Manorama Industries Limited (MANORAMA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and a welcome to the Manoma Industries Limited Q4 and FY26 Fundings Conference Call. 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 test-tone phone. I now hand the conference over to Mr. Hedal Kenia from EY. Thank you and over to you, sir.

Thank you, Shailendra. Good afternoon, everyone. On behalf of Manorama Industries Limited, I welcome you all to the company's Q4 and F526 conference call. To discuss the performance of the company and to answer your questions, we have with us the management team comprising of Mr. Ashish Sharaf, Chairman and Managing Director, Mr. Ashok Jain, Director and Chief Financial Officer, Mr. Pankaj Radhi, BGM Accounts and Finance. Mrs. Ekta, Sony, AVP, Investor Relations, and Mr. Deepak Sharma, Company Secretary and Compliance Officer. Before we proceed this call, I would like to draw your attention to the fact that today's discussion may contain forward-looking statements that are subject to various risks, uncertainties, and other factors, which will be beyond management control. We kindly request to bear in mind that there might be uncertainties while interpreting such statements. Please note that this conference is being recorded. We would now like to start the session with opening remarks from the management team. Afterwards, we will open the floor for an interactive Q&A session. I would now hand over the conference call to Ashishji for his opening remarks. Thank you, and over to you, sir.

Thank you, Iranji. Good afternoon, friends. On behalf of the entire Manorama Industries team, I extend a warm welcome to our Q4 and financial year 2026 earnings conference call. We sincerely thank each of our investors, stakeholders, analysts, for your continued trust and participation. Your deep confidence in our long-term vision is a source of great motivation for us, and we remain committed to delivering a sustained and quality value as we enter the next fourth phase of our growth journey and as we have done in our last. Many years of performance. Financial year 2026 has been a year of exceptional performance. Malorama Industries has delivered a performance, exceptional performance in 2026. Despite these headwinds, We have reported a strong year-on-year revenue growth of 76.1% with stand-alone revenues reaching INR 1358 crores. This excellence in performance is a testament to the resilience of our integrated value chain, the global relevance of our specialty fats and cocoa butter equivalents, And the sustained and growing demand we continue to witness across the food and cosmetic sectors worldwide through our scientific and high-tech products, which are being used all over the world. We aim to maintain this momentum, supported by sustained demand visibility, improved operational efficiency, and enhanced manufacturing capacity. We plan to reach to every human on this earth. During financial year 26, we undertook capacity upgrades to power this next phase of growth. About the solvent fractionation plant 2, Increased installed capacity by 30% from 25,000 tons per annum to 32,500 tons per annum as part of an overall de-bottle-making initiative. Solvent fractionation plant 1 of 15,000 metric tons, a similar de-bottle initiative will be taken in this fiscal year. Through strategic capital expenditure commitment of approximately INR 460 crores over the next 2 to 3 years, this investment program spans setting up of a new solvent fractionation manufacturing facility for tal, sheep, palm, mango, and other exotic seeds and ESOS. Establishment of a new facility for cocoa butter alternatives. Expansion of our refining capabilities with an additional 200 tons per day refinery. Commissioning of raw material processing units in Burkina Faso, West Africa. These initiatives reflect our focus in the long-term global opportunity and our commitment to deepening our competitiveness. Securing relaxed long-term supply. and reinforcing the foundation for sustained growth. Our financial remains healthy as of March 31, 2026. Working capital cycle improved to approximately 125 days in financial year 26, compared to 151 days in financial year 25. from operating activities stood at INR 259 crores, ROCE of 33.6% and ROE of 40.3%. At Manorama Industries, our aim is clear to strengthen every growth lever within our integrated value chain From procurement and processing to high-tech innovation. with scientific global customer partnerships based on research and deep tech development. With that, I will now hand over to Chief Financial Officer, Mr. Ashok Jank, to walk you through the financial and operational highlights for the quarter and the full year. Thank you all.

