Krishival Foods Limited (KRISHIVAL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q4 and full year FI26 earning call of Krishival Foods Ltd. Today we have with us Mr. Sujit Bangar, Chairman Krishival Foods Ltd., Mr. Abhishek Puranik, CEO, Melt & Mellow Ice Cream Division, and Mr. Nana Maske, CEO, Krishival Nuts Dry Fruit Division. We will begin with opening remarks from the management, followed by an interactive Q&A session. Please note that, this discussion may include forward-looking statements, which should be viewed in conjunction with the risks and uncertainties that the company faces. As a reminder, all participant lines will be 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 an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Sujit Bangal, Chairman, for opening remarks. Thank you, and over to you, sir.

Thank you. Thank you very much. Good evening, everyone. Thank you for joining us today for the Quarter 4 and the FY26 earnings conference call of Crisual Force. It is a pleasure to welcome you all, and I sincerely thank you for your continued trust and engagement with the company. FI26 has been a defining year for Casual Foods. Our investments in capacity, distribution, and brand building are now beginning to translate into both scale and profitability. Now let's talk something about our business model and our positioning. As you are aware, Crucial Foods operates with a dual brand strategy, Crucial Nuts in the healthy stacking segment, and Melt and Melo in the indulgence category. This gives us balance and resilient model. The Nuts business provides stable year-round demand and cash flow, while the ice cream business offers high growth potential and strong consumer engagement. Together, these position us as a scalable FMCG platform in the consumption space. More precisely, I can call it a discretionary consumption space. Now, we can talk something about industry context for nuts, dry foods, and ice cream both. So, let me briefly touch upon these two topics. India's consumption story remains strong, particularly in premium and branded food categories. We are seeing a clear shift from loose to branded, from unorganized to organized, with increasing preference for products that combine health, quality, and convenience. In nuts and dry foods, consumption is moving beyond festival occasions and becoming part of everyday diets. While India is one of the largest consumers globally, per capita consumption remains relatively low, especially in Tier 3, Tier 4. The India market is approximately 45,000 crore, and at global level, the category is significantly larger and continues to grow steadily. This highlights a long-term opportunity for organized players in India. Similarly, in ice cream segment, the category continues to expand at a healthy pace, supported by improving cold chain infrastructure, rising disposable incomes, and increasingly impulse conversion. While the category is becoming less seasonal, higher temperature, which we are experiencing nowadays and currently in this month of April and May, These higher temperatures are driving a strong near some demand. In India, the ice cream market is expected to reach approximately 1.5 lakh crore by 2034, compared to a global market of over USD 165 billion. This underscores both the scale of the category and significant growth headroom in India. There is some near-term volatility in input cost and supply chains, particularly for global sourced commodities. However, our diversified sourcing model positions us well to manage these risks, and we do not see any structural impact on our growth trajectory. Today only, we have declared quarter 4 of FI26 and financial year FI26 results. So, let's talk something about our financial performance. Against this backdrop, FI26 has been a year of strong growth with improving profitability. Our nuts and dry fruit business has delivered steady growth with healthy margins supported by demand, distribution, expansion, and consistent product quality. The more defining milestone has been in our ice cream business, Molten Mellow, the brand in which we sell ice cream, has achieved profitability at path level ahead of expectations, a significant achievement in a category where many emerging brands are still scaling without profitability. What differentiates us is clear. We are building scale with profitability, not at the cost of it. We are also investing in brand building through internal accruals rather than burning cash. Coming to our financial performance for the full year, total revenue stood at 304.41 crore, reflecting a growth of 48% year-on-year. Debit time increased by 66% to 41.95 crore with a margin of 13.78%. While the profit uptrend tax is pat increased to 22.2 crore with a growth of 64% year-on-year and a pat margin of 7.59%, which is up 89 basis points year-on-year. Overall, both businesses have contributed meaningfully to revenue growth while improving the quality of earnings, and importantly, we are beginning to see benefits of operating leverage as the scale improves. Operational highlights we'll speak about in a couple of minutes. During FY26, we strengthened execution across both businesses by expanding distribution, scaling our portfolio, and enhancing manufacturing and supply chain capabilities. The Melt and