Ganesh Consumer Products Limited (GANESHCP) Q4 2026 Earnings Call Transcript

Ladies and Chairman, good day, and welcome to the Ganesh Consumer Products Limited Q4FI26 Earnings Conference Call, hosted by Anandhati Shares and Stock Brokers Limited. As a reminder, all participant lines will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star, then zero on your touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Ajay Thakur from Anandrati Shares and Stock Brokers Limited for opening remarks. Thank you, and over to you.

Good afternoon, everyone. We are pleased to host Q4 and F526 earnings call of Ganesh Consumer Products Limited. From the company, we have with us Mr. Manish Mimani, Managing Director, Mr. Amit Tapadia, CFO, Mr. Narendra Mishra, Company Secretary and Compliance Officer, and Mr. Sanjeev Sanjeev, Industrial Relations Advisor. Without wasting much of a time, I shall hand over the call to management for opening remarks and followed by Q&A session. Over to you, sir.

Thank you, Ajay. Good afternoon to all the participants. Before I hand over the call to Mr. Manish Mimani for the opening remarks, I would like to draw your attention to the same hour statement in the investor presentation. I request each one of you to go through the presentation early before the Q&A starts, so that you are aware of the thing. Thank you, and over to you, Mr. Namami.

Thank you, Mr. Rajai and Mr. Sanjeev. Good afternoon, everyone. On behalf of the next consumer products, I warmly welcome you to the quarter four financial year 26 and a good year. 26 earnings call, and thank you for taking the time to join us today. FI26 has been a defining year for Ganesh consumers for first full year as a publicly listed company, and the results we are sharing today reflect Discipline Foundation Building Progress. We delivered revenues of $8,714 million in FI26, A 2.5% growth over the previous year. This modest headline growth was a conscious strategic choice as we prioritized structural health over short-term volumes. Our core V2C segment demonstrated strong resilience to a competitive year, validating the brand equity and distribution architecture we have built over time. More importantly, profitability expanded meaningfully alongside this growth. EBITDA stood at 856 million, up 16.8% year-on-year, with margins expanding 121 basis points to 9.8%. This improvement was driven by strategic procurement, planning, and a sharper portfolio mix. And we view these as durable levers supporting profitability going forward. A specific element of that portfolio mix is the spices category, which grew 19% year-on-year in FY26. Spices carry structurally higher margins than our carrier portfolio. And as this category scales, it makes a visibly accurate contribution to the consolidation's profitability. This is a deliberate part of our diversification roadmap moving forward. On the distribution and channel front, our e-commerce business grew 43% year-on-year and now contributes 14% of total B2C revenues. What was once an emerging channel for us is now evolving to be a core pillar for our multinational distribution strategy. Alongside our strong general trade presence, e-commerce not only expands our consumer reach, but also provides valuable real-time insights into evolving consumer preferences and buying behavior. Our distributor network also expanded from 972 partners a year ago to 1,076. This year, reflecting our continued and deliberate investment in strengthening market reach and deepening distribution and iteration, we are executing a focused two-pronged growth strategy. On geography, we are moving decisively beyond West Namal into Jharkhand, Purusha, Northeast, and Bihar, being a continuous regional belt representing significant untapped opportunity. Onboarding of Rabindra Chadeja as the brand ambassador of our Sattu portfolio marks a significant milestone. The partnership brings to our failures, personnel, customer trust, and elevates the aspirational positioning of our Sattu products as a natural energy drink. Sattu is a category where we already hold leadership position, and this association will help us to take the brand and the category. To a much wider audience, reflecting our confidence in the business and our commitment to shareholder returns, the board has recommended a final dividend of Rs. 2 and 50 per share, taking our total dividend for financial year 26 to Rs. 5 per share, representing a payout ratio of approximately 48%. Updating on the deployment of our IPO proceeds, the creation of our Sattu and Generation Manufacturing Facility has been delayed by approximately 6 to 9 months, as we are able to a global supply chain disruption and geopolitical headwinds. We are working closely with our partners to ensure that the plant is brought on steam at the earliest, without further slippage. The strategic rationale for this investment, which is to expand our high margin, When this portfolio remains fully intact, and we will continue to keep investors apprised of progress on this front, I remain deeply grateful to all our shareholders, partners, and my entire Ganesh family for their continued trust and support. With that, I will hand over to Mr. Amit to take you through the financials in greater detail.

