ADF Foods Ltd — Q4 FY26

ADF Foods Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=hpXTjAcKicc Published: 1 hour ago

0:01 1 second Ladies and gentlemen, good day and welcome to the ADF Foods Limited Q4 FY26 earnings conference call. As a reminder, 0:09 9 seconds all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during this conference call, please signal an operator by pressing star and then zero on your touchstone phone. I now hand the 0:26 26 seconds conference over to Mr. Ravi Udeshi from EY. Thank you and over to you Mr. Ravi. 0:33 33 seconds Thank you Sager and good afternoon everyone. We welcome you to the Q4 and FI26 earnings conference call of ADF 0:41 41 seconds Foods Limited. To take us through the results and to answer your questions, we have with us today the top management of ADF Foods Limited represented by Mr. 0:52 52 seconds Biml Takar the promoter chairman managing director and CEO Mr. Sumeir 0:59 59 seconds Takar the promoter vice president sales and strategy and Mr. Sinas Ayagari the 1:06 1 minute, 6 seconds chief financial officer we will start the call with an overview of the business and the recent updates by Mr. 1:14 1 minute, 14 seconds Bimal Takar and then Mr. Mr. 1:18 1 minute, 18 seconds will give his comments on the financials. As usual, the standard safe harbor clause applies while we start the call. With that said, I now hand over the call to Biml. Over to you, Biml. 1:31 1 minute, 31 seconds Uh, thank you Rabi. Good afternoon everyone. 1:35 1 minute, 35 seconds On the results front, we delivered a strong performance in Q4 of the financial year 26 with consolidated 1:42 1 minute, 42 seconds revenues reaching an all-time high of 196.6. 7 crores representing a robust 1:50 1 minute, 50 seconds 23.7 yearon-year growth. On a standalone basis, revenues increased by 11.6% yearonear to rupees 150.3 crores. 2:03 2 minutes, 3 seconds Despite prevailing challenges including tariffs, West Asia conflict and supply chain issues, our business saw continued 2:12 2 minutes, 12 seconds momentum fueled by significant traction from listings secured in the past few years and strengthening of our brand 2:19 2 minutes, 19 seconds penetration and distribution across all our key markets. 2:23 2 minutes, 23 seconds Our consolidated EBITA reached rupees 34.3 crores with healthy margins of 17.4%. 2:32 2 minutes, 32 seconds On a standalone basis, ITA increased by 24.8% to rupees 36.5 crores. This was driven 2:40 2 minutes, 40 seconds by improved product mix and continued focus on cost optimization. 2:46 2 minutes, 46 seconds Our flagship brand Ashoka continues to strengthen its presence driven by strong diaspora demand and our mainstream brand 2:54 2 minutes, 54 seconds truly Indian has exceeded expectations with a marked acceleration in its growth trajectory. 3:01 3 minutes, 1 second We are proud to announce that truly Indian has won next award in the best breads and bakery category for its tikka 3:08 3 minutes, 8 seconds masala naan and also won the freezies award in the best frozen bread and bakery category for its garlic na. 3:17 3 minutes, 17 seconds We have successfully commenced operations at our sur field facility in Q4 of this fin of financial year 26 with 3:26 3 minutes, 26 seconds a scaled up plan over the coming quarters. 3:30 3 minutes, 30 seconds We continue to witness strong brandled traction supported by deeper penetration. 3:36 3 minutes, 36 seconds The ongoing West Asia situation continues to pose challenges. However, with our sustained focus on execution 3:44 3 minutes, 44 seconds excellence and operational discipline, we remain cautiously optimistic in our ability to maintain the current growth 3:51 3 minutes, 51 seconds trajectory over the long term. I will now hand over to Shini, our CFO, who will comment on the financials. Thank you. Over to you, Shini. 4:14 4 minutes, 14 seconds Um, she 4:49 4 minutes, 49 seconds Ravi. Hi. 4:54 4 minutes, 54 seconds We can Yes, sir. Please go ahead. 4:59 4 minutes, 59 seconds Uh uh apologies for the technical dis disturbance. Thank you Biml and good 5:06 5 minutes, 6 seconds afternoon everyone. I'll begin with the consolidated performance for Q4 and FI26. For Q4 FI26 consolidated revenue 5:14 5 minutes, 14 seconds reached a record high of 196.7 crores reflecting a strong growth of 23.7% yearonear. Consolidated AITA stood at 5:24 5 minutes, 24 seconds 34.3 crores, up 38.9% year-onear with AITA margins at 17.4% expanding by 190 5:33 5 minutes, 33 seconds bips over last year. Profit after tax was 25.9 crores registering a robust growth of 57.6 yearonear with PAT margins at 13.2%. 5:45 5 minutes, 45 seconds Coming to the fullear performance, consolidated revenue stood at 683.2 2 crores up 15.9% yearonear. Abita 5:54 5 minutes, 54 seconds increased 32.8% to INR 130.7 crores while Abitita margins improved to 19.1% an expansion 6:03 6 minutes, 3 seconds of 240 basis points. PAT excluding exceptional items stood at 96.8 crores 6:10 6 minutes, 10 seconds up 39.7% yearonear translating into a PAT margin of 14.2%. 6:17 6 minutes, 17 seconds Now I move to the standalone performance for Q4 FI26. Standalone revenues were 6:23 6 minutes, 23 seconds 150.3 crores reflecting a healthy growth of 11.6% yearonear. Abita for the quarter stood 6:32 6 minutes, 32 seconds at 36.5 crores up 24.8% yearonear with AITA margins at 24.3% 6:41 6 minutes, 41 seconds improving by 260 basis points. PAT increased by 40% on a year-on-year basis 6:48 6 minutes, 48 seconds and stood at 30.1 crores with PAT margins at a healthy 20%. 6:54 6 minutes, 54 seconds For the full year ended March 31st, 2026, standalone revenues stood at 527.9 7:02 7 minutes, 2 seconds crores, registering a 10.3% growth year on year. Abita increased 7:07 7 minutes, 7 seconds 24.6% 6% to 131.1 crores while AITA margins expanded to 24.8% 7:15 7 minutes, 15 seconds up to 80 basis points yearon year. Pat excluding exceptional items stood at 104 crores with PAT margins at 19.7%. 7:28 7 minutes, 28 seconds As highlighted by Bible, the improvement in margins was driven by a better product mix, sustained cost optimization 7:34 7 minutes, 34 seconds initiatives and volumes. We continue to be watchful of the ongoing geopolitical situation and it impacts on business. 