Modi Naturals Limited (MODINATUR) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to the Moody Natural Limited Q4 FY26 running conference call. As a reminder, all participant lines are adolescent-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 touchstone phone. Please note that this conference has been recorded. I now hand the consent over to Mr. Akshay Modi, Joint Managing Director. Thank you, Anur, to you, sir.

Good morning, ladies and gentlemen. Thank you, Julius. Thank you for joining us for the Modi Naturals Limited Q4 and FY26 earnings conference call. I trust you have had an opportunity to review our financial results and investor presentation, both available on the company's website and stock exchanges. SGA, our investor relations advisor, is joining me on this call. Over the years, we at Modi Naturals Limited have steadily evolved from being primarily an edible oils company into a diversified and integrated business with presence across consumer products, bulk oils, and ethanol. Our journey has always been guided by adaptability, disciplined execution, and the ability to identify emerging opportunities ahead of the curve. At the foundation stage of our journey, our focus was on establishing a strong operational base and building credibility within the edible oils industry. As consumer preference gradually shifted towards healthier and trusted branded products, we consciously transformed the business into a more value-added and scalable model. Alongside this, we continue to strengthen operational efficiency, improve capital discipline, and create long-term growth drivers across our businesses. Over time, the company has undergone a significant transformation journey focused on strengthening manufacturing infrastructure, improving operational efficiencies, Optimizing working capital management and building stronger business fundamentals. FY26 represents an important milestone in this journey, as several strategic initiatives have now started translating into visible operational and financial improvements. FY26 was particularly significant for the company as we achieved multiple important milestones, namely, successfully commissioned phase two of our ethanol expansion, increasing capacity from 130 KL. to 282 kilolitres per day. We got listed on the National Stock Exchange. Successfully achieved FY26 guidance across revenue, EBITDA, and FAT, despite delayed ramp-up of expanded ethanol capacities. Recorded our highest ever quarterly revenue of 50 crores in the consumer division. The ethanol industry also witnessed strong momentum in FY26, supported by favorable government policies and India's increasing focus on energy security. The achievement of the E20 blending target ahead of schedule and discussions around higher blending levels create a strong long-term structural opportunity for the industry. Drain-based ethanol continues to gain importance, with maize emerging as a key feedstock for production. The expanded ethanol facility commenced commercial operations towards the latter part of the year. Therefore, the contribution from enhanced capacities during FY26 remains limited. We expect the operational and financial benefits of the expanded facility to become more visible from FY27 onwards as utilization levels improve and operations stabilize. We believe the company is now well-positioned to participate meaningfully in this long-term growth opportunity. Across the business, our focus remained equally balanced between growth and improving the quality of operations. We implemented several initiatives to enhance operational discipline, improve procurement efficiencies, reduce inventory intensity, and strengthen cash flow generation. Within the consumer business, the momentum continued to improve steadily. Our pasta category remains one of the top-performing categories on foot commerce platforms, reflecting strong consumer acceptance and brand resilience. We also expanded our packaged foods portfolio with the launch of newer categories such as Hing, which received a strong market response. At the same time, we continue strengthening our distributional reach across Tier 1 and Tier 2 cities while improving brand visibility and product accessibility, helping us build a stronger Pan-India business. The bulk business also witnessed meaningful operational improvements. A leaner inventory-led model helped optimize procurement cycles, improve operational agility, and reduce working capital intensity. This sharper focus on efficient capital utilization has significantly strengthened the company's overall financial profile. As part of our strategic rationalization initiatives, we undertook the shutdown of one of our solvent extraction plants in Peelbeet due to non-viability of operations. This decision reflects our disciplined approach towards capital allocation and continued focus on improving asset productivity and operational efficiency across the organization. In Q4 FY26, we also received an insurance claim amounting to Rs. 4.9 crore towards loss of profit arising from business interruption due to a machinery breakdown at the ethanol plant in FY24. The receipt of this claim partially offset the impact of the earlier disruption. Overall, FY26 has been a year of strengthening the platform for the future. The company today stands on a significantly stronger operational and financial foundation, supported by expanded ethanol manufacturing capacities, improving operational efficiencies across businesses, better working capital management and stronger cash flow generation, stronger capital productivity and return ratios, A growing, branded, and premiumized consumer portfolio. As we move into FY27, our focus will remain firmly on disciplined growth, operational excellence, premiumization, and sustainable profitability. We believe the combination of a strengthened manufacturing base, improved efficiencies, stronger balance sheet discipline, and favorable industry tailwinds positions Mourinho Nationals Limited well for the next phase of growth. Now, moving on to our financial performance. Coming to our consolidated financial performance, Q4 FY26 performance highlights. Revenue from operations is up by 28% to Rs. 243 crore year-on-year. EBITDA grew by 51.8% to Rs. 24.5 crore year-on-year. EBITDA margins stood at 10.1%. FAT grew by 141% to Rs. 19.7 crore year-on-year. FY26 Performance Highlights. Revenue from operations is up by 8.5% to Rs. 719 crore year-on-year. EBITDA grew by 31.2% to Rs. 73.5 crore. This is without the exceptional item. EBITDA margins stood at 10.2%. FAT grew by 62.1% to Rs. 50.3 crore year-on-year. Return on capital employed improved to 19.9% in FY26 from 18.3% in FY25, reflecting stronger capital productivity and improved earnings quality. Working capital days further improved to 62 days as of 21st March, 2026, as compared to 66 days from last year, demonstrating tighter operational control and more efficient utilization of resources. Healthy cash generation remained another key highlight during the year, with cash flow from operations increasing to Rs. 61.1 crore in FY26 compared to Rs. 48.8 crore in FY25. This strong cash generation provides greater financial flexibility to support future growth initiatives while maintaining balance sheet discipline. Coming to our divisional performance. Consumer division. Revenue for Q4 FY26 stood at Rs. 50.9 crore compared to Rs. 48.5 crore in Q4 FY25, and FY26 stood at 183.5 crore compared to Rs. 179.4 crore in FY25. The bidder for Q4 FY26 stood at Rs. 4.2 crore as compared to Rs. 3 crore in Q4 FY25, and for FY26 stood at Rs. 15.2 crore as compared to Rs. 15.1 crore in FY25. Overall, the demand is improving, given by expanded distribution, innovation, and new product launches in our food basket. Bulk Division. In Q4 FY26, our revenue stood at Rs. 100 crore as compared to Rs. 56.1 crore in Q4 FY25, and FY26 stood at Rs. 198.3 crore as compared to Rs. 158.6 crore in FY25. A bidder stood at Rs. 2.7 crore in Q4 FY26 as compared to Rs. 0.9 lakhs. In Q4, FY25, and in FY26, EBITDA stood at 2.6 crore as compared to Rs. 1.7 crore in FY25. Ethanol division. In Q4, FY26, our revenue stood at Rs. 92.2 crore, and for FY26, stood at Rs. 337.4 crore. EBITDA for Q4 stood at Rs. 18.5 crore, and for FY26, stood at Rs. 58.2 crore. With this, now we can open the floor for question and answers.

