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    Hoac Foods India Q4 FY26 earnings call

    HOACFOODS
    Fast Moving Consumer Goods·15 May 2026
    Management Summary

    HOACFOODS reported a strong financial performance for H2 and full year FY26, with significant growth in total income, EBITDA, and PAT. The company is expanding its capacity with a new plant and diversifying its product portfolio, despite facing some margin pressure from off-season raw material purchases and delays in new plant commissioning. Strategic focus is on strengthening direct-to-consumer channels and exports.

    Highlights

    5

    • Total income for H2 FY26 stood at INR 2,865 lakhs, registering a robust growth of nearly 84% year-on-year.

    • EBITDA for H2 FY26 increased by over 52% to INR 400 lakhs, while PAT grew by approximately 66% to INR 246 lakhs.

    • For the full year FY26, total income increased by over 90% to INR 5,049 lakhs, with EBITDA growing by nearly 72% to INR 731 lakhs and PAT by around 77% to INR 441 lakhs.

    • The existing factory is operating at 95% utilization, and a new factory is expected to increase capacity 5x, from 20 tons/day to 45-50 tons/day for Atta.

    • The company plans to launch 15-20 new marginal products in FY27 and aims to double website/app revenue to INR 6 crores in FY27.

    Concerns

    3

    • H2 FY26 EBITDA margins (13.95%) were impacted due to raw material purchases during the off-season for new B2B and export verticals.

    • The commissioning of the new plant in Vidisha is delayed by 1.5 months due to supplier rate increases for PEB shed, iron, and machines.

    • Quick commerce platforms like Blinkit charge high margins (30-32%), leading the company to focus on its own website and mobile application.

    Key financials

    Metrics

    10

    Periods

    2

    H2 FY26

    5
    • Total Income
      2,865 lakhs
      YoY+84%
    • EBITDA
      400 lakhs
      YoY+52%
    • PAT
      246 lakhs
      YoY+66%
    • EBITDA Margin
      13.9%
    • PAT Margin
      8.6%

    FY26

    5
    • Total Income
      5,049 lakhs
      YoY+90%
    • EBITDA
      731 lakhs
      YoY+72%
    • PAT
      441 lakhs
      YoY+77%
    • EBITDA Margin
      14.5%
    • PAT Margin
      8.7%

    Segment breakdown

    Product Categories
    49% Flour Contribution15% Grains Contribution8% Spices Contribution9% Oil Contribution5% Pulses Contribution3% Sweets Contribution
    Sales Channels
    21.8% Company-owned outlets Contribution18.6% Franchise-owned outlets Contribution52.3% B2B sales Contribution7.2% Export Revenue Contribution50% Online sales (including on-call) Contribution10% Online sales (specific) Contribution
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹450 lakhs

    new plan — new model coming in the capex plan for expansion · Mix of project funding and own funds

    Debt

    Debt disclosed

    M&A

    badi plant

    acquisition · closed

    Guidance & targets

    9
    CategoryTargetPriority
    Profitability
    EBITDA Margin
    15-16%
    		High
    Capacity
    New Factory Capacity (Atta)
    45-50 tons per day
    		High
    Capacity
    Peanut Oil Production Capacity
    4,000 liters per day
    		High
    Capacity
    New Plant Production Start
    production start
    		High
    Revenue
    New Factory Revenue Potential (full utilization)
    above INR 200 crores
    		Medium
    Revenue
    Website/App Revenue
    INR 6 crores
    		High
    Revenue
    Badi Revenue Contribution
    10-11%
    		High
    Store Expansion
    New Store Openings
    9-10 stores
    		High
    New Products
    New Marginal Products Launch
    15-20 products
    		High

    What to watch in Q1 FY27

    5

    Vidisha Plant Production Start

    next quarter (within 1.5 months)
    Current75% built, delayed by 1.5 months
    TargetProduction started

    Why it matters

    Crucial for capacity expansion and meeting growing demand, directly impacting future revenue potential.

    No, production will start in 1.5 months. We will provide an update on that soon.

