PROSPECTCONSUMERPRODUCTS Q4 FY26 earnings call.
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Revenue
Pending
verification pending
Revenue YoY
85%
reported change
EBITDA
₹6.31 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Prospect Consumer Products delivered strong FY26 results with total income of 57.62 crores (up 85% YoY), EBITDA of 6.31 crores (up 48% YoY), and PAT of 2.46 crores (up 15% YoY). Growth was volume-driven, with production more than doubling to 2,500-3,000 MT from 1,200 MT previously, supported by the modernized Changangodar facility achieving 80% automation. However, H2 saw margin compression due to a 1.5 crore depreciation hit, rupee depreciation (84-85 to 93-94) increasing raw material costs, higher working capital interest expenses, and aggressive D2C/B2C marketing spend. Management targets EBITDA margins of 12-15% (vs. estimated 11% in FY26) as they scale capacity to 3,500-4,000 MT this year and 4,500-5,000 MT next year. The B2C segment remains nascent at under 60 lakh revenue but management aims to reach 10% of total revenue. Inventory nearly doubled to 18 crore due to 30% of cashews requiring manual processing. Debt rose to 10+ crore for working capital amid rising raw material prices (170-175 rupees vs. 110-120 historically). Risks include raw material import dependency, currency volatility, and elevated marketing spend compressing near-term profitability.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects EBITDA margins to recover to 12-15% range, supported by operational efficiency gains from automation and higher B2C contribution, though near-term pressure from forex and raw material costs persists.
- Company targets ramping production from current 2,500-3,000 MT to 3,500-4,000 MT in FY27, and further to 4,500-5,000 MT in FY28 by maximizing the 4,800 MT installed capacity.
- Management aims to reach 10% contribution from B2C and gifting channels within the next 6 months to 1-2 years, establishing FMCG presence beyond commodity trading.
- Company targets 40-45% CAGR over the next 3 years while delivering sustainable high-margin growth, supported by capacity expansion and D2C channel development.
Risks flagged
- Company is heavily dependent on imported raw cashews from West Africa (Ivory Coast, Tanzania, Ghana), with import cycle of 60-70 days. Rupee depreciation from 84-85 to 93-94 has already increased costs, and management expects another month for market absorption.
- H2 margins compressed due to 1.5 crore additional depreciation, 30% inventory requiring manual processing (dead stock), and 15-20% platform fees on quick commerce channels. Working capital cycle has stretched significantly.
- Inventory nearly doubled to 18 crore, partly due to 30% of cashews requiring manual labor processing (5-7 kg/day per labor). Company had to increase contract labor from 30 to 80+ workers. Debt jumped from 5 crore to 10+ crore for working capital.
- Company is spending heavily on new SKU development (24 SKUs), platform listings (Amazon, Flipkart, Hyperpure, Blinkit discussions), golf tournament sponsorships, and corporate gifting without having analyzed customer acquisition costs. Management acknowledged sales are 'very less to be honest' and timeline to reach 10% B2C target is uncertain (6 months to 2 years).
Key quotes
- We are targeting 12 to 15% EBITDA margins, which will be somewhere around 5 to 7% PAT. We are focusing more on EBITDA side at the moment rather than directly on PAT margins.
- The market is quite huge, it's the buying pattern which is getting shifted now... Going forward, that's the future where most of the sales may get done, and that's why we want to emphasize our sales on online platform.
- It may take another month for the market to absorb [cost increases]. Till that time the pressure will continue to get more margin out of those same sales.
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