7:43 7 minutes, 43 seconds At the same time, we continue to invest in our brands, manufacturing capabilities and leadership talent to build a strong platform for future 7:51 7 minutes, 51 seconds growth. These investments are already delivering results. A flagship brand Ashoka continued its strong momentum 8:00 8 minutes across both core and emerging markets supported by deeper market penetration and focused market execution. Our global 8:08 8 minutes, 8 seconds mainstream brand truly Indian is also scaling up well supporting supported by new listings across leading chains 8:15 8 minutes, 15 seconds retail chains like Costco rallies Safeway Albertson's Whole Foods Markets and several other chains in US. We now 8:24 8 minutes, 24 seconds service close to 3,000 crores across the US markets. 8:29 8 minutes, 29 seconds On the manufacturing front, we have invested approximately 124 crores in capex over the last 2 years in both green field and brownfield expansions. 8:40 8 minutes, 40 seconds Phase one of the Surat Greenfield facility commenced its commercial production in March 2026. 8:46 8 minutes, 46 seconds The company's financial position remains strong with a net debt-free balance sheet and a robust cash surplus of 78.2 8:55 8 minutes, 55 seconds crores thereby providing fi strong financial flexibility for future growth initiatives. The board has recommended 9:03 9 minutes, 3 seconds final dividend of 30% of face value making the total dividend amounting to 60% for FI26. 9:10 9 minutes, 10 seconds With this I now return to Ravi Udeshi to open the floor for question and answer session. Thank you. 9:19 9 minutes, 19 seconds Thank you very much. We will now begin with the question and answer session. 9:24 9 minutes, 24 seconds Anyone who wishes to ask a question may press star and then one on their touchstone phone. 9:30 9 minutes, 30 seconds If you wish to remove yourself from the question queue, you may press star and two. 9:36 9 minutes, 36 seconds Participants are requested to use handsets while asking a question. 9:42 9 minutes, 42 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 9:47 9 minutes, 47 seconds Again to register, please press star and one. 10:00 10 minutes Your first question comes from the line of Sarupia from Samiksha Capital. Please go ahead. 10:09 10 minutes, 9 seconds Uh hello. Uh first of all congratulations for a great set of numbers. I just wanted to know since we just commenced the solar facility uh 10:18 10 minutes, 18 seconds what is the current utilization and what is the ramp up timeline you're expecting and uh in FY27 and also in coming years 10:27 10 minutes, 27 seconds when the plant operates at say full capacity what is the incremental delta revenue we expect this question. 10:39 10 minutes, 39 seconds Yeah. Is there any other question or should I answer this one? Yeah. Yeah, you can answer this one. 10:45 10 minutes, 45 seconds Okay. So, uh the sura plant as uh mentioned by Shini, we just started 10:52 10 minutes, 52 seconds production in the third week of uh March. So, uh the last fiscal year we 11:00 11 minutes barely executed uh two containers because we just had nearly only 10 days of operation. uh this year we ex uh so 11:09 11 minutes, 9 seconds the plant is going to be done in two phases. The phase one is uh two product lines which have been put in and in 11:18 11 minutes, 18 seconds phase two which will be in quarter three of this fiscal year uh there will be another product line which will start. 11:25 11 minutes, 25 seconds So we expect in terms of uh revenue uh around 40 to 50 crores uh 11:35 11 minutes, 35 seconds contribution from the Surat facility in in this fiscal year. Uh at its full 11:41 11 minutes, 41 seconds capacity uh the Surat plant will uh give us upwards of 200 crores in topline. 11:51 11 minutes, 51 seconds Thank you that answers well. Uh just a followup question on this. Since the sewer plant also serves international market, should we expect a initial 11:59 11 minutes, 59 seconds operating leverage to impact and what is the margin guidance on a console basis? 12:05 12 minutes, 5 seconds So what margin labor this plant would have on the overall functions? 12:10 12 minutes, 10 seconds So uh you know till its full capa at its full capacity we expect to maintain the 12:17 12 minutes, 17 seconds similar kind of margins that we are getting from our existing facilities. 12:24 12 minutes, 24 seconds Okay, perfect. And uh can you provide a revenue for your Sorry, sir. Uh uh may we request you to 12:31 12 minutes, 31 seconds return to the question for Perfect. Perfect. Thank you. 12:36 12 minutes, 36 seconds Thank you. Uh ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we 12:44 12 minutes, 44 seconds request you to limit to two questions each per participant and rejoin the queue for any follow-up questions. Your next question comes from the line of 12:52 12 minutes, 52 seconds Rahan Sayyad from Prenatal Asset Managers. Please go ahead. 12:59 12 minutes, 59 seconds Uh yeah, good afternoon to the team and thanks for taking my question. Uh so I have two questions. First was that 13:06 13 minutes, 6 seconds Ashoka Ashoka continues to deliver strong growth despite already being a well established uh Dopra brand 13:15 13 minutes, 15 seconds globally. So what according to the management are the key levers that can sustain the guided 25% growth trajectory 13:22 13 minutes, 22 seconds from here and especially considering the large revenue base now. So is the next phase of growth likely to come more on 13:30 13 minutes, 30 seconds from deeper penetration within existing geographies or from entering new consumption locations and product categories. 13:38 13 minutes, 38 seconds So uh I it'll be a combination of both. I mean we still have uh we are still looking at 13:47 13 minutes, 47 seconds uh widening our penetration in our existing core markets adding on new markets and of course uh you know 13:56 13 minutes, 56 seconds continuous product development and adding new product lines. So it'll be a combination of all these things which will help continue the growth of the brand. 14:07 14 minutes, 7 seconds Oh okay fair enough. answer. My second question is around like truly Indian seems to be gaining strong traction in 14:14 14 minutes, 14 seconds the US mainstream channel with presence across uh nearly 3,000 stores now. So could uh you help us understand whether 14:23 14 minutes, 23 seconds the growth is currently being driven more by distribution expansion or by healthy tech and repeat purchase at 14:30 14 minutes, 30 seconds existing store and also are you seeing any uh meaningful difference in consumer behavior between India or reaching consumer and mainstream non-India 14:38 14 minutes, 38 seconds consumer in the terms of uh product acceptance and repeat consumption pattern. 