Foods & Inns Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Foods & Inns Ltd filed with BSE on 04 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Foods and Inns reported that FY26 was impacted by lower realizations from pass-through of lower raw material costs, temporary export market disruptions, and lower tomato processing volumes. Management said frozen foods volume grew approximately 28% during FY26, and the company received recognition of a FY25 PLI incentive of INR33.86 crores during the quarter. For FY27, management guided to approximately 18% overall volume growth across the product portfolio, driven primarily by the frozen segment and new packaging initiatives.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Frozen foods volume growth: approximately 28% (FY26)
p. 3
“Frozen foods continued its strong momentum, delivering volume growth of approximately 28% during FY26, supported by increasing demand for value-added products and growing interest from the U.S. market.”
Anand Krishnan, page 3 of the filed PDF · View the filing
Tetra Recart confirmed orders: approximately 400 metric tons, valued at around INR8 crores
p. 3
“continuing to build our Tetra Recart business, where confirmed orders currently stand at approximately 400 metric tons, valued at around INR8 crores”
Anand Krishnan, page 3 of the filed PDF · View the filing
FY25 PLI incentive received: INR33.86 crores (Q4 FY26)
p. 3
“A key milestone during the quarter was the receipt and recognition of the FY25 PLI incentive of INR33.86 crores, reflecting the successful execution of our growth investments.”
Anand Krishnan, page 3 of the filed PDF · View the filing
Total standalone borrowings: INR411 crores (FY26)
p. 5
“INR411 crores against last year INR427 crores.”
Moloy Saha, page 5 of the filed PDF · View the filing
Kusum additional borrowing: around INR10 crores additional (FY26)
p. 5
“This is at the standalone level. If we take Kusum is around INR10 crores additional.”
Anand Krishnan, page 5 of the filed PDF · View the filing
Tomato stock on hand: roughly 9,000 metric tons
p. 5
“whatever stocks we are having around 9,000 metric tons roughly, all have back-to-back order”
Moloy Saha, page 5 of the filed PDF · View the filing
Tomato stock sales value expected: around INR70 crores, INR75 crores
p. 5
“it will save around INR70 crores, INR75 crores.”
Moloy Saha, page 5 of the filed PDF · View the filing
Prior year tender advances: around INR160 crores
p. 7
“If you see our balance sheet last year, apart from the stock, there was tender advances, which was around INR160 crores lying in the books.”
Moloy Saha, page 7 of the filed PDF · View the filing
Tetra Recart total capex: approximately INR30-odd crores
p. 16
“So approximately INR30-odd crores of total capex, out of which INR24-odd crores was for the machine and INR6-odd crores for the building as such.”
Anand Krishnan, page 16 of the filed PDF · View the filing
Frozen food gross margin: around 50%
p. 15
“The frozen food segment actually has around 50% gross margins.”
Moloy Saha, page 15 of the filed PDF · View the filing
Pectin gross margin at 50% utilization: approximately around 70%-odd
p. 13
“So INR7 - 8 crores of revenue is what we can actually expect at 50% utilization and the gross margins are approximately around 70%-odd of that.”
Anand Krishnan, page 13 of the filed PDF · View the filing
India pectin import volume: 350 metric tons
p. 14
“350 metric tons India import from -- mainly from China. And our capacity is 150 metric tons.”
Moloy Saha, page 14 of the filed PDF · View the filing
Pectin production capacity: 150 metric tons
p. 14
“350 metric tons India import from -- mainly from China. And our capacity is 150 metric tons.”
Moloy Saha, page 14 of the filed PDF · View the filing
Long-term debt outstanding: around INR71 crores or INR72 crores
p. 20
“whatever long-term debt we are having around, I think, INR71 crores or INR72 crores.”
Moloy Saha, page 20 of the filed PDF · View the filing
Annual debt repayment commitment: around INR20 crores
p. 20
“Our annual commitment is around INR20 crores.”
Moloy Saha, page 20 of the filed PDF · View the filing
PLI scheme total incentive: around INR145 crores
p. 20
“The total that we can actually get under the scheme is around INR145 crores. So INR60-odd crores are remaining.”
Anand Krishnan, page 20 of the filed PDF · View the filing
PLI incentive received to date: around INR83-odd crores
p. 20
“We've received around INR83-odd crores.”
