TBI Corn

TBI Corn achieved a significant 44% year-on-year volume growth for FY26. The company's total operational capacity stands at 390 tonnes per day (TPD) across three plants, with the additional 40 TPD in Malkapur becoming operational by March 2026. For FY26, the average capacity utilization was 72% on a 350 TPD base, with the old Sangli plant running at 96-97% utilization. The company aims for this year (FY27) to be a period of consolidation, expecting increased utilization across all plants.

The 100% export-oriented unit, TBI Maize Processors Private Limited, became operational in FY26, generating INR11.89 crores in revenue. This unit, built with an investment of INR32 crores from promoters, is fully automated and designed by Bühler. While production and exports have commenced, the occupancy certificate (OC) is still pending, expected within 1.5-2 months. Once the OC is secured, the unit will be consolidated under TBI Corn Limited, with a target to achieve INR50-60 crores in revenue for FY27 and increase its capacity from 120 TPD to 240 TPD.

TBI Corn primarily sources maize from Karnataka and Maharashtra, known for their high-quality, non-GMO corn. The company employs a dedicated procurement team that operates year-round, adapting to regional crop cycles. Direct procurement from farmers has reached 25%, up from 12-13% two years ago, offering margin benefits of 1-1.2 percentage points through cash discounts and reduced broker commissions. However, further rapid increases in direct procurement are challenging due to the need for large, consistent farmer suppliers.

The company has made significant progress in corn germ extraction, increasing the rate from an initial 1-2% to 4-4.5% in FY26. This is a key value-addition strategy, as corn germ is a higher-priced product compared to animal feed. TBI Corn targets a 5.5% extraction rate for FY27 and aims for 7% within two years, expecting this improvement to contribute an additional 25 basis points to EBITDA margins. The R&D team has customized machinery to optimize germ quality and oil percentage.

TBI Corn reported positive operating cash flow of INR33.41 crores for FY26. While EBITDA margins remained largely consistent year-on-year, gross margins experienced a minor reduction in H2 FY26. This was attributed to higher depreciation and increased input costs, particularly for plastic used in bagging. The company's margins with large MNC customers are typically fixed, based on raw material price plus processing cost, limiting significant margin expansion from these clients. Future margin improvement is expected from premium export markets and enhanced value-added products like corn germ.

The company has improved its working capital management, contributing to the positive operating cash flow. This was achieved through better negotiation with suppliers and customers, leveraging increased volumes. Inventory control has also been enhanced, maintaining sufficient stock levels without proportional increases despite rising volumes. The company is also exploring new financing facilities, such as non-recourse facilities from RXIL, to manage payables effectively.