Krishival Foods

Krishival Foods demonstrated strong financial momentum in Q2 FY26, with revenue growing 50% year-on-year to ₹66.67 crore. EBITDA improved 26% to ₹9.65 crore, and PAT rose 17% to ₹5.8 crore, with EPS at ₹2.6. For the first half of FY26, total income increased 60% YoY to ₹120.71 crore, and PAT grew 23% to ₹10.20 crore. The Krishival Nuts segment contributed ₹53 crore in Q2 (up 20% YoY) and ₹86.94 crore in H1, while Melt N Mellow contributed ₹13.62 crore in Q2 and ₹29.24 crore in H1, indicating healthy growth across both categories.

The company operates with two distinct brands: Krishival Nuts for premium nuts and dry fruits, and Melt N Mellow for ice cream, catering to both nutritional and indulgence segments. This dual-brand strategy diversifies the portfolio, leverages shared infrastructure, and positions Krishival Foods to capitalize on India's rapidly growing FMCG market, projected to reach USD 778 billion by 2030. The company strategically targets underserved Tier-2, Tier-3, and Tier-4 cities, recognizing them as key growth engines driven by domestic remittances and increasing disposable income.

Krishival Foods is undertaking substantial capacity expansion for its nuts processing, with a new 2 lakh sq ft facility planned to add 30 metric tons per day, quadrupling total capacity to 40 metric tons per day over the next two years. The ice cream manufacturing plant in Chhatrapati Sambhaji Nagar has a capacity of 1 lakh litres per day, currently at 25% utilization, with a target to reach 100% utilization by March 2028. The company emphasizes its ISO-certified vertically integrated processes and global raw material procurement from nine countries to ensure consistent quality and cost efficiency.

The company boasts a strong omnichannel presence, with Krishival Nuts available in over 10,000 retail outlets across 100+ Tier-2/3/4 towns and on e-commerce platforms like Amazon, Flipkart, Blinkit, and Zepto. Melt N Mellow ice cream is distributed through 25,000 retail touchpoints, 200+ distributors, and 25+ super stockists across Maharashtra, Karnataka, Goa, and Telangana. Plans are in place to achieve 100% coverage in Maharashtra, Telangana, and Karnataka for ice cream distribution within the next two years, and to make ice cream available on online channels by March 2026.

The recent reduction of GST on nuts, dry fruits, and ice cream to 5% is a welcome development. Management confirmed that 100% of this benefit has been passed on to consumers, which is expected to stimulate demand. This GST revision is also anticipated to foster a more organized market for ice cream, providing a larger growth opportunity for organized players like Krishival Foods, as the previous 18% rate had allowed unorganized players to sustain.

Krishival Nuts has commenced its global export journey, with products available in Singapore across over 300 retail outlets, projecting over 1 million Singapore dollars in revenue this fiscal year and targeting a five-fold increase in the next couple of years. The company is also exploring new export markets in Japan and the USA. On the product innovation front, Krishival has successfully launched Kaju Katli in pilot sales during Diwali and plans for its full-scale expansion across India in the next calendar year, aiming for margin accretion.

Currently, the nuts segment accounts for 90-95% of the company's PAT. While the Melt N Mellow ice cream segment is in a growth phase and not yet a substantial contributor to PAT, management expects it to start contributing from the next financial year. By FY27-28, the company anticipates that the PAT contribution from the ice cream segment will match that of the nuts segment, aligning with its dual-brand strategy for balanced and sustainable growth.