Anand Krishnan, page 20 of the filed PDF · View the filing
Interest cost: reduced to INR10 crores (FY26)
p. 20
“if you see this year, our interest cost has reduced to INR10 crores compared to last year.”
Moloy Saha, page 20 of the filed PDF · View the filing
Solar capacity per facility: around 1,300 kWp
p. 22
“1,300 kWp is the capacity of the solar plant at -- both of the plants.”
Moloy Saha, page 22 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Overall volume growth — around 18% · FY27
stated firmly by Moloy Saha
p. 4
“Considering the present situation and market scenario or information, whatever update we are getting from customers, we are expecting around 18% volume growth for this financial year.”
Moloy Saha, page 4 of the filed PDF · View the filing
Tetra Recart revenue — around INR20 crores · FY27
stated conditionally by Moloy Saha
p. 12
“This year, FY27, we are expecting around INR20 crores business approximately, the way discussion is going on.”
Moloy Saha, page 12 of the filed PDF · View the filing
Spray drying commercial production start — commercial run · December
stated firmly by Moloy Saha
p. 11
“Commercial run targeted December. And we are trying to see if we can prepone by 2025 base as the target you are asking.”
Moloy Saha, page 11 of the filed PDF · View the filing
Pectin capacity utilization — at least 50% of the capacity · current year
stated as an aspiration by Moloy Saha
p. 13
“we are quite hopeful that this year, there will be a significant -- I mean, at least 50% of the capacity can be fully utilized for the current year.”
Moloy Saha, page 13 of the filed PDF · View the filing
Frozen/ready-to-eat segment revenue — INR300 crores to INR400 crores · next 3 to 4 years
stated as an aspiration by Moloy Saha
p. 15
“Our target is next 3 to 4 years' time, this segment to become INR300 crores to INR400 crores.”
Moloy Saha, page 15 of the filed PDF · View the filing
Non-mango business revenue share — 40% of total revenue
stated as an aspiration by Anand Krishnan
p. 19
“the internal strategy over a period of time is to actually make the other businesses contribute 40% of the total revenue without degrowing the mango business.”
Anand Krishnan, page 19 of the filed PDF · View the filing
Capex plan for cluster development program — another 1 month time
stated conditionally by Moloy Saha
p. 15
“I think by another 1 month time, we have more clarity on this that what kind of capex we would like to do and how the entire scheme will go.”
Moloy Saha, page 15 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said margin percentage is never disclosed as it is a pass-through model, but guided to around 18% volume growth for FY27, largely from the frozen segment.
Answered by Moloy Saha
Asked by Rushda Saifee: Outlook on revenue growth and EBITDA margins for FY27 and FY28
p. 4
“Considering the present situation and market scenario or information, whatever update we are getting from customers, we are expecting around 18% volume growth for this financial year.”
Moloy Saha, page 4 of the filed PDF · View the filing
Management clarified that borrowings actually decreased by INR15-16 crores year-on-year.
Answered by Moloy Saha
Asked by Kaushal Sharma: Why has borrowing increased despite low procurement
p. 5
“Borrowing has not increased. Borrowings have been decreased. I mean if you see the balance sheet, overall borrowing has been decreased by INR15 crores -- INR16 crores.”
Moloy Saha, page 5 of the filed PDF · View the filing
Management said they do not disclose absolute EBITDA targets since margin depends on product mix in their cost-plus model.
Answered by Moloy Saha
Asked by Kaushal Sharma: EBITDA quantum target for current and next year
p. 5
“It depends on the product mix because each product is having a different EBITDA.”
Moloy Saha, page 5 of the filed PDF · View the filing
Management said Middle East exposure was small in dollar terms, but shipping to Europe and US was affected for the last 15 days of the year and the spray-drying facility lost about 45 days of gas-based production; things have since normalized.
Answered by Moloy Saha
Asked by Rishabh: How did the war affect the company and how was it resolved
p. 6
“Our exposure in the GCC country is not much. It is around USD2 million to USD3 million. So, overall revenue wise, there is no major impact.”
Moloy Saha, page 6 of the filed PDF · View the filing
Management attributed the decline to a high base effect from last year's Kumbh Mela beverage campaign boosting Q4 FY25 volumes.
Answered by Moloy Saha
Asked by Amish Kanani: Why did domestic volumes decline in Q4 given the West Asia crisis is an export issue
p. 7
“Last year, we got a good volume growth in the March quarter due to the UP Kumbh Mela.”
