ADF Foods Limited (ADFFOODS) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the ADA Foods Limited Q4FY26 Earnings 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 we need assistance during this conference call, please signal an operator by pressing star and then zero on your touchtone phone. I now hand the conference over to Mr. Ravi Udeshi from EY. Thank you, and over to you, Mr. Ravi.

Thank you, Sagar, and good afternoon, everyone. We welcome you to the Q4 and F526 earnings conference call of ADF Foods Limited. To take us through the results and to answer your questions, we have with us today the Top Management of ADF Foods Limited, represented by Mr. Bimal Thakkar, the Promoter, Chairman, Managing Director, and CEO, Mr. Sumer Thakkar, the Promoter, Vice President, Sales and Strategy, and Mr. Srinivas Ayagari, the Chief Financial Officer. We will start the call with an overview of the business and the recent updates by Mr. Bimal Thakkar, and then Mr. Srinivas will give his comments on the financials. As usual, the standard Cape Harbor clause applies while we start the call. With that said, I now hand over the call to Bimal. Over to you, Bimal.

Thank you, Ravi. Good afternoon, everyone. On the results front, we delivered a strong performance in Q4 of the financial year 26, with consolidated revenues reaching an all-time high of 196.7 crores, representing a robust 23.7 year-on-year growth. On a standalone basis, revenues increased by 11.6% year-on-year to Rs. 150.3 crores. Despite prevailing challenges, including tariffs, West Asia conflict, and supply chain issues, our business saw continued momentum fueled by significant traction from listings secured in the past few years and strengthening of our brand penetration and distribution across all our key markets. Our consolidated EBITDA reached Rs. 34.3 crores with healthy margins of 17.4%. On a standalone basis, EBITDA increased by 24.8% to Rs. 36.5 crores. This was driven by improved product mix and continued focus on cost optimization. Our flagship brand, Ashoka, continues to strengthen its presence, driven by strong diaspora demand. And our mainstream brand, Truly Indian, has exceeded expectations with a marked acceleration in its growth trajectory. We are proud to announce that Truly Indian has won Nexty Award in the Best Breads and Bakery category for its Tika Masala Naan and also won the Freezy's Award in the Best Frozen Bread and Bakery category for its Garlic Naan. We have successfully commenced operations at our Surat Greenfield facility in Q4 of financial year 26 with a scale-up plan over the coming quarters. We continue to witness strong brand-led traction supported by deeper penetration. The ongoing West Asia situation continues to pose challenges. However, with our sustained focus on execution excellence and operational discipline, we remain cautiously optimistic in our ability to maintain the current growth trajectory over the long term. I will now hand over to Srini, our CFO, who will comment on the financials. Thank you. Over to you, Srini.

Thank you, Bimal, and good afternoon, everyone. I'll begin with the consolidated performance for Q4 and FY26. For Q4FI26, consolidated revenue reached a record high of 196.7 crores, reflecting a strong growth of 23.7% year-on-year. Consolidated EBITDA stood at 34.3 crores, up 38.9% year-on-year, with EBITDA margins at 17.4%, expanding by 190 BIFs over last year. Profit after tax was 25.9 crores, registering a robust growth of 57.6 year-on-year with bad margins at 13.2%. Coming to the full-year performance, consolidated revenue stood at 683.2 crores, up 15.9% year-on-year. EBITDA increased 32.8% to INR 130.7 crores while EBITDA margins improved to 19.1% and expansion of 240 basis points. PAT excluding exceptional items stood at 96.8 crores up 39.7% year on year translating into a PAT margin of 14.2%. Now I move to the standalone performance. For Q4FI26, standalone revenues were 150.3 crores, reflecting a healthy growth of 11.6% year-on-year. EBITDA for the quarter stood at 36.5 crores, up 24.8% year-on-year, with EBITDA margins at 24.3%, improving by 260 basis points. Pat increased by 40 percent. On a year-on-year basis and stood at 30.1 crores with Pat margins at a healthy 20%. For the full year ended March 31st, 2026, standalone revenues stood at 527.9 crores, registering a 10.3% growth year-on-year. EBITDA increased 24.6% to 131.1 crores, while EBITDA margins expanded to 24.8% up 280 basis points year-on-year. PAT excluding exceptional items stood at 104 crores with PAT margins at 19.7%. As highlighted by Bimal, the improvement in margins was driven by a better product mix, sustained cost optimization initiatives and volumes. We continue to be watchful of the ongoing geopolitical situation and it impacts our business. At the same time, we continue to invest in our brand's manufacturing capabilities and leadership talent to build a strong platform for future growth. These investments are already delivering results. Our flagship brand, Ashoka, continued its strong momentum across both core and emerging markets, supported by deeper market penetration and focused market execution. Our global mainstream brand, Truly Indian, is also scaling up well, supported by new listings across leading retail chains like Costco, Raleigh, Safeway Albertsons, Whole Foods Markets, and several other chains in US. We now service close to 3000 crores across the US markets. On the manufacturing front, we have invested approximately 124 crores in capex over the last two years in both greenfield and brownfield expansions. Phase one of the Surab greenfield facility commenced its commercial production in March 2026. The company's financial position remains strong with a net debt-free balance sheet and a robust cash surplus of 78.2 crores, thereby providing strong financial flexibility for future growth initiatives. The board has recommended final dividend of 30% of face value, making the total dividend amounting to 60% for FY26. With this, I now return to Ravi Uddeshi to open the floor for question and answer session. Thank you.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then 1 on their touchtone phone. 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. Again, to register, please press star and 1.