Thank you, Ashish sir, and good afternoon, everyone. I will take you through our financial performance for the quarter 4th and full year 2025-26. Full year's financial year 25-26 financial highlights. Manuruma Industries delivered excellent financial performance in financial year 25-26 with all key metrics reflecting operational execution and business momentum. Stand-alone revenue, INR, 1357 crore, up 76.1% year-on-year, driven by volume growth and improved product mix. EBITDA, INR, 367.7 crore, with an EBITDA margin of 27.1%, reflecting focused product mix, optimization, and discipline cost management. Profit after tax, INR, 233.2 crore, translating to a back margin of 17.2%. Operating cash flow, INR, 259.4 crore rupees. For the quarter four, financial year, 2526 performance. Our performance of quarter four, 2526 as follows. Standalone revenue, INR. 382.34 rupees. EBITDA INR 102.9 crore with a margin of 26.9%. Profit after tax INR 59.5 crore translating to a margin of 15.6%. Foreign exchange position and mark to market. During the quarter, due to adverse currency fluctuations resulted in the company recognizing a mark-to-market provision of 17.05 crores on a standalone basis on forward contract entered into accordance with the as per foreign exchange hedging policy. The cumulative mark-to-market provision for the financial aid stand at 23.3 crores. The company also recorded foreign exchange income 9.47 crore during the quarter. Consequently, the net foreign exchange loss for the quarter amount of Rs. 7.58 crore on standalone basis. Balance sheet and return ratios. The company's standalone balance sheet continues to reflect financial strength and discipline. Net debt and equity ratio is 0.38 is to 1 as of now 31st March 2026. Return on equities 40.3% as of 31st March 2026. Return on capital employed ROC 33.6% as of 31st March 2026. Working capital days also reduced 1-25 days from financial year 25-26 from 1-51 days in 24-25, reflecting continued focus on working capital efficiency, capital allocation and strategic outlook, our ongoing capacity, deep water making and expansion along with strategic capital investment across India and Africa. We are fully aligned with our long-term ambition. 2. Our global footprint and strengthen our position in the speculative fat and butter market. We will continue to allocate capital with discipline, prioritizing investments that generate high returns and strengthen our competitive mode globally. To conclude our remarks, we will open the door for questions and answers. Thank you.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their test on 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 is from the line of Mr. Akash from Shahasar Capital. Please go ahead.

Hello.

Yes, sir, your audience.

Yeah, hi, hi. Congrats to the team Manorama on the fantastic result. So the question that I have was regarding, you know, the processing plant capex that we are doing in Burkina Paso. So like what is the capex and how will it, what will is the capacity and how will it help us in the margin expansion?

Hi, thank you for the question. So, the Burkina Faso, which is a backward integration part of the project for the company's next CapEx plan, so we are envisaging these expenses or CapEx amount of around 120-odd crores towards our Burkina Faso project, which should be eliminating our logistic costs, which is currently by on the fees perspective. Going forward, it will be on the butter perspective, which is approximately 45-50% of the raw material. So accordingly, we are going to save the logistic cost, trace cost on our seed imports from West African countries, and also it is going to improve the efficiency and the yield format also on the butter content. So we are very hopeful of making a sustainable margin, and it should reflect in our numbers going forward.

That's all.

Thank you. The next question is from Akhil Parekh from 361 Capital. Please go ahead.

Thanks for the opportunity and many congratulations on an extremely good set of numbers. And one kind of standout in the result has been working capital improvement and credit cash flow generation. Now, given that we are going to go in a capex mode again for next one, two years, how do we see this whole opening cash flow and re-cash flow generation? And secondly, the working capital, is this working capital kind of sustainable for next few years, or we might see some pressure, basically, as we move ahead?

Yeah, that's my first question.

So, see, this company has delivered very strong positive operating cash flow also of approximately around 260 crores during the year, which is actually a significant achievement and an important milestone for the business. Yes, we are going to spend the capex of around 260 crores over the next two to three years, but that will be held in a fixed manner. So our ongoing capacity which is there are yet to be fully utilized and we expect a better operational efficiency in the coming years. So we are not expecting any downward pressure on the margin from the current level and anything adverse which will be, you know, updating to our shareholders accordingly on a quarter to quarter basis. So, we have registered a very good operating cash flow also, and the management considered this to be one of the key highlights in the performance, and we remain confident of maintaining our working capital days and inventory days, which we have reported this quarter.

Sure, it's very good to hear. So, we maintain that margin guidance of 25 to 27% and the cash conversion cycle which we clocked in F526 broadly should be in line for next month or two years.

Yes, the company aims to maintain all the financial parameters going forward as well. So, any headwinds, we will be updating you on a quarter to quarter basis. As of now, we are likely aiming to maintain existing levels.

Sure. And second, on the growth guidance, like how should one look at it, like top-line growth for next couple of years, given that the capacity additions which they're doing and margins have already highlighted, but this one is top-line growth, if you can share some analysis.

Yes, the outlook for 27, FY27, remains strongly positive on the top-line front as well. It is, you know, driven clearly by the structural growth levers quality which are there in the motion. So, if we talk about the structural levers, there is capacity expansion in terms of the bottlenecking. So our existing capacity are in the mode of re-water making, for which one start we already have done the re-water making, and the output has been increased to 30% on our 25,000 Mexican start. And we have been continuously increasing the value-added portion on our product mix as well. So, overall, the financial year 27 is expected to be a very good growth year for revenues for the company, with growth primarily volume-led driven and some price realization benefit also, structurally driven by the capacity expansion. And also, we are diversifying globally also, getting into the global market, international market also, with our increasing value-added productivity. So, we are very hopeful and confident of having a very good, strong growth year for FI27 as well.