14:45 14 minutes, 45 seconds So uh you know that's a great question. 14:48 14 minutes, 48 seconds Uh the uh truly Indian brand at the moment uh the initial traction 14:55 14 minutes, 55 seconds is more from a distribution point. Uh we have had repeats happening with some of the Costco. 15:04 15 minutes, 4 seconds So that is very encouraging where we've already had two to three rotations in some divisions. 15:11 15 minutes, 11 seconds uh the other uh supermarkets uh some of them have had repeats which have 15:18 15 minutes, 18 seconds happened some are fairly new listings so uh it's a combination of repeats as well as new listings which is leading to the 15:26 15 minutes, 26 seconds growth uh the ethnic Indian food category within the mainstream American consumers 15:34 15 minutes, 34 seconds is getting more and more popular consumers are preferring to go more 15:40 15 minutes, 40 seconds vegan vegan uh healthy products you know uh so you know it the Indian category is 15:47 15 minutes, 47 seconds at this inflection point where we feel over the next few years it'll just uh there'll be a huge uh growth in this 15:57 15 minutes, 57 seconds category and which is where we feel truly Indian is poised to uh sit down and grow in in the space 16:06 16 minutes, 6 seconds okay so thank you and that's it from my side and good luck for coming Thanks. 16:13 16 minutes, 13 seconds Thank you. 16:15 16 minutes, 15 seconds The next question comes from the line of Danj Pagoria from Alchemy. Please go ahead. 16:23 16 minutes, 23 seconds Hi sir congratulations a very strong set of numbers. I just wanted to ask you are we seeing any impact of in at least in 16:30 16 minutes, 30 seconds US uh and people talking about OMG are we hearing anything from uh any of these players along accordingly? 16:38 16 minutes, 38 seconds Sorry can you just repeat that? 16:40 16 minutes, 40 seconds any any impact from any of these players? Are they speaking about like Ompic and GLP ones reducing the intake for these kind of foods? 16:48 16 minutes, 48 seconds Uh no no uh we are not seeing any kind of impact on that and in fact you know 16:55 16 minutes, 55 seconds uh our whole product range is vegetarian and vegan. So if anything uh it will lure the consumers towards these kind of 17:05 17 minutes, 5 seconds products when compared to meat and other things. Okay, fine. And maybe I miss but how is it uh how is the numbers coming 17:14 17 minutes, 14 seconds along in Middle East considering the whole war uh situation? 17:19 17 minutes, 19 seconds So the Middle East has been I mean because of the uh current situation in 17:24 17 minutes, 24 seconds uh the month of March and April we've uh not been able to service that market uh 17:33 17 minutes, 33 seconds apart from a few uh ports uh because there are no shipping companies which are taking containers there. So March 17:42 17 minutes, 42 seconds and April have seen a very insignificant sale out there and we hope the situation improves uh so that Migles can start 17:51 17 minutes, 51 seconds contributing as well in this financial year. Sure. Okay. Thank you sir. Thank you. 18:00 18 minutes Thank you. Your next question comes from the line of Charit Malu with Genuity Capital. Please go ahead. 18:08 18 minutes, 8 seconds Hi Tamu. Yes. Hi. 18:12 18 minutes, 12 seconds Thanks a lot for the opportunity and congratulation on good set of numbers. 18:16 18 minutes, 16 seconds So what was the capacity utilization as of FY26? 18:21 18 minutes, 21 seconds So you know we have different lines uh different product lines. So at an average I would say we were 18:31 18 minutes, 31 seconds uh anywhere between 70% uh 70 to 75% capacity utilization. 18:37 18 minutes, 37 seconds Okay. And like with Surat plant getting started uh what kind of utilizations are we expecting going forward in F27 and F28? 18:45 18 minutes, 45 seconds So as I mentioned Surat is going to be done in two phases. Uh so the phase one 18:52 18 minutes, 52 seconds uh we would expect about uh close to 35% or 35 to 40% capacity 19:00 19 minutes utilization in phase one. Phase two will be towards the third quarter uh of this 19:07 19 minutes, 7 seconds financial year. So that would hardly be 10 15% uh capacity utilization for this financial year. 19:16 19 minutes, 16 seconds Understood. And just one more thing I like just wanted to understand at what extent are we you know impacted from this situation like from the export 19:24 19 minutes, 24 seconds business if you can just I'm sorry uh can you please just repeat your question? So at what extent are we 19:33 19 minutes, 33 seconds like getting impacted from this war situation because we are unable to export you know if I'm not wrong. So at 19:41 19 minutes, 41 seconds the moment for us our biggest challenge is uh has been uh servicing the Middle East market the GCC market because there 19:50 19 minutes, 50 seconds is no availability of ships no one's going there few ports are only open uh 19:57 19 minutes, 57 seconds so I would say the GCC business has been impacted by uh at least about 80 85% for 20:05 20 minutes, 5 seconds us all the other markets uh what has happened is uh we have containers going I mean ships are accepting cargo there 20:14 20 minutes, 14 seconds uh it's just that the transit time is longer and the freight rates have increased a little bit but all these 20:21 20 minutes, 21 seconds other markets we've not had any impact uh the main impact has been in the GCC for us 20:28 20 minutes, 28 seconds um so like what kind of you know hit we can sorry to interrupt sir may we request to return to the queue for any followup 20:36 20 minutes, 36 seconds just one followup question uh there are several other participants waiting for their turn. Really apologize for the same. Okay. 20:43 20 minutes, 43 seconds Thank you. Your next question comes from the line of Rashi Maheshwari with AXA Capital. Please go ahead. 