💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, the Atta segment contributed 45% of revenue, Spices and Masalas contributed 40%, and the newly launched Oil segment contributed 5%. Overall revenue for H1 FY26 reached INR 78.77 Cr, representing a 49.08% YoY growth compared to INR 52.84 Cr in H1 FY25.

Geographic Revenue Split

The company is headquartered in Hyderabad, Telangana, where it recently received the FMCG Spices brand award. Specific % splits for other regions are not disclosed in available documents.

Profitability Margins

Profitability has shown an upward trend; PAT margin increased to 9.14% in H1 FY26 from 8.37% in FY25 and 8.99% in FY24. This improvement is driven by the brand's ability to maintain quality-based pricing while scaling operations.

EBITDA Margin

EBITDA margin stood at 17.05% in H1 FY26, a significant improvement from 15.99% in FY25 and 16.32% in FY24. The YoY increase in EBITDA margin reflects better operational leverage as the company scales its core Atta and Spices portfolios.

Capital Expenditure

Property, Plant & Equipment (PPE) stood at INR 19.95 Cr in H1 FY26. The company plans to initiate a major expansion for Atta and Spices manufacturing after the next financial year (FY27) to address high capacity utilization.

Credit Rating & Borrowing

Total borrowings increased to INR 33.35 Cr in H1 FY26, comprising INR 9.49 Cr in long-term debt and INR 23.86 Cr in short-term borrowings. Specific interest rate percentages and credit ratings were not disclosed.

⚙️ Operational Drivers

Raw Materials

Key raw materials include wheat (for Atta), whole spices (for blended and pure masalas), and oilseeds (for the Oil vertical). Specific cost percentages for each material were not disclosed.

Import Sources

Not disclosed in available documents; however, the company operates primarily out of Hyderabad, India.

Key Suppliers

Not disclosed in available documents. The company currently uses third-party manufacturing for Soya Chunks but handles core products in-house.

Capacity Expansion

Current installed capacities are: Atta at 14,400 tons, Spices at 3,600 tons, and Oil at 7,200 tons. Expansion for Atta and Spices is planned to commence after FY27 to meet growing demand.

Raw Material Costs

Total expenditure for H1 FY26 was INR 65.34 Cr, representing approximately 83% of revenue. The company focuses on a 'quality-first' procurement strategy to maintain its premium brand image.

Manufacturing Efficiency

Capacity utilization in H1 FY26 was 87.85% for Atta (12,650 tons utilized) and 73.25% for Spices (2,637 tons utilized). The Oil segment is currently at 10% utilization (720 tons) as it is in the launch phase.

Logistics & Distribution

The company is focused on expanding its distribution network to sustain growth momentum; however, specific logistics costs as a % of revenue were not provided.

📈 Strategic Growth

Expected Growth Rate

49%

Growth Strategy

Growth will be achieved through a new business vertical for Puja and devotional articles, increasing Oil segment utilization from 10% to 30% in H2 FY26, and expanding the product portfolio with items like Soya Chunks. The company also plans to transition third-party manufactured products to in-house facilities once scale is achieved.

Products & Services

The company sells Atta (flour), Spices, Blended Masalas, Edible Oils, and Soya Chunks. It is also launching a line of Puja articles and devotional goods.

Brand Portfolio

Srivari

New Products/Services

New launches include Soya Chunks and a planned vertical for Puja articles and festival-related items, intended to diversify revenue streams into high-demand consumer categories.

Market Expansion

The company is targeting expansion into adjacent consumer categories and strengthening its presence in the Telangana region while exploring international operations.

Strategic Alliances

The company currently utilizes third-party manufacturers for its Soya Chunks product line to test market demand before committing to capital expenditure.

🌍 External Factors

Industry Trends

The FMCG industry is seeing a shift toward branded, quality-assured staples. Srivari is positioning itself as a premium quality provider, evidenced by its feature in Forbes India (August 2025) and winning the ET Excellence Award 2025.

Competitive Landscape

The company faces competition from both domestic FMCG giants and international players in the spices and staples market.

Competitive Moat

The moat is built on brand credibility and a reputation for quality in the spices and flour market. This is sustained through recognitions and awards that differentiate Srivari from unorganized competitors.

Macro Economic Sensitivity

The business is sensitive to general economic growth in India and prevailing interest rates, which affect fiscal costs and consumer purchasing power for FMCG goods.

Consumer Behavior

There is an increasing demand for branded and packaged devotional/Puja products, which the company is targeting with its new business vertical.

Geopolitical Risks

The company monitors international government policies and regulations as it manages its international operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to government policies, actions, and regulations regarding food safety and FMCG manufacturing standards.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 29.18% (INR 2.97 Cr tax on INR 10.17 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Key risks include the ability to attract and retain highly skilled professionals and potential time/cost overruns on contracts. The resignation of the Company Secretary in November 2025 highlights human capital risk.

Geographic Concentration Risk

The company has a strong concentration in Telangana, where it recently received regional brand awards.

Third Party Dependencies

There is a dependency on third-party manufacturers for the Soya Chunks segment, though the company intends to bring this in-house eventually.

Technology Obsolescence Risk

The company is investing in R&D for new product lines to stay relevant with evolving consumer preferences in the FMCG and devotional goods sectors.

Credit & Counterparty Risk

Trade payables of INR 5.08 Cr and other current liabilities are managed to support working capital, but specific counterparty credit quality was not disclosed.