So, just to, I mean, if you can give a broad range, like, is it fair to assume 25% plus growth can continue, given that we have grown at almost 60% staggered for the last three years, and now our base is also high. So, would 25-30% win-year right metric in terms of growth rate?

That is the company aim also, and we see our capacity also to be fully authorised. So the company is totally driven by and working very hard to achieve the growth which you have mentioned currently, and we are very confident on the business balance to achieve that kind of a growth given our coming capacities which will be there. So we are very hopeful and constructive on the growth also.

Sure. And just one last question, if I can squeeze in. Given that we are doing backward integration in Burkina Paso, right, and we all know that there are certain political currency and those kind of risks involved in Africa. So anything you can share? What are your thoughts on it? And how are we heads against those kind of risks?

And see, for that, it's a government-backed project also because we have signed an MOU Memorandum of Understanding with the government of Burkina Faso. So anything politically will be not affecting the project what we are going to put up there. And it is going to also, you know, put the money into the livelihood of the forest dwellers of West Africa. Even the balance metrics of the business, the political uncertainty or insecurity, it does not really affect our operation in Africa, and it is a government-backed project for which we have already signed the MOU of Government of Burkina Faso, and we have seen very clearly on it as well. We have done some meaningful upgrades and status we have done in that project as well.

Sure. Thank you. This is helpful. Let's wish us the coming quarters.

Thank you. The next question is from Mr. Bharat Seth from Quest Investment Advisors, Private Limited. Please go ahead, sir. Yeah, congratulations on the whole Manorama team for excellent performance.

Just to get some sense that this working capital, despite our inventory has gone up reasonably high, so I have some idea whether it's a finished goods or raw material, and how do we should look, despite we have generated good free cash flow, so how should we look at it in the future?

So basically, sir, 45 to 50% is the raw material cost in our business, and whatever inventory we report in the current fiscal year towards the end of this balance sheet year is the base to generate the revenue of the coming year. So currently, the company's total inventory stood at approximately 710 crores. The inventory is well aligned with the scale of operations, and it supports the integrated global supply chain and expanding business requirements. So, the breakup of the inventory is, out of the 710 crores of inventory, raw material inventory is around 420 crores. The finished goods inventories are around 260 crores. The other co-products and VIPs, the work-in-progress products are around 30 crores. So, this is the breakup of our inventory levels.

Okay. Sorry, I missed your remark. I joined a little later. This capex, around 400 plus crore that we have announced, if you can give a little broader color and how do we think that can, I mean, help us in improving the top line as well as the EBITDA side, if you can give, say, more color.

So, sir, we have been making progress on this 460 crores. So, if I can explain for this project, we already have spent around 52 crores out of the 16 crores is the working progress towards capex investment. And we already have acquired the land also for Indian plants. The project one is a forward integration process, which includes the CBA plant and the solvent vaccination-free plant of 75,000 tons. And this will convert our soft fractions, only into the hard fractions. So this is the one project which will include the CBA plant, fractionation plant, and also the refinery plant of 90,000 tonne metric tonne per annum.

So this formal integration, if you can give, sorry, yeah, sorry, you are saying, please continue.

Because these projects are at different stages of implementation and ramp up, and the company is focused on maintaining the recipient capital allocation also, because we have given our earlier communication to us. We are expecting around 6x more than 6 sets of assets done on our forward integration project, which is around 330-40 crores of the total capex amount.

And that forward integration is what? You said something. I missed it. Sorry.

It's a CDA source plant and the solvent vaccination-free plant along with the refinery plant.

Okay. And so how that is?

It is there on our outcome also. If you want to have more details on it, you can go through the presentation of Clotek with respect to the CAPEX announced also.

And this forward integration is a more value equity or in EBITDA term or if you can, when it's very high, I mean, asset turnover. So how do we think about it?

So, the idea and the intention and the aim, of course, is to create a better creative numbers in terms of top lines and margins. We can, you know, comment to that it will be having the same kind of potential margins in the business, which we are reporting currently, or even when it could be potentially better once we ramp up, get into a fully optimized product, So that we are going to communicate you and update you quarter to quarter because these projects are been set up in a phase manner. But these projects what we are setting up are going to be giving a good credit on terms of value, margins, and also top lines as well.

Okay, great. And when do we expect that to commission those phase manner, I mean, project?

So all our projects shall be targeted to be commissioned by the year 28, financial year 28, in that particular year. So that is how we are targeting it to spend. It is like two to three year window we are targeting to complete it.

And is it fair understanding? Thank you. If we can request you to come in back. I just want to understand the case flow part of it. I mean, funding part.

