NFPSAMPOOR Q4 FY26 earnings call

NFP Sampoorna Foods Limited reported a robust financial year in FY26, with revenue from operations increasing by 43% to ₹51 crores, up from ₹35 crores in FY25. EBITDA nearly doubled, and EBITDA margins expanded significantly from 4.89% in FY25 to a targeted sustainable range of 16-20%. This strong performance culminated in a 68% increase in PAT, reaching ₹4.53 crores, reflecting benefits from higher scale, operational efficiencies, and portfolio diversification.

The company marked FY26 as a transformational year, highlighted by the acquisition of Yashvardhan Food Industries Private Limited. This acquisition significantly strengthened manufacturing capabilities, reduced labor cost dependency, and improved the utilization of installed capacity. The processing plant's manufacturing volume reached approximately 3,200 MT in FY26, with a target to increase this to 4,000-4,200 MT in FY27, aiming for 85-90% capacity utilization in the next two years from the current 65-70%.

NFP Sampoorna Foods has expanded its product portfolio beyond cashews to include almonds, walnuts, pistachios, raisins, trail mixes, and is now entering seeds, munakkas, and spices. This diversification aims to broaden the customer base across B2B, B2C, and institutional segments and reduce reliance on a single product. The company also strengthened its sourcing network from Africa for cashews and other regions for various dry fruits, ensuring quality consistency and uninterrupted supply.

A significant strategic initiative involves setting up a facility to extract Cashew Nut Shell Liquid (CNSL) from cashew shells, a by-product of their processing. CNSL has high demand in industrial applications like paints and coatings. The company has ordered the necessary machinery and expects commercial production to commence between August and September 2026. After oil extraction, the remaining biomass will be used as fuel for energy furnaces and high-speed boilers.

The company's market strategy involves deepening penetration in the North and Western regions of India over the next two years, where cashew consumption is highest due to its use in sweets and gravies. While currently 95% of the business is cashew-focused, the company aims for a 70:30 split between cashews and other products. The B2B segment currently accounts for 94-95% of revenue, with a target to shift to 90-93% B2B, increasing focus on B2G and B2C segments this year.

The company utilized proceeds from its IPO for debt repayment, working capital, and general corporate purposes. Specifically, ₹9.5 crores of debt are being repaid from the IPO proceeds. This action is expected to improve the company's debt-to-equity ratio, which stood at 1.73 in FY26, and positively impact PAT margins by reducing finance costs. The management emphasized that debt repayment will directly benefit EBITDA and PAT levels.