Melo now reaches 34,200 retail outlets supported by cold chain network of 15,490 deep reserve. Enabling deeper market penetration, stronger last-mile availability. In the nuts and dry food segments, we are present across 11,000 retail touch points supported by diversified sourcing model and strong focus on product quality. Overall footprint of Krishuval now spans 300 plus towns and places across India. And also 300-plus retail places in Singapore. We also continue to expand our product portfolio with over 189 SQs in ice cream, which is almost highest amongst the ice cream brands in India, and over 67 SQs in nerves and drivers, reflecting our focus on innovation and evolving consumer preferences. On the manufacturing side, we commissioned a new 35,000-square-foot processing unit, which commends production in the month of April. Our growth remains focused across key markets, Mumbai, Pune, Bandaralu, Hyderabad, and core states including Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Bhuvah. Overall, this disciplined approach is enabling us to scale efficiently while maintaining strong control over execution and profitability. Now, we'll talk about some strategic progress and how we look at the way forward. In FY26, there has been a year of building for future with a strong focus on our direct-to-consumer presence. Meltan Mellow remains a key growth engine with a clear aspiration to build it into one of the top three ice cream brands in India over the next seven years. As part of this, we are launching Mele & Co. with clients Mele & Co. as an ice cream parlor under the name Mele & Co. we are launching rollout. Around 25 such franchise-owned company-operated Mele & Co. ice cream outlets will be open in the current financial year at Pune and Mumbai. This will strengthen our direct-to-consumer presence, enhance brand visibility, and improve consumer engagement. Deep freezer network, we have already expanded from 3,000-plus to 15,000-plus during FY26. This continuous investment in deep freezers will further continue and expand in current financial year. That is FY27. We'll keep enhancing capacity utilization of our existing capacity is of 1 lakh liter per day in ice cream. So we'll continue to enhance capacity utilization with a target of full capacity utilization by Q1 FY29. Q1 FY29, we expect complete full utilization of the capacity. Just to have glimpse to the scale which we have achieved in the financial year 26, we have sold cones, magic cones, around unit 4.74 units we have sold in financial year 26. Around 3.5 crore units of choco bars we have sold in FY26. Around 1.78 crore units of cups and sundaees we have sold in FY26. This is the kale which we have chewed in FY26 in ice cream. And all these factors give us confidence that Melt and Melo will grow further. And also another important thing that Melt and Melo is the only major emerging multi-state ice cream band. Which is scaling with incremental branding and marketing spend while generating profit. This year, 7% EBITDA on the top line of 25 crore has been achieved, which is ahead of our planned profitability, which was planned in AFY. One year ahead, this profitability has been achieved by Meltan Mello. All these factors give us strength and makes us aspire to strive for making Meltan Mello top three ice cream brands in India in coming seven years. In parallel, our Nuts business continues to remain strong and stable foundation. We are progressing on capacity expansion with a clear roadmap to scale over the next few years. Sissual nurse as far as dreamers as Dimro, you know, player in India with a long-term goal of achieving 10% market share while maintaining profitability. This will be given by product innovation, strong quality control, supply chain strengthening, and deeper penetration across Tier 2, Tier 3, and Tier 4 markets. As we move into Financial Year 27, Our priorities remain clearly defined. In pre-show nuts, we will deepen distribution, standarding supply chain integration, and expand capacity. In Meltan Mello, our focus will be on expanding distribution, improving capacity utilization, and investing behind the brand. Across both businesses will remain disciplined in execution while maintaining profitability. At the broader level, we are building Ritual Foods as a two-engine growth platform, driving scale, profitability, and long-term value creation. Our expansion will continue to be funded through a mix of internal accrues, existing equity, and debt. To summarize, FY26 has been a year of strong execution, early validation of our strategy, and the creation of solid foundation for future growth. We remain optimistic about opportunities ahead, while staying focused on disciplined execution. Exhibition has made us to achieve 10% fat level margin in Krishuwaranath, which we aspire to continue in the coming years, and 7% EBITDA, which we have achieved in ice cream, which will keep progressing to enhance it further to the next height. In coming financial year 27, we hope to continue to maintain growth trajectory and we see around 50% top-line growth and 50% plus bottom-line growth. On behalf of board and entire visual boards team, I thank you all once again for continued trust and support. I now look forward to your questions. Thank you. Over to you, Anish.