Yeah. Mr. Bersin, please come here. Please go ahead, ma'am.

So, from a financial sense perspective, yes, we have a free cash FD of around 130 crores. We already have spent 52 crores on the project, and we are providing, as of now, the internal funding support for the planned expansion program. So, anything, if we are targeting for any external financing, we will update you accordingly. But, as of now, we have started funding our projects through internal retrieval. Thank you. Great. And all the best.

Okay. Thank you. Thank you very much. Thank you. Thank you, sir. The next question is from Kushil Shah from Nexus Equity Growth Fund. Please go ahead.

Hello. Yeah, good afternoon. So, I mean, congratulations for the wonderful set of numbers once again. So, there are two questions. The first one is on the growth part. So, basically, ma'am, you just mentioned, you know, that we do have a CAPEX program, which is spread across the next two, three years. So, of course, F527 growth will be taken care of with the current department capacity, which we have increased. So, what about F528? Because as I can understand, this entire capital X will be commissioned together. So, I mean, the growth for the business beyond F527. From where we can expect the growth to come for F528, because CAPEX will commission in F528, you will witness in F529 and F530, but for F528, I just wanted to understand how they plan to grow.

So, first of all, you need to understand companies from a long-term perspective, not a quarter-to-quarter thing. It's not a thing that will be there. Of course, the company is very poised and tuned for the growth given the capacity we have. Existing capacity are on a utilization level of 55% of 40,000 tons. We have said that we have deep water leaking capacity on 40,000 tons, which will take our capacity to 52,000 tons per annum. This is the input capacity. We are upgrading our value-added price mix also. So currently, we see the current fiscal year and the coming fiscal year are very good for the growth given our utilization is still yet to be there on an optimized level and we expect a price realization growth also of 5-10%. So, if you calculate all the metrics, so there is a clear output which is visible of a 30% volume And 5-10% could be asked. Price realization benefit also. And on top of that, we are yet to utilize our 15% capacity of existing plant as well. So the match is clearly visible for you to calculate how the turnover we will be looking in the next two years as well, along with our further capex plants.

Okay.

And ma'am, you know, I think, you know, I mean, we do have significant portion in export.

So on the recent West Asia war, I mean, do we, I mean, do we face any impact, you know, because on the side of shipments, logistics, etc. So what is the situation over there?

So, this is, you are talking from the worst standpoint of view? Yeah, yeah, yeah. Yes, ma'am, from the worst end of Canada.

Okay, so the ongoing, see, the ongoing geopolitical tension, including Iran, U.S., Russia, Ukraine, or some, you know, the tariffs, see, are expected to have a near-term indirect impact, not only on our industry, but a broader industry environment as a whole. It will be primarily through higher energy prices or maybe elevated trade costs and currency volatility. But however, from a business fundamental perspective on the Manurama Industries, the company remains largely insulated from any direct substantial impact. Its key raw materials which we are importing or having indigenous like sal, mango or shia are now sourced from the affected regions. The company also has a very minimal revenue exposure to this job office. Therefore, like, for example, there may be some short-term macro pressure, such as some input cost, impression on freight costs or anything, but that does not materially impact the company's core business model or a long-term growth trajectory. So there could be some minor impact maybe here and there, but we are, despite all the headwinds which is there on a geopolitical tension of Russia-Ukraine war or U.S.-Iran conflict, the company has reported a sustainable margin despite all the headwinds, and we are going to be an EVN to maintain and sustain this level also.

Yeah, I mean, wonderful to hear that. And on the CapEx side, I mean, just referring to your previous participants' conversation. So, you just mentioned that, you know, the CapEx plan and the funding mix. So, you have, I mean, you have entire accruals roughly around 120 crores every year. Along with that, you have debt available also. So, what about the QIP, which we have taken the approval of up to 500 crores? So, I mean, how exactly do you plan to fund the entire FX?

So, basically, the funding of the CapEx is one thing. The QIP resolution is another thing. It will give you a very true thing to, you know, combine both these things. So, CapEx is one thing which we already have started doing it through our internal approval. We have good internal cash flows as well. And in terms of QIP, so this is an approved enabling resolution. In relation, it could be a potential fundraise, maybe through a permissive or notes and instruments. And we are currently evaluating various options and we can, you know, make appropriate disclosure in accordance with the applicable law. As and when any specific transaction related parameters, which including structure, size or timings or other terms are finalized. So we will keep updating you on QIP as well.

Thank you.

Sir, Kushal, please get back into the queue. Day Design Centre, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. We have the next question from Mr. Harshal Solanki from Equitry Capital. Please go ahead.

Hi, team. Good afternoon. I had three questions. First, if you can help me with what was the percentage of raw materials we purchased from Manorama Africa for FI26 and FI27? Because for FI27, we would have already bought our raw materials.

