Proventus Agro.

Proventus Agrocom reported a strong FY25, with its ProV brand revenue growing 37% year-on-year to ₹417 crores, up from ₹303 crores. Consolidated revenue for the year stood at ₹584 crores. The company achieved an EBITDA of ₹12.9 crores, marking an 8% growth year-on-year, and a PAT of ₹7.4 crores, marginally up from ₹7.2 crores last year. Gross margins saw a healthy improvement to 19.8% from 17.6% in the previous year, with a return on equity of 8.1%.

The company highlighted its PAN India distribution network, positioning itself as one of the top two branded dry fruits players. The market is expanding at 25% year-on-year, driven by a consumer shift towards branded offerings. Proventus Agrocom's omni-channel strategy, encompassing modern trade (46% of sales), e-commerce (32% growth), and general trade (backbone in Tier-2/3 towns), has been effective in driving revenue. New product launches, including super premium, festive, jumbo, and value packs, now span 7 verticals.

To support future growth, the company is investing in a new Surat facility, expected to be operational by the end of FY26. This facility will significantly boost packaging capacity from the current 1.5 lakh pouches per day to 4 lakh pouches per day. It will be fully integrated, certified, and automated, aligning with the goal of reaching ₹1000 crore brand revenue by FY28. Management confirmed the commissioning would occur in phases throughout FY26, ensuring it will not be underutilized.

For FY26, Proventus Agrocom will focus on four key areas: expanding research, reach, and penetration (targeting 30-40% outlet expansion, deepening GT presence, scaling quick commerce); product innovation (health-forward SKUs, seasonal gifting, youth-centric formats); operational excellence (full functionality of Surat facility, strengthening cold storage, agile logistics); and expanding leadership bandwidth with new hires across sales, marketing, R&D, and finance.

Management identified raw material price increases as a key risk, noting a 25% surge across dry fruit items in the last 4-5 months of FY25. This volatility impacted profitability and could potentially soften demand. While the company has successfully passed on these increases to consumers, there remains a risk of further price hikes. The company noted that in FMCG, there is typically a one-month lag in passing on raw material costs.

The company's FY25 EBITDA of ₹12.9 crores fell short of its earlier guidance of ₹22 crores. This miss was attributed to the 25% increase in raw material prices post-Diwali and a strategic decision to double marketing spend year-on-year to expand distribution. Despite this, management projects a gross margin expansion of another 3% in FY26, aiming for 23%. They expect FY26 EBITDA to be more than ₹20 crores, driven by gross margin improvement, operational leverage from the Surat facility, and a favorable product mix.

The resignation of whole-time director Shalin Khanna for personal reasons was addressed, with management confirming no leadership vacuum due to recent senior-level hirings. The company stated it has sufficient capital for current operations and expansion, indicating no immediate need to raise capital or onboard a strategic partner unless for specific strategic purposes.