ADFFOODS - ADF Foods

📊 NSE: ADFFOODS 🏢 Food - Processing - Indian 📅 Last Updated: 12/13/2025 17:52

💰 Financial Performance

Revenue Growth by Segment

Processed Foods revenue grew to INR 133.3 Cr in Q2 FY26, a 2.4% increase from INR 130.2 Cr in Q2 FY25. The Distribution segment revenue was INR 29.3 Cr in Q2 FY26, representing a 6.1% decline from INR 31.2 Cr in Q2 FY25.

Geographic Revenue Split

Exports contribute between 95% and 99% of total revenue, with a primary focus on North America, Europe, the UK, the Middle East, and APAC regions.

Profitability Margins

Consolidated PAT margin stood at 16.2% in Q2 FY26. Standalone PAT margin improved significantly to 21.2% in Q2 FY26 from 17.0% in Q2 FY25, driven by a better product mix and cost optimization.

EBITDA Margin

Consolidated EBITDA margin was 22.0% in Q2 FY26, up 480 bps from 17.2% YoY. Standalone EBITDA margin reached 26.9% in Q2 FY26, a 490 bps increase from 22.0% in Q2 FY25.

Capital Expenditure

The group has planned capital expenditure of INR 80-85 Cr over the medium term, including a greenfield project in Surat expected to commence operations in fiscal 2026.

Credit Rating & Borrowing

CRISIL A/Positive for long-term and CRISIL A1 for short-term facilities. Interest coverage ratio was exceptionally healthy at 49.64 times in fiscal 2024.

⚙️ Operational Drivers

Raw Materials

Key raw materials include fruits and vegetables for pickles and chutneys, spices, oils, and packaging materials. Specific percentage of total cost for each is not disclosed.

Import Sources

Sourced primarily from domestic markets in India, specifically near manufacturing units in Nadiad (Gujarat) and Nasik (Maharashtra).

Capacity Expansion

Current capacity is being expanded through a greenfield project in Surat, Gujarat, scheduled to be operational by FY26 to support revenue targets exceeding INR 600 Cr.

Raw Material Costs

Raw material costs are managed through seasonal procurement and negotiated contracts to mitigate price volatility caused by climate change or supply chain disruptions.

Manufacturing Efficiency

In-house manufacturing capabilities provide a competitive advantage; Return on Capital Employed (ROCE) was 25.61% in fiscal 2024.

Logistics & Distribution

Distribution costs, specifically freight, are tracking at approximately 8% of consolidated revenue as of Q2 FY26.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be driven by the expansion of the distribution network, new product listings in major global retailers like Costco, and the commissioning of the Surat greenfield plant in FY26. The company is also shifting focus toward higher-margin processed foods which currently yield a 29.3% EBITDA margin.

Products & Services

Pickles, chutneys, pastes, sauces, ready-to-eat (RTE) meals, frozen snacks, frozen vegetables, and canned food.

Brand Portfolio

Ashoka, Truly Indian, Camel, Soul, Aeroplane, PJ’s, and Nate’s.

New Products/Services

Recent launches include products in the sweets and ready-to-eat (RTE) segments, contributing to a projected revenue of INR 580-600 Cr in FY25.

Market Expansion

Targeting increased store penetration and geographic expansion in North America, UK, Europe, and Middle East markets.

Market Share & Ranking

Not disclosed.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward convenience-based ethnic foods (RTE and frozen). ADF is positioning itself by expanding its distribution network and increasing manufacturing capacity to capture this growing global demand.

Competitive Landscape

Intense competition from established domestic players such as ITC, MTR, Haldiram’s, and Bikaji, as well as Asian packaged food manufacturers.

Competitive Moat

Durable advantages include established brand equity (Ashoka/Truly Indian) over three decades and cost leadership through in-house manufacturing and economies of scale.