So, it's like you are asking from the West Africa, how much share nuts we have sourced or how the breakup is requested by you. If you can clear your question, please.

Yeah, the promoter entity which is there, Manorama Africa Limited, what is the percentage of total RN we have bought? Because last year it was 60%. So, for 26 and 27, I want to understand.

So, around 20 to 25 percent, we bought the raw material from Manuruma Aprica Ltd. This financial year, 25-26.

And for 27, what would it be?

It would be depend on the, we will be in the same line of document, we will be continuing.

Okay, understood. And CFO sir, one question to you as well. A gross margin, they have fallen from 48% to 43% on a console basis quarter on quarter, whereas on a standalone basis, they have remained the same on a QOQ basis. So if you can highlight why this difference is arising, there is a 5% difference on a console basis.

So, if you see the gross margin in control basis, so this all subsidiary companies just we have newly incorporated this financial year and we are going to streamline all these operations. So, companies expanded to global footprint with established nine subsidiaries across different countries and marking important strategic steps towards building a diversified international presence. As this is the first year of operation for most of these entities, initial setup related to cost, including employee costs, establishment expenses, and other operating overheads, have been higher, which has temporarily impacted consolidated margin. However, these costs are largely one-time or transitional in nature and are expected to normalize as the operation scale up. This investment was necessary to support long-term business expansion.

Sir, I get your point on the operating costs, but why are the gross margins impacted? Because the employee costs and operating costs would come below gross margins.

This is the primary influence by the freight cost and the other detailed production costs, which we are making the product. And this is just started the operation to subsidiary companies. So going forward, we see a good number in our subsidiaries. So, the chemical input cost and other products increase the cost of production. So, we are confident to maintain going forward all subsidiary companies also healthy financial as well.

And just to add to the point Sir has made, anything between the 45 to 50% level of gross margin is normal in the parlance of the business model. This we have repeated and emphasized on the past as well. So anything between these trends is considered to be a normal gross profit margin from a company's point of view.

Got it, I will take it offline. I have one more question, we had posted a revised results, so what was the error and why did we have to revise our results if you can highlight?

Yeah, this revised financial statement file has been uploaded inadvertently and has been submitted to ensure accuracy and completeness of the reported information. So, the revision is purely corrective in nature. So, inadvertently, because of the technical issue, the wrong file was uploaded earlier. But the company remains committed to maintaining high standards of transparency and family disclosure. That is why we have submitted the revised file. Soon as we have uploaded the technical wrong file in the stock exchange. But for any financial correctness of the matter, you can consider the revised file financials and those numbers for your further questions, please.

Thank you. The next question is from the line of Ms. Retha, from my thought. Please go ahead.

My first question is regarding the total fractionation output for FY26, and in fact, if you could share the Styrian and Olin split up, that would also help.

So, for the vaccination output, around 85% stands the utilization on per full-year basis, out of which we can just share you the volume for our products, main value-added product of styrene and CVE. Styrene volume was around 8,000 reported on a full-year metric tonne around, and CVE volume has been reported around 7,500 metric tonne per full-year.

And ma'am, this 85% utilization includes the de-bottleneck capacity, right?

No, this doesn't include our de-bottlenecking facility.

Okay. And regarding the arrangement with DECL in Brazil, I just want to understand what is the commercial agreement? Is it like a royalty or revenue share model or some rolling sea? Could you just throw some light on that?

No, it's a cost model thing there. It's a processing cost which the company needs to pay them. Processing of the burden of our goods. So there is no agreement in terms of profit sharing which is there with the technical agreement. It's just the processing facility which is there.

Okay, so just the processing cost?

Yes, just the processing cost.

Okay, and in Q3, the contribution was minimal is what you had said. So, maybe for FY26, what will be the actual volume in Deccan?

So, see, we have just started the DECLL operation. It has been the first quarter. We can see all the first year of operation in the Brazil through our own producing facility. So, we are still scaling up, but the better number guidance, maybe we can see through going forward of this. But this is just that we have just started with our DECL operations currently.

Okay. Okay, I'll follow up this next question or something. Thank you.

Thank you. A reminder to all participants, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from Kumar Soumya from Ambit Capital. Please go ahead. Come on, some night, the rain is open.

Yes, am I audible? Hello?

Yes, you are.

Yes, hi. Good afternoon, sir. Sir, my question is on the decal. Do we pay the entire year's processing cost upfront at the start of the year or do we pay it as we process it?

So we pay as we process as per metric ton. Just to give you an example, if we are processing 100 ton per month or per day, we are going to pay them accordingly post the processing. So there is no cost which is uploaded up front on those detail arrangements.

