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TBI Corn — Q4 FY26 earnings call

Call held 3 Jun 2026

Management summary

TBI Corn reported strong operational performance for FY26, marked by a 44% volume growth and positive operating cash flow. The export-oriented unit, TBI Maize Processors, commenced operations and contributed to revenue, though its full integration is pending. While direct procurement and corn germ extraction improved, gross margins faced pressure from depreciation and input costs in the second half.

Highlights

  • TBI Corn achieved a strong volume growth of 44% year-on-year for the period ended March 2026, demonstrating robust business performance.

  • The company's operating cash flow turned positive at INR33.41 crores, indicating improved financial health and efficiency.

  • Direct procurement from farmers reached 25%, a significant improvement from previous years, leading to better rates and quality control.

  • The TBI Maize Processors Private Limited export-oriented unit became operational and generated INR11.89 crores in revenue for FY26, ahead of typical timelines for SEZ units.

  • Corn germ extraction rate improved to 4-4.5% from 1-2% previously, contributing to value addition and better product utilization.

Concerns

  • Gross margins decreased in H2 FY26 due to higher depreciation and increased prices of plastic for bagging, impacting overall profitability.

  • The occupancy certificate (OC) for the TBI Maize Processors unit is still pending, with an estimated 1.5-2 months for completion, delaying full integration into TBI Corn Limited.

  • Further significant increases in direct procurement beyond 25% are challenging due to the need for larger farmers who can supply consistent quantities.

Key financials

  1. Volume Growth 44%
  2. Operating Cash Flow ₹33.41 Cr
  3. TBI Maize Processors Revenue ₹11.89 Cr
  4. Capacity Utilization (350 TPD) 72%
  5. Direct Procurement 25%
  6. Corn Germ Extraction 4.5%

What they filed

Q4 FY26: revenue up 89.8%, net profit up 166.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ4 FY23Q2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue75 70 88 94 118 +57%137 +96%167 +90%
EBITDA6 11 7 13 11 +83%18 +64%16 +129%
Net profit3 7 3 8 6 +100%10 +43%8 +167%
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.

Capital allocation

high confidence
  • M&A TBI Maize Processors Private Limited Merger · Pending regulatory

    Consolidate the 100% export-oriented unit into TBI Corn Limited to leverage premium markets and improve overall growth.

    The plant cost INR32 crores, funded by promoters. Consolidation is expected to be margin accretive for the listed company.

    Yes, thank you. The entity that we are talking about, TBI Maize Processors Private Limited., that plant is now operationalized. So, that's the progress that we have made. So, that is now operationalized. It has started production. It has started exports as well. And in 2025-2026, TBI Maize Processors Private Limited has generated a revenue of INR12 cr. So, that entity has become operational. Where it is right now in terms of documentation, in terms of the permissions is we have applied for the full OC. So, I think we had discussed last time possibly this part as well. And the occupancy certificate, full occupancy certificate that we need to get from JNPA authorities, we are waiting for that. And probably it will take another one and a half months, couple of months or so. And once the OC is complete, then we will be able to bring it under TBI Corn Limited. (Ninad Yedurkar, page 11) ...It's about INR32 cr., because it's a completely Bühler designed plant, as we said, completely automized plant. All the machinery is imported machinery. So that's a higher investment kind of unit. (Ninad Yedurkar, page 19) ...Yeah, but not entirely. INR32 cr., was put in by promoters. So obviously, we will take into account that as well. And accordingly, we will have the ratio decided. (Ninad Yedurkar, page 20)
  • Liquidity Liquidity disclosed Operating cash flow turned positive at INR33.41 crores for the year.
    Another point that we are quite pleased about and I think our investors would also be pleased about is operating cash flow. So, that has become positive now at INR33.41 crores. (Ninad Yedurkar, page 10)

Guidance & targets

Volume

  • Volume Growth Volume · till FY28 · High confidence 35% CAGR
    Okay. Sir, when you see the presentation, you will see that we have given it on page number, just a moment. Apologies, I am not able to, yeah, got it now. So it is on page number 30. So typically that 35% CAGR target till FY28. So that's what we had put in last year and same progress that those kind of numbers is what we are generating and those kind of numbers is what we are targeting as well going forward.