Thank you so much, sir. Ladies and gentlemen. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

The first question comes from the line of Maitrisha from Sapphire Capital.

Please go ahead.

Yeah, hello. Am I audible?

Yes, you are. Yeah, you are audible.

Yeah, congratulations, sir. The result has been quite phenomenal. I have a few questions on both the business segments. So, firstly, you mentioned that we're increasing our capacity to 40 metric tons. I think permanent capacity. So when do you expect us to reach the peak utilization, like once the CAPEX has been completed?

Our earlier capacity as on March 31st, 526 was 10 metric ton per day finished nuts production. This capacity has been enhanced as on today to 20 metric ton per day finished nuts production. The enhanced capacity, the current financial year, we are going to utilize 25% current financial year. And going forward, our already 2 lakh square foot factory construction is going on in Halkarani, Yambayi DC. Out of that, 35,000 square foot premise will be, has been made operational, which has added this 10 metric ton capacity to the existing capacity. Renda. And our plan is that in the coming next two financial years further, slowly, this capacity, we will keep adding like 10 to, we have gone 20 this year. Next year, we'll go 30. And again, next year, we'll do 40. And also, continuously, in a failed manner, we'll continue to utilize capacity going forward. Like this year, we have gone 25% further enhanced capacity. Next year, we'll increase another 25% or 50% of the enhanced capacity. So in this failed manner, we are going so that our profitability and everything remains intact and supply chain and all engines are working in sync.

Okay, great. So, for FY26, if you could help me out with the utilization on the 10 metric ton per day, if that's possible?

Yeah, sure. In FY26, our existing capacity, as I have spoken in earlier call also, 70% was the utilization of the existing capacity. Now, current financial year, 70% was the utilization of the existing capacity. Now, this financial year, the existing capacity, 10 metric ton, will be utilized almost fully. So, fully means we can have a 90% utilization with some balance space available. And the new capacity of 10 metric ton will be utilized.

That'll be 20, 20. Okay, yeah, got it. Secondly, on the nuts and rice roots, what sort of EBITDA margins do you target once this capacity reaches like 90% optimum utilization? So is this a mix of a higher value SKUs and also operating leverage? So like a steady stage EBITDA basis for the nuts, what would you be quoting for two, three years down the line?

This year has been, FY26 has been phenomenal in consolidating the profitability net segment. So, if you can see our financials in FY26, we have maintained, we have achieved 15% EBITDA margin, 1.5, and 10% is the PATH margin. So, the way we look at going forward is that in the short term, in coming next two years, we will try to maintain this 15% plus EBITDA and 10% plus FAT. So, going forward, this EBITDA may increase a couple of points, but that will remain 10% plus because depreciation and other things may add up because our expansion is going on. So, in the PAT level, 10% plus we will maintain, but EBITDA may be 15% plus couple of points. But our main target is that maintaining this level. And not ensuring fat doesn't go below 10%. That means we have to balance further depreciation which will come because of enhanced expansion.

Correct. Okay. And on the ice cream side, so we're also ramping up our capacity and you're expected to reach 100% by 1QF by 29. So at that stage, what margins do you expect the ice cream business to go on the EBITDA and BAT?

FY26, 7% EBITDA we have achieved. That's quite phenomenal because ahead of target it has been achieved. And this coming FY27, FY28, these two financial years will keep on adding to the EBITDA. Our EBITDA will keep on adding, but at the same time, we are going to investing into branding and marketing activity, but that we will do from the enhanced EBITDA. So EBITDA will not go below 7%. It will keep on increasing. Our expectation is the ideally three years down the line when the full capacity utilization happens, then EBITDA should be 14 to 15 percent minimum.

Oh, 14 to 15 percent. Sorry, please go ahead.