Your first question comes from the line of

Saurabh Peria from Sameeksha Capital. Please go ahead.

Hello. First of all, congratulations for the great set of numbers. I just wanted to know, since we just commented the source affinity, what is the current utilization and what is the ramp-up timeline we are expecting? And in FY27, and also in coming years, when the plant operates at, say, full capacity, what is the incremental delta revenue we expect? This is my question.

Yeah. Is there any other question, or should I answer this one?

Yeah, you can answer this one.

Okay. So, the Surat plant, as mentioned by Sweeney, we just started production in the third week of March. So, the last fiscal year, we barely executed two containers because we just had nearly only 10 days of operation. This year, so the plant is going to be done in two phases. The phase one is two product lines which have been put in, and in phase two, which will be in quarter three of this fiscal year, there will be another product line which will start. So, we expect in terms of revenue, Around 40 to 50 crores contribution from the Surat facility in this fiscal year. At its full capacity, the Surat plant will give us upwards of 200 crores in top line.

Thank you. That answers well. Just a follow-up question on this. Since the food plant also serves international markets, should we expect an initial operating leverage to impact? And what is the margin guidance on a controlled basis? What margin labor does this plant have on the overall market?

So, you know, at its full capacity, we expect to maintain the similar kind of margins that we are getting from our existing facilities.

Okay, perfect. And can you provide a revenue backup for your participants?

Sorry to interrupt, sir. May we request you to return to the question queue for any follow-up. Perfect, perfect. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit to two questions each per participant and rejoin the queue for any follow-up questions. Your next question comes from the line of Rehaan Syed from Prenatal Asset Managers. Please go ahead.

Oh, yeah. Good afternoon to the team, and thanks for taking my question. So, I have a few questions. First of all, did Ashoka, or Ashoka continues to deliver strong growth despite already being established as a brand globally? So what, according to the management, are the key levers that can sustain the guided 25% growth trajectory from here, and especially considering the large revenue base now. So is the next phase of growth likely to come more on from deeper penetration within existing geographies or from entering new consumption locations and product categories? Thank you very much.

It will be a combination of both. I mean, we are still looking at widening our penetration in our existing core markets, adding on new markets, and of course, you know, continuous product development and adding new product lines. So, it will be a combination of all these two things, which will help continue the growth of the brand.

Okay, fair enough. And so my second question is around, like, truly, Indian seems to be gaining strong traction in the U.S. mainstream channel with presidents across nearly 3,000 stores now. So could you help us understand whether the growth is currently being driven more by distribution expansion or by healthy, off-tech, and repeat purchase at existing stores? And also, are you seeing any meaningful difference in consumer behavior between India origin consumer and mainstream non-India consumer in terms of

So, you know, that's a great question. The truly Indian brand at the moment, the initial traction is more from a distribution point. We have had repeats happening with some of the Costco divisions. So that is very encouraging, where we've already had two to three rotations in some divisions. The other supermarkets, some of them have had repeats, which have happened, some are fairly new listings. So it's a combination of repeats as well as new listings, which is leading to the growth. The ethnic Indian food category within the mainstream American consumers is getting more and more popular. Consumers are preferring to go more vegan, healthy products, you know. So, you know, the Indian category is at this inflection point where we feel over the next few years, it'll just... There will be a huge growth in this category, and which is where we feel truly Indian is poised to sit down and grow in this space.