Okay, okay, because subsidiary, if you see, this quarter we had 9 crores of revenue, against which we had 5 crores of loss. So I was assuming that 14 crores data is coming from Dekel.

No, we have just started the minimal volume in Latin America for our own facility. So, largely, those things are there. We are stabilizing in terms of operational cost as well. So, maybe the correct way will be to look on the console level in terms of LATAM and other subsidiaries in the coming year.

Okay. In the subsequent quarter, things will start to cover up SB's anchor.

Yeah.

Is that right?

That is right. Yeah, that is right, sir.

Thank you. Thank you. And secondly, Ekta, on our long-term goals, the plans that we have, say, more than 3,500 crores of revenue by FY30 with their upcoming capacity. So are those plans on track and are we confident in achieving those revenue numbers, whatever we are guiding for the long-term basis?

Yes, definitely. We are very confident on whatever plans we have going forward in terms of our CapEx outline. Because if you see, we are adding another 75,000 of our sorbent vaccination capacity. And along with that, we are also putting a passport integration process. So we are visionary doing this because we want a very integrated value chain where we just does not scale up our revenue terms. But we have a very healthy operational efficiency as well, which will result in both top line and bottom line as well. The internal target is very strong on these numbers. But as a guidance, whatever we have given in the past, we are still very confident on achieving that. And with the past records, we are very confident. To maintain and do that. And just to add on one more thing that the company has done this year, like we are targeting a capex of 460 crores to be spent on two to three years. But if you see today the reported financial FI26, we have achieved a significant financial milestone underscoring the strength and scalability of the business model. Because the annual cash profit, which include our patent depreciation, stood at 258.77 crores, which has already exceeded our gross clock of 250 crores. So this indicates us, you know, capital efficiency, what the company can do going forward with the planned inspection.

So, working capital improvement was really commendable.

Thank you so much, sir. So, that has been the stress on working cash flow as well, and the company has done a meaningful improvement in that call as well.

Just one last question from my side. With the backward integration, as in the processing facility in Africa, does that improve the process yield of those seeds because you will be immediately processing it rather than bringing it to India? Is that an understanding right?

Yeah, it should improve there. When we are crushing and processing the seeds immediately, it will definitely have a better yield compared to what we currently process after 60 days.

Yeah, so the fat output will be better than what we have today.

Yes, along with that, we are also going to save on the logistic cost as well. So, that is a very good scenario to set to having the processing facility in Burkina Faso for this age.

But then, why will we have to bring it to India, right?

Of course, the butter we will be bringing to India for further value addition sources here, like vaccination and everything. So, the first part of the seeds will be done there only, and our current facility here, India, can also optimize our plant on the other Indian exotic seeds, which are sal and mango. So, it is a dual benefit if we are putting a Burkina Plastu plant there. First, it will be very helpful in nature for shea nuts once we do there, and other the existing processing facility which we have of 90,000 tons of solvent extraction facility here in India will be used and will be better optimized for Indian exotic seeds like sal and mango kernels and others.

Yeah. From what I understand, you mean the freight cost as a percentage of raw material when it was seed, now it will be oil, so that will be better now.

Yes.

Thank you.

Along with the quality.

Thank you. Thank you, sir. Participants, we request you to please limit your questions to four participants. We have the next question from Mr. Jainam Joshi from CREAS PMS. Please go ahead.

Yeah, good afternoon. So, just two things. One is by the end of FY26, we have added 7,500 tons capacity to the sorbent fractionation plant. So, by when are we expecting the balance 4,500 tons to be added? And what is the utilization we are expecting for this incremental 12,000, both for this year as well as the next year, just to understand on that.

Yes, we are expecting that also to be streamlined in this financial rail only. We will update you once that also has been done. And equalization we are expecting of 52,000 tons of around 85-90% for this fiscal year as well. So we will update you what equalization we have reached maybe end of this year with the total increased capacity of 52,000 ton metric tons.

Got it, got it.

And some data points, we just wanted to understand in terms of value, what is the CBE contribution to the total revenue, and what is the total value added product mix to our total sales.

Sighi has contributed around 30% to our top line. Long as our value-added products herein, it is around 70-75% to it. So if you see 30%, today what we have done with Sighi, it was 10% two years ago. So the company has also done a very remarkable improvement on improving the product mix for our specialty fats and butters as well.

Great, great. And that's the last thing. What has been the total volume growth for us, like last year?

Volume growth is financially at 25, 26, around 80 to 90 percent, and 5 to 10 percent is the price growth.

Price growth.

Approximately.

Thank you so much. That was it from my end.

Thank you. The next question is from Shrenika Mehta from Indo-Alps wealth. Please go ahead.

I have one comment and two questions. One comment about why we are reporting only the standalone results when it comes to the newspaper release or the presentation. Why don't we give the consolidated picture? Is it because the consolidated number is looking weaker than the standalone number?

