strategic pivot towards the higher-margin domestic market, coupled with new product introductions, is expected to drive substantial growth and profitability.