20:51 20 minutes, 51 seconds Thanks for taking my question. Uh couple of questions. Uh firstly, the colonal revenue uh for Q4. Uh can you break it 20:58 20 minutes, 58 seconds down versus volume and value given the benefit of rupee depreciation that you would have also uh you know witnessed in 21:05 21 minutes, 5 seconds this uh quarter? um and if there was what was if you can quantify what was the impact of the uh of the export to the GCC countries. 21:17 21 minutes, 17 seconds So uh we've I would say the uh the growth is 21:24 21 minutes, 24 seconds more 60 60 65% towards the uh volume growth. Uh there has been some uh 21:31 21 minutes, 31 seconds benefit with the devaluation uh but majority of the growth has come through 21:38 21 minutes, 38 seconds uh with volume growth and the Middle East business as I mentioned I mean March was 21:46 21 minutes, 46 seconds literally uh we we didn't have any shipments go into the Middle East in the month of March. April has started off 21:54 21 minutes, 54 seconds with one or two ports. uh the GCC overall accounts for about uh a little 22:00 22 minutes under 15% of our overall revenues. So that is that is the area right now which 22:08 22 minutes, 8 seconds uh we are that is the markets which we are struggling with at the moment. Uh so they haven't contributed at all for March and April and we hope the 22:17 22 minutes, 17 seconds situation improves because then that'll help us uh feeding these markets back again. Sure. 22:26 22 minutes, 26 seconds And you know you projected for,000 crores of revenue in FI27. Uh we've done 308 crores via Ashoka and you projected 22:33 22 minutes, 33 seconds 20 to 25% growth there. Uh that's about 385 crores. So to get the balance 615 22:41 22 minutes, 41 seconds crores uh in FI27 you'd require about 75% growth from the rest of the business. I was wondering what really is 22:50 22 minutes, 50 seconds scaling up over here. I know that the distribution uh growth over here is about 100 crores is what you expect what 22:57 22 minutes, 57 seconds you already exhibited in the presentation uh ti in the last call you mentioned that in three years time you 23:04 23 minutes, 4 seconds intend to reach to about 100 crores which means that by this year end you may give up 50 60 crores so what is 23:10 23 minutes, 10 seconds really the balance that I'm unable to reconcile with this 34 35% growth 23:17 23 minutes, 17 seconds so you know uh the guidance on revenue we've we've said 925 to a,000 crores. 23:25 23 minutes, 25 seconds That's the kind of bandwidth we are looking at and uh we feel fairly confident of being able to achieve it 23:32 23 minutes, 32 seconds provided the the geopolitical situations improve. I mean if it continues that 23:38 23 minutes, 38 seconds way, we will have to relook at uh the numbers and our guidance. But uh if things stabilize within the next month 23:47 23 minutes, 47 seconds or so which we hope uh then uh we would be able to uh meet our guidance of 23:56 23 minutes, 56 seconds around uh between 925 to a th00and uh truly Indian brand uh has grown more 24:05 24 minutes, 5 seconds than what we had expected in this last fiscal year. uh this this year also we 24:11 24 minutes, 11 seconds are hoping for a much higher growth. I mean uh our estimate is 24:18 24 minutes, 18 seconds if everything goes well uh we are we are looking at anywhere between 75 to 80 growers on truly Indian for this year. 24:28 24 minutes, 28 seconds So that'll help grow the Ashoka brand also we feel will grow much more than what it is currently. We are opening up 24:36 24 minutes, 36 seconds uh as I mentioned we're looking at deeper penetration. There are new markets which are uh coming into play. 24:43 24 minutes, 43 seconds Uh so we expect the Ashoka brand to grow um close to 30 35% uh in this area. 24:55 24 minutes, 55 seconds Got it. Got it. Got it. Is it possible to Sorry to interrupt Rashi sir. Uh we request you to rejoin the queue for followups. Please. 25:03 25 minutes, 3 seconds Thank you. 25:06 25 minutes, 6 seconds Your next question comes from the line of NITK from NV alpha fund. Please go ahead. 25:12 25 minutes, 12 seconds Hi sir. Uh thanks for taking my question. Uh so uh my first question is you know uh Ashoka brand we have roughly 25:19 25 minutes, 19 seconds 300 crores of topline currently and the reach of roughly 3,000 stores. Uh so what what sort of uh you know store 25:27 25 minutes, 27 seconds additions do we anticipate uh to be adding further? 25:31 25 minutes, 31 seconds No. So the Ashoka brand is not 3,000 store. Ashoka is much more than that. Uh 3,000 stores is for the truly Indian 25:39 25 minutes, 39 seconds brand which is what we've achieved. So Ashoka continues uh as I mentioned the growth on Ashoka is 25:47 25 minutes, 47 seconds going to come from deeper penetration within the existing stores across all our main markets. Uh new product 25:54 25 minutes, 54 seconds categories, new products that we will introduce and new markets which we are going to open. 26:01 26 minutes, 1 second And if you could uh you know just mention uh I believe core markets would be uh USA but apart from that uh which markets 26:10 26 minutes, 10 seconds north America is uh which includes Canada is our core market. UK and Europe is our core market for the Ashoka brand. 26:19 26 minutes, 19 seconds Australia, New Zealand that's also a market which is growing well for us. So these are the main markets where the Ashoka brand focus will be. 26:29 26 minutes, 29 seconds Got it. call sir. So our last question could give us a break up of you know uh how much percentage is coming from private people and uh truly Indian I 26:37 26 minutes, 37 seconds believe it's 100 120 cr right now or what uh what is the 26:44 26 minutes, 44 seconds so truly Indian uh so okay the B2B and private label 26:51 26 minutes, 51 seconds business accounts for about 20% of our overall uh revenue uh so and the truly Indian band is 27:00 27 minutes approximately uh four four million four four and a.5 million. 27:08 27 minutes, 8 seconds Got it. Go sir. Uh perfect answer. Thank you so much. 27:12 27 minutes, 12 seconds Thank you. The next question comes from the line of Anker Gulati with Genu Capital. Please go ahead. 27:20 27 minutes, 20 seconds Thanks. Um in Q4 um I guess you said uh there's no Middle 27:27 27 minutes, 27 seconds East revenue in March. So what was the only only in the month of March there was no shipments in the Middle East. 27:35 27 minutes, 35 seconds Yes. What was the revenue from Middle East in Janu Feb out of 197 revenue? 