    Risks & concerns

    3
    RiskSeverity

    Raw Material Cost Inflation

    Off-season raw material purchases for new verticals impacted H2 FY26 EBITDA margins. Management plans to increase inventory and focus on seasonal purchasing to mitigate future impact. — Management acknowledged

    medium

    Delay in New Plant Commissioning

    The new plant in Vidisha is delayed by 1.5 months due to supplier rate increases for PEB shed, iron, and machines. — Management acknowledged

    low

    High Margins Charged by Quick Commerce Platforms

    Blinkit charges 30-32% margins, leading the company to prioritize its own website/app for sales and use quick commerce primarily for brand awareness. — Management acknowledged

    low

    Q&A highlights

    7

    “Actually, what happened is that the growth projections we calculated for ourselves required us to purchase raw materials, and the initial stock we held was not sufficient. As I mentioned last year, we started two new verticals; B2B and exports. Due to the sudden creation of demand, we had to purchase raw materials during the off-season, which increased our costing. That is why there was an impact on the EBITDA margin. In the future, as you might have noticed, our inventory has increased. Currently, throughout February, March, April, and May, our purchasing is ongoing. EBITDA margins will be much better in the future. We are going to give very impressive results in the upcoming cycles.”

    Analyst questioned the margin compression, and management provided a clear explanation related to raw material sourcing for new business verticals and committed to future margin improvement (15-16%).

    asked by Aakash Choudhary

    3 min read6 chapters

    Detailed Narrative

    01

    Robust Financial Performance in FY26

    HOAC Foods India Limited delivered a strong financial performance in H2 FY26, with total income reaching INR 2,865 lakhs, an 84% year-on-year growth. EBITDA increased by over 52% to INR 400 lakhs, and PAT grew by approximately 66% to INR 246 lakhs. For the full year FY26, total income surged by over 90% to INR 5,049 lakhs, with EBITDA growing by 72% to INR 731 lakhs and PAT by 77% to INR 441 lakhs. The company maintained healthy profitability with H2 EBITDA margins at 13.95% and full-year EBITDA margins at 14.48%.

    02

    Strategic Expansion and Distribution Growth

    The company continues to focus on strengthening its product portfolio and expanding distribution reach. In FY26, HOAC Foods opened eight new stores and plans to open nine to ten more in FY27, targeting higher-end areas in Delhi-NCR, Madhya Pradesh, and Nagpur. The revenue mix shows 21.83% from company-owned outlets, 18.65% from franchise-owned outlets, 52.34% from B2B sales to GT stores, and 7.18% from exports. The company is also enhancing its market penetration across key regions and strengthening relationships with distributors and retailers.

    03

    Capacity Enhancement and New Product Pipeline

    HOAC Foods is significantly expanding its manufacturing capacity, with a new plant in Vidisha expected to increase Atta production 5x, from 20 tons/day to 45-50 tons/day. This new facility, which is 75% built, is projected to start production in 1.5 months and could generate over INR 200 crores in revenue at full utilization. Additionally, the company plans to launch 15-20 new marginal products in FY27, focusing on value-added and ready-to-eat items, including a new peanut oil plant with a planned capacity of 4,000 liters per day.

    04

    Margin Management and Raw Material Strategy

    EBITDA margins for H2 FY26 were impacted due to raw material purchases during the off-season to meet sudden demand from new B2B and export verticals. Management expects future EBITDA margins to improve to 15-16% and aims to sustain them. To mitigate raw material price volatility, the company has tripled its inventory, stocking mustard, rice, and wheat, and plans to reduce off-season purchasing. The new plant is also expected to help manage costs and improve operational efficiency.

    05

    Channel Strategy: Focus on D2C and Exports

    The company is strategically shifting its focus towards its own direct-to-consumer (D2C) channels, including its website (hariomatta.com) and mobile application. This move is partly due to high margins (30-32%) charged by quick commerce platforms like Blinkit, which are now primarily used for brand awareness. The D2C channels currently contribute INR 2.5-3 crores annually, with a target to double this to INR 6 crores in FY27. In exports, the company adopts a safety-first approach, working with parties that provide advance payments and has successfully shipped to the UK, US, and Australia.

    06

    Capital Expenditure for Future Growth

    HOAC Foods invested INR 1.67-2 crores in capex in FY26 and plans to spend INR 4.5-5 crores in FY27 for its new model and expansion. This capital is being utilized for the new factory, machinery, and PEB shed, funded through a mix of project funding and internal accruals. The expansion aims to support product diversification, enhance operational capabilities, and build a scalable food business with long-term growth potential.

    This is an AI-generated summary of a publicly available earnings call transcript.