KRITINUT - Kriti Nutrients

📊 NSE: KRITINUT 🏢 Solvent Extraction 📅 Last Updated: 12/14/2025 9:04

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew 7.3% YoY to INR 735 Cr in FY25 from INR 685 Cr in FY24. The refined oil segment, which contributes 88% of TOI, saw value growth but a 5% decline in sales volume due to high festive season prices. Soya value-added products experienced degrowth in FY23 due to moderation in export demand. H1 FY26 revenue reached INR 446.44 Cr, a 154.8% increase over H1 FY25 revenue of INR 175.22 Cr.

Geographic Revenue Split

Domestic sales, primarily in Central India (Madhya Pradesh), contribute approximately 91% of revenue. Exports contributed 9% of TOI in FY25, down from 10% in FY24 and 13% in FY23, due to shifting global demand for soya meal.

Profitability Margins

PBILDT margin moderated to 6.69% in FY25 from 9.25% in FY24. PAT margin stood at 5.03% in FY25 compared to 6.57% in FY24. The decline was driven by increased marketing expenditures in new territories. H1 FY26 PAT was INR 18.44 Cr compared to INR 9.56 Cr in H1 FY25.

EBITDA Margin

PBILDT margin was 6.69% in FY25, a decrease from 9.25% in FY24. The margin is sensitive to raw material price volatility, with historical lows of 2.82% in FY22 when soya seed prices spiked and could not be fully passed on to customers.

Capital Expenditure

Not disclosed in available documents; however, rating sensitivities monitor major debt-funded capex that would increase gearing above 1.0x.

Credit Rating & Borrowing

CARE Ratings assigned a 'Stable' outlook. Borrowing remains low with average fund-based working capital utilization at 2% for the 12 months ended June 2025 and 22% for the period ended April 2024.

⚙️ Operational Drivers

Raw Materials

Crude soya oil and soya seeds are the primary raw materials. Soya seeds are the major cost component for the crushing and meal segments.

Import Sources

Raw materials are primarily sourced from Central India (Madhya Pradesh). Imports are described as negligible, making the company a net exporter.

Key Suppliers

Not specifically named; sourced from local farmers and traders in the Madhya Pradesh soya belt.

Capacity Expansion

Current capacity not disclosed in MTPA. Expansion is focused on geographical reach into Rajasthan and Uttar Pradesh rather than just physical plant capacity.

Raw Material Costs

Raw material costs are highly volatile. Profitability is susceptible to sudden movements in crude soya oil prices, which impacted margins by over 250 basis points in FY25.

Manufacturing Efficiency

Operating cycle improved to 28 days in FY25 from 38 days in FY24, reflecting lean inventory management and efficient retail collections.

Logistics & Distribution

Distribution is focused on the retail premium segment in Madhya Pradesh, with expansion into Gujarat, Maharashtra, and Rajasthan.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth is targeted through geographical expansion into Rajasthan and Uttar Pradesh, increasing the share of value-added products in food and pharma categories, and deepening brand penetration of 'Kriti' in the premium retail segment. Rating sensitivities target a TOI above INR 1,000 Cr.

Products & Services

Branded refined soya oil, soya meal, lecithin, and value-added soya protein products.

Brand Portfolio

Kriti

New Products/Services

Value-added products in the food and pharma categories are expected to contribute to higher margins, though specific revenue % is not disclosed.

Market Expansion

Targeting neighboring states including Gujarat, Maharashtra, Rajasthan, and Uttar Pradesh to reduce geographic concentration.

Market Share & Ranking

Established leader in the branded refined oil segment in Central India (Madhya Pradesh).

Strategic Alliances

Associate company: Kriti Industries (India) Limited, which is consolidated using the equity method.

🌍 External Factors

Industry Trends

The edible oil industry is highly competitive and fragmented. There is a clear trend toward branded, premium refined oils over bulk/unbranded products, which favors KNL's retail-heavy model.

Competitive Landscape

Faces intense competition from both large national players and local unorganized mills in the edible oil and soya meal sectors.

Competitive Moat

Moat is built on the 'Kriti' brand equity in Central India and a 100% retail sales model for refined oil, which provides better margins and stickier demand than bulk sales.

Macro Economic Sensitivity

Highly sensitive to edible oil inflation and monsoon impacts on soya seed production in Central India.

Consumer Behavior

Shift toward non-branded oil occurs when branded oil prices exceed certain psychological thresholds, as seen in the 5% volume decline in FY25.

Geopolitical Risks

Export demand for soya meal is subject to international trade dynamics and competition from other soya-producing nations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to FSSAI standards for edible oils and export-import regulations regarding soya meal and crude oil duties.

Taxation Policy Impact

Effective tax rate is approximately 23% based on H1 FY26 PBT of INR 23.97 Cr and PAT of INR 18.44 Cr.

Legal Contingencies

The company has pending litigations disclosed in Note 36 of the Standalone Financial Statements; however, the specific INR value of these contingencies is not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (soya seeds/crude oil) and foreign exchange fluctuations are the primary business risks, potentially impacting margins by 2-3%.