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NURTURE WELL INDUSTRIES LIMITED — Q3 FY25 earnings call

Call held 19 Feb 2025

Company page: NURTURE WELL INDUSTRIES share price, financials & guidance record

Management summary

Integrated Industries Limited reported strong 9M FY25 performance driven by its bakery products segment, with a turnover of approximately ₹525 crores. The company is aggressively expanding its manufacturing capabilities with a new 5000-ton plant in Secunderabad, UP, expected to commence production by late 2026. Management provided robust revenue growth guidance, targeting ₹1,200 crores by FY27, and aims to significantly improve operating margins from the current 9% to 15-17% through value-added products and new facilities. The expansion will be funded by a mix of equity, debt, and internal accruals, transitioning the company from its current debt-free status.

Highlights

  • 9M FY25 turnover reached approximately ₹525 crores, primarily from bakery items.

  • Current operating margin stands at 9%, with a target to improve to 15-17% post new facility commissioning.

  • Existing Neemrana plant operates at 75% capacity utilization (3400 tons per annum).

  • New 5000-ton capacity plant in Secunderabad, UP, is planned for commercial production by end of 2026, targeting ₹100 crores revenue in FY26.

  • Management projects significant revenue growth: 50% in FY26, 70-75% in FY27, reaching ₹1,200 crores by FY27.

  • The company is currently debt-free but plans to use a mix of equity, debt, and internal accruals for the new CAPEX of ₹400-500 crores.

  • Dubai overseas operations contribute a substantial ₹350 crores to the 9M FY25 turnover, primarily through contract manufacturing.

Key financials

2 periods

Headline

  • Operating Margin
    9%
  • Neemrana Plant Capacity
    3,400 tons
  • Capacity Utilization
    75%

9M

  • FY25 Turnover
    ₹525 Cr

What they filed

Q1 FY27: net profit up 21.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue14 17 13 0 0 −100%0 −100%0 −99%0
EBITDA0 0 1 -0 -0 −226%-0 −177%-0 −159%-0 −141%
Net profit0 1 1 1 1 +946%1 +77%1 +12%2 +22%
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 9M FY25 Turnover
₹440 Cr Total
  • Dubai Overseas Operations ₹350 Cr 79.5%
  • Indian Company (Nurture Well Foods) ₹90 Cr 20.5%

Capital allocation

high confidence
  • Capex ₹400 Cr mix of equity, debt and internal accrual
    • New biscuit manufacturing facility in Secunderabad, UP
    Vikas: "That will be a mix of equity, debt and internal accrual." (Page 17)
  • Debt Gross ₹0 Cr · Net ₹0 Cr · 0.0× EBITDA
    Vikas: "See, there are two things which need to be considered is that our company is a debt free company. We don't have any debt in our company." (Page 5)
  • Liquidity Cash ₹0.6 Cr Company is raising funds for working capital requirements.
    CA Garvit Goyal: "I think we are having Rs. 60 lakhs cash equivalent only" (Page 9)

Guidance & targets

Revenue

  • Revenue Growth Revenue · coming period (year-on-year) · High confidence 35-40%
    Saurabh Goyal: "So the growth of around 35%-40% year-on-year will be there for the coming period." (Page 4)

    — Saurabh Goyal

  • Revenue Growth (FY26) Revenue · FY26 · High confidence 50%
    Vikas: "so we are expecting our revenue to grow up by at least 50% in FY26" (Page 6)

    — Vikas

  • Revenue Growth (FY27) Revenue · FY27 · High confidence 70-75%
    Vikas: "with the full 12 months of operation in FY'27, so we are expecting close to 70%-75% growth in the sales." (Page 6)

    — Vikas

  • Topline (FY25) Revenue · FY25 · High confidence ₹700 crores
    Vikas: "See, FY25 we will be close to 700" (Page 9)

    — Vikas

  • Topline (FY26) Revenue · FY26 · High confidence ₹1,000 crores
    Vikas: "going forward in FY26, we are planning, rather we are well on course to touch Rs. 1,000 figure in terms of topline." (Page 9)

    — Vikas

  • Consolidated Revenue (FY27) Revenue · FY27 · High confidence ₹1,200 crores
    Saurabh Goyal: "FY27 consolidated revenue will be approximately Rs. 1,200." (Page 15)

    — Saurabh Goyal

  • New Plant Revenue Contribution (FY26) Revenue · FY26 · High confidence ₹100 crores
    Vikas: "we are expecting a close to Rs. 100 crores of revenue will be coming from the unit in FY26 considering 4-5 months of operation" (Page 14)