    — Ninad Yedurkar

Revenue

  • TBI Maize Processors Revenue Revenue · FY27 · Medium confidence INR50-60 crores
    So eventually, the number that you quoted, we are also targeting. But whether that will happen this year, we have doubts about it. Because generating a INR150 cr., kind of revenue from a 120 TPD unit... No, I said INR50 cr., sorry. INR50 cr. Oh yeah, yeah. I thought you mentioned INR150 cr., sorry. But yes, once we obviously have it entirely operational, and once we manage to reach 96%, 97% kind of capacity realization, then even a 130, 140, 150 number will be able to achieve out of that plant.

    — Ninad Yedurkar

  • Total Turnover (390 TPD capacity) Revenue · not specified, with full utilization · Medium confidence INR480 crores
    Sir, with a capacity of 390, roughly I would say around 480 we can go. That is obviously when all plants are running completely operational and those kind of things, 96%, 97% kind of utilization which we are targeting eventually. So that much can go, definitely.

    — Ninad Yedurkar

  • Total Turnover Revenue · FY27 · Medium confidence INR410-550 crores
    For this year 35 -- 300 to it will go to 410 and from 410 to it can go to 550 turnover,

    — Darshan Chandra

Capacity

  • TBI Maize Processors Capacity Capacity · not specified, after stabilization · Medium confidence 240 TPD

    From 120 TPD today

    And again, as we just discussed, we have an option of increasing capacity in TBI Maize Processors. It will not happen this year, but once everything is stabilized and once we feel that we are able to utilize it well, we will be able to increase from 120 to 240 as well. That will require about 3 months, 3 months of work or so. Once we decide to do it, we will be able to increase the capacity.

    — Ninad Yedurkar

Market Share

  • Export Revenue Share Market Share · this year (FY27) · High confidence 20%

    From 10% today

    What we're targeting right now is 20%. That's the target that we have kept for ourselves. Right now, our exports are about 10% of the entire revenue. So that's the target with which we are working on this year.

    — Ninad Yedurkar

Margin

  • Corn Germ Extraction Percentage Margin · FY27 · High confidence 5.5%

    From 4-4.5% today

    So 5.5% is what we have kept as a target, 5.5%. So it seems that it will definitely cross 5%. 5.2% looks like definitely achievable again. 5.5% is the target for this year.

    — Ninad Yedurkar

  • Corn Germ Extraction Percentage Margin · in 2 years · Medium confidence 7%

    From 4-4.5% today

    From 4.5% to 8% is a kind of ideal dream scenario. We don't know when we will reach it. But definitely 6%, 7% we feel are reasonable targets to keep. We should reach in 2 years.

    — Ninad Yedurkar

  • Corn Germ Contribution to EBITDA Margin Margin · not specified · Medium confidence 25 bps
    So we are expecting another at least 25 kind of points contribution from this.

    — Ninad Yedurkar

Other

  • Consolidation of TBI Maize Processors Other · H1 FY27 · High confidence Consolidated

    From Pending today

    That's what we are targetting Shubhamji, this half year. So we are following up on this quite rigorously. But the process takes a bit of a time with all the rules and everything else that are in place. But couple of months is what we are hoping to achieve it in. Second quarter, I mean first half year, I think we should be able to consolidate.

    — Ninad Yedurkar

What to watch in Q1 FY27

Consolidation of TBI Maize Processors

H1 FY27
Current Pending Occupancy Certificate (OC)
Target Consolidated into TBI Corn Limited

Why it matters

Full consolidation will integrate the export unit's financials and operations, impacting overall revenue and strategic direction.

First half year, I think we should be able to consolidate. (Ninad Yedurkar, page 14)

Risks & concerns

  • Gross margin compression due to depreciation and input costs

    medium

    Higher depreciation and increased plastic (bagging) prices contributed to a decrease in gross margins in H2 FY26.

    Management acknowledged

  • Delays in obtaining Occupancy Certificate for TBI Maize Processors

    medium

    The OC for the export unit is pending, expected to take 1.5-2 months, which delays its full integration into TBI Corn Limited.

    Management acknowledged

  • Difficulty in scaling direct procurement from farmers

    low

    Increasing direct procurement significantly beyond 25% is challenging due to the need for large, consistent suppliers and the inherent unreliability of the farming community.

    Management acknowledged

  • Farmers selling outside if market prices increase

    low

    There is a risk that farmers might sell their produce elsewhere if market prices rise, impacting direct procurement agreements.