Thank you. We will now begin the question and answer session. Anyone who wishes to ask questions may press star and 1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset 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 Ankit Kanodiyya from Zen Nivesh Advisor, Private Limited. Please go ahead.

Thank you so much for taking my question and congratulations on good set of numbers. Actually, my first question is related to both the division consumers and ethanol because I think increasingly These are the two divisions which will drive the value. So, of course, the numbers have been great and all the initiatives which we were taking over the last few years now is starting to show up in the numbers. But if I have to take a, say, a slightly longer term, maybe six to eight quarters down the line, What are the risks and challenges which you see in both these segments? If you can just throw some more color on that, that would be very useful. It could be something related to industry, it could be something company-specific, but if you can throw more light on that, that would be very helpful. Thank you.

Sure. So, in terms of risks and challenges, I can start by the ethanol segment. So, in the ethanol segment, I think risk, as has been highlighted in media over the last few months, is that of overcapacity and underutilization. However, I think we are well poised to take care of that because we've already expanded significantly. So, the growth is definitely going to come from previous year. And that said, I think there's a lot of tailwind and given the geopolitical landscape for the government to further expand ethanol consumption. So I don't see that in the medium term as a risk. And in consumer division, the risk is purely on execution. So we have some great brands and we have some great product already, and we have some great new product lineups as well. So purely the risk is execution, nothing else.

