Krishival Foods Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

Krishival Foods delivered robust financial performance in Q2 and H1 FY26, driven by strong growth in both its nuts and ice cream segments. The company is aggressively expanding capacity and distribution, particularly in Tier-2/3/4 cities, and expects significant benefits from recent GST reductions. While the ice cream segment is still in a growth phase with minimal PAT contribution, it is projected to achieve full capacity utilization and contribute significantly to profitability by FY28.

Highlights

  • Revenue grew 50% YoY to ₹66.67 crore in Q2 FY26, demonstrating strong momentum.

  • H1 FY26 total income increased 60% YoY to ₹120.71 crore, with PAT up 23% to ₹10.20 crore.

  • EBITDA improved 26% in Q2 FY26 to ₹9.65 crore, reflecting operating leverage.

  • Strategic capacity expansion for nuts processing to 40 metric tons per day is underway, expected within two years.

  • The recent GST reduction to 5% for nuts, dry fruits, and ice cream is seen as a significant tailwind, with benefits passed to consumers.

Concerns

  • The Melt N Mellow (ice cream) segment is not yet contributing substantially to PAT, with 90-95% of PAT currently from the nuts segment.

  • Promoter stake is relatively low at 37%, though management plans to maintain or increase it through participation in rights issues.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹66.67 Cr
    YoY +50%
  • EBITDA
    ₹9.65 Cr
    YoY +26%
  • PAT
    ₹5.8 Cr
    YoY +17%
  • EPS
    ₹2.6

H1 FY26

  • Total Income
    ₹120.71 Cr
    YoY +60%
  • PAT
    ₹10.2 Cr
    YoY +23%

What they filed

Q1 FY27: revenue up 79.6%, net profit up 27.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue45 55 74 50 67 +50%74 +36%102 +38%89 +80%
EBITDA6 3 7 5 7 +23%9 +203%5 −18%10 +94%
Net profit5 0 5 4 6 +17%6 +12720%6 +7%6 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹182.8 Cr Total
  • Krishival Nuts (H1 FY26) ₹86.94 Cr 47.6%
  • Krishival Nuts (Q2 FY26) ₹53 Cr 29.0%
  • Melt N Mellow (H1 FY26) ₹29.24 Cr 16.0%
  • Melt N Mellow (Q2 FY26) ₹13.62 Cr 7.5%

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Nuts processing facility expansion (new 2 lakh sq ft facility)
    • Increase nuts processing capacity by 30 metric tons per day
    We are expanding this facility with new two lakh square foot facility coming up on Company's own five acre land parcel just adjacent to the existing plant which will add 30 metric ton per day capacity in two phases and this will lead to total capacity increase 40 metric ton per day. This will happen over the period of next two years.

Guidance & targets

Market Growth

  • India's FMCG Market Value Market Growth · by 2030 · High confidence USD 778 billion
    India's FMCG market is projected to grow from about USD 236 billion in 2024 to nearly USD 778 billion in 2030, an almost threefold expansion.

    — Sujit Bangar

  • Ice Cream Market Value Market Growth · by 2032 · High confidence USD 956 billion
    The ice cream market is also expected to quadruple in value by 2032 from USD 228 billion in 2023 to nearly USD 956 billion, reflecting around 17% annual growth.

    — Sujit Bangar

Capacity

  • Nuts Processing Capacity Capacity · next two years · High confidence 40 metric ton per day

    From 10 metric ton per day today

    We plan to quadruple our nuts processing capacity, deepen our retail reach beyond 200 plus towns... This will happen over the period of next two years.

    — Sujit Bangar

Capacity Utilization

  • Ice Cream Plant Utilization Capacity Utilization · by March '28 · High confidence 100%

    From 25% today

    By March '28 we will be 100% utilization of the ice cream segment.

    — Sujit Bangar

Export Revenue

  • Singapore Export Revenue Export Revenue · current financial year · High confidence >1 million Singapore dollar
    almost current financial year we expect almost more than 1 million Singapore dollar as a revenue from export over there

    — Sujit Bangar

  • Singapore Export Revenue Growth Export Revenue · next couple of years · Medium confidence five fold
    which will next couple of years we are we are thinking of increasing it for almost five fold.

    — Sujit Bangar

Revenue Growth

  • Total Revenue Growth Revenue Growth · by FY'27-'28 · Medium confidence triple-digit
    We envision a strong growth runway ahead with a clear roadmap to achieve triple-digit revenue growth by FY'27-'28.

    — Sujit Bangar

Revenue Mix

  • Nuts vs Ice Cream Revenue Proportion Revenue Mix · FY'27-'28 · Medium confidence 50%-50% or 45%-55%
    in financial year '27-'28 we aspire to reach triple digit revenue... the proportion will be almost 50%-50% or 45%-55%.

    — Sujit Bangar

Profitability

  • Ice Cream PAT Contribution Profitability · FY27-28 · Medium confidence match nuts segment
    ice cream will start contributing to PAT from next financial year and for the third financial year 2027-28 the contribution of topline and bottom-line will match to nuts and ice cream segment.

    — Sujit Bangar

Distribution

  • Ice Cream Distribution Coverage Distribution · next two years · High confidence 100% of Maharashtra, Telangana, Karnataka
    now expanding the next two years to complete cover all these states like cover 100% of Maharashtra, 100% of Telangana, 100% of Karnataka

    — Sujit Bangar

Product Availability

  • Ice Cream Online Channel Availability Product Availability · by March 2026 · High confidence available

    From not available today

    Ice cream is as of now not available on online channels, it will be available by March 2026.

    — Sujit Bangar

New Product Launch

  • Kaju Katli Expansion New Product Launch · next calendar year · Medium confidence across India

    From pilot sale today

    in Kaju Katli we are going a full throttle in next calendar year along with that certain other products are also in the pipeline but as far as nut segment is concerned considered we are focusing on a niche and less products with a quality output. So, we will be launching few products and next financial year next calendar year complete focus will be on expanding the Kaju Katli across the India.

    — Sujit Bangar

What to watch in Q3 FY26

Nuts Processing Capacity Expansion Progress

Next two years
Current New 2 lakh sq ft facility under construction, adding 30 MT/day capacity in two phases.
Target Progress towards 40 MT/day total capacity.

Why it matters

Crucial for meeting growing demand and achieving long-term growth targets in the nuts segment.

We are expanding this facility with new two lakh square foot facility coming up on Company's own five acre land parcel just adjacent to the existing plant which will add 30 metric ton per day capacity in two phases and this will lead to total capacity increase 40 metric ton per day. This will happen over the period of next two years.

Risks & concerns

  • Input cost volatility (milk)

    medium

    Cost of milk varies seasonally, but the company manages it through sourcing arrangements to maintain optimum price levels.

    Management acknowledged

  • Competition from unorganized players (ice cream)

    low

    Higher GST previously allowed unorganized players to sustain, but the new 5% GST rate is expected to favor organized players, leading to more structured market play.

    Management acknowledged

Q&A highlights

8 direct
Impact of GST reduction on demand and competition Direct
the recent decision of reduction of GST rate to 5% was a very welcome move and Krishival Foods has been one of the major beneficiaries of that... obviously as products prices are relatively reduced the demand will pick up. But more important change which we will see and especially in ice cream segment is that more organized play will set in.

Clarifies the positive impact of GST reduction on consumer demand and the competitive landscape, particularly for the organized ice cream sector.

Asked by Sneha Dhuri

Export strategy and expansion to other countries Direct
almost current financial year we expect almost more than 1 million Singapore dollar as a revenue from export over there and which will next couple of years we are we are thinking of increasing it for almost five fold. Regarding the expanding export to other territories we will be focusing on Japan. We are working on the on Japan, making our product available in Japan and also we are waiting for dust to settle for US tariffs...

Provides specific revenue targets for Singapore exports and identifies Japan and USA as key future markets for international expansion.

Asked by Amit Jain

Ice cream segment revenue proportion and capacity utilization Direct
current capacity utilization is almost 25% we can say current, first half of the financial year and this ice cream segment we expect to reach to the 100% capacity utilization in a two financial years means FY'26-'27 and '27-'28. By March '28 we will be 100% utilization of the ice cream segment.

Details the current and target capacity utilization for the ice cream plant, outlining the timeline for achieving full operational scale.

Asked by Amit Jain

Margins and PAT contribution from ice cream vs nuts segments Direct
as of now last financial year and first half of current financial year at PAT level there is a 100% contribution, almost 95% it PAT is coming from nut segment... ice cream will start contributing to PAT from next financial year and for the third financial year 2027-28 the contribution of topline and bottom-line will match to nuts and ice cream segment.

Clarifies the current profitability mix between segments and provides a timeline for when the ice cream segment is expected to contribute significantly to PAT.

Asked by Amit Jain

Low promoter stake (37%) Direct
Promoter stake is at 37%. The reason is simple as we grow the Company initially so as in the growing company equity getting debt for the financing had certain limits, so in that process the proportion of promoter equity has reduced but going forward we are working on maintaining the same like in rights issue also promoters will participate to maintain their these shareholdings...

Explains the historical reason for the lower promoter stake and outlines the strategy to maintain or increase it going forward, addressing a potential investor concern.

Asked by Saket Kapoor

Enforcement Directorate's 11% shareholding Direct
this is our shareholder which were their existing shareholder, some FII funds it was the holding with certain FII funds and those FII funds have been secured by Enforcement Directorate. Company has nothing to do with that.

Clarifies the nature of the Enforcement Directorate's holding, reassuring investors that it is not a direct company issue but related to secured FII funds.

Asked by Saket Kapoor

Nuts segment: sourcing and value addition Direct
in nuts almost 90% is import like pistachios from USA, almonds from USA and Australia and cashew nuts from West Africa, East Africa, Cambodia like that almost 90% is from import... Processing we do at our unit, each nut which we sell is processed at our unit.

Details the global sourcing strategy for raw nuts and confirms that the company performs in-house processing and value addition, distinguishing it from a pure trading business.

Asked by Saket Kapoor

Company's USP and product quality Direct
See only to give simple answer, the quality of the product. Once you eat nuts of Krishival, once you have ice cream of Melt N Mellow there should be recall value because of its quality. Right so only that is the core thing which we carry and that's why in ice cream our real strength is a taking feedback from our foot soldiers our 200 distributors about the product and continuously innovating on that.

Highlights the company's core competitive advantage as product quality and consistency, driven by R&D and continuous feedback from the distribution network.

Asked by Rahul

3 min read 7 chapters

Detailed narrative

Robust Q2 and H1 FY26 Financial Performance

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.

Strategic Dual Brand Approach and Market Positioning

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.

Significant Capacity Expansion and Operational Excellence

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.

Expanding Distribution and Omnichannel Reach

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.

Positive Impact of GST Rate Reduction

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.

International Expansion and New Product Initiatives

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.

Profitability Trajectory and Segment Contribution

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.

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