So 14 to 15% should be the EBITDA was the complete capacity to utilize. Till that time, what we are going to do is that EBITDA will keep on increasing, but at the same time, we will keep investing in our branding activity, such a certain percentage of sales. This has a positive impact in increasing our revenue potential, our margins will also enhance. So, both will go hand in hand.

Correct. And this year for 26, what sort of utilization we had on the ice cream side?

Around in ice cream side, the utilization in FY26 is 25%. Almost, you can say 25%. 25%.

And this kind of increases once the seasonality hits. So, 4Q and 1Q are expected to be, I think, better for the ice cream season. Is that correct?

Pardon what you said, seasonability.

So, for ice cream, you see a seasonality also coming in for expecting the fourth quarter and the first quarter being better in sales for this business. So, the utilization will be quite higher for these two quarters. Is that correct?

Yeah, see, in ice cream, Q1 and Q4 will be higher than Q2 and Q3. So, obviously, this sort of seniority will always be there in any ice cream business. In case of Melt and Mellow, one good thing which is happening is that our certain premium SKUs production just promised in the month of May, this month. So, and we are scaling up. So, probably quarter two and quarter three will give us additional strength of increasing top line because of these some premium SQs which we are bringing in the market which are all season sort of.

Oh, okay. That is great. And you also mentioned this new initiative of focus stores that is coming up in FI27. So, these 25 stores, are they all launching quite linearly across the four quarters? And what sort of financials are we expecting from these stores? So, like revenues, like EBITDA, breakeven, bad breakeven on that?

See this, obviously, these are the franchisee owned, but company operated, franchisee owned, because we don't want overheads in our books, right? So there is no question of break-even, as there are no overheads in our books. But at the same time, we have seen in many franchisee, franchisee related expansions, the casualties brand. So not to do that, we have done company operated. So company will operate those outlets. So each outlet will be break-even from the third month only because our overheads will be very minimal. In these outlets. So, therefore, that challenge we don't see, it will not have any impact on EBITDA, or rather, it will have positive impact on our EBITDA, because the realization

of the product in the parallels will be quite higher.

So, it will add to the EBITDA, but it will not have any pressure on EBITDA. And this will be planned over the period of this financial. We are planning to start this task in the month of July and August. We are going to start. The Mumbai and Pune 25 outlets we are planning.

And FY27, so now with ice cream kind of ramping up, what proportionate of sales do you expect coming from ice cream? And do you also expect us to have a packed break-even in FY27 for ice cream?

So, FY27, as we see, the EBITDA will be enhanced beyond 7%. And the PAT in FY26, PAT was almost 1.7 or 1.8%. So PAT will also enhance beyond 3% minimum. I'm saying this conservatively minimum on that. And what was your second question?

The proportionate of sales coming from ice cream, will that kind of inch up? Because we already had 41% sales coming from ice cream in quarter four, but that is, again, seasonally a stronger quarter for ice cream. So, on a, like, a controlled basis for the entire FY27, how do you see the proportionate of ice cream growing?

Proportionate of ice cream will continuously increase. That you have seen in FI 25 and FI 26 comparison in the presentation. Also, you can see how the proportionate of ice cream is increasing. So proportionate of ice cream in the total sale, we will see in this financial also. And going forward in FI 28. And FY29, we will see almost equal of ice cream and nuts will reach at a half.

And just for this fourth quarter, we had a dip in the EBITDA margins. Any reason for that?

So, if you tell, there are two things. First is that in the, if you see net segment, Q4, profitability is always under pressure. So, rather, this year's property and property, if you see quarter-wise, quarter-four to quarter-four of 25, the profitability has increased. So quarter four profitability is always because quarter four is mostly B2B demand because of, uh, weddings and, uh, these, uh, other, uh, this thing, uh, uh, functions and, uh, all those things. So that's why quarter four profitability is always under pressure. So it's better to compare Q4, Q4 to Q4, uh, profitability, and then, uh, you will find, uh, the, that has been a proper. Thank you.

Uh, proper, uh, understanding, uh, uh, Q4, Q4 to Q4, the margins went down a while. That's what, that's what, that's what I am saying. That's what I'm saying.