Yeah, that was very helpful. In the consumer division, I think the last time you mentioned or hinted towards possible acquisition because now the balance sheet is also reasonably healthy. So any color on that? Are we nearing anything or is there anything there which you want to throw light upon?

We've evaluated a few opportunities in the food sector. But nothing that we have formed up yet, and we will let the community know either.

Okay, just one last question before I come back to the queue. In the ethanol, any near-term plans of going into value-added, which can maybe by end of FY27 or early FY28, we can expect something that to start?

Yes, so we are already planning on value addition on product side, which is on the alcohol side. So for methanol, we could look at either on the portable or the chemical side. So that's something we are already considering. And on the byproduct side, as mentioned on previous calls, we have already done some innovation.

Thank you so much. That is it from my side and all the best for the future. Thank you.

Thank you. The next question is from the line of Amit Jawadeh, an individual investor. Please go ahead.

Yeah, hi. Am I audible, sir?

Yes, sir, you are. Please go ahead, sir. Thank you.

Okay, sir, I'm referring to your slide number 10. In which you have mentioned, you have received order for 47.9 kilo KL. So, now that we have extended capacity, so from a point of view of, you know, your stakeholders, the concern is, you know, how confident are we to, you know, use this 282 KL PD capacity fully. And so that is one. And secondly, this order, which you have mentioned for it close, until what time this order we have to complete and what after that.

So, as far as capacity utilization is concerned, I think there is significant headroom for growth in consumption, plus I think we are very strategically located from where we can supply around the country, and not only to PSUs, but also to private OMCs, and we are already registered with the private OMCs, and we will be participating in their tenders in the upcoming cycle as well. So, and the order that we received is for the ongoing ESY in the cycle 1 tender of PSU OMCs alone. And this is till 31st October of this year. That's the ESY cycle. And that's an all-shower year if you track the sector. It's from 1st November to 31st October. So, this is the order that we've already received. And other than that, in this ESY alone, we expect to get more orders from private as well as PSU OMCs. And of course, from 1st November, we will be rebidding for the next cycle. And that happens in the September-October period.

Okay. Second question, sir. In the consumer division, out of the total of 184, how much is from our olive brand and how much is from, you know, other ready-to-eat or, you know, any other brands?

We typically don't share this breakup, but just to give you a range, our food products contribute roughly 10%, and 90% comes from our oil portfolio.

And how is the EBITDA margin, sir, in these two?

We don't give the breakup, but at the consumer division level, it's about 8.3% EBITDA margin.

Yeah, no, but basically it says, are we in the green as far as the food product is concerned? That's what I'm trying to understand.

Yes, absolutely. We don't intend to enter into loss-making categories, and the way we build brands and categories is in a profitable manner from year one or year two itself, so we are not in losses.

And sirs, this time you have not mentioned any, you know, brand celebrity engagements in the PPT. So, has that ended or that is still continuing?

I didn't understand your question, sir.

Can you repeat that? Is the celebrity engagement for the brand still continuing?

Yes, our brand ambassador is Karishma Kapoor and that is ongoing. It hasn't ended. All right. Thank you, sir.

Thank you. The next question is from the line of Manpreet Singh from Aurora Wealth Advisor. Please go ahead.

Yeah, thank you for the opportunity. Sir, just continuing from the previous participant's question, so if you look at the slide of ethanol division where you mentioned the received order for 47.9k kilolitres, Now, if we, you know, do a back of the envelope mathematics, it comes to around close to 130 KLD, which is, which was our capacity before we increased to 282. So, you know, how do you see the capacity utilization ramping up for the, for our new capacities? Because you mentioned that.

Operating at about 330 days at 150 KLD.

