MADHUSUDANMASALA Q3 FY26 earnings call.
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Revenue
₹194.5 Cr
verification pending
Revenue YoY
20.3%
reported change
EBITDA
Pending
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Madhusudan Masala reported Q3 FY26 revenue of ₹194.5 crore (₹195 million) with 20.3% YoY growth, driven by improved capacity utilization at 98-100% across Jamnagar and Rajkot units. EBITDA margin expanded 357bps to 10.8% YoY, while PAT surged 114% to ₹47.7 million (₹4.77 crore), nearly doubling due to better inventory management and commodity price optimization. For 9M FY26, revenue stood at ₹945 million (19.3% YoY) with EBITDA of ₹220 million and PAT of ₹112.3 million, each growing ~40% YoY. The company targets 30%+ CAGR through 2030 via North India expansion—recently onboarded teams from MDH/Everest for Punjab and Uttar Pradesh—with Phase 1 of the 6,000 MT Jamnagar greenfield facility on track for October 2026 commissioning. Branded sales mix improved to 72% from 62% YoY, aiming for 100% by 2028. Commodity prices (chilli, turmeric, coriander) have risen ₹20-70/kg in Q3, and management expects these to sustain or increase further. Risk: Phase 2 expansion (12,000-18,000 MT) timeline and capex funding remain undecided pending Phase 1 operationalization.
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Guidance to track
- Management reiterated its 30% revenue CAGR target through 2030, primarily driven by geographic expansion into North India and new regions, supplemented by existing market penetration yielding 10-12% organic growth.
- Based on 9M revenue of ₹94.5 crore (₹945 million) and Q4 typically being the strongest quarter with spice season demand, management is confident of exceeding the 30% CAGR target for FY26, targeting 280-300 crore consolidated revenue.
- Sustainability of margins between 10.8-11% expected for the full financial year, with Q2's higher 14.5% being an outlier due to low-cost inventory utilization and Q3 reflecting current commodity price reality.
- Civil work 100% complete by March 2026, machinery fabrication April-June 2026, commissioning August 2026, with commercial production targeted for October 2026. Phase 1 capex of ₹18 crore already spent.
Risks flagged
- Management acknowledged Phase 2 (12,000-18,000 MT capacity for CTC and grocery products) timeline depends on Phase 1 operationalization and viability assessment. No final capex figure or funding plan (50% debt assumed) has been decided.
- Despite current inflationary environment with chilli, turmeric, coriander prices up ₹20-70/kg in Q3, management noted these are returning to post-COVID price levels. If harvest improves or demand softens, margins could compress as finished goods prices track commodity fluctuations with 15-day lag.
- Company maintains 50-60% of inventory from season procurement to hedge commodity price risk. With new regions and higher volumes, working capital requirements for inventory will increase, though new markets operate on super stock model with advance payments.
- Analyst raised concern about potential EPS dilution from Phase 2 capex. Management clarified that if 50% debt is taken, no additional capital raise needed. However, pending promoter warrant conversion at ₹181/share will bring in fresh equity capital.
Key quotes
- In the last three months, chilli has increased by more than ₹1 per kg, turmeric by ₹25-30 per kg, and coriander by ₹20 per kg. These prices have reached levels seen two years ago before the deflationary cycle started.
- We maintain 50% inventory from season procurement. If prices drop later, we sell from existing inventory at current market prices; if prices rise above a limit, we start procuring fresh. This is how we sustain EBITDA margins throughout the year.
- Our 30% CAGR growth plan is primarily through regional expansion. Organically from existing regions we get 10-12% growth; the additional growth comes from vertical and horizontal expansion. We've started distribution in North regions and targeting UP where we're on-boarding teams from large spice companies.
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