So to view in Q4, Q4 26, there is a 2.88 crore. Almost, uh, this thing, uh, uh, we saw past, which has come into the books. 2.88 crore. So if you take our EBITDA in Q426, which is including this adjusted to this ESOP expenses, then our EBITDA margin is 12.21% in Q426. And the EBITDA margin in Q425 was 12.05%, 0.2%, 0.3%. So that way, if you see Apple-to-Apple comparison, the EBITDA has increased.

Okay. And any more ESOP costs coming in for FY27?

FY27, certain ESOP costs will be there that we have not yet worked out. But obviously, it will not be more than this.

I think the 3 crore figure will be there.

No, it will not be, it will not be, it will not be, it will be less than this amount what has come in FI 26, it will be less than the ESOP cost which we have debited in FI 26, it will be less than, but as on today there is no AD, but current financial year, our ESOP scheme rollout is going on, certain costs may come, but it will not be more than what has come in FI 26.

Okay, okay. Thank you so much. All the best.

Thank you. Our next question comes from the line of Saurabh Byas from Systematics Group. Please go ahead. Hello.

I'm not audible. Yeah, you're audible.

Saurav, you may please proceed with the question. We can hear you.

Hello. Yeah. Hi. Congrats. Congrats. Good set of numbers. I just had two questions. One is that I can see that the raw material cost for the consolidated level was increased in the Q4HL, like it's somewhere around 57 odd percentage. Percentage region. So if you could throw some light on that, uh, would be it.

So, uh, you, you are talking at console level, right?

Consolidated. Yeah.

So, so, uh, Q4 has this year's Q4 has a peculiarity of, uh, enhanced ice cream of operations. So almost the first nine month ice cream sale is 47 crore. And last few months, ice cream sale is almost 43% so that now you can understand the how the ice cream has contributed in Q4 so and this one of the reason for this raw material related issue is this enhanced RMPM requirement and this ice cream proportion has increased A lot in this quarter, and that's why that is operating in the consumption cost.

And secondly, sir, what type of a, do you see that we're going for the, uh, uh, utilization basis?

I'm sorry, I interrupted you, Saurabh, but your voice is breaking.

Saurabh, voice is breaking, Saurabh.

I'm audible.

Hello, I'm audible.

Yes, you're audible.

Yes, yes, yes, now audible. You can try.

Yeah, so if I can see on a segmental basis, I can see that the margins have fallen in, margins have been quite steady for the dry fruits and the nut segments. Like in the four segments, you can see that there is only a 10% on a Q1, on a Y1 basis. But ice creams have been sharply falling for 4%. So now, going forward, you guided for the PBIT margins will be in the range of 3 to 4%. So going forward, the consolidated level, at what percentage of margin are we looking at for ice cream in FIQD 7 or 28 when we will be having the full capacity?

Yeah, I will tell you there is actually margins are very good in Q4 in ice cream. What has happened in the Q4 ice cream, this ESOP cost, which I said 2.88. That 2.88. This ESOP cost has been debited in a Q4 of ice cream. Melton. So, in the Q4, Q4, EBITDA. So, if you for EBITDA of ice cream or FY26 has to be increased by 2.88 crore to bring it as an adjusted to ESOP cost. So, 2.88 crore is the ESOP cost which has gone in a Q4 in ice cream melt and melt, which I said the ESOP cost that has gone. In the Q4 in ice cream. So, in the Q4, 2.88 crore, it shall be added to the EBITDA to bring adjusted EBITDA net of subcost.

Got it. You understood what I meant to say. Got it. Sir, last question on the demand side for the ice cream sector. Like we have achieved the 15,000 mark of the refreeze. Could you highlight at which part of the country are we seeing major tractions coming like towards the south side of the basically from the Maharashtra region Just a highlight of how the demand is actually going on for this.

Yeah. So the deep freezer expansion is going across these five states, Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Goa. If you want to see and measure metro-wise how it is in proportion, so Mumbai, Pune, Hyderabad. And Bangalore. These are the four metros which are being targeted or focused, focused upon. So this and sales demand, our majority, almost majority demand has been, if you say more than 50% demand is from Maharatra. And the remaining demand is from these four states. And the business we started in the month of November, and that is really doing well and picking for fuel. Hyderabad we have a quite a good places. We have a for last 2-3 years and Karnataka, South of Karnataka, we have started Bangalore, we started in last year in October, November. That is also doing well.

