SARVESHWAR - Sarveshwar Foods

📊 NSE: SARVESHWAR 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 12:53

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew 25.57% YoY to INR 869.91 Cr in FY24 from INR 692.75 Cr in FY23, primarily driven by the Bharat Rice Scheme and enhanced supply chain capabilities.

Geographic Revenue Split

Not disclosed in available documents, though the company operates in both domestic (India) and international export markets.

Profitability Margins

PAT margin improved to 1.12% in FY23 from 0.56% in FY22. H1FY26 Net Profit grew 35.74% YoY to INR 15.25 Cr from INR 11.24 Cr in H1FY25.

EBITDA Margin

EBITDA margin improved to 6.37% in FY24 from 5.17% in FY23, representing a 120 bps increase due to higher sales volumes and operational efficiencies.

Capital Expenditure

Raised INR 149.63 Cr through a Rights Issue in September 2025 to augment working capital and for general corporate purposes.

Credit Rating & Borrowing

Long-term rating of IVR BBB/Stable and Short-term rating upgraded to IVR A2, reflecting a comfortable capital structure and satisfactory debt protection metrics.

⚙️ Operational Drivers

Raw Materials

Basmati Paddy and Non-Basmati Paddy, which constitute the primary cost of goods sold.

Import Sources

Sourced domestically from Jammu & Kashmir, Uttar Pradesh, Haryana, and Punjab.

Key Suppliers

Procured from a network of local farmers facilitated by the company's Farmer App and contract farming initiatives.

Capacity Expansion

Opened four new procurement centres in Baramulla, Pulwama, Kulgam, and Doda in 2024 to strengthen sourcing capabilities.

Raw Material Costs

Not explicitly disclosed as a % of revenue, but identified as the primary determinant of profitability, susceptible to Minimum Support Price (MSP) fluctuations.

Manufacturing Efficiency

Maintains high food safety standards through USFDA and BRC-approved facilities; utilizing automation and digitalization to optimize production.

📈 Strategic Growth

Expected Growth Rate

25.57%

Growth Strategy

Achieving growth by scaling the 'Nimbark' organic brand for higher margins, participating in the Government's 'Bharat Rice Scheme' for volume expansion, and increasing retail penetration in Tier-1 cities using the INR 149.63 Cr raised via Rights Issue.

Products & Services

Basmati Rice (Unique, Select, Ultra XL), Non-Basmati Rice, Organic Pulses, and Sarveshwar Atta.

Brand Portfolio

Sarveshwar, Nimbark.

New Products/Services

Expansion into value-added FMCG and organic products expected to deliver higher margins than bulk commodity rice.

Market Expansion

Expanding retail footprint in Tier-1 cities and strengthening presence in international export markets.

🌍 External Factors

Industry Trends

The industry is shifting toward branded and organic staples; SFL is positioning itself with the 'Nimbark' brand to capture this trend while leveraging government schemes for volume growth.

Competitive Landscape

Fragmented industry with many small players, leading to thin profit margins and high competition in the bulk rice segment.

Competitive Moat

Durable advantages include a 130-year heritage, locational advantage in J&K for premium basmati sourcing, and USFDA/BRC certified processing facilities that act as export barriers for competitors.