Okay. Okay, sir. Thank you. And that's it for my sir. And good luck for your coming quarter.

Thanks. Thank you. The next question comes from the line of Dananjay Bagrodhia from Alchemy. Please go ahead.

Hi, sir. Congratulations on a very strong set of numbers. I just wanted to ask you, are we seeing any impact of, at least in the U.S., and people talking about Ozempec, are we hearing anything from any of these players accordingly?

Sorry, can you just repeat that?

Any impact from any of these players? Are they speaking about Ozempec and GLP-1s reducing the intake for these kind of phones?

No, no. We are not seeing any kind of impact on that. And in fact, you know, our whole product range is vegetarian and vegan. So if anything, it will lure the consumers towards these kind of products when compared to meat and other things.

Okay, fine. And maybe I missed this, but how is it, how is the numbers coming along in Middle East considering the whole war situation?

So the Middle East has been, I mean, because of the current situation in the month of March and April, we've not been able to service that market apart from a few. Ports, because there are no shipping companies which are taking containers there. So, March and April have seen a very insignificant sale out there, and we hope the situation improves so that Middle East can start contributing as well in this financial year.

Sure. Okay.

Thank you, sir.

Thank you. Thank you.

The next question comes from the line of Charchit, Malu, with Genuity Capital. Please go ahead.

Hi, Primer Aruban.

Yes.

Thanks a lot for the opportunity and congratulations on the good set of numbers. Sir, what was the capacity utilization as of FY26?

So, you know, we have different lines, different product lines. So, at an average, I would say we were

Okay, and like with Surat plan getting started, what kind of utilizations are we expecting going forward in F-27 and F-28?

So, as I mentioned, Surat is going to be done in two phases. So, the phase one, we would expect about Thank you. Close to 35% or 35 to 40% capacity utilization in phase one. Phase two will be towards the third quarter of this financial year. So that would hardly be 10-15% capacity utilization for this financial year.

And that's true. And just one more thing, I just want to say, at what extent are we impacted from the export business? If you can just continue.

I'm sorry, can you please just repeat your question?

So at what extent are we like getting impacted from this war situation because we are unable to export, you know, iPhone.com?

So at the moment for us, our biggest challenge has been servicing the Middle East market, the GCC market, because there is no availability of ships. No one's going there. Few ports are only open. So I would say the GCC business has been impacted by at least about 80-85% for us. All the other markets, what has happened is we have containers going. I mean, ships are accepting cargo there. It's just that the transit time is longer and the freight rates have increased a little bit. But all these other markets, we've not had any impact. The main impact has been in the GCC for us.

So, like, what kind of, you know, hit we can...

Sorry to interrupt, sir, may we request to return to the queue for any follow-up. Just one follow-up question. Sir, there are several other participants waiting for that, and really apologize for the same. Thank you. The next question comes from the line of Rishi Maheshwari with AXA Capital. Please go ahead.

Thanks for taking my question. A couple of questions. Firstly, the current revenue for Q4. Can you break it down versus volume and value given the benefit of rupee depreciation that you would have also witnessed in this quarter? And if there is, what was, if you can quantify, what was the impact of the export to the GCC countries?

So, we've... I would say the growth is more 60-65% towards the volume growth. There has been some benefit with the devaluation, but majority of the growth has come through with volume growth. And the Middle East business, as I mentioned, I mean, March was... Literally, we didn't have any shipments go into the Middle East in the month of March. April has started off with one or two ports. The GCC overall accounts for about a little under 15% of our overall revenues. So, that is... That is the area right now, that is the markets which we are struggling with at the moment. So they haven't contributed at all for March and April. And we hope the situation improves, because then that will help us feeding these markets back again. Sure.

And, you know, you projected for 1,000 crores of revenue in FI 27. We've done 308 crores via Ashoka, and you projected 20 to 25% growth there. That's about 385 crores. So, to get the balance, 615 crores in FI 27, you'd require about 75% growth from the rest of the business. I was wondering what really is scaling up over here. I know that the distribution growth over here is about 100 crores is what you have already exhibited in the presentation. TI, in the last call, you mentioned that in three years' time, you intend to reach back to about 100 crores, which means that by this year end, it may be about 60-60 crores. So what is really the balance that I'm unable to reconcile with this 34-35% growth?