Got it. And sir, just one more question. In the sales and promotion expenses, you said going forward for making sure that we expand our base and expand across the country. So how do you think that will there be any sharp uptakes in the marketing?

Your wife was breaking, sir. Can you please repeat? Your wife was breaking.

Hello. I'm Audiman now.

Now it is okay. You can talk. Okay.

So my question was regarding the safe and promotion expense, like going forward when we will be expanding our presence across the country. So how are we looking at this safe and promotion expense coming out? Like will there be any sharp uptakes or will be keeping it constant across in the coming at least two to three, four quarters? Yeah, that's a good message.

See, sales, sales, promotion, expenses, there is a quite difference what we are doing at Christian as far as sales, promotion, or branding expenses is concerned. We are not doing branding expenses to bring customer to our product. Customer is already coming to the product. What we are doing is that we need to validate the confidence in the minds of customer to bring recall value. And to bring premiumization, which will increase our per SQB realization also, that function is being achieved to branding, which we are doing or which we are proposed to doing. So, whenever we are doing the branding activity in the ice cream segment, for example, we are doing consciously with a certain percentage of sales. And simultaneously, in the next year, there will be its impact on enhanced EBITDA. So, going forward, next sales and promotion expenses will be from the again enhanced EBITDA. So, every year EBITDA will see continuous secular increase also. And also, at the same time, sales promotion or branding expenses, we also keep on increasing along with the absolute number because top line will also be increasing. So this way we are doing. So there will not be unreasonable jump in any quarter or at the sacrificing EBITDA or profitability. That will never happen.

Got it, got it. Thank you so much, sir, and all the very best for the call. Thank you.

Thank you.

Ladies and gentlemen, anyone who wishes to ask a question may press start and one on their touch on telephone. Our next question comes from the line of Ayaz Mutiwala from Amala Funds. Please go ahead.

Yeah, good evening, sir.

Your voice is low, sir. If you can just turn on your volume, please.

Yeah, actually, my phone is also the...

And your voice is breaking. My voice is breaking.

Would you like to rejoin the queue? I'm on the mobile phone. One second. Let me try to go in another corner in the office. One second, please.

Sir, you may rejoin. Meanwhile, we'll take the another participant.

Yeah. Is it better now, sir?

Hello? Now it is better. Now it is better. You can try.

Yes, sir. I have a few questions. I'll start off with over the last about three years from IPO, so you raised cumulative about maybe 200 crores. Including the idea proceeds. I would like to understand how these are being deployed from your investment in the ice cream business strategically and then some advances including working capital. It would be very helpful to get a picture of that. I've been able to read the last couple of annual reports. Just to get a composite picture will be very helpful over the cumulative money including the recent 100 crores that has been raised in the right.

Understood, understood, understood. Yeah. So it's very simple. So in the IPO we raised 20 crores and that was in working capital March 22 we raised for the working capital. And there was no ice cream segment, so we were enhancing the nut segment only. Then in a preferential, we raised around 65 crores. And that's 65,000, 65 odd figure something, plus minus something, 65,000 we raised in, because I'm just going on memory, the exact paper is not in front of me. So around 65,000, we raised from a preferential, that time also, it has ice cream segment was not with us, total 65,000, we used for. Enhancing in working capital, enhancing our NERS division. In this period, our NERS division has gone from March 2022 50 crore top line to 70 crore to 103 crore to 173 crore. This top line growth has been achieved. During this period. Also, during this period, if you see our balance sheet continuously, we have been investing in our plant and machinery, and that was from our internal accruals for the NERD segment. Yes. So, the capacity expansion we have done from our internal accruals continuously, and this scale has been achieved in the NERDS and dry food segment with this. Now, the rights issue which we have raised in 100 crore recently, out of that 35 crore plus grants we received in the month of January, and this 35 crore, 25 crore is for the This new facility in the first question which I said 2 lakhs square foot factory unit is being constructed along with for the nuts and division over there. So this 25 crore is for that plant and machinery over there that has and 10 crore is for the working capital of the Not division. So this 35% remaining money is received to us. That will be received in two calls, which we will do in the current calendar year. Then we will receive and then its utilization will be done.