Thank you. Thank you, Manish, sir, and good afternoon, everyone. As our MD has already taken you through our revenue and EBITDA performance, I will focus on the remaining elements of our financial performance. Our back margin for FY26 stood at 4.8% and expansion of 59 business points over FY23. Our balance sheet has strengthened materially through the year, and Ganesh Consumer Products is now a net debt-free company with a net cash position of $643 million as on 31 March 2026. We delivered ROTE of 17.9% and ROE of 14.2%, demonstrating continued efficiency in capital utilization. Our working capital cycle remains tightly managed with a cash conversion cycle of 23 days, a structural outcome of our cash and carry model in general trade, which minimizes receivable exposures and supports strong operating cash flows. We expect the working capital cycle to remain broadly at current levels and do not anticipate any material increase in working capital intensity going forward. This strong working capital management has translated into an excellent cash conversion with our net cash from operating activities to operating EBITDA ratio standing at as high as 94%. I would also like to draw your attention to a specific accounting treatment relating to our Jadeja brand association, as it is relevant to interpreting our P&L. In accordance with the applicable accounting standards, the full production cost of Jadeja campaign, together with the first-year ambassador fees, has been expensed in the last quarter of FY26. This is primary driver behind the increase in our advertising, advertisement, and promotion expense. From 1.3% of the revenue in FY25 to 1.9% in FY26, while this cost was incurred towards the close of the financial year, the benefits of this investment are expected to accrue through FY27. While we acknowledge the near-term headwinds on account of constrained LPG availability, which directly impacts our Horeca segment, this global supply chain disruptions could weigh on the first quarter performance. Our medium-term growth conviction remains intact. We are targeting a volume growth of approximately 7-8% with improving momentum through the course of the year. On profitability, we expect to sustain our EBITDA margin trajectory in FY27 at broadly FY26 equivalent level. With that, we are happy to open the call for questions. Moderator, over to you. Thank you.

Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is answered. Participants, a reminder, if you wish to ask a question, please press star and 1. We take the first question from the line of Pritesh Jhera from Lucky Investments. Please go ahead.

Yes, sir. Thank you for giving the opportunity. Sir, a few questions. One, last year was a year where there was absolutely no inflation. And your revenue growth and your volume growth is quite similar. Any comment on the, you know, wheat inflation aspect in your revenue growth this year?

So there is no, there will be no wheat inflation according to us this year currently, because till now the government has secured more than 34 million ton wheat. And enough wheat storage is there with government and in the pipeline. And I think that is the reason why we have said our working capital requirement will not increase this year. Looking forward, we see a lot of supply of food. And very moderate inflation over wheat, because already the MSP has been increased by government of India by 125 per coin turn. So net-net, the inflation over wheat, very high inflation over wheat

doesn't look for this year. Okay.

The other question is this. So, I would like to point out there was a deflation on the wheat pricing last year in comparison to 24-25. And that was one of the key reasons of our average selling price coming down last year in comparison to 24-25.

Okay. Sir, on the Sattu salience, and which is also a quarter one drink as well, so any comment, you know, last year was not a great year in terms of the weather. So, what is the salience of Sattu in your revenue in quarter one and for the full year? And what kind of impact was there last year and what kind of benefit can flow in this year on Sattu?

So, I'll take that question. So, again, for the entire quarter, that is a future-looking statement, but going by the numbers which we achieved the previous month and the numbers going as of now. So considering that it is a harsh summer this time, and we have also associated with Rabindar Jadeja for the Sattu category, we are seeing a green shoot in the Sattu category, and we are very hopeful and working towards maintaining that green shoot during the entire quarter and the entire year.

But what is the salience of Sattu in your full year revenue? How much business comes from Sattu for the full year and for the quarter one?

So, for the entire year, it is close to 20% and for the quarter one, it is close to 30% in terms of the top line.

Okay, okay. And my last question is on the payout, capex and interest expense. So, this year, the payout was 50% for any formulation of a strategy, and since your balance sheet has the cash as well. So, just wanted to know what would be, and we have seen the interest expense coming down significantly. So, what will be the capex, and is it fair to assume that interest expense will largely be negligible next year? Next year, we interpret 27.