So, you know, the guidance on the revenue, we've said 925 to 1000 crores. That's the kind of band which we are looking at. And we feel fairly confident of being able to achieve it, provided the geopolitical situations improve. I mean, if it continues that way, we will have to relook at the numbers and our guidance. But if things stabilize within the next month or so, which we hope, then we would be able to meet our guidance of around between 925 to 1000. Truly Indian brand has. Drone more than what we had expected in this last fiscal year. This year also, we are hoping for a much higher growth. I mean, our estimate is if everything goes well, we are looking at anywhere between 75 to 80 crores on truly Indian for this year. So, that will help grow. The Ashoka brand also, we feel, will grow much more than what it is currently. We are opening up, as I mentioned, we are looking at deeper penetration. There are new markets which are coming into play. So, we expect the Ashoka brand to grow close to 30-35% in this career.

Sorry to interrupt, Rishi, sir. We request you to rejoin the Q4 follow-ups, please. I'll do that. Thank you. Your next question comes from the Lion of Nitech from NVAlphaFinder. Please go ahead.

Hi, sir. Thanks for taking my question. So, my first question is, you know, Ashoka, we have roughly 300 pairs of top-line currently and the reach of roughly 3,000 stores. So, what sort of, you know, store additions do we anticipate to be adding?

No, so the Ashoka brand is not 3,000. Ashoka is much more than that. 3,000 stores is for the truly Indian brand, which is what we've achieved. So Ashoka continues. As I mentioned, the growth on Ashoka is going to come from deeper penetration within the existing stores across all our main markets, new product categories, new products that we will introduce, and new markets which we are going to open.

I could just mention, I believe core markets would be USA, but apart from that, which markets?

North America, which includes Canada, is our core market. UK and Europe is our core market for the Ashoka brand. Australia, New Zealand, that's also a market which is growing well for us. So these are the main markets where the Ashoka brand focus will be. Got it, got it, sir.

I thought the last person could give us a pick up of, you know, how much percentage revenue is coming from private people and truly Indian, I believe it's 100, 120 crore right now or what, what is the random?

So, truly Indian, so, okay, the B2B and private label business accounts for about 20% of our overall revenue. So, and the truly Indian brand is approximately four, four, four million, four, four, four and a half million dollars.

Thank you. The next question comes from the line of Ankur Gulati with Genudy Capital. Please go ahead. Thanks.

In Q4. I guess you said there's no Middle East revenue in March. So, what was the...

Only in the month of March, there was no shipments in the Middle East.

Yeah, so what was the revenue from Middle East in Jan and Feb out of 197 crore revenue?

You know, I don't know the exact number, but as I mentioned, the GCC accounts overall for about under 15% of our revenues.

Okay, so out of like a 200 on a run rate basis, 30 crore is where there is a bit of a potential risk on a quarterly run rate basis. Is that fair?

Yeah.

Okay. Second, what is the increase in logistic costs? So, the entire quarter, which I'm assuming escalation happened in March, but it didn't give me the increase in logistic cost, shipment cost.

So, the increase has been roughly about 3 to 4 percent at the moment.

Of the total revenue.

Of the total revenue, yes. That's correct. And markets like the Middle East, which have just started operating there, the freight costs are very high. And as I mentioned, it's just one or two ports that are currently operational. So in those markets, we are sharing the cost with our distributor on a 50-50 basis. So the distributors are also contributing 50% towards that freight cost.

So, 3% increase on 200 is 6 crores. That's the increase in logistic cost for one month. On a quarter basis, this cost is roughly 15-18.

Correct. But the increase for the last quarter happened only in the month of March.

Correct. So, 6 crore increase is in one month. On a quarter 100, this will be 18 crores, which will show up in April quarter. Is that fair?

No, Ankur, maybe Bimal, I'll take it. So, March was a very big aberration month because the West Asia situation unfolded and there were a lot of containers and vessels which had got jammed and we could not get vessels and we had to use long transit timelines towards the U.S. markets. April, we saw the slightly toning down of the freight costs coming down. March, you have to look at it as a very, very aberration month. After the second week of April, these numbers have toned down slightly because the situation now is more or less the same or static for some time. So, you can't just extrapolate that number. But March, being a very exceptional month, we had to spend additional amounts on freight costs for our shippings.

So, that's comforting, sir. Just let's say 59 crores was your other expense in Q3. So, if I have to pencil in for this quarter or next quarter, should I add 10 crores at least purely because logistic cost is bump up. I am referring to Q3 as a base not Q4 as a base.

I think you can, you can very well add roughly around a percentage basis points in terms of the freight of what we spent right now. So apart from that, I think the situation will, should come into control over a period of the next two months, basically.

Got it. The next question comes from the line of Ravi Naredi with Naredi Investment Private Limited. Please go ahead.

Thank you very much. Bimalji, in this adverse situation, ADF Food has done very well in this March quarter and for the full year. I am a shareholder since last 10 years. I never saw such energetic number in our company which you deliver now. Sir, how much PLI incentive we received from government in quarter-four or full year of 2026?

Sweeney, do you want to get that, please? Thank you, Thariji. Thank you for your encouragement. Welcome, welcome.

Just one second. Yeah. So, from a PLI perspective, for the full year, our number is roughly around 16 crores for FI26.

Okay, okay. Sir, U.S. warehouse working at what level of our capacity? Can you tell in that way?

So, I mean, there is, in terms of utilization of the, we have the warehouse split between freezers and ambient products. Right. The freezer, freezer is. In excess of 100%. So, I mean, we, in fact, are using outside storage because our freezer space is small. I mean, it is less compared to what the demand is. As far as the ambient products go, we have about 85% utilization on the ambient products.

So, it means we will go for new warehouse.

Soon, right? Yes, the plan is to open up another warehouse as well. Later on, probably in the third quarter, we just want to see how everything stabilizes and then we'll open up one more distribution center in America. Okay, okay.

Sir, my last question. In 2027, you had predicted 1000 crore top lines. So, our margin will be same or higher?

Well, you know, as the Surat facility would not be fully utilized, but we feel fairly confident that we will maintain these high teen EBITDAs, which we've been giving guidance for. So we feel fairly confident of being able to do that. And hopefully the situation in the Middle East improves and things start stabilizing. So these are the assumptions that we are making.

Thank you.

Thank you. Thank you. Your next question comes from the line of Shiladitya Chaudhary, an individual investor, please.

Hello. Can you hear me? Yes, sir. Okay, so my question is on this Suresh facility, the ramp, can you, both the phases you talked about, right? So, can you tell me the deep revenue potential for each of these phases and how the ramps up of the utilization will happen, timelines-wise?

So, as I mentioned earlier, at full capacity and with the second phase, Being executed, a Surat facility will give upwards of anywhere between 200 to 250 crores in top line.

Okay, okay. And how the ramp-up we should expect over the next couple of years?

So, we are hoping to get to full capacity utilization in year three.

Okay.

So, this year we are, FY27, we are expecting around 35% and then gradually ramp-up to full capacity utilization over the year.

Yes.

All right.

So the next question I have is on the list. As you said, almost 15% of your revenues come from there. So it's a sizable portion of the revenue. And obviously, we don't know what the situation is going to be in the future. So if the situation stays, let's say it stays as it is currently for the next foreseeable future, what is the impact on your…

You know, all the other markets, all our other core markets, we are aggressively growing in those markets. And we are continuing to make investments in terms of people, in terms in terms of marketing activity. So, we feel fairly confident in all these core markets on our core brand, Ashoka, that we will grow upwards of 30%. That is what the goal is. So, if this situation in the Middle East continues, of course, it will have an impact, and then we will look at... Revising our guidance, but at the moment, we feel fairly confident of being able to get to the, I mean, with the hope that over the next one or two months things stabilize, we feel confident of being able to achieve the guidance which we've given of around 925, between 925 to 1000 crores.

And, sir, what could be the impact in the worst case? Because none of us knows what happens in the future right here in India. So, let's say it continues like this. So, the impact is like 100 crores kind of an impact. What kind of impact do you should think?

So, in terms of growth, then over our financial year 26, we would look at growth of about 12 to 15% overall. If, if the Middle East remains at 0, right? Yes, that's all.

Thank you. Thank you.

A reminder to all the participants, if you wish to register for a question, you may press star and 1 now. Participants, you may press star and then one to ask a question. The next follow-up question comes from the line of Aditya from Securities Investment Management. Please go ahead.

Yeah, hi, sir. Thanks for the opportunity. The first question was on the distribution, agency distribution business. So, for the last two quarters, we are seeing strong growth over there. So, if you could just help us understand what is leading to this growth and what is the outlook for this business? Have we added any new customers?

So, we've added some new brands onto the distribution. It's not just a... The tea brands that we had, there are a couple of new brands which have been added on, which has helped in growing the business. And these are again brands which are complementary to our current product line, where there's synergy with the distribution. So we continue to look out for adding on some more brands. That's what the plan is. Again, which are complementary, not conflicting with our products and where there's synergy in distribution.

So, are these brands larger brands like the PE brand which we had, or these are much smaller brands?

No, there are smaller regional brands which are there, which we are adding on, and then even our product line in the Ashoka range also has increased, which is going through this distribution company again, where we've added on staples, certain oils, flour. So, it's a combination of all these things which is helping us grow this business. Understood, understood.

Yeah, maybe I'll just add, yeah, just I'll add one more point to this. We also have increased our SKUs also from 440 to roughly around 600. So, that also helps us basically in terms of our distribution and achieving this growth.

Understood, understood.

Aditya sir, sorry to interrupt, we are not able to hear you. Aditya sir, sorry to interrupt, we are not able to hear you.

Wanted to get a better understanding, what is giving you this confidence of you?

Sorry to interrupt Aditya sir, we are not able to hear you.

Aditya, sir, we were not able to hear you. Your questions were not audible.

As there is no response from the line of current participants, we'll move on to our next question. Your next question comes from DIA from Sapphire Capital. Please go ahead.

And so, am I audible?

Yes.

So, this 12 to 15 percent revenue growth that you have mentioned, that is for FI 28 or FI 27?

No, no. Firstly, this 12 to 15 percent is if the Middle East contribution is zero altogether.

Okay.

And that is for FI 27. If we are able to resume business with the Middle East as normal, then we are looking at a much higher growth, which is in the range of around 30% plus.

Okay, so this 12 to 15 will give us around 925 to 1000 CR revenue, right, for this year.

No, 12 to 15 will not get us to that, right? That will get us to more towards the 800 to 850 kind of number. When it gets up to the upwards of 30%, that's when we will come to the 925 to 1,000.

Okay, so conservatively, we can take 800 to 850, and if things normalize, then we can keep that 1,000 to that.

Yes.

Okay, sir. Thank you. All the best.

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

Hi. Congratulations on a good set of numbers, first of all.

Kudos to all of you.

And my question is, do we have any plans of entering Costco in the UK?

So, we are, based on the success we've had in the US, our team in the UK is connecting with the Costco buyers and presenting the products there. So, yes, we do have plans. We have already entered in Costco in Australia. We are also pitching for Costco in Canada. So, yes, we are going to go try and pitch for Costco everywhere.

Fantastic, because one of our competitors is already in there, so just wondering if you have any plans. Good to know that. And also, in the Suraj facility, do you have any plans of making any pizza products, like frozen pizza, pizza pockets kind of stuff?

So, we've got a line which is going to be installed in the third quarter of Base Fiscal Year, where we have the capability of making pizza base. Lovely.

Yes.

Fantastic. Thank you very much. Thank you, sir.

Thank you. Your next question comes from the line of Anupam Agarwal from Lucky Investments. Please go ahead.

Yeah, hi. Thank you so much, and congratulations on great numbers, sir. Just one question. So you mentioned in your opening remarks, you've spent about 124 crores capex in the last two years. All of that has been gone into the Surat plant, including land building, machinery, everything, and how much are we going to spend on the phase two?

No, no. So, 124 crores has been spent over the last two years, which includes our brownfield, which is the Nadiad and Nasik facility, and Surat. Surat, total investment in Surat with phase 2 completion will be a little above 100 crores. The balance amount has gone towards the existing factories where we've increased capacities and done some modernization.

Is there still some portion of KPEG spending for the phase 2?

Yeah, Srini, do you want to let them take that question, please, of how much is still pending and feasible?

Yeah, so basically, if you look at our overall capex, the spends have been 124 crores for both greenfield and brownfield projects. The majority of the capex spend have happened in the last two years. There will be some bit of capex still, as Bhimal was saying, the new line for pizza base will be coming up. So those payments will be coming up. This will be roughly around 20 to 25 crores. This year we will be still spending on capex. A majority part of it would be the new line and some balance payments for the phase one and phase two basically, which will happen.

Understood. And so, just fair to assume that 100 crores phase 1 and another 20-25 crores phase 2, so put together 125 crores should give us upwards of 200-250 crores?

Yes. And so, again, I don't know, the total surat phase 1, phase 2 is about 100 crores. