KRBL

The global rice market for 2025-2026 is projected to remain stable, with production forecast at 542 million metric tons, largely unchanged from the previous year. Global consumption is expected to rise to 541 million metric tons, up from 534 million metric tons, primarily driven by a 4.5 million ton increase in India's domestic demand. India's rice production for 2025-2026 is estimated at 151 million metric tons, surpassing China for the second consecutive year. While basmati acreage held firm, heavy monsoon rains in parts of Punjab and Haryana led to localized water logging and higher moisture content, necessitating quality segregation for the 2025 crop.

KRBL reported a strong Q2 FY26 with overall revenue of INR 1,511 crores, driven by a 70% year-on-year growth in export revenue to INR 438 crores. Domestic revenue (excluding power) grew 6%. Gross margin significantly expanded to 29.2% from 23.7% in Q2 FY25, primarily due to an 11% reduction in average basmati COGS. This led to an EBITDA margin of 16.6% and a PAT of INR 172 crores (11.2% margin). For H1 FY26, total income grew 25% to INR 3,155 crores, with domestic revenue up 10% and export revenue surging 86%.

Leveraging its strong financial position and healthy internal accruals, KRBL is strategically entering the real estate sector. The company was declared a successful bidder for 125 acres of land in Samalkha District, Panipat, for INR 403 crores. Additionally, KRBL holds significant land reserves in Ghaziabad (approx. 110 acres), currently valued at INR 2,500 crores, with potential to rise to INR 4,000 crores post-development. The company plans to invest around INR 1,000 crores in new real estate projects over the next few years, focusing on NCLT/court auctions for attractive land parcels to achieve better ROI on surplus funds.

In H1 FY26, KRBL's consumer pack business saw a shift in channel saliency, with general trade contributing 63%, modern trade 14%, and e-commerce growing to 23%. The company launched 'Project Akshat,' an 18-24 month commercial transformation program aimed at improving market share by 500 basis points, achieving 2-3% efficiency in trade/marketing spends, and improving e-commerce ROAS by 15-20%. This initiative focuses on building a stronger commercial engine for the next decade, supported by refreshed brand communication with Amitabh Bachchan, which has enhanced consumer confidence and brand positivity.

KRBL is expanding its non-basmati rice production capabilities with new plants in South India. The Gujarat plant (Kandla) has been operational for over 1.5 years, contributing to both export and domestic markets. The Gangavathi plant in Karnataka, delayed by rains, is expected to be completed by December 2025, with a projected capacity of 30,000-40,000 tons per annum of branded non-basmati rice. A plant in Mariyalghoda, Andhra Pradesh, is also being set up, aiming for 10,000-15,000 tons of branded non-basmati rice. The Madhya Pradesh plant is in the pipeline. The company expects non-basmati turnover to grow from the current INR 200 crores to INR 500 crores within the next 2-3 years.

KRBL's health and wellness brand, Uplife, continues to make steady progress, achieving a 5.5% market share in stores where it is available. The brand's positioning is focused on functional nutrition, with edible oil being the first category due to its high household penetration. The company is evaluating other value-added staples like low-sodium spice masalas, value-added rice, and atta, as well as lifestyle products such as Sattu and Makhana, to expand the Uplife portfolio. The goal is to grow the Uplife brand portfolio into an INR 200-300 crore category in the next few years.

As of September 30, 2025, KRBL's total inventory stood at INR 2,279 crores, lower than the previous year due to reduced per-unit cost and quantity. Paddy inventory was INR 123 crores (33,000 MT) and rice inventory was INR 1,995 crores (304,000 MT). The company plans to build up inventory this year, expecting to purchase 700,000 tons of paddy, up from 0.5 million tons last year, taking advantage of comfortable paddy prices. Cash and bank balances, including treasury investments, increased to INR 2,157 crores, providing ample liquidity and enabling strategic investments.