Yeah, so taking the interest expense question first, so the interest expense was higher in the previous year. This year, since we repaid and we raised 60 crores as a part of the IPO and we repaid a working capital facility out of that, so this year the interest expense will be lower as compared to the previous year. However, considering that the wheat and chana cycle starts from the month of April, mid-March to April, again we will strategize our procurement. This is the price trend which we feel will be there in the market. And accordingly, there will be interest expenses in this year also, but it is significantly lower. As compared to the previous year, which is also evident from the fact that if you see the number for FY27, it is around 7 million only, compared to the last quarter of the previous financial year, which is FY25. This was 18 million. Exactly.

Should we take 7 million as a reference number?

I don't think that's correct because the working capital cycle can be different in different quarters. This is a bit of a quarter-based business, but what you can take as a benchmark is that the kind of reduction you're seeing in the quarter, probably can be seen through the year in terms of percentage.

So, on the KPEX front, we are working towards, we are working on the pulses, tattoo, and station. Which we are going to commission out of the proceeds from the IPO. Apart from that, we are working with a couple of consultants on the product development front. We want to introduce existing categories which goes well with the existing one and which are margin-accurative also. So, once the product development exercise continues, we look forward to introduce those products with the existing ones. Again, to highlight, those products will not have a heavy capex. So, we plan to introduce those products only which has a raw material which we are manufacturing. So, that way, the capex amount will be, apart from the Besan and Chana plant, it should be in the range of 15 to 20 crores in the coming year.

Dividend payout, right?

Yeah, so as a policy, we have maintained a dividend payout ratio of around 25 to 50 percent, and we will continue doing it, doing perfect, because we also want to reward our stakeholders,

and balance with the growth opportunities. Okay. Thank you very much. Thank you.

Participants who wish to ask a question, please press star and 1. We take the next question from the line of Praveen Sharma, an individual investor. Please go ahead.

Hello. Am I audible?

Yeah.

Yeah. Hi. Good afternoon, sir. Congratulations on decent set of numbers. My first question is on this Ravindra, Javdeja's piece. You know, I think it's 0.6% of revenue. So it's around 7-8 crore. So is this fully booked in Q4?

You know, firstly, it is not 7-8 crores, but whatever that spend is, it has been booked in Q4 only, because the shoot and the onboarding happened in Q4, in Q4 of this year.

Okay. No, my purpose of asking was ki, the 7-8 crore delta is there in the results of Q4. So, if, you know, this is, and going forward, how much is the ad spend we are targeting as a percentage of revenue?

As a percentage of revenue, it should range between 1.6% to 2%.

So instead of 1.3%, it will be elevated 1.6%.

So in the current year, it is higher, but it should be in the range of 1.6% to 2% in the coming year.

Which is currently last year, how much was it, if I may ask again?

In the FY25, is it?

Yeah, FY26.

So, FY26, the overall spend is around 1.9%. Where is the presentation and the second remark as well?

Okay, okay. No, I just, you know, okay. There was some confusion. Okay, okay. So, next question is on this, you know, the forecast of dry weather Almino, you know, based on our past experience, how do you see it impacting, you know, previous occurrences of this dry weather and lack of rain targeting our margins and inflation and things like that based on our past experience?

No, so the better part is we are dependent on the ravi crop. Both our mean are raw material is wheat and gram, which is a ravi crop. And it is going to affect more on the curry crop. One, second, any which way, if the water level is down, it is going to affect the next year's ravi crop. So I think for this year the risk is not there because enough meat is there in the supply chain along with government and along with open market sources also. But then, on the speculated side, there may be inflation on the heat and RL, which will be evident post X or not.

Okay, okay. And based on our past experience, you know, do we see demand compression because of, you know, weak rural demand and things like that, or it doesn't affect much? Since it's a staple process, it's even a staple.