Moloy Saha, page 7 of the filed PDF · View the filing
Management explained that tender advances to vendors fell correspondingly, so combined inventory plus advances were flat rather than up.
Answered by Moloy Saha
Asked by Amish Kanani: Why did inventory rise 30% on the balance sheet
p. 8
“there is no increase in inventory by 30%. Yes, apparently, if you see the inventory, it looks like. But if you add the advance to the vendors, it's a similar kind of things.”
Moloy Saha, page 8 of the filed PDF · View the filing
Management said the priority is to conserve resources and reduce debt rather than pursue a buyback, given the working-capital-intensive nature of the business.
Answered by Milan Dalal
Asked by Vipul Shah: Is the company considering a buyback given the share trades below book value
p. 9
“I think the company will need to conserve more resources, not borrow more and increase the top line should the opportunities come our way.”
Milan Dalal, page 9 of the filed PDF · View the filing
Management said commercial production restarted about a week prior after resolving teething issues, and margin structure remains similar as raw material comes from waste.
Answered by Moloy Saha
Asked by Ramesh: Status and margin of the pectin project
p. 13
“We have commercially production started about 7, 8 days ago. I mean earlier, we started already, and then we had some issues on the production process because as you know, this is the first time in India, this facility.”
Moloy Saha, page 13 of the filed PDF · View the filing
Management said raw material prices this year are likely similar to or lower than last year, so low realizations are expected to persist into FY28 as well, with the focus remaining on volume growth.
Answered by Moloy Saha
Asked by Arnav Sakhuja: When will realizations improve given lower-cost 2025 crop inventory
p. 17
“So next full year, we have this low realization sales only. And subsequent year also, we are looking the similar because if the price is lower this year, FY28 also will be likely in the low realization product.”
Moloy Saha, page 17 of the filed PDF · View the filing
Management said the PLI incentive is more than double the capex it was tied to and that capex has already been covered, with net accruals expected in the remaining years.
Answered by Milan Dalal
Asked by Ramesh: PLI scheme coverage of capex
p. 21
“More than 2x double it. We have -- it's more than double our capex. And we've already covered our capex as of date.”
Milan Dalal, page 21 of the filed PDF · View the filing
Risks flagged
Lower realizations from pass-through of lower raw material costs
p. 3
“our business was impacted by lower realizations resulting from the pass-through of lower raw material costs, temporary disruptions in certain export markets and lower tomato processing volumes due to constrained availability of quality tomatoes.”
Anand Krishnan, page 3 of the filed PDF · View the filing
Geopolitical disruption affecting Middle East sales volumes and shipping
p. 3
“In Q4, sales volumes were affected by the geopolitical situation in March, particularly in the Middle East, while realizations remained lower due to inventory produced from the lower cost 2025 crop season.”
Anand Krishnan, page 3 of the filed PDF · View the filing
Tomato crop failure due to unseasonal rain
p. 5
“Tomato season last year, yes, we could not produce as we targeted due to the crop fail. There's a quality issue, unseasonal rain, which is quite common for our type of industry.”
Moloy Saha, page 5 of the filed PDF · View the filing
Vessel and gas availability disruption from war affecting shipments and spray-drying production
p. 6
“we could not produce almost 45 days due to the very negligible production we took in the month of mid-March till April due to this non-availability of the gas.”
Moloy Saha, page 6 of the filed PDF · View the filing
Potential El Niño impact on agricultural raw material pricing
p. 18
“if El Niño effect being agricultural commodity is definitely going to affect -- if it is so bad as we are reading the news.”
Moloy Saha, page 18 of the filed PDF · View the filing
High supply chain costs for frozen segment reducing EBITDA benefit despite high gross margin
p. 15
“there are costs for cold storage, which needs to be incorporated at the below gross margin level as well, because supply chain cost in frozen segment is quite high, almost 10x compared to any ambient product.”
Moloy Saha, page 15 of the filed PDF · View the filing
Cyclicality of food processing industry due to crop conditions, geopolitics and commodity prices
p. 22
“the food processing industry is inherently cyclical and performance can often be influenced by factors beyond our control, including crop conditions, geopolitical developments and commodity prices.”
Anand Krishnan, page 22 of the filed PDF · View the filing
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