Oh, okay. So, these are partly received proceeds is what you are saying, sir. Yeah, yeah.

100, 100 crore out of, this is a, out of 100 crore, first call, we have, we received 35 crore. 65 crore will receive in the subsequent two calls.

Yeah. Right. Okay, excellent.

That's great.

Now, the ice cream division has grown rapidly and turned around brilliantly. We've seen that over years and years that a great and large company like India Sun Unilever are struggling with the ice cream business. But on a first principle basis, the supply chain for sourcing milk and the customer group being a cold chain product is totally different from your B2B and B2C max business. So, when is the synergy and the leverage that you are seeing in this business, you have taken on this ice cream business, which has done very well for you in terms of growing as well as turning around and now contributing even to net profit?

Regarding the ice cream business, and its procurement of milk and other raw materials, ice cream business we have, we acquired in September 2024, and this Melton Miller brand is co-founders. has started in 2014, and it has been continued on that period. So, there is a quiet, invisible asset in form of this procurement of raw material and supply chain. So, that is one of the strengths of the inherent strength of the Melt and Melo before we achieve. That was the strength which has achieved, which has been attained by Melt and Melo. So, we didn't do anything new for supply chain in Melt and Yellow. That was already intact. Even at sales level, their very good network of distributors has already been there. As far as your question was specifically related to milk, so there was nothing which was required to be done. And secondly, the ice cream business is different from the typical milk and milk product business. So in milk and milk product business, milk collection is a very critical thing. In ice cream business, milk is one of the raw materials, like milk, SMP, skin milk powder, and other many other products are the raw material ingredients for the ice cream business. So, in that sense, that I think that issue gets addressed. Regarding the synergies, so most important synergy in melt and mellow, which we have seen is that key. Meltangelo, when we acquired that time, it was having a 25,000 retail outreach, and as on today, its total retail touchpoint is 37,000, and this 37,000 retail touchpoint of Meltangelo, we have not fully utilized for NUTs yet. Slowly, slowly, that network we are leveraging for the Christian. So, we are getting a very wide network of these retail touchpoints, retail outlets across these states. That is one of the very important things which we have achieved. Another important thing is that there is a working capital cycle of nuts and dry foods very complementary. When there is a peak of nuts, then there is some slack in ice cream, right? And when there is a, and then that gives a very good complementary positioning for working capital. So these two things have been very much critical. And third, Most important thing is the product, the founding team has been very well versed and has deep insights into the product and R&D related to product because in ice cream that is very much required. So these were the important points while going for the ice cream acquisition that time.

Right. So now going to the traditional or the first business which you started with, which is the next business, and if you look at about a composite picture of three, four years, and just taking a simple sales minus net raw material, which is minus the closing stop as you shared in the annual report, what was looking like 18-20% sort of gross margin, they have actually improved first. So, firstly, going back, what has led to the improvement in… The margin on the nut business from sourcing to the sales mix itself because certain nuts may be selling better margins, etc. It will be very helpful to learn the nature of that business change over the last three years because the turnover, as you pointed out, has grown from 30-40 crores to 70 and now to maybe close to 170-180 crores.

So your question is that what led to enhanced margin in the nut segment, isn't it?

Yeah, what has led to enhanced margins in the net segment?

So, exactly, in the net segment, if you see my answer in the initial capacity utilization question, so, existing plant, we have utilized almost 70% capacity in FY26, and current financial year, it will be 90% capacity utilization of the existing capacity. So, almost operating leverage has started to come into picture and give dividend in another segment. And that's why the profitability of 15% EBITDA and 10% FAT has been achieved in FY26. Secondly, continuously we have been...

So, in the nuts business, the operating capacity utilization is so pertinent to drive up margins because from what I understand, it's not a very high sort of fixed cost. So, the operating average that you are explaining, it will be interesting to understand that at detail, maybe in another forum. But right now, I accept your answer that the operating average has built in as a utilization rate from 70-82 goes to 90%, as you said.

