GOKULAGRO - Gokul Agro

📊 NSE: GOKULAGRO 🏢 Solvent Extraction 📅 Last Updated: 12/13/2025 22:29

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 41% YoY to INR 19,550 Cr in FY25, driven by volume growth and higher realizations in the edible oil segment. The group recorded an 18% CAGR over the past five fiscals.

Geographic Revenue Split

The group caters to Western, Eastern, North-Eastern, and South India markets through plants in Gujarat, West Bengal (Haldia), and Andhra Pradesh (Krishnapatnam). Specific regional % splits are not disclosed.

Profitability Margins

Operating margin improved by 57 basis points to 2.7% in FY25. Net Profit after Tax for FY25 was INR 200.85 Cr, representing a 91.4% increase from INR 104.92 Cr in FY24.

EBITDA Margin

EBITDA for FY25 stood at INR 484.64 Cr, a 73.5% increase from INR 279.24 Cr in FY24. The margin improvement was driven by the ramp-up of new refining capacities at Haldia and Krishnapatnam.

Capital Expenditure

The group acquired an oil refining unit in Mangalore in FY25 and has planned capital expenditure for bio-diesel and renewable energy projects in fiscal 2026 to diversify revenue streams.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Borrowing costs are impacted by an increase in interest expenses to INR 158.06 Cr in FY25, up 47.8% YoY. The company is seeking to increase borrowing limits from INR 4,000 Cr to INR 8,000 Cr.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include palm oil (contributing 40% of revenue in FY25, down from 60% previously) and various oilseeds for crushing and solvent extraction.

Import Sources

Raw materials are imported through subsidiaries in Singapore (a key oil trading hub) and sourced from Indonesia and Malaysia. Domestic sourcing occurs in Gujarat and other plant-adjacent states.

Key Suppliers

Not disclosed by specific company names, but the group maintains a strong supplier base through its Singapore-based trading subsidiaries.

Capacity Expansion

Current refining capacity includes a 1,400 TPD unit at Krishnapatnam and a unit at Haldia. The group recently acquired an additional refining unit in Mangalore to expand its footprint in South India.

Raw Material Costs

Raw material costs are a significant portion of the INR 17,117.69 Cr revenue (standalone basis). The group uses prudent risk management to mitigate the 40% revenue exposure to volatile palm oil prices.

Manufacturing Efficiency

Refining units operate at 80-90% average capacity utilization throughout the year, while seed crushing units operate at 80-90% during the season.

Logistics & Distribution

Distribution is managed through over 500 dealers and distributors. Port-based plant locations are strategically chosen to lower logistics costs for Eastern and Southern Indian markets.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Growth will be achieved through the ramp-up of new refining capacities at Haldia and Krishnapatnam, the integration of the newly acquired Mangalore unit, and expansion into bio-diesel and renewable energy sectors in FY26.

Products & Services

Edible oils (refined and crude), non-edible oils, oleochemicals, and oilseed meal/de-oiled cakes.

Brand Portfolio

Vitalife, Zaika, Mahek, Pride, Richfield, Puffpride, and Biscopride.

New Products/Services

Planned entry into bio-diesel and renewable energy in FY26; expected revenue contribution % not yet disclosed.

Market Expansion

Expansion into South India via the Mangalore acquisition and strengthening presence in Eastern/North-Eastern India via the Haldia plant.

Market Share & Ranking

The group is established among the top players in the Indian edible oil segment following its 41% revenue growth in FY25.

Strategic Alliances

The group operates through several wholly-owned subsidiaries including Riya Agro Industries, Maurigo PTE Ltd (Singapore), and associates like PT Riya Pasifik Nabati.

🌍 External Factors

Industry Trends

The industry is shifting toward diversified oil baskets (reducing palm oil reliance) and value-added products like oleochemicals. GOKULAGRO is positioning itself by reducing palm oil revenue share to 40%.

Competitive Landscape

Competes with large FMCG edible oil players; maintains edge through established relationships and a wide distribution network of 500+ partners.

Competitive Moat

Moat is built on 30+ years of promoter experience and strategic port-based infrastructure which provides a sustainable cost advantage in logistics over inland competitors.

Macro Economic Sensitivity

Highly sensitive to global agro-commodity price cycles and Indian import duty structures on edible oils.

Consumer Behavior

Increasing demand for branded edible oils (Vitalife, Zaika) in regional markets is driving the shift from unbranded to branded consumption.

Geopolitical Risks

Trade barriers or export restrictions from Indonesia/Malaysia (palm oil sources) could impact raw material availability and costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to FSSAI standards for food safety and government regulations regarding import duties on crude vs. refined oils.

Environmental Compliance

The company is investing in renewable energy and bio-diesel in FY26 to align with environmental regulations and sustainability trends.

Taxation Policy Impact

Provision for tax in FY25 was INR 64.10 Cr, representing an effective tax rate of approximately 23.5% of PBT.

Legal Contingencies

The company reported no qualifications or adverse remarks in its CARO reports for FY25. No specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Vulnerability to sudden changes in government import/export duties on edible oils could impact margins by 1-2%.

Geographic Concentration Risk

While expanding, the group still has significant concentration in Western India, though the Haldia and Krishnapatnam plants are diversifying this risk.