So, we just want to clarify that in the newspaper, we give both standalone and console figures. It's not that because it is a regulatory requirement that we need to follow for both standalone and consolidated numbers. There is no standalone number only which is reported in the, which is related to the newspaper publication. And for press release, there is no regulatory requirement which is there to put up a consolidated number because if you see in the past, this subsidiary has been recently formed from a company's point of view. This has been in the first year of operation. So maybe coming forward, we can start a practice of giving a consolidated number in press release as well because this has been our past practices of giving a standalone number on press release Because there is no regulatory requirement which is there to give a consolidated number on pressure list. But in newspapers, there is both reported numbers.

So in the seven audited African subsidiaries, we posted a 13.5 crore losses for FY26, out of which almost 6 crore came in Q4 itself. Is this implying a loss run rate that has doubled in the final quarter? You know, you've just announced 350 crores in Burkina Faso. So can you tell us for FY26, the subsidiary loss is coming because of what? Is it the startup cost? Is it the Forex translation loss? Or is it the operating losses in the trading P&L on these entities?

Sir, we have already tried to answer this question in our earlier, which was raised, but we are going to repeat the answer for you as well. The company has expanded its subsidiaries in nine geographies. We are running nine subsidiaries, which the current fiscal FI26 has been the first year of our operation, and it is very diversified, not only restricted to West African countries, but we have our operation in Latin region as well. And other geographies as well. So, because this year has been first year of our operation, there has been a, you know, initial set of related costs, operational costs are there, employee costs are there, establishment expenses are there, other operating overheads are also there. So, this, when, once you start the company, you have to take this operational cost which is there. Going forward, once you see, these numbers will be sterilized, and this is kind of a nature of one-time and transitional in nature. So there is not something that has been going in terms of processes. You need to understand, sir.

Okay. Because in the end, the consolidated EPS has grown by only 6% compared to almost more than 150% growth that we saw in the previous three quarters.

That is right, but you have to see on a console level also, including our stand-alone. If you only talk about consolidated balance sheet, the consolidated beta margin level is around 26% compared to 27% in stand-alone. The company is doing fairly well on terms of both, but if you see, we have to bear the expenses cost to set up our companies there. So that is the understanding we also expect our shareholders to have once we are doing this.

Yeah, as long as it is one-time expense and you believe that the margins will come back, it seems good. The other question that I had was about the 23.3 crore cumulative month-to-month hit on the forwards in FY26. You have a 57% export revenue. What is the hedge ratio policy and has it been recalibrated after this year's experience?

Because these are the scenario which is there for a time, we cannot say that this will be sustained for a lifetime. But yes, we follow a prudent and structured foreign exchange risk management policy, which to, you know, minimize the impact of currency volatility on our earnings and cash flow. So, around 60% of our company's net foreign exchange is currently hedged through forward contracts. It also provides earning visibility and protecting against any adverse currency movements. But for the remaining unhedged 40% exposure, the company retains the flexibility to benefit from any federal movement, which can also be there in the currency rates going forward. So that is the practice which company does, but it doesn't harm the company's core level of business in terms of that. But for anything which is there on currency level, we are having a very prudent risk management policy which covers both and protects us on any volatility and we can also get benefit out of our unhedged exposure which is there because we have a natural hedge also in terms of import and export.

Okay. Thank you.

Thank you, sir. The next question is from Kaushikam from Ashika Group. Please go ahead.

Hi, sir. I just wanted to understand a couple of things. Most of my questions got answered. But yeah, we did devolve the networking, right? So currently, our capacity should be around almost around 52,000 mt. In the presentation, we mentioned it is 47,500. Can I understand what the reason?

Yes, to give you a better clarification of this, we have two solvent vaccination plants. Solvent vaccination, one plant is of 15,000 tons. Solvent vaccination, two plant is of 25,000 tons. So, the de-bottlinging of 30% has been done on 25,000 solvent vaccination plants. So, that is how the result is. The total vaccination is 47,500.

Got it, got it, got it. So then the new alternative of addition will not be any cost, there is no any cost.

Not much, that is a plant under it took 10 crores of cost, which is there for both.

Perfect, perfect. And now can I understand one more thing? Like in the meanwhile of the conversation, you mentioned that we will be doing a volume growth of 20% to 30% plus. And the price also will be high by another 5%. That means that for the next year when it comes to FI 27, we see a current running year, the run rate should be very good. It's what you are clearly mentioning. Can I understand on this, what kind of volumes will be written, or like not volumes, but at least fractionations? How much utilisation that you are thinking in this finance area?

So, we are targeting and aiming to utilize around 85-90% of plants on our 52,000 tons full capacity. So, that is the kind of utilization we are targeting for this fiscal year.

So, 52,000, 80% is what we are mentioning. That means that it's 41,600.

Yes, and then we will update you quarter to quarter. How has been the progress on it?

Oh, sir. And just for a clarity purpose only, still, I understand just closely by looking at from so long, cocoa prices is no relation with our CBE prices. But still, in this recent quarter, we have a margin date. But I understand that it is coming through the African companies and the set-offs. Uh, is it going back to normalization situation? Can I understand it will go back to 27-28, or make 25-25% or 30% only?

We always have guided you on a sustainable margin range earlier, which was around 25 to 27. The company is well within that range, even in the console level, which we have reported 26% of EBITDA margin there also. So there is no significant margin deal which the company has reported, be it on console level or be it on standalone numbers. There could be a minor range which you have to take into consideration of around 45-50% on gross margin level and 25-27% on EBITDA level. This has been the management stance in our various past track records for our guidance purpose. So anything well within this range should be considered normally from a business point of view. And of course, we are there working for many leaders to improve the margins going forward, but then we will update you once we have the visibility of the same.

And last question.

Thank you, sir. We will request you to come in the queue, sir. Thank you. The next question is from Mr. Shumanth Kumar from Motila Loswal. Please go ahead.

Yeah. So my question is for FY26, we have seen a 230 width margin expansion. So is this all because of better product mix? Value as product mix or efficiency of the manufacturing plant and mix of both.

Thank you for the question. To answer it, yes, it is a mix of both. We have, if you see, our value-added product mix in terms of CBE was around 10 percent 1-2 years back. It is now 30 percent today. So that also has resulted in the improved metrics on our financial and also the higher utilization of our plant has resulted into this. So, there is a combination of all practices which is been activating to this level.

Okay. And one suggestion, can we include in our PPT OER oil extraction ratio? Okay. I have seen all the palm oil company used to show that number.

Oh, sorry, oil extraction?

Yeah, OER.

OER. Okay, we will see this internally to see what is OER, and we will take the actions accordingly as per company's policy.

Okay. Okay. Thank you, Yashkar. Thank you.

Thank you, sir.

Thank you. The next question is from the Van Stockel from Fintrest Capital. Please go ahead.

Thank you for the opportunity and congratulations on a great set of numbers. So, most of my questions have already been answered, but I just wanted to get clarity on the margin side. So, you mentioned that 25 to 27% is a sustainable margin going ahead. So, is it a yearly guidance or is it a quarter to quarter?

Sir, we, from business point of view, we will request all our shareholders. Of course, we understand that you have a quarterly metrics to, you know, compare and do it, but from our side, we try to focus on our yearly metrics that is there. We try to maintain our quarter to quarter basis, but whatever guidance we try to give, we will request our shareholders to take on year on year basis.

Thank you, ma'am. And also, the remaining 4,500 metric and dewater netting is expected to be happening in this quarter or the coming quarters?

That is underway, sir. Once we have implemented that, then we will, you know, share the disclosure of that. But that is underway of doing it. We will update you once it is done.

Okay, just the last question, ma'am. What is the Middle East exposure that you had mentioned? I missed that in the call.

So, Middle East exposure only 2-3% of total revenue.

Thank you so much and all the best. Thank you, sir.

Thank you. Ladies and gentlemen, due to time constant, this will be the last question for today. I now hand the conference over to management for closing comments. Over to you.

My dear friends and my stakeholders, on behalf of the entire management team, I would like to sincerely thank all participants for joining Manorama Industries Q4 and Financial Air 2026 Earnings Conference Forum. As we all know, business is business and there is always a risk, but our last many years of performance is proven and is on your record. Manurama Southeast continues to solidify its position as a reliable supplier, committed to meeting the fast-growing global demand for sustainable cocoa butter equivalents, specialty fats, cheery, and exotic butters. We are executing with focus and conviction on a clear, laid-down strategy. Expansion of manufacturing capacity to address growing demand. For our specialty fat products and value added, scientifically made, and jointly collaborated with customers' specialty fats. Investment in research and development, which is key to our success, to expand specialty fat combinations and application-specific products. Rendering our sourcing capabilities. in kilometer regions with robust supply chains. Expanding global market presence through international subsidiaries and strategic partnerships, optimization of operational efficiency across the whole integrated value chain. Our target is to make every human on this earth somewhere We remain committed to becoming the partner of choice for both international and domestic customers, delivering quality, reliability, sustainability, and trust at every level of our operations. We look forward to continued engagement with our investment analyst community and remain available for follow-up discussions. I thank all our stakeholders, our suppliers, our tribal families, our Manorama team members, and every person associated with Manorama. Thank you once again for your time, for your trust, and your continued support. Thank you.

Thank you. On behalf of EY, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.