Okay. Yeah, okay. So, yeah, but just continuing on my thing, how do you see the ramp-up for the additional capacities? Because you mentioned that in October, November only, we'll be able to beat for the next PSY. And, you know, since there is oversupply in the market, what we are hearing is that everyone is not getting the full quota of their capacities as well. So... Yeah, so basically, how do you see the ramp-up happening? Do you see it ramping up only by October-November time frame, or should we be looking at ramping up in the interim as well?

I think I answered this from the previous question. In the ongoing ESY, we can get orders from private OMCs, which we chose not to bid for in the previous cycle, because our plant was not ready. So, instead of 150KL, we got 150KL orders, despite not having the plant up and running. So, in the ongoing ESY, we will get orders from private OMCs, as well as participate in the PSU OMCs tender, the upcoming tenders in the current cycle as well. So, right now, only cycle 1 tender has happened in October. Since then, no new tender has come out, which we expect to come out over the next couple of months.

So, the private ONCs keep tangling in the meanwhile?

Yes, that's correct. So, I expect that by end of June, private as well as PSU ONCs will come out with fresh tangles for the ongoing ESL.

And, sir, we are also hearing about government allowing exports of ethanol. You know, we are in talks with Nepal and some of the other countries. Yes, sir.

There is a lot of action happening at the geopolitical level. Which will affect the ethanol policy, whether it's to do with, you know, domestic consumption or permitting exports, that we will see over the next few weeks. But there's definitely a lot of stuff happening. Okay. So can you throw a little bit more light on that?

You know, is it only for 2G ethanol or the ethanol that we produce will also be allowed and does it need any... 2G ethanol is not of relevance at the moment.

We're only talking about the 1G ethanol.

Okay.

And will we need certain licenses for that, and are we ready if the exports are allowed, or it will take some time? I wouldn't be able to comment on that. That would be speculation. No, I'm talking about our increased capacity, our plants. Will they be authorized for exports, or will we need additional? Let's see.

I don't know what the policy will come, but it will be the same for everybody.

All right. Thank you. Thanks very much.

Thank you. The next question is from the line of Chirag Viggaria from Budarani Finance Limited. Please go ahead.

Well, in this ethanol division that we have specified, When you say, you know, we are targeting a turnover of around 950 crore for 27, how much are we building the revenue from the ethanol segment? That is one. Number two, for similar turnover in FY25, we did 13% margin. This time around, we have done 17% margin. So, why the increase in margin? And third, is what is the sustainable level of margin in this segment?

You're talking about the victim, Ali?

Yeah, slide number nine.

So as far as the guidance is concerned,

the top-line guidance of an average of 950 crores is also very conservative in nature, and we have factored in only about 50% capacity utilization of the expansion. So if all goes well, I think we will far exceed our numbers. As far as the EBITDA margin is concerned, this year, I mean, on previous calls, I have maintained that we will achieve between 12% to 15% EBITDA in this division on a sustainable basis. However, this year is particular in nature because I think grain prices softened a little bit, and we did do some value addition in our byproducts. And in the last quarter, we have an exceptional item which actually increased our EBITDA margin to 18.8%. So, my guidance still remains that on a long-term basis, it's going to be in the range of 12% to 15%. And, of course, in some quarters, we will be a big star as well.

Okay. And, sir, the last thing is, what growth rate do we see in the consumer division segment?

Consumer division last year, we had about 2% revenue growth. But I think going forward, it will grow faster because in Q4, we have grown faster. And, you know, the momentum is now built.

Okay. Okay. Thank you. Thank you. The next question is from the line of Sandeep Dixit from Arjav Partners. Please go ahead.

This is just a clarification on the numbers. Maybe I'm wrong on this, but your P&L that you published today shows an EBITDA of 2465 lakhs, but the segment quarterly shows EBITDA of, sorry. Three, three, zero, something. Three, zero, three, seven.

What is the gap? I think there is a difference of netting off from the interest, inter-division interest. So that has happened in the console results, but not in the segment results. That's the only difference.

Okay, so that's the only difference. Okay, thank you.

Thank you. The next question is from the line of Dalshiel Jiaveri from Crown Capital. Please go ahead.

Hello.

