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.