HOACFOODS - Hoac Foods

📊 NSE: HOACFOODS 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 7:47

💰 Financial Performance

Revenue Growth by Segment

Total income grew by 96.87% YoY in H1 FY26, reaching INR 21.84 Cr compared to INR 11.09 Cr in H1 FY25. The B2B segment has been aggressively scaled to supply over 1,400 outlets, while the export segment commenced with 10 containers to the UK and a confirmed INR 0.60 Cr order from the USA.

Geographic Revenue Split

Primarily India-focused with significant expansion into Tier 2 and Tier 3 areas. International revenue is emerging through the 75% owned subsidiary HOAC Exports Private Limited, which has exported 10 containers to the UK and secured a maiden USA order of approximately INR 60 lakhs.

Profitability Margins

Profit Before Tax (PBT) for FY25 was INR 3.48 Cr, a 155.7% increase from INR 1.36 Cr in FY24. Net margins are supported by in-house manufacturing of 135+ products out of a 200+ SKU portfolio, reducing reliance on third-party processors.

EBITDA Margin

EBITDA margin stood at 15.15% in H1 FY26, with EBITDA rising 105.13% YoY to INR 3.31 Cr from INR 1.61 Cr. This margin expansion is driven by strong sales volume and the operational efficiency of automated production lines.

Capital Expenditure

The company utilized IPO proceeds to establish a record-breaking financial base and credibility. Planned scaling includes expanding the retail footprint to 200–300 outlets, requiring significant investment in automated production and franchise support infrastructure.

Credit Rating & Borrowing

Not disclosed in available documents; however, the company transitioned from a Private Limited to a Public Limited entity in 2023 and listed on NSE Emerge to strengthen its financial position.

⚙️ Operational Drivers

Raw Materials

M.P. Sharbati Wheat (primary input for flagship flour), various herbs, spices, unpolished pulses, grains, rice, and edible oils. Raw materials represent the bulk of the cost of goods sold for their 200+ SKU portfolio.

Import Sources

Primarily sourced from India, specifically Madhya Pradesh for Sharbati wheat, and other domestic regions for spices and pulses to ensure freshness and quality for their premium niche.

Key Suppliers

Not disclosed in available documents; however, the company maintains a network of franchisee partners and suppliers to support its 5-pillar business model.

Capacity Expansion

Currently operating with a fully automated production backbone. The roadmap includes scaling operations to support 200–300 retail outlets without quality dilution, up from the current supply network of 1,400+ B2B outlets.

Raw Material Costs

Raw material costs are a significant portion of the INR 21.72 Cr operating income. The company mitigates cost volatility by manufacturing 135+ products in-house, allowing for better margin control compared to outsourced models.

Manufacturing Efficiency

High efficiency achieved through automation, enabling the company to transition from a traditional flour business to a multi-segment FMCG company with the capability to manage 200-300 outlets seamlessly.

Logistics & Distribution

Distribution is handled through a multi-channel approach: brand retail outlets, a D2C mobile app/website, and quick-commerce platforms like Blinkit for the flagship MP Sharbati Atta.

📈 Strategic Growth

Expected Growth Rate

96.87%

Growth Strategy

Expansion into international markets (USA, UK, Canada, Australia), listing flagship products on quick-commerce platforms like Blinkit, and scaling the B2B vertical in Tier 2 and Tier 3 cities. The company is also expanding its retail footprint toward a target of 300 outlets.

Products & Services

Chakki Atta (MP Sharbati), herbs, spices (Channa masala, chaat masala), unpolished pulses, grains, rice, and edible oils sold under the 'HARIOM' brand.

Brand Portfolio

HARIOM, Hariom Atta & Spices

New Products/Services

Recently listed 'MP Sharbati Atta' on Blinkit to capture the quick-commerce market. Entry into the United States market via HOAC Exports Private Limited with an initial order of INR 60 lakhs.

Market Expansion

Active expansion into the USA (first container scheduled for late 2025), UK (10 containers shipped), and advanced discussions for entry into Canada and Australia.

Market Share & Ranking

Positioned as a premium niche player in the flour and spice market, differentiating itself from mass-market giants like Aashirvaad through personalization and freshness.

Strategic Alliances

Partnerships with quick-commerce platforms like Blinkit and a 75% stake in the subsidiary HOAC Exports Private Limited to drive global growth.

🌍 External Factors

Industry Trends

The industry is shifting from unorganized local flour mills to organized, automated FMCG brands. HOAC is positioning itself for this shift by offering 200+ SKUs and leveraging quick-commerce (Blinkit) for faster delivery.

Competitive Landscape

Competes with mass-market giants like Aashirvaad but carves a niche in the premium, fresh, and customized segment of the FMCG market.

Competitive Moat

Moat is built on a '5-pillar business model' (retail, franchise, B2B, manufacturing, export) and a premium brand image ('HARIOM'). Sustainability is driven by in-house manufacturing of 67% of its SKUs, ensuring quality control that mass-market competitors may lack at scale.

Macro Economic Sensitivity

Highly sensitive to agricultural inflation in India, particularly wheat and spice prices, which directly affects the cost structure of the FMCG portfolio.

Consumer Behavior

Increasing consumer preference for 'quality and purity' and 'freshness' in staples like flour and spices, moving away from mass-produced, long-shelf-life products.

Geopolitical Risks

Trade barriers or export-import restrictions in the USA, UK, Canada, or Australia could impact the growth of the newly formed export subsidiary.

⚖️ Regulatory & Governance

Industry Regulations

Complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and maintains an in-house laboratory to meet food safety and quality standards.

Taxation Policy Impact

Subject to standard Indian corporate tax rates; GST registered under 07AAECH4665B1ZS.

Legal Contingencies

Not disclosed in available documents; secretarial audit reports adherence to good corporate practices.

⚠️ Risk Analysis

Key Uncertainties

Success of international expansion in the USA and UK markets, which are new territories for the company. Potential impact of 10-20% on revenue if global supply chain issues delay container shipments.