27:41 27 minutes, 41 seconds Uh you know I don't know the exact number but uh like as I mentioned the GCC accounts overall for about under 15% of our revenues. 27:52 27 minutes, 52 seconds Okay. It's out of let's say 200 on a run rate basis. 30 K is where uh there is a bit of a potential risk on a quarterly run rate basis. Is that fair? 28:03 28 minutes, 3 seconds Yeah. 28:04 28 minutes, 4 seconds Okay. Second um what is the increase in logistic cost for the entire quarter 28:11 28 minutes, 11 seconds which I'm assuming escalation happened in March but if you can give me the increase in logistic cost shipment cost. 28:17 28 minutes, 17 seconds So the increase has been roughly about 3 to 4% uh at the moment of uh total 28:25 28 minutes, 25 seconds revenue of the total revenue. Yes. Uh that's correct. and and markets like the 28:34 28 minutes, 34 seconds Middle East which have just started operating uh there the freight costs are very high and uh and it's as I mentioned 28:43 28 minutes, 43 seconds it's just one or two ports that are currently operational. So in those markets we are 28:51 28 minutes, 51 seconds sharing the cost with our distributor on a 50/50 basis. So the distributors are also contributing 50% towards that cost. 28:59 28 minutes, 59 seconds So 3% increase on 200 is 6 crores. 29:02 29 minutes, 2 seconds That's the increase in logistic cost for one month. On a quarter basis, this translates to roughly 158. 29:10 29 minutes, 10 seconds Correct. But the the increase for the last quarter happened only in the month of March. 29:14 29 minutes, 14 seconds Correct. So six cr is in one month on a quarter 100 which will be 18 kores 29:22 29 minutes, 22 seconds which will show up in April quarter. Is that fair? 29:25 29 minutes, 25 seconds No. Maybe I'll take it. No. So March was a very big aberration month because the West Asia situation unfolded and there 29:34 29 minutes, 34 seconds were a lot of containers and vessels which had uh not which had got jammed and we could not get vessels and we had 29:42 29 minutes, 42 seconds to use long transit timelines towards the US markets. Uh April we saw the slightly toning down of the freight cost 29:50 29 minutes, 50 seconds coming down. March you have to look at it as a very very aberration month. 29:55 29 minutes, 55 seconds after the second week of April, these numbers have toned down slightly because the situation now is more or less the 30:02 30 minutes, 2 seconds same or static for some time. So you can't just extrapolate that uh numbers but March being a very exceptional month 30:10 30 minutes, 10 seconds we had to we had to spend uh additional amounts on freight costs for for our shipping. 30:18 30 minutes, 18 seconds So that's comforting sir just uh let's say 59 crores was your other expense in Q3. So if I have to pencil in uh for 30:27 30 minutes, 27 seconds this quarter or next quarter should I add 10 10 crores at least purely because logistic cost is bump up. I'm referring to Q3 as a base not Q4 as a base. 30:39 30 minutes, 39 seconds I think you can uh you can very well add roughly around uh a percentage basis points in terms of the freight uh of 30:48 30 minutes, 48 seconds what we spent right now. So apart from that uh I think uh the num uh the situation will should come into control 30:56 30 minutes, 56 seconds over a period of the next two months basically. Got it. I follow. Yeah. 31:04 31 minutes, 4 seconds Thank you. The next question comes from the line of Ravi Naredi with Nared Investment Private Limited. Please go ahead. 31:12 31 minutes, 12 seconds Thank you very much Viml. In this adverse situation, ADF food has done very well in this March quarter and for 31:21 31 minutes, 21 seconds the full year. Uh I am shareholders in last 10 year. I never saw such a energetic number in our company which 31:30 31 minutes, 30 seconds you deliver now. Sir, how much BL incentive we received from government in quarter 4 or full year of 2026? 31:41 31 minutes, 41 seconds Uh Sweeni, do you want to get that please? Thank you. Thank you for your encouragement. Welcome. Welcome. 31:50 31 minutes, 50 seconds Just one second. Yeah. Yeah. So from a PLI perspective, uh for the full year, our number is roughly around 16 crores for FI26. 32:02 32 minutes, 2 seconds Okay. Okay. 32:04 32 minutes, 4 seconds Sir, US warehouse uh working at what level of our capacity? Can you tell in that way? 32:13 32 minutes, 13 seconds Uh so um I mean there's in terms of utilization of the we have the warehouse 32:22 32 minutes, 22 seconds is split between freezers and ambient products. 32:27 32 minutes, 27 seconds Right. The freezer freezer is in excess of 100%. So I mean we in fact are using 32:35 32 minutes, 35 seconds outside storage because our freezer space is small small I mean is less 32:42 32 minutes, 42 seconds compared to what the demand is. Uh as far as the ambient products go we have about 85% uh utilization on the ambient products. 32:55 32 minutes, 55 seconds So it means we are we will go for new warehouse res. 33:02 33 minutes, 2 seconds Yes, the plan is to open up another warehouse as well later on in the probably in the third quarter. We just want to see how 33:10 33 minutes, 10 seconds everything stabilizes and then we'll open up one more distribution center in America. 33:16 33 minutes, 16 seconds Okay. Okay. Sir, my last question in 2027 you had predicted 1,000 cr topline. 33:24 33 minutes, 24 seconds So our margin will be same or higher? 33:29 33 minutes, 29 seconds Well u you know as the surat facility would not be fully utilized uh but we feel fairly confident that we will 33:37 33 minutes, 37 seconds maintain these high teen eidas which we've been uh giving guidance for. So we we feel fairly confident of being able 33:45 33 minutes, 45 seconds to do that and hopefully the situation in uh in the Middle East uh improves and 33:52 33 minutes, 52 seconds things start stabilizing. So these are the assumptions that we are making. 33:57 33 minutes, 57 seconds Fantastic results. Really maj Okay sir. Okay. Thank you. Thank you. 34:06 34 minutes, 6 seconds Thank you. 34:07 34 minutes, 7 seconds The next question comes from the line of Shiladia Chri an individual investor. Please. 