    — Vikas

Capacity

  • New Plant Capacity Capacity · post 2026 · High confidence 5000 tons
    Saurabh Goyal: "the capacity of that plant will be around 5000 tons." (Page 4)

    — Saurabh Goyal

  • New Plant Commercial Production Start Capacity · 2026 · High confidence end of 2026
    Saurabh Goyal: "that will start the commercial production by 2026, end of 2026." (Page 4)

    — Saurabh Goyal

Margin

  • Operating Margin Margin · post new unit commissioning · High confidence 15-17%

    Previously 9% → 15-17%

    Saurabh Goyal: "See operating margin will be close to 15%-17% that is going to be there." (Page 17)

    — Saurabh Goyal

Profitability

  • Profit Growth Profitability · post new setup · High confidence 30-40%
    Saurabh Goyal: "See, in terms of profitability, we are expecting our profits to go up by at least 30%-40% because the new setup that we are catering or we are coming up, it has better margins or increased margins than our existing because these are premium segments only." (Page 15)

    — Saurabh Goyal

Sales Mix

  • Domestic vs. Overseas Sales Mix Sales Mix · FY27 · High confidence 50% India, 50% Overseas
    Saurabh Goyal: "So, we are expecting close to almost like 50% revenue will be coming from India and 50% revenue will be coming from overseas subsidiary." (Page 15)

    — Saurabh Goyal

Capex

  • Total CAPEX Capex · upcoming · High confidence ₹400-500 crores
    Vikas: "we are considering a CAPEX of close to Rs. 400-Rs. 500 Cr." (Page 17)

    — Vikas

What to watch in Q4 FY25

New Secunderabad Plant Progress

next quarter
Current Detailed project report under process, land identified
Target Finalization of project report, clear funding mix, and construction commencement details

Why it matters

This new plant is central to the company's aggressive growth and margin expansion targets for FY26/FY27.

Vikas: "We are preparing the detailed project report in terms of what are the CAPEX required and how much revenue and markets to explore. So all those things are under process, so once that is finalized, we will definitely make an announcement as to how the CAPEX is going to be funded." (Page 5)

Risks & concerns

  • Raw material price fluctuations for contract manufacturing

    medium

    Analyst raised concern about price volatility; management stated they mitigate this by booking raw material costs within 3-4 days of order finalization to secure margins.

    Analyst acknowledged

  • Competition from established players in biscuit market

    medium

    Analyst questioned ability to scale against large players; management highlighted strong distribution, better margins for distributors, and focus on value-added products as competitive advantages.

    Analyst acknowledged

Q&A highlights

7 direct
Growth drivers and sustainability Direct
Yes, the growth momentum will continue in '26 because we are setting up new biscuit manufacturing facility, which will be manufacturing cookies, confectionery items. So the growth momentum will increase only going forward from here.

Clarifies that future growth will be driven by new manufacturing capacity and product diversification, not just current operations.

Asked by Swapnil Kabra

Sales geographical mix and cash collection cycle Direct
So currently if you talk about the biscuit sales, around 75% is domestic, which is mainly to Northern India and 25% of our sales are coming from export businesses mainly into Dubai and the African region. And recently we have got orders from the South American market also. ... So the cash collection in domestic it is from the average period is around 15 days and in export we do it on a FOB basis. So in export, the payment cycle is maximum, you would say for around 45 days.

Provides a clear breakdown of current sales geography and efficient cash collection practices, especially for exports.

Asked by Prabal Jain

Funding for new CAPEX and current cash position Partial
That we have to decide. So whatever will be the best we will be doing that. It will be mix of everything, internal accrual and debt and equity. So once the detail project report and everything is in place, we will have a clear picture of what we have to do in it.

Highlights that while the company is currently debt-free, future CAPEX funding mix (equity, debt, internal accruals) is still under consideration, indicating potential future debt.

Asked by CA Garvit Goyal

Rapid revenue scaling and competitive landscape Direct
So I will give you a brief about the company. So the company we acquired that was into operation since 2014. It was already a very established brand in the export and the domestic market and we have a huge sales team of around 75-80 people across North India and in the export market.

Explains that the rapid growth is partly due to acquiring an already established brand with existing market presence and sales team, rather than building from scratch.

Asked by Ankit Gupta

Dubai subsidiary's business model and contribution Direct
Yes, it is a kind of a contract manufacturing of bakery items, biscuits mainly and we get it manufactured on contract basis based on the orders in hand, so similar lines on which we do the business in India only. ... Yes, direct export, direct export to our direct customers and whereas Dubai company, the overseas operations, they contribute close to Rs. 350 crores of turnover.

Clarifies the significant role of the Dubai subsidiary in contract manufacturing and its substantial contribution to overall turnover.

Asked by Ankit Gupta

Gross margin vs. raw material cost in FMCG Direct
So our gross margins are approximately 20% and you are saying that other biscuit manufacturing gross margins are 40%, I think that number needs to be rechecked because we are at par with the industry standards only. The gross margin is around 15%-20% in the confectionery and biscuit manufacturing business.

Provides clarity on the company's gross margin, aligning it with industry standards for confectionery and biscuit manufacturing.

Asked by Dhwanil Desai

Raw material price fluctuation risk in contract manufacturing Direct
So under this, what we do, as soon as we get the order, let us say the order is under negotiation and the pricing is under the final stage. We book the corresponding raw material cost in terms of flour or the palm oil and the other items. So that is why we try to keep the position open, at least for 3 or to 4 days max. So that we close on to the cost part as well as the revenue part, so that the open position doesn't go beyond 3 days, and we don't foresee any major fluctuation happening in the raw material prices in 3-4 days.

Details the company's strategy to mitigate raw material price volatility in contract manufacturing by quickly locking in costs.

Asked by Yogesh Sarode

Incentives for retailers to stock products and market structure Direct
So the incentive is all about the reachability. So we have got extensive reachability, number one, then, which the product range like for different type of geographies, different taste, different kind of varieties. So second is that and thirdly the margins are definitely better in our product as compared to the big companies, like Britannia, Parle, ITC so that is what invites them.

Explains the competitive advantages and incentives for distributors/retailers, focusing on reach, product variety, and better margins compared to larger players.

Asked by Piyush Chheda

2 min read 6 chapters

Detailed narrative

Business Overview and Market Presence

Integrated Industries Limited operates in organic and inorganic food products, bakery items, and other processed foods. The company acquired a biscuit manufacturing plant in Neemrana, Rajasthan, in 2023, with a capacity of 3400 tons per annum, currently operating at 75% utilization. Its products, under brands Richlite and Funtreat, are distributed across North India through a network of over 150 business partners. The company also has a significant international presence, with products accepted in UAE, Somalia, Tanzania, Kuwait, Afghanistan, Congo, Kenya, and Seychelles, and has established Nurture Well LLC in Dubai for contract manufacturing.

Manufacturing Expansion and Capacity Growth

To support aggressive growth, Integrated Industries is setting up a new biscuit manufacturing facility in Secunderabad, Uttar Pradesh. This new plant is planned to have a capacity of 5000 tons and is expected to commence commercial production by the end of 2026. This expansion will more than double the company's existing manufacturing capacity and will focus on producing new, value-added products, including healthier biscuit options (low sugar, high fiber, gluten-free) and regional flavors.

Financial Performance and Future Outlook

For the first nine months of FY25, the company reported a turnover of approximately ₹525 crores, with Dubai overseas operations contributing a substantial ₹350 crores. The current operating margin stands at 9%. Management projects robust revenue growth, targeting ₹700 crores for FY25, ₹1,000 crores for FY26, and ₹1,200 crores by FY27. This growth is expected to be driven by the new manufacturing facility and expanded distribution, with a projected 35-40% year-on-year growth rate and a 50% domestic/50% overseas sales mix by FY27.

Margin Strategy and Profitability Improvement

The company aims to significantly improve its operating margin from the current 9% to 15-17% post the commissioning of the new facility. This improvement is anticipated from the focus on premium and value-added products, which inherently carry better margins. Management expects profitability to increase by 30-40% with the new setup, as these segments offer higher margins compared to existing products.

Capital Allocation and Funding Plans

Integrated Industries Limited is currently a debt-free company. However, for the upcoming CAPEX of ₹400-500 crores for the new Secunderabad plant, the company plans to utilize a mix of equity, debt, and internal accruals. While the specific funding mix is still under consideration, management acknowledges that taking on debt will introduce finance costs. The company also raised funds through a stake sale to India Inflection Opportunities Fund to boost sales and meet working capital requirements.

Distribution and Sales Strategy

The company employs a strong distribution network, including super stockists and distributors, to reach retailers across North India. For exports, they operate on an FOB basis with payment cycles of up to 45 days. The incentive for retailers to stock their products includes extensive reachability, a diverse product range catering to different tastes and geographies, and better margins compared to larger, established competitors. The company also actively participates in trade shows to secure new customers and enquiries.

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