Good morning, sir. Thank you so much for taking my question. First, congratulations on a great set of results, sir. Sajjar, I just wanted to, you know, hard up a bit more upon the ethanol division. So, out there, we are just factoring around 50% utilization. That's why our revenue guidance is a bit lower, right? But on our full utilization, what is the peak potential revenue we can get? Like, maybe not this year, but FY28, surely we will be able to do that, right? So ethanol, what is the expectation of it?

I think with full capacity utilization, our consolidated revenue will cross 1,100 crores. That's the number we're looking at.

Okay, okay. Fair enough, sir. And, sir, you were saying a bit about, you know, more value-added products and alcohol, I think this is for you. Elaborate, what is the planning out there we're doing in the business? What is the? What are you planning, like in what segment are you more inclined towards going there, sir? Thank you.

So, on the portable side, you know, you have RS, ENA, Gotling, all these options are available to you, and on the chemical side, there are a host of downstream chemicals that one can get into for matter of time.

And, sir, you don't see as the kind of risk in...

May I ask you to speak up a bit? There's a lot of background noise on your line.

Hello, sorry, is this better, sir?

This is much better.

Yeah, yeah. So just like last question from Aya, in the ethanol division, do you feel that, you know, the overcapacity issue, like maybe can hit a few, like a year or two down the line? Because a lot of people are coming with the capacity. So just wanted to, you know, get your thoughts in that, sir. How do you see the industry or, you know, the grain prices and everything also, sir? Like overall, do you see any kind of risk in that, sir?

I think a surge in capacity happened over the last three years, and going forward, it won't be as much, number one. Number two, I think we're well-positioned in terms of our strategy to even handle a scenario of overcapacity due to the way we operate our plants, our geography, and the value addition we're doing on the product and by-product side. So I think we're well-positioned to navigate all of this.

Okay, okay. Fair enough. That's it from my side. Thank you so much. All the best.

Thank you. A reminder to all participants that you may press star and want to ask question. The next question is from the line of Praveen Sharma, an individual investor. Please go ahead.

Yeah, hi. Good morning, Akshay.

Good morning.

Yeah. First of all, congratulations on the great set of numbers. You have been... You know, you know, putting your neck out and giving the guidance and you are actually delivering it and next year guidance also looks very promising. Congratulations to you because I don't see many, you know, promoters or management people coming out and giving guidance like that. So, hearty congratulations and thank you very much. My first question is, you know, regarding the compressed biogas. I read your article in Chini Mandi and did some of my own research. It looks very promising. Do we see any traction towards that? Because it will just flow into our bottom line, if I am right.

So, for us, it will be a separate business model. For Sugar Mills, you know, they are doing biogas from Pestmart, which is their byproduct. But for us, there is no, you know, it's not part of our process. It will be a separate capex altogether. Okay. There's no synergy as such. But my comment was more related to the ecosystem as such. Because I think a lot of work still needs to be done on piped gas before this can scale up. So, it's a bit of a chicken and egg. But it's happening, I think, there's a huge policy push for this. I think you might hear some more policy measures in the next few weeks.

So, in our case, you know, when we, you know, our, we don't have something like a spent wash, wherein, you know, we, which has to be discharged, or, you know, everything is used in DDGS. Nothing is left out to us, you know, affluent.

That's correct.

Okay, okay. So, the second question is regarding our edible oil business, the branded one. Are we seeing any, you know, are we able to pass on the prices, you know, because I saw that raw material prices have been increasing quite a bit. So, are we able to pass on the increase in our raw material prices or are we facing, you know, are we facing any, you know, pressure from the market? How do we see that business going on?

So, we have passed it on to some extent. For example, there is a huge increase in packaging material costs. In fact, we have passed on. Raw material-wise, in the food category, we don't see as much inflation. On the edible oil side, while, you know, rice brand prices have gone up, olive oil prices have come down. So, you know, it's not hurting us as much. We have passed on in some of our SKUs. So, I think we are managing just fine.

Okay, okay. And, you know, a lot of answers are actually, questions have been answered through your guidance only. So, I hope, you know, we will not only lead them, but that, you know, we will be able to exceed whatever, you know, which has been, you know, described there.

Yeah, yeah.

You know, we have been delivering. So, kudos to you. Thank you. That's all from my side.

Thank you.

Thank you. A reminder to all participants that you may press star and want to ask question. The next question is from the line of Ganesh Kumar, an individual investor. Please go ahead.

Yeah, please accept my hearty congratulations for the amazing set of numbers. You have made investors like me really proud. Not only have you beaten your own guidance, the cash flow is also excellent. So, you know, I think about 30% more than the net profit even. Truly fantastic. So, as a doctor, a cardiovascular surgeon to be specific, I vouch for your oleoactive. I believe there is a huge market for your healthy SNCG pigment, and we have all the makings of, you know, SNCG giant in this space, utilizing the pain winds from ethanol side. I'm sure your reason is also the same. So, in this regard, I have a couple of things, basically. First is that I would like to see, you know, more TV ads for your flagship brand, Olive Active. So, because such a wonderful, you know, it's there on the quick commerce, right, mint, etc. But it's still not well-known to, you know, the markets. So, people still go for parmaline oil and things like that. So, when there is such a wonderful... It can, you know, also improve the overall cardiac health of, you know, our population. So, it's still not selected, chosen by the master, simply because probably it's not under, you know, large-scale aeroportisement yet. So, probably I think CVS would be the thing, is what I feel. That's a such thing. And second is that... As a cardiovascular specialist who regularly advises people what to eat and what not to eat, I also have several, you know, contributory ideas in this healthy SNCG space, you know, that can expand the healthy basket that we already have and, you know, take it to much greater heights and also to stay ahead of the curve. So if there's any specific number or email to connect, you know, to detail this, please do let me know. Thank you very much.

So, to answer your first question regarding TV ads, you're absolutely right. Awareness building is the function of our marketing efforts. You see, over the years, marketing has changed. Earlier, you only had one option to go on mass television. But now with digital marketing, we can really segment the audience, not only by geography, but also socioeconomic and gender basis. So we believe that our core TG is actually, let's say, female audience, for instance. So they may see the ads, but you may not. So, having said that, we're advertising in a big way on platforms like JioHotstar and all, to the female audiences in our core TG. And that's probably why you don't see it. On the second question, I didn't fully understand your question. If you could just speak up a bit, please, that'd be great.

Yeah, so what I was telling you is that I, you know, as a cardiovascular super specialist, who regularly advises, you know, people what to eat and what not to eat. So, I had, you know, a skill. I know you're already into quite a bit. So this can, you know, help expand your healthy backspace further and take to, you know, greater heights to stay ahead of the curve. So if there is any specific number or email to connect, you know, I can detail this so that, you know, I can share more ideas, which I hope...

No, I mean, we're always open to ideas. So feel free to write to us that our corporate email ID on the website and it will filter through to us.

Okay, sure. Yeah, thank you so much. And thank you very much. Thank you.

A reminder to all participants that you may press star and want to ask question. The next question is from the line of Amit Jamareh, an individual investor. Please go ahead.

Yes, sir, just to follow up from the last question, out of the total internal market in India, how much percentage is from government OMCs and how much is from private OMCs?

I think 90% is TSU OMCs and 10% is private.

Okay. All right. Thank you, sir.

Thank you.

A reminder to all participants that you may press star and want to ask questions. The next question is from the line of Manpreet Singh from Aurora Wealth Advisor. Please go ahead.

Yeah, thank you for the follow-up. Sir, responded now with your CAPEX plans for the next year.

We don't have any large capex envisage for this financial year. We're looking at investing up to 20 crores in a value-addition project in our byproducts team in the ethanol division. But other than that, we have no large capex plans.

All right. And on your consumer division, sir, if you can give some high-level metrics on our distribution reach right now, and where do we want to take it? In the next year, that will be really helpful.

So earlier, the conversation on distribution used to be purely on general trade terms, but now with QCOM coming in, I think we're very proud to say that we're present in QCOM across all the apps as well as across geographies, so we're present across the country. And we are also present in neighboring markets like Bhutan and Nepal. Bhutan we started a couple of years back so we are doing well over there. Nepal we have started recently so we have to scale up. And for other channels, general trade, for instance, we cover directly about 50,000 outlets so we may have presence in 25 out of those 50,000. And our endeavor is to constantly increase that. In terms of CSE, CPC, so we're also part of the Army CSE canteens. And for offline modern trade stores, we're present across all channels across the country.

And would it be fair to say that the QCOM, the modern channels, have a larger share at the percentage? So, we have a good mix.

We have about 50% modern trade, 40% general trade, and about 10% comes from our army channel.

Okay. And we see this mix remaining the same over the next year? So, if you can talk about your strategy.

I do see e-commerce ramping up faster because of the trend of the category, but I feel that in general trade, we are still under-penetrated. So, for us, GT will also grow at a good pace. But definitely, I think QCOM is changing the landscape quite a bit.

So, for the consumer division, the growth will come from new products as well as increasing our reach.

Absolutely. It will be a mix of both. We will consolidate our leadership position in the good rest of olive oil category, where we enjoy fairly significant market shares in some of the subcategories. And growth will also come from the recently launched categories like pasta and heen. And then we do have some new products slated to be launched later this year. All right.

Thank you. Thank you very much.

Thank you. The next question is from the line of Ankit Minochia from ADC Ventures Family Office. Please go ahead.

Yeah, good morning, Bakshi, and congratulations. I'm kind of trying to understand where we get the upside, the large upside on EBITDA guidance for next year. Considering, I mean, if we'll be running at 50% capacity localization, potentially for ethanol that we kind of mentioned to the other participants and the numbers for the consumer and the other business was quite ambitious. So if you can just kind of help us bridge this.

Yeah, so the 50% number was for the expanded capacity, not the total. So, for example, if it's 130 and another, let's say, 150, we're looking at about 230 KL is what on a conservative side that we've taken for the guidance, but I'm fairly confident we'll beat that number.

Okay, all right, thanks. And my second question was about, so I think a couple of days back or yesterday, an auditor, have you seen an auditor change?

Sorry, could you just repeat your question?

May I request you to speak up a bit, please?

It's a bit muffled.

Yeah, is it better now?

Yes, this is better.

Yeah, so my second question was with regard to the auditor resignation that was reported a couple of days back and on the appointment for new auditors. Could you just add something?

So, I mean, so this was always planned.

I think this is more of a succession, which we started, this journey started two to three years back. So, the auditors who've been appointed were already auditing our Modi Biotech results for the last two, three years, and the idea was to transition even M&L to them. So, that was already the plan. It's more of a succession than anything else.

Okay, all right, thank you.

Thank you. The next question is from the line of Ankur, an individual investor. Please go ahead.

Yeah, hi, sir. Thanks for the opportunity. Sir, I wanted to know what is our current advertising spend?

Am I on the green?

Yes, so you're a total accident for this year. It's 12 crores.

Okay, and it's about 6.5%. This is what I think we have projected anyway. This is purely only advertising. We are not talking about other below-the-line advertising. This is purely about-the-line advertising.

Understood. And anything specifically on how much have you spent on Quilcomers?

I think it's a 60-40 split.

That's typically what's advised in the category these days. So, 60% on external advertising, 40% on Qcom.

Understood, sir. Understood. My other question would be on the side. How big do you see the FMCG division becoming in the coming odd years?

So over the last few calls I have mentioned, I don't see any reason why this segment for us should not get to 500 crores in the medium term. This will be prepared by growth within the oil basket as well as food products. So I think oil can easily grow to about 300 to 350 crores and add about 150 crores from food in the medium term. So this is what we used to go to. Mind you, we do operate only in the premium category with decent margins and without any loss-making categories, so we're growing this business in a profitable manner.

Got it, sir. Got it, sir. Wish you all the best. Thank you so much, sir.

Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you, Julius.

Thank you, everyone. I hope you have been able to answer all your questions satisfactorily. However, if you need any further clarifications or want to know more about the company, please contact SGA, our investor relations advisors. Thank you once again for taking the time to join us during this call today. Have a nice day.

Thank you. On behalf of Modi Natural Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.