34:14 34 minutes, 14 seconds Hello. Can you hear me? Yes sir. 34:19 34 minutes, 19 seconds Okay. So my question is on this uh sur the ramp can you uh both the phases you 34:26 34 minutes, 26 seconds talked about right? So uh can you tell me the peak revenue potential for each of these phases and how the ramps up how 34:34 34 minutes, 34 seconds the utilization will happen timelines wise. 34:38 34 minutes, 38 seconds So as I mentioned earlier at full capacity and with the second phase being executed the sur facility will give 34:47 34 minutes, 47 seconds upwards of anywhere between 200 to 250 crores in top line. 34:54 34 minutes, 54 seconds Okay. Okay. And how the ramp up we should expect over the next uh couple of years. 35:00 35 minutes Um so we are hoping to get to full capacity utilization in year three. 35:08 35 minutes, 8 seconds Okay. 35:10 35 minutes, 10 seconds So this year we are FYI 27 we are expecting around 35% uh and then gradually ramp up to with the particularation over. Okay. 35:20 35 minutes, 20 seconds Yes. All right. So the next uh question I have is on the Middle East as you said almost 15% of your revenues come from 35:27 35 minutes, 27 seconds there. So it's aable portion of the revenue and obviously we don't know what the situation is going 35:34 35 minutes, 34 seconds to be in the future. Um so so if the situation stays worst case let's say it 35:41 35 minutes, 41 seconds stays as it is currently for the next foreseeable future what is the impact on your guidance and what is the kind of 35:49 35 minutes, 49 seconds mitigation you are looking so throw some light on that yes u you know all the other markets are all 35:58 35 minutes, 58 seconds our other core markets we are aggressively growing in those markets uh and 36:05 36 minutes, 5 seconds we will we are continuing to put it make investments in terms of people in terms of marketing activity so we feel fairly 36:14 36 minutes, 14 seconds confident in all these core markets on our core brand Ashoka that we will grow upwards of 30% that is what the goal is 36:24 36 minutes, 24 seconds uh so if this situation in the Middle East continues of course it will have an impact and then we will look at revising 36:33 36 minutes, 33 seconds our guidance but at the moment we feel fairly confident of being able to get to the I mean with the hope that over the 36:41 36 minutes, 41 seconds next one or two months things stabilize uh we we feel confident of being able to achieve the guidance which we've given 36:48 36 minutes, 48 seconds of around 9 925 between 925 to a,000 crops and so what what could be the impact in 36:56 36 minutes, 56 seconds the worst case let's say because none of us knows what happens in the future right here in so let's say it continues like this so the impact is like 100 37:05 37 minutes, 5 seconds coursees kind of an impact. What kind of impact we should think? 37:07 37 minutes, 7 seconds So in terms of in terms of growth then over our financial year 26 we would look at uh 37:17 37 minutes, 17 seconds growth of about uh 12 to 15% overall 12 to 15%. Okay. 37:25 37 minutes, 25 seconds If if the Middle East remains at zero level right 37:32 37 minutes, 32 seconds yeah that's all. Thank you. Mr. Thank you. 37:36 37 minutes, 36 seconds Thank you. A reminder to all the participants, if you wish to register for a question, you may press star and one now. 38:01 38 minutes, 1 second participants, you may press star and then one to ask a question. 38:06 38 minutes, 6 seconds The next follow-up question comes from the line of nic. I'm sorry. Yeah, it is from the line of Adeptya from Securities Investment Management. Please go ahead. 38:17 38 minutes, 17 seconds Yeah, hi sir. Thanks for the opportunity. Uh so the first question was on a distribution agency distribution business. Uh so for the last two quarters we are seeing strong 38:26 38 minutes, 26 seconds growth over there. Uh so if you just help us understand what is leading to this growth and what is the outlook for this business? Have we added any new customers? 38:36 38 minutes, 36 seconds So um we've added uh uh some new brands onto the distribution. 38:45 38 minutes, 45 seconds uh it's not just the uh the three brands that we had. There are a couple of new brands which have 38:52 38 minutes, 52 seconds been added on which has helped in growing the business and these are again brands which are complimentary to our current product line whereas 39:00 39 minutes synergy with the distribution. So we continue to look out for adding on some more brands. That's what 39:08 39 minutes, 8 seconds the plan is again which are complimentary not conflicting with our products and where there's synergy in distribution 39:16 39 minutes, 16 seconds and this so aren't these brands larger brands like the key brand which we had or these are much smaller brands. 39:22 39 minutes, 22 seconds No, there are smaller regional brands uh which are there which we are adding on and then even our product line in the Ashoka 39:31 39 minutes, 31 seconds range also has increased uh which is going through this distribution company again where we've added on staples 39:41 39 minutes, 41 seconds certain oils flour uh so it's a combination of all these things which is helping us grow this business. 39:51 39 minutes, 51 seconds Understood. understand. 39:52 39 minutes, 52 seconds Yeah, maybe I should add Yeah, just I'll add one more uh point to this. We also have increased our SKUs also from 440 to 40:01 40 minutes, 1 second roughly around 600. So that also helps us basically in terms of our distribution and uh attaining achieving this growth. 40:11 40 minutes, 11 seconds Understood. Understood. 40:18 40 minutes, 18 seconds Sir, sorry to interrupt. We are not able to hear you. 40:23 40 minutes, 23 seconds Adita sir, sorry to interrupt. We are not able to hear you. Wanted to get a better understanding. What is giving you this hospital? 40:31 40 minutes, 31 seconds Sorry to interrupt Aditya sir, we are not able to hear you. 40:39 40 minutes, 39 seconds Aditya sir, we were not able to hear you. Your questions were not audible. 40:46 40 minutes, 46 seconds As there is no response from the line of current participant, we'll move on to our next question. Your next question comes from Dia from Sapphire Capital. 40:55 40 minutes, 55 seconds Please go ahead. So, am I audible? Yes. 41:02 41 minutes, 2 seconds So, this 12 to 15% revenue growth that you've mentioned that is for FI28 or FI 27. 41:10 41 minutes, 10 seconds No, no. 41:12 41 minutes, 12 seconds uh firstly this 12 to 15% is in if the Middle East contribution is zero 41:19 41 minutes, 19 seconds altogether okay uh and that's for FI27 41:27 41 minutes, 27 seconds if if we are able to resume if we are able to resume uh uh business with the Middle East as 41:35 41 minutes, 35 seconds normal then we are looking at uh a much higher growth which is in the range of around 30% plus. 41:45 41 minutes, 45 seconds Okay. So this 12 to 15 will give us around 925 to,000 cr revenue right for this year. 41:52 41 minutes, 52 seconds No 12 to 15 will not get you get us to that right. Uh that will get us to more towards the 800 to 850 kind of number. 42:02 42 minutes, 2 seconds When it gets up to the upwards of 30% that's when we will come to the 925 to a,000. 42:11 42 minutes, 11 seconds Okay. So, conservatively we can take 800 to 850 and if things normalize then we can reach a target of thousands. 42:19 42 minutes, 19 seconds Yes. Okay. So, thank you. All the best. Thank you. 42:28 42 minutes, 28 seconds Thank you. The next question comes from the line of Rakkesh, an individual investor. Please go ahead. 42:38 42 minutes, 38 seconds Hi there. Um congratulations on good set of numbers first of all kudos to the whole team 42:46 42 minutes, 46 seconds and uh um my question is are we do we have any plans of entering Costco in the UK? 42:54 42 minutes, 54 seconds So uh we are based on the success we've had in the US. Our team in the UK is 43:02 43 minutes, 2 seconds connecting with the Costco buyers and presenting the products there. So yes, we we do have plans. We have already uh entered in Costco in uh Australia. 43:15 43 minutes, 15 seconds Uh we are also pitching for Costco in Canada. So yes, we are we are going to go try and pitch for Costco everywhere. 43:24 43 minutes, 24 seconds Fantastic. Because one of our competitors already in there. So I was just wondering if we have any plans. 43:30 43 minutes, 30 seconds Good to know that. and also in the sewage facility. Uh do we have any plans of like making any pizza products like 43:37 43 minutes, 37 seconds frozen pizza uh pizza pockets kind of stuff? 43:41 43 minutes, 41 seconds So we've got a a line which is going to be installed in the third week of the third quarter of 43:48 43 minutes, 48 seconds uh this fiscal year where we have the capability of making pizza base. Lovely. Yes. 43:57 43 minutes, 57 seconds Fantastic. Thank you very much. Thank you sir. 44:01 44 minutes, 1 second Thank you. Your next question comes from the line of Anupa Magaral from Lucky Investments. Please go ahead. 44:08 44 minutes, 8 seconds Yeah. Hi, thank you so much and congratulations on great numbers, sir. 44:12 44 minutes, 12 seconds Uh just one question. So you mentioned in your opening remarks you've spent about 124 crores capeex in the last two years. Uh all of that has been gone into 44:21 44 minutes, 21 seconds uh the sur plant including land building, machinery, everything. And how much are we going to spend on the phase two? 44:28 44 minutes, 28 seconds No. No. So 124 crores has been spent over last two years which includes our brown field which is the Nadiad and Nasi 44:38 44 minutes, 38 seconds facility and Surat. Surat total investment in Surat with phase 2 44:45 44 minutes, 45 seconds uh completion will be a little above 100 crores. 44:49 44 minutes, 49 seconds the balance amount has gone towards the existing uh factories where we increased 44:56 44 minutes, 56 seconds capacities and uh done some modernization. 45:01 45 minutes, 1 second Uh is there still uh some portion of capeex pending for the phase two? 45:06 45 minutes, 6 seconds Uh yeah uh do you want to uh let them take that question please of how much is still pending in phase two? Yeah. So 45:15 45 minutes, 15 seconds basically uh if you look at our overall uh capex the spends have been 124 crores for both uh green field and brownfield 45:24 45 minutes, 24 seconds projects. Uh the majority of the capex spends have happened in the last two years. There will be some bit of capex 45:31 45 minutes, 31 seconds still as Biml was saying uh the new line for pizza base will be coming up. So so those payments will be coming up. This will be roughly around 20 to 25 crores. 45:41 45 minutes, 41 seconds This year we will be still spending on capex. Uh a majority part of it would be the the the new line and uh some some 45:51 45 minutes, 51 seconds balance payments for uh the phase one and phase two basically which will happen. 45:57 45 minutes, 57 seconds Understood. And uh so just fair to assume that 100 crores uh phase one and another 20 25 crores phase 2. Uh so put 46:05 46 minutes, 5 seconds together 125 crores should give us upwards of 200 250 crores. Yes. Yes. 46:11 46 minutes, 11 seconds And no so the FA again uh I I don't know uh the sura total sura phase one phase 46:19 46 minutes, 19 seconds two is about 100 crores and the balance uh 46:25 46 minutes, 25 seconds 40 to 50 crores uh by the end of this fiscal year will be towards the brown fee 46:34 46 minutes, 34 seconds which we've already spent uh in these last two years and there will be some amount which will go in uh Nadiad Nasi 46:43 46 minutes, 43 seconds maybe around 15 to 20 crores this year and another 10 15 crores balance left for Sura. 46:52 46 minutes, 52 seconds So sir uh what sorry to interrupt Anabam sir we request you to return to the question for sure I'll come back in the queue. 47:00 47 minutes Thank you so much. The next follow-up question comes from Rishima with Axa Capital. Please go ahead. 47:07 47 minutes, 7 seconds Thanks for the opportunity again. Um there is a directive from the Supreme Court on the refund of the tariff uh which you may have been charged earlier. 47:16 47 minutes, 16 seconds Uh is there any benefit that has already arrived to ADF vy subsidiaries or anything that is in prospective uh that we should assume? 47:26 47 minutes, 26 seconds Yeah. Uh that's a great question. 47:28 47 minutes, 28 seconds Firstly no nothing has been uh received in this last fiscal year. uh we have 47:35 47 minutes, 35 seconds made applications for refund and uh we're keeping our fingers crossed that we get it in this financial year. So 47:43 47 minutes, 43 seconds when it does come in, we will approve it in this fiscal year. 47:48 47 minutes, 48 seconds And how much is that application amount for? So it's upwards of $1.5 million. 