Yeah, and secondly, along with that, the continuously what we have been investing in our supply chain, and also, and the back end, and in the front end, our distribution to tier 2, tier 3, and tier 4 towns, and there we give, and that gives pricing power, and not segment, the pricing power which Krishuval has. And that has translated into this consistent margin in the net segment. And as I said in the earlier question, going forward, our target is to maintain this 15% EBITDA. And the 10% fat. And if you see my answer to the question is that our execution, our capacity utilization is going to be in a phase manner. And the reason for that is that we have to continue to maintain this margin while going while scaling up. That is the reason for that. And regarding the operational degree in the next segment. Yes, certainly operational device is quietly existing available because we are not going trading, buying notes, and rebranding and selling. So if we are buying notes and rebranding and selling, then in that case, there is operational usage is not a major point over there. In our case, the nuts we are processing at our end and also raw nuts procurement is being done by ourselves. We are investing quite a lot into that. In the last many years, and that has translated into this leverage and this profitability in the nut segment.

Thank you. That's very helpful, sir.

Luckily, on the nut itself, there is now a backup of

pretty large-sized FNCG players. How do you see the competition shape the market in terms of Profitability, as well as more people coming and creating a positive environment will mean faster growth as well?

Yes, very valid question. And I will refer to the earlier point which you have raised regarding operational leverage, because that is relevant here. In that segment, you cannot do a business in all India basis just by... Purchasing nuts, branding in your packaging and selling. That's where you cannot create a profitable, you can do sale, but you cannot do a profitable, scalable, long-term business. You cannot do. In the nuts, the most important thing is that from the January to December, customers should get a assured quality of nuts. Which is possible only if there is strength in sourcing. So, what I feel is that in India, unless there is a back-end of sourcing, processing in-house, you cannot give a quality nut on table to the customer. So, that's why I feel there is quite a good headroom. If there is an integrated player who is working on it, so from that angle, I feel for Criswell, going forward, emerging as a numero player in India, there is a lot of chance. I'm not saying that it is easy, but there is quite a good chance. And we are very confident of achieving it because we are going at a three level. There's a supply chain, we are working, we are working at a processing level, and as far as sales is considered, we are going to the customer to tier two, tier three, tier four towns, and in B2B also directly to the players who are using it as an ingredient.

Sure. Sir, these are very good thanks to the question. Thank you very much. If I can just ask you one question. On the press allotment shareholders, as you know, they don't seem to be there on the shareholder list now. And, you know, there seems to be a sort of cloud on that 10 odd percent shareholder than 11 percent which was there. So, what are your comments on that? What is happening and that inquiry effect? Is there anything that the company has got? Any questions?

We don't. Yeah, yeah. So, as I said, we don't have anything to comment on that. We don't have any relation related to that. Company has, those people have invested and those are one of the shareholders. More than that, we don't have anything involvement or any comment on that.

Sir, if you did the prep allotment, you would be knowing these potential shareholders, sir, or the ones you bought and then sold?

So, see, we are being, we are companies, when the company is growing, company is fund, company goes and does marketing and... And there's the investment, right? And like that, the things happen. So now, if any investor of the company has done anything wrong, then we don't have anything to do with that. As long as that investor is not involved into the company's management or operations, we don't have anything to do with that. It is completely related to that specific investor, if that investor has done anything. Let's all stand on that continuously.

Yeah, I'll stop here. There are some more thoughts, but I'll stop here in the context of time.

Thank you very much. I really appreciate it.

Yeah, thank you. Thank you so much. Ladies and gentlemen, that was the last question for today. I would like to hand the conference over to Mr. Sojit Bangar for closing remarks. Thank you, and over to you, sir.

It was very great to talk to all, and I thank everybody for participating in this call, and thanks for the arrangement

to the team for making it successful. Thank you. Thank you very much.

Thank you so much, sir. Ladies and gentlemen, on behalf of Grishual Foods Ltd, that concludes this conference. Thank you for joining us and you may now disconnect your lines.