So, on the demand side, the better part of the Shepard says, see, beyond the point, it cannot go level down, because the consumption, it is essential, so consumption is going to occur. But then, due to supply chain issues, due to LNG, gas, and higher inflation on the petrol, the Haringa segment is going to get a hit. This is getting evident to us from April onwards, because though we are a blended category, but I mean, still we are also being used by the Horega segment at large. So I think there the shortfalls will come in our first quarter. And some sort of challenges are also there in the public consumption, because, yes, supply is restricted. It is being given once in a month only. But then how this is going to impact in the longer tenure, I think it is a matter to be seen. Any which ways, the freight cost and laminate cost is not going to impact too much to us.

Okay. So, sir, any guidance for the FY27, top line and margin? Thank you.

Only given in the opening remarks, probably you joined late, but we can, if you want, we can repeat.

Yes, sir.

So for this year, that is 26th, 27th year, we are expecting a growth of 7 to 8% on the volume terms.

And margin, sir?

So margin, as we highlighted, the margin which we have achieved in FY26, we are going to stay in

FY27 as well.

So, sir, next three years, you know, just last question, you know, how do we see ourselves panning out in terms of growth in top line with the adjacent stage, you know, is there any vision and how do we see, you know, ourselves going towards 2,000 crores, 1,500 crores and then 2,000 crores? Is there a vision towards that and how do we look at that?

So, I think though I will not like to give exact numbers, I will not be able to comment on the exact numbers, but we are very optimistic and bullish in our category, and look forward to a double digit growth in the longer term, and I think we are going to reach in all segments. Where we are today, we will grow in a double visit, and we are also trying to move into adjacent categories with a higher accretive margin, and we are also trying to move into newer geographies, but in the medium term, short term, there are due to geopolitical tensions, the rate scores for moving to the further geographies can be a challenge. But we look forward, we are optimistic to look forward to grow into new geographies as well as new adjacent categories, as well as growth in our core categories.

Okay, great, great. Thank you, sir. Thank you. That's from my side.

Thank you. Participants who wish to ask a question, please press star and 1. We take the next question from the line of Ajay Thakur from Anandrati Shares and Stock Brokers Limited. Please go ahead.

Hello, sir. Sir, I had a continuation of what you had kind of, you know, enumerated some time back. Just wanted to understand a bit more in terms of your plans to, you know, kind of enter into new categories. Obviously, you had said that you are kind of already venturing into a few of the new categories, but what are, you know, our plans for entering more new categories in terms of, you know, broad basing our growth prospects and also What would be the contribution of this new categories to our overall revenue currently, if you can share any of the details around the scene.

So, as I highlighted, we are working with a couple of consultants who are helping us develop products which goes well with the existing category. When I say goes well, I mean we are a household brand, widely used, right? So, we can traditionally introduce category, right? Thank you. We are working to introduce blended masalas to the existing fleet of masalas. Apart from that, since we... With a thorough exercise on the product development plan, so we are working to develop recipes for instant mixes for dahlia and upma. So it adds to the convenience of the household, and it is the need of the generation. So they look forward for convenient products so that they get the best quality taste with a minimized...

I understood. Secondly, I would want to understand a bit more in terms of diversification into new geographies and what are plans to, you know, kind of, you know, broaden the geographical spread of ours from West Bengal to maybe other states. If you can share some insights into that. Thanks.

So, we want to spread our wings in the other eastern states of Jihar. So, we have manufacturing units situated near to farm as well, which is in UP. So, that way, we will be able to... Gain advantage of supply chain when we ship the product from those plants to these newer geographies. So, firstly that, and secondly, we also want to strategize our ATL and VDL activities in those areas so that we gain the benefit as a newer entrant in those geographies.

I understood. Just one last bit from my side before we, you know, again pass it on to the other participants. What is the price increase that we have taken so far? Or, you know, what is the kind of price increase that we expect for the current year given the cost inflation that we are already, you know, seeing in terms of the input cost, be it in terms of packaging or otherwise?

As we have said, now we have not increased or passed on the prices of this due to this geopolitical tension to our consumers. We are absorbing as of now. But then, I think from the month of June, if this trend continues, we will be forced to pass on some bit of inflationary prices to our consumers due to increasing. Laminate, that is plastic, and frayed.

We take the next question from the line of Naman Maheshwari from Singularity AMC.

Clarity between Valuet and Klar, and because I think last year, because of So, I'll take that question.