47:57 47 minutes, 57 seconds All right. And uh initially you mentioned the benefit of rupee depreciation. I asked in the color of revenue for Q4 you mentioned 60 to 65% 48:06 48 minutes, 6 seconds was volume growth was the balance on account of rupee depreciation have you taken pricing improvements as well so it's again product mix and no we 48:16 48 minutes, 16 seconds haven't we haven't increased the price uh so it's the uh volume growth product 48:24 48 minutes, 24 seconds mix and uh some benefit towards the repeat appreciation yes so combination of these 48:33 48 minutes, 33 seconds So thanks so much. All the best. Thank you. 48:38 48 minutes, 38 seconds Thank you ladies and gentlemen. We request participants to limit themselves to one question each and rejoin the 48:46 48 minutes, 46 seconds queue for any follow-up questions. Your next question comes from Aditya from Securities Investment Management. Please go ahead. 48:54 48 minutes, 54 seconds Uh yeah. Hi sir. Uh sir, you mentioned that we had 16 crores of PLA incentives this year. I believe this is the last 49:01 49 minutes, 1 second year for this PLA incentive. So would this uh would this amount be zero next year? Next year? 49:09 49 minutes, 9 seconds No. So it's I think there's two uh this financial year 27 is yeah this year will 49:15 49 minutes, 15 seconds be the last year and then yeah after that I don't know what if there are any new schemes which will come in from the 49:22 49 minutes, 22 seconds government. The PLI scheme which we got was uh for marketing expenses. So 49:30 49 minutes, 30 seconds whatever marketing monies we spent 50% of that was uh uh given to us by the 49:37 49 minutes, 37 seconds government. So that is how that was the scheme we got. We did not take we did not get anything under the capital uh expenditure or anything of that sort. 49:48 49 minutes, 48 seconds Understood. And how much we are expecting for 27? So 30 30. 49:54 49 minutes, 54 seconds Yeah it should be in the same range. Uh it should be in the same range. Understood. 50:01 50 minutes, 1 second Understood. And now sir, uh sorry to interrupt you. Adita sir, we request you to return to the for for 50:13 50 minutes, 13 seconds Thank you. We request participants to limit themselves to one question per participant. 50:20 50 minutes, 20 seconds Your next question comes from Sorupia with Samsha Capital. Please go ahead. 50:26 50 minutes, 26 seconds Uh thanks for the opportunity. Again I just wanted to understand one thing. You calc 27 revenue to be in the 15% range 50:36 50 minutes, 36 seconds if uh there is zero contribution from the middle list. But if the contribution is there uh 30% growth am I right on this part? 50:45 50 minutes, 45 seconds Yes. 50:47 50 minutes, 47 seconds But the middleist contributes 15% to the total revenue. So I don't understand the math behind if the middle is is not contributing we are able to grow at 30%. 51:02 51 minutes, 2 seconds Sorry uh uh do you want to just 51:09 51 minutes, 9 seconds Yeah. So uh no so the uh the question from one of the participants was what would be the contribution for Middle 51:16 51 minutes, 16 seconds East? So uh here what Bimmel answered Mr. Bimmel answered that if there is zero 51:24 51 minutes, 24 seconds contribution from the Middle East then you go down to 15% in terms of your growth rate but if the situation holds 51:31 51 minutes, 31 seconds good in the next couple of months we are on the target to grow at upwards of 30%. 51:39 51 minutes, 39 seconds overall not just right correct can you give me a revenue bification of 51:48 51 minutes, 48 seconds sorry to interrupt sir sir we request you and please yeah 51:59 51 minutes, 59 seconds all right sab sir yes please go ahead can you give me a broad revenue bifocation between all your brands so 52:07 52 minutes, 7 seconds basically your total revenue break up of your FI26 revenues. 52:12 52 minutes, 12 seconds No, we don't normally uh share uh uh detailed information but as I mentioned 52:19 52 minutes, 19 seconds uh 70% of our revenues comes from all our brands and there is then the uh B2B 52:28 52 minutes, 28 seconds and private label business which is the balance part. Okay. Thank you. Thank you. 52:35 52 minutes, 35 seconds Yeah, also as a guidance you could see actually Ashoka we have been giving the guidance of our flagship brand so so you 52:42 52 minutes, 42 seconds can actually work out those that thank you 52:50 52 minutes, 50 seconds thank you your next question comes from Manupal with Lucky Investments please go ahead 52:57 52 minutes, 57 seconds thank you for the followup uh so what so mentioned you mentioned about 60 65% of growth coming from volume growth What 53:05 53 minutes, 5 seconds percentage of that growth has come from debottlenecking activities at Nadia and Nasi in FI26 and how much are we looking to debottleneck further in existing capacities in FI27? 53:17 53 minutes, 17 seconds Uh so you know uh in the debottlenecking there were certain lines which uh we were totally full up on capacity so that 53:26 53 minutes, 26 seconds has helped us uh uh get this growth coming in. So these are certain 53:33 53 minutes, 33 seconds flatbreads uh snack lines which have helped in growing. So most of the growth has come from debottlenecking and addition of these capacities. 53:46 53 minutes, 46 seconds Any further debottlenecking 27? Yes, we are uh as Shini mentioned there is about 53:53 53 minutes, 53 seconds uh close to 15 crores 15 to 20 crores which will further be invested this year 53:59 53 minutes, 59 seconds in in both these plants. Some will be again uh uh debottlenecking 54:06 54 minutes, 6 seconds and some will be for moderniz modernization. 54:12 54 minutes, 12 seconds Understood. Thank you so much for all your question. Thank you. Thank you. 54:18 54 minutes, 18 seconds Participants, you may press star and then one to ask a question. 54:29 54 minutes, 29 seconds To ask a question, you may press star and one. 54:46 54 minutes, 46 seconds As there are no further questions from the participants, I now hand the conference over to the management for closing comments. 54:54 54 minutes, 54 seconds Well, uh thank you everyone and uh hope to catch up with you all in the 55:02 55 minutes, 2 seconds next uh earnings call. Thanks once again and have a great day. 55:10 55 minutes, 10 seconds Thank you. On behalf of ADF Foods Limited, that concludes this conference. 55:15 55 minutes, 15 seconds Thank you everyone for joining us and you may now disconnect your lines.