    Management acknowledged

Q&A highlights

7 direct
Progress and operational status of TBI Maize Processors (export unit) Direct
The entity that we are talking about, TBI Maize Processors Private Limited., that plant is now operationalized. So, that's the progress that we have made. So, that is now operationalized. It has started production. It has started exports as well. And in 2025-2026, TBI Maize Processors Private Limited has generated a revenue of INR12 cr.

Clarifies the operational status and initial revenue contribution of the new export-oriented unit, which is a key growth driver.

Asked by Murtaza

Expected margins from the export unit and target markets Partial
So if we look at GCC and for example, East Asia, it doesn't make a lot of difference in margins... But as we said, once we manage to get into Japan, Korea kind of markets, then things will definitely change, one. And second is when we will be able to use import in JNPA, things will definitely change.

Highlights that current export margins are similar to domestic, but premium markets (Japan, Korea) and ability to import GMO corn in SEZ could significantly improve future margins.

Asked by Murtaza

Timeline for factory audits by international clients for the export unit Direct
The audit stage will come after this. So it typically will take another three, four months, six months or so for the entire contact to become operational.

Provides a timeline for securing contracts with hygiene-sensitive international clients, which is crucial for the export unit's premium market strategy.

Asked by Murtaza

Roadmap for achieving 35% growth by FY28 and capacity utilization Direct
Currently we are at 72% capacity utilization... this year will be a year of consolidation for us. So this capacity utilization will definitely increase. So that's one source of growth that will come in. And as we were just discussing, TBI Maize Processors will also get consolidated this year.

Explains the strategy for future growth, focusing on increasing utilization of existing plants and consolidating the export unit.

Asked by Udit Sehgal

Reasons for gross margin decrease in H2 and future margin trajectory Direct
But higher depreciation this year, I think has reduced gross margin a bit. So that's one reason. Second is, we had a bit of a problem, a bit of an issue to deal with in last month, 1.5 months or so of last year as well. So that is where, especially with the increased prices of plastic, for example, the bagging, because all our bags are PP bags, which are typically 50 kg, 55 kg, 60 kg bags. So those kinds of issues have troubled us a bit.

Identifies specific factors (depreciation, input costs) that impacted margins in the recent half and clarifies that core EBITDA margins remained stable.

Asked by Madhur Rathi

Margin benefits from direct procurement and targets for increasing it Direct
Generally, what happens is, you might know that when a farmer brings a truck to the factory, we have to immediately pay for it. He has to immediately get the cash. The only thing is, if we have cash available, we will pay it. So we will get the cash discount. And if we don't, then the broker will pay the farmer. We have to pay the broker. So the cash discount is the main difference in terms of margin. That is when it comes to the ability to pay. If we do direct purchase, what happens is that we save broker's commission. So that is the difference. So typically, we are looking at an increase of about 1, 1.2 percentage.

Details the specific financial advantages of direct procurement (cash discount, saving broker commission) and quantifies the margin benefit.

Asked by Gunit Singh

Progress on corn germ extraction and its impact on EBITDA margins Direct
So 5.5% is what we have kept as a target, 5.5%. So it seems that it will definitely cross 5%. 5.2% looks like definitely achievable again. 5.5% is the target for this year... So we are expecting another at least 25 kind of points contribution from this.

Confirms the target for corn germ extraction for FY27 and quantifies its expected contribution to EBITDA margins, highlighting a key value-addition strategy.

Asked by Gunit Singh

Assurance regarding promoter's intent on TBI Maize Processors merger Direct
Absolutely, sir. ...lots of investors are worried on that kind of thing, reverse merger or lots of promoters are also doing little bit of bad things nowadays in the SME segment. So it was a lot of worry and that was showing on the price in our prices also. Thanks for the confirmation to the investor community and congrats once again to the company.

Addresses investor concerns about potential reverse merger or promoter actions, providing reassurance that TBI Corn will remain the parent company and the merger will be fair.

Asked by Darshan Chandra

2 min read 6 chapters

Detailed narrative

Operational Highlights and Capacity Utilization

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.

TBI Maize Processors (Export Unit) Update

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.

Raw Material Sourcing and Quality

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.

Product Innovation and Value Addition

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.

Financial Performance and Margin Dynamics

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.

Working Capital Management

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.

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