MANORAMA - Manorama Indust.

📊 NSE: MANORAMA 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 9:35

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 grew by 86.4% YoY to INR 612.9 Cr, driven by a superior mix of value-added products and optimized utilization of expanded fractionation facilities. For FY25, the company achieved a revenue of INR 771 Cr, representing a 69% YoY growth.

Geographic Revenue Split

In H1 FY26, the revenue mix was 58% Export and 42% Domestic. This shows a shift from FY25 where exports contributed 73% of total revenue, indicating a strengthening domestic presence while maintaining a strong global orientation.

Profitability Margins

Profitability has seen significant expansion; H1 FY26 PAT margin stood at 17.2% (INR 105.5 Cr) compared to 12.2% in H1 FY25. FY25 full-year PAT margin was 14.5% (INR 112 Cr). The improvement is attributed to product mix optimization and disciplined cost control.

EBITDA Margin

EBITDA margin for H1 FY26 was 27.2% (INR 156.6 Cr), up from 21.9% in H1 FY25. Q2 FY26 EBITDA margin was 27.1% (INR 87.7 Cr). The 530 bps YoY improvement in H1 reflects better operating leverage and higher capacity utilization.

Capital Expenditure

The company recently expanded its fractionation capacity by 25,000 MT (commenced July 2024), bringing total capacity to 52,000 MT. Additional land has been purchased for projects beyond the 52,000 MT capacity to support future backward and forward integration.

Credit Rating & Borrowing

CARE Ratings upgraded the long-term bank facilities to 'CARE A; Stable' from 'CARE A-; Stable' in January 2025. Total rated bank facilities were enhanced to INR 502.90 Cr (INR 492.90 Cr long-term and INR 10.00 Cr short-term).

⚙️ Operational Drivers

Raw Materials

Key raw materials include Sal seeds, Shea nuts, Mango kernels, Mowrah, and Kokum, which are forest-based products used to produce specialty fats and butters.

Import Sources

Raw materials are sourced globally from West Africa, Latin America, and Brazil, as well as domestically from states like Chhattisgarh, India.

Key Suppliers

Sourcing is conducted through a robust network of forest-dwelling communities and local collection centers; specific corporate supplier names are not disclosed.

Capacity Expansion

Current installed capacity is 52,000 MT. This includes a 25,000 MT fractionation plant that commenced operations in July 2024. Management indicates a revenue potential of INR 1,800-2,000 Cr at 100% utilization of this 52,000 MT capacity.

Raw Material Costs

Raw material costs are managed through a robust sourcing network and strategic MOUs with governments like Burkina Faso and Chhattisgarh to ensure priority access and supply stability.

Manufacturing Efficiency

Manufacturing efficiency is high, with ROCE at 49.9% and ROE at 36.9% as of September 30, 2025, reflecting optimized utilization of fractionation facilities.

Logistics & Distribution

Distribution is handled through a global footprint with 8 subsidiaries to serve international clients in the chocolate and cosmetic sectors.

📈 Strategic Growth

Expected Growth Rate

40%

Growth Strategy

Growth will be achieved by scaling revenue to INR 1,150 Cr+ in FY26 through 100% utilization of the 52,000 MT capacity, expanding the product portfolio into ethical beauty and luxury segments, and leveraging 8 global subsidiaries for deeper market penetration in Latin America and Africa.

Products & Services

Specialty fats, butters, Cocoa Butter Equivalents (CBE), Sal butter, Shea butter, Mango butter, and customized solutions for the confectionery and cosmetic industries.

Brand Portfolio

Manorama Industries (Corporate Brand).

New Products/Services

Expansion into value-added products for the 'Ethical Beauty' and luxury product segments is expected to contribute to higher margin profiles.

Market Expansion

Targeting new geographies through 8 global subsidiaries in regions like West Africa, Latin America, and Brazil.

Market Share & Ranking

Positioned as a global leader in specialty fats and butters; specific market share percentage is not disclosed.

Strategic Alliances

Strategic MOUs with the Government of Burkina Faso and the Government of Chhattisgarh for project prioritization and sourcing.

🌍 External Factors

Industry Trends

The industry is shifting toward 'Ethical Beauty' (cruelty-free, sustainable) and premium luxury products. Manorama is positioning itself as a sustainability-driven leader to capture this evolving demand.

Competitive Landscape

Competes in the global specialty fats market against players providing Cocoa Butter Substitutes, but maintains an advantage through forest-sourced natural ingredients.

Competitive Moat

The moat is built on a unique forest-based sourcing network and specialized fractionation technology. This is sustainable because the collection of forest seeds (Sal, Shea) requires deep local networks that are difficult for competitors to replicate.