So, in terms of the category, so obviously, the growth rate will be higher in the emerging category, which includes prices. Because particularly for Chattu, as the base is lower for FY25, because of the reasons we discussed, the growth rate will be higher as compared to wheat flour, which is ATA.

Right. So that essentially means, because of the mix, there will be, revenue growth will obviously be, because of the mix impact, revenue growth will be higher than morning growth.

So, again, so volume growth, we thoroughly track the volume growth in our category. Somehow, the value growth is dependent on the RM prices, whereas RM contributes around 70 to 75 percent of the overall cost. So, yeah, so the volume growth which we are targeting and working towards is between 70 to 80 percent in the FY27 period.

Yeah, but the pure mathematics, I mean, the mix, when it moves in favor of the value added, the mix in fact should be positive on revenues, right?

So, let's appreciate that in a business where 70% is probably a cost, okay, your constant value add may be same, but your percentage value add will change if the normal prices change. Mix will impact largely the margin, but it may not be reflective of a value growth, right? So it's very difficult mathematics to be able to sit today and tell you a value growth. So the best thing is to look at value, volume growth, and see whether we can be able to move and shift the mix over a few times. Mix, again, cannot happen overnight. So please understand that B is a very, very dominant category. While you will see other categories moving, you know, faster, but the percentage change takes time to be, you know, largely and conspicuously visible.

But coming to the second question. Sir, Bengal has been 93% of our revenue this year. So non-Bengal is obviously less than 7%. How should that change in the next 1-2 years?

So we would like to here mention also that you need to be aware and appreciate that at the same time we would like to grow geographically and we would like to grow top-line also. But then we are very conscious about the bottom line also. We will not like to burn money. There are interruptions. Last year also, there was an induction. There are enough intense competitions out there. Because the category is going from unorganized to organized, so the category as a whole is being looked by all the bigger companies. And then due to our brand recall, good supply chain, and disciplined execution, And power pricing. At the same time, we will like, but not at all, bottom line cost, which is reflected in our margins of Evita and pet boat. Now, please turn up.

The voice is not audible.

Send it better now. Hello, is it better now? Hello?

Yeah, it's clear now.

Yeah, so basically for next one or two years, we don't have any major KPIX plan. Our capacity utilization is quite good enough to sustain for next volume, sustain volume for next two, three years. Working capital is not increasing. It essentially means we'll generate a lot of cash, maybe more than 100 crores in next two years, right? So what is the plan on capital allocation going ahead for next, say, one or two years?

Yeah, so, as of now, if you ask me, on the CAPEX front, the first focus area is commissioning of Besan and Satu plant, which is a part of the IEDO object. Now, second is, as I said, we are working with consultants on development of other categories, right, and those categories will also require some CAPEX to be done. So, that is the second work area. Yeah, no. You have to appreciate that the landscape is changing very fast, right? Now, considering that we are located in UP, which is near to the farm, and we are very much aspiring serving the PR and not the market. Now, if this rate costs, it's... The gold price is, diesel price is. But yeah, we are, since we have enough cash,

I would like to add here, so there are two aspects of this, one, depending on the future course of oil costs, which depends on the phrase which is directly linked to the margins and viability and getting the market share. So, though RM is 70%, but still freight, the inward freight and the outward freight is also a big cost to the product. So, what I mean to say is, as of now, we are self-efficient with our installed capacity to service the, for another 2 to 3 years for entire Eastern India. But then if oil continues to go apart, we will be forced to think. Rethink and change our strategy, we may move, we may be bound to move towards the near to the market also. Now, but again, the advantage here is the individual cost of setting up a unit is not that big, which is going to impact the bottom line of the company. One, and it can be a blessing in disguise also if we go near to the market if it forces us. Okay, all the rest. Thank you so much. Thank you.

Thank you. Ladies and gentlemen who wish to ask a question, please press star and 1. If you wish to ask a question, please press star and 1. There are no further questions from the participants. I now hand the conference over to the management for their closing comments.

Thank you. Again, thanks, Mr. Rajai, and thanks, Mr. Sanjeev. And all the, once again, we are deeply grateful to all the shareholders, to all the investors, to all the partners, and the entire Ganesh family. And we are hopeful for the continuous partnership in our growth journey. Thank you. Thank you.

Thank you. On behalf of Anand Rati Shares and Stock Brokers Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.