Krishival Foods Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

Krishival Foods delivered strong financial performance in FY26, with revenue growing 48% and PAT up 64%, driven by both its nuts and ice cream divisions. The Melt N Mellow ice cream business achieved profitability ahead of schedule, while the nuts segment maintained healthy margins. The company is focused on capacity expansion, distribution growth, and brand building, with ambitious targets for market share and continued profitability in FY27.

Highlights

  • Revenue of INR 304.41 crores, up 48% YoY in FY26.

  • EBITDA of INR 41.95 crores, up 66% YoY, with margin at 13.78% in FY26.

  • PAT of INR 22.2 crores, up 64% YoY, with PAT margin at 7.59% (up 89 bps) in FY26.

  • Melt N Mellow ice cream division achieved PAT-level profitability in FY26, ahead of FY27 target.

  • Deep freezer network for ice cream expanded from 3,000+ to 15,000+ in FY26, supporting 34,200 retail outlets.

Concerns

  • Q4 FY26 consolidated raw material cost increased by ~7% due to higher proportion of ice cream sales.

  • Q4 FY26 EBITDA was impacted by a one-time ESOP cost of INR 2.88 crores.

Key financials

3 periods

Headline

  • Revenue
    ₹304.41 Cr
    YoY +48%
  • EBITDA
    ₹41.95 Cr
    YoY +66%
  • EBITDA Margin
    13.8%
  • PAT
    ₹22.2 Cr
    YoY +64%
  • PAT Margin
    7.6%
    YoY +0.89%

Q4 FY25

  • EBITDA Margin
    12%

Q4 FY26

  • EBITDA Margin (Adjusted)
    12.2%

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

  • Melt N Mellow Ice Cream Division
    ₹95 Cr Revenue7% EBITDA Margin₹4.74 Cr Magic Cones Sold₹3.5 Cr Chocobar Sold₹1.78 Cr Cups and Sundaes Sold
  • Krishival Nuts & Dry Fruit Division
    15% EBITDA Margin10% PAT Margin

Capital allocation

high confidence
  • Capex Capex disclosed mix of internal accruals, existing equity, and debt
    • New 35,000 sq ft processing unit (nuts division), commenced production in April 2026
    • 2 lakh sq ft factory construction in Halkarni MIDC (nuts division)
    Registered Office: 1309, Lodha Supremus Saki Vihar road, opp. MTNL Office, Powai, Mumbai-400072. Tel no.: 8779558264, Website: www.krishival.com, Email: cs@krishival.com

Guidance & targets

Growth

  • Top-line Growth Growth · FY27 · Medium confidence around 50%
    In coming financial year '27, we hope to continue to maintain the growth trajectory, and we see around 50% top-line growth and 50% plus bottom-line growth.

    — Sujit Bangar, Chairman

  • Bottom-line Growth Growth · FY27 · Medium confidence 50% plus

    — Sujit Bangar, Chairman

Capacity

  • Nuts Production Capacity Capacity · next two financial years · High confidence 40 metric tons per day

    From 20 metric tons per day today

    So slowly this capacity we will keep adding, like 10 to we have gone 20 this year, next year we'll go 30, and again next year we'll reach 40.

    — Sujit Bangar, Chairman

  • Nuts Enhanced Capacity Utilization Capacity · next year (FY28) · Medium confidence increase another 25% or 50%

    From 25% today

    Next year we'll increase another 25% or 50% of the enhanced capacity.

    — Sujit Bangar, Chairman

  • Ice Cream Full Capacity Utilization Capacity · Q1 FY29 · High confidence 100%

    From 25% today

    We'll keep enhancing capacity utilization; our existing capacity is 1 lakh litres per day in ice cream, so we'll continue to enhance the capacity utilization with a target of full capacity utilization by Q1 FY '29.

    — Sujit Bangar, Chairman

Profitability

  • Nuts EBITDA Margin Profitability · next two years · High confidence 15% plus
    in the coming next two years, we will try to maintain this 15% plus EBITDA and 10% plus PAT.

    — Sujit Bangar, Chairman

  • Nuts PAT Margin Profitability · next two years · High confidence 10% plus

    — Sujit Bangar, Chairman

  • Ice Cream EBITDA Margin Profitability · 3 years down the line (by Q1 FY29) · High confidence 14% to 15% minimum

    From 7% today

    Our expectation is the ideally 3 years down the line when the full capacity utilization happens, then EBITDA should be 14% to 15% minimum.

    — Sujit Bangar, Chairman

Market Position

  • Ice Cream Brand Ranking Market Position · next 7 years · Medium confidence top three ice cream brands in India
    Melt N Mellow remains a key growth engine with a clear aspiration to build it into one of the top three ice cream brands in India over the next 7 years.

    — Sujit Bangar, Chairman

Distribution

  • Mellow & Co. Ice Cream Outlets Distribution · current financial year (FY27) · High confidence around 25
    we are launching to roll out around 25 such franchise-owned, company-operated Mellow & Co. ice cream outlets will be opened in the current financial year at Pune and Mumbai.

    — Sujit Bangar, Chairman

Market Share

  • Nuts Market Share Market Share · long-term goal · Medium confidence 10%
    Krishival Nuts aspires to emerge as a numero uno player in India with a long-term goal of achieving 10% market share while maintaining profitability.

    — Sujit Bangar, Chairman

Sales Mix

  • Ice Cream Proportion of Total Sales Sales Mix · FY28 and FY29 · Medium confidence almost equal to nuts
    going forward in FY28 and FY29, we will see almost equal of ice cream and nuts will reach at a.

    — Sujit Bangar, Chairman

What to watch in Q1 FY27

FY27 Top-line and Bottom-line Growth

FY27
Current FY26 Revenue growth 48%, PAT growth 64%
Target ~50% top-line growth and 50%+ bottom-line growth

Why it matters

This is the overall growth guidance for the next fiscal year, indicating continued strong performance and validating the dual-brand strategy.

In coming financial year '27, we hope to continue to maintain the growth trajectory, and we see around 50% top-line growth and 50% plus bottom-line growth.

Risks & concerns

  • Input Cost Volatility

    medium

    Near-term volatility in input costs and supply chains, particularly for globally sourced commodities, but diversified sourcing helps manage risks.

    Management acknowledged

  • Competition in Nuts Segment

    medium

    Entry of large-size FMCG players like Tata Consumer into the nuts segment, but Krishival's integrated model provides a competitive advantage.

    Analyst acknowledged

  • Preferential Allotment Shareholder Controversy

    medium

    Analyst raised concerns about a 'cloud' on 10% odd shareholding from preferential allotment; management declined to comment, stating no relation to individual shareholder actions.

    Analyst deflected

  • Q4 Profitability Pressure in Nuts Segment

    low

    Q4 profitability for the nuts segment is typically under pressure due to B2B demand from weddings and functions.

    Management acknowledged

Q&A highlights

7 direct, 1 evasive
Nuts Capacity Utilization & Expansion Plans Direct
See, our earlier capacity as of March 31, FY26 was 10 metric tons per day finished nuts production. This capacity has been enhanced as on today to 20 metric tons per day finished nuts production. The enhanced capacity, the current financial year, we are going to utilize 25%, current financial year. And going forward, our already 2 lakh square foot factory construction is going on in Halkarni MIDC.

Provides specific details on current and planned capacity for the nuts segment and utilization rates, crucial for future growth projections and understanding capital allocation.

Asked by Maitri Shah

Nuts EBITDA and PAT Margin Targets Direct
So the way we look at going forward is that in the short term, in the coming next two years, we will try to maintain this 15% plus EBITDA and 10% plus PAT.

Sets clear profitability targets for the core nuts business, indicating management's confidence in sustaining current margins despite ongoing expansion.

Asked by Maitri Shah

Ice Cream EBITDA and PAT Margin Targets Direct
Our expectation is the ideally 3 years down the line when the full capacity utilization happens, then EBITDA should be 14% to 15% minimum.

Provides a long-term margin outlook for the high-growth ice cream segment, linking it to capacity utilization and indicating significant potential improvement from the current 7%.

Asked by Maitri Shah

Q4 FY26 EBITDA Margin Dip (Consolidated & Ice Cream) Direct
So if you take our EBITDA in Q4 FY26, which is including this adjusted to this ESOP expenses, then our EBITDA margin is 12.21% in Q4 FY26. And the EBITDA margin in Q4 25 was 12.03%. So that way, if you see apple-to-apple comparison, the EBITDA has increased.

Clarifies that the apparent dip in Q4 EBITDA was due to a one-time ESOP cost, and on an adjusted basis, margins actually improved, addressing a key analyst concern.

Asked by Maitri Shah

Deployment of Rights Issue Proceeds Direct
out of that INR35 crores first tranche we received in the month of January. And this INR35 crores, INR25 crores is for these new facility in the first question which I said, the 2 lakh square foot factory unit is being constructed along with for the nuts division over there. So this INR25 crores is for that plant and machinery over there, and INR10 crores is for the working capital of the nuts division, so this INR35 crores.

Provides specific details on how the initial tranche of the recent rights issue is being utilized for capacity expansion and working capital in the nuts division.

Asked by Ayaz Motiwala

Synergies between Nuts and Ice Cream Businesses Direct
most important synergy in Melt n Mellow which we have seen is that Melt n Mellow when we acquired that time it was having a 25,000 retail outreach. And as on today, its total retail touchpoint is 37,000. And this 37,000 retail touchpoint of Melt n Mellow we have not fully utilized for nuts yet. Slowly, slowly that network we are leveraging for the Krishival.

Explains how the ice cream distribution network is being leveraged for the nuts business, highlighting a key strategic advantage of the dual-brand model and potential for cross-selling.

Asked by Ayaz Motiwala

Competition in Nuts Segment & Integrated Player Advantage Direct
In the nuts, the most important thing is that from the January to December, customer should get a assured quality of nut, which is possible only if there is strength in sourcing... unless there is a back end of sourcing, processing in-house, you cannot give a quality nut on table to the customer. So that's why I feel there is a quite a good headroom if there is a integrated player who is working on it.

Addresses concerns about increasing competition by emphasizing Krishival's integrated model (sourcing, processing, distribution) as a competitive differentiator and a source of long-term growth.

Asked by Ayaz Motiwala

Preferential Allotment Shareholders / 'Cloud' on Shareholding Evasive
We don't -- yes, yes. So as I said, we don't have anything to comment on that. We don't have any relation related to that. Company has -- those people have invested and those are one of the shareholders. More than that, we don't have any involvement or any comment on that.

Management explicitly refused to comment on concerns regarding specific preferential allotment shareholders, indicating a potential sensitive issue or a desire to distance the company from individual shareholder actions.

Asked by Ayaz Motiwala

3 min read 7 chapters

Detailed narrative

Strong FY26 Performance Driven by Dual-Brand Strategy

Krishival Foods reported a robust FY26, with total revenue growing 48% year-on-year to INR 304.41 crores. This growth translated into significant profitability improvements, with EBITDA increasing 66% to INR 41.95 crores (13.78% margin) and PAT rising 64% to INR 22.2 crores (7.59% margin). The company's dual-brand strategy, encompassing Krishival Nuts for healthy snacking and Melt N Mellow for indulgence, provided a balanced and resilient model, with both segments contributing meaningfully to revenue and earnings quality.

Melt N Mellow Achieves Early Profitability and Expands Reach

The Melt N Mellow ice cream division achieved PAT-level profitability in FY26, a year ahead of its internal targets, on a top line of INR 95 crores with a 7% EBITDA margin. The company significantly expanded its distribution, reaching 34,200 retail outlets supported by 15,490 deep freezers. Melt N Mellow also sold 4.74 crore Magic Cones, 3.5 crore Chocobars, and 1.78 crore cups and sundaes in FY26, demonstrating strong consumer engagement and market penetration.

Nuts Business Sustains Healthy Margins and Capacity Expansion

The Krishival Nuts segment delivered steady growth and maintained healthy margins, with a 15% EBITDA margin and 10% PAT margin in FY26. The company's existing nuts production capacity was utilized at 70% in FY26 and has been enhanced from 10 to 20 metric tons per day. A new 35,000 square feet processing unit commenced production in April 2026, adding another 10 metric tons per day, with plans to further scale capacity to 40 metric tons per day in a phased manner.

Strategic Investments in Distribution and Direct-to-Consumer Channels

Krishival Foods continues to invest in expanding its distribution footprint. The deep freezer network for ice cream grew from 3,000+ to 15,000+ in FY26, with further investments planned for FY27. The company is also launching 25 franchise-owned, company-operated 'Mellow & Co.' ice cream parlours in Pune and Mumbai during FY27, aiming to strengthen direct-to-consumer presence and enhance brand visibility, with each outlet expected to break even within three months.

Capital Raising and Deployment for Growth

The company successfully raised INR 100 crores through a rights issue, with INR 35 crores received in January 2026. Of this, INR 25 crores is allocated to the new 2 lakh square foot nuts factory unit under construction in Halkarni MIDC, and INR 10 crores for working capital in the nuts division. The remaining INR 65 crores from the rights issue are expected to be received in two subsequent calls during the current calendar year, providing further capital for planned growth initiatives.

Integrated Model as a Competitive Advantage in Nuts

Management highlighted its integrated approach to the nuts business, encompassing in-house sourcing and processing, as a key differentiator against increasing competition from larger FMCG players. This model ensures consistent quality and provides pricing power, contributing to the sustained 15% plus EBITDA and 10% plus PAT margins. The company aims to leverage this integrated strategy to achieve a 10% market share in India's nuts market.

FY27 Outlook and Long-Term Aspirations

For FY27, Krishival Foods projects approximately 50% top-line growth and over 50% bottom-line growth. The company targets full capacity utilization for its ice cream division (1 lakh litres per day) by Q1 FY29, expecting EBITDA margins to reach 14-15% at that point. Long-term aspirations include becoming one of the top three ice cream brands in India within seven years and a 'numero uno' player in the nuts segment with 10% market share.

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