Patel Retail Limited — Q3 FY26 earnings call

Okay. So we are trying to so definitely not credit days. What we were doing in the past 22 in the past year was major of our export trade was in the nearby ports. Now we are now now majority of our export operation is in U.S, U.K, European countries, Australia, Canada where the transit is more than 45 days, 50 days, 60 days depending on the vessel and depending on the geopolitical situation what route is open, what route is not open because we see consistency in this market rather than the Middle Eastern market where the prices fluctuation and the quality is negotiable for them. And we truly want to work in the field where quality is the main concern.

Explains a significant change in working capital, linking it to a strategic shift in export markets for better quality and margins.

Asked by Priyansh Miri

Right. So in the year where we where you saw there was a spike in the revenue, that was mainly on the account of the sugar trade that we were taking on at that time. Now due to the government circumstances in regards to the trade of sugar, it was banned for the next 2 years right so the dip that you saw was account of that. And in that year we did around something INR300 crores worth of sugar exports.

Clarifies a significant historical financial anomaly, providing context for current growth trajectory.

Asked by Sakshi Shinde

Right so we never say never and when it comes to the capex and the actual margins, all of those things. We have not introduced we are just planning on building an efficient supply chain model to first execute those things right? And whenever you start something which is to create the value for the consumers capex is something that can be foreseen with keeping a future with a future vision. So right now commenting on capex or any kind of margin, I can't really do that.

Indicates the company's cautious stance on adopting new retail models, prioritizing efficiency and value creation over rapid adoption.

Asked by Bhavya Seth

Right. Sir, by way, by focusing on the placement of that products, we are also trying to enter into the suburban markets of the exterior of other states when it comes to brand Indian Chaska. We are trying to introduce new SKUs that we have found essential in the current years and is catching on the trend to be made under our own brand. Overall, it's just about giving the better quality at the right price and eventually we'll see the growth from 17% to 22%.

Directly addresses a key strategic growth driver and management's confidence in achieving it through product and market expansion.

Asked by Vinod Shah

So from manufacturing side of things, our current utilization when we talk in the season it's close to 80% to 85%. Since the utilization of those machineries are calculated on the yearly basis, you would see a significant not significant but a drop to 20%-30% less because some of the products that we do process are seasonal in nature.

Provides insight into operational efficiency, the impact of seasonality, and strategies to mitigate it.

Asked by Priyansh Miri

So capex for the retail store is almost INR1,500 per square foot and on an average we have a 5,000 square foot store size. And as far as manufacturing and processing capex is concerned, we already have enough capex installed to meet the supply.

Clarifies investment priorities, indicating that manufacturing capacity is sufficient for the near term while retail expansion continues.

Asked by Priyansh Miri

We are value driven, we are neighborhood stores, our design of product basket is way different than what DMart does, our packing size is way different than what DMart does, our quality of food is way different than peanut oh than what DMart does right. We have a keen eye on the quality of the product that we keep in our stores and when it comes to our product design on our basket design it is very much -- in related to the consumers that we are going to cater in that 4 kilometer of the radius that our store is being introduced right. So that's how we try to position ourselves apart aside from DMart.

Highlights the company's competitive strategy focusing on value, neighborhood presence, and differentiated product offerings.

Asked by Sakshi Shinde

See the volatility and the change in the commodity price is something that we cannot control right all we can do is keep a keen eye on the demand and the supply that is been seen in the market right. So just before there is a crop harvesting, we try to do all the research that we can right from studying the weather right from going to the farms, trying to understand the health of the crops trying to trying to speak with the farmers, trying to understand what is the growth rate of the crop.

Details management's proactive approach to mitigating risks from commodity price fluctuations through market intelligence and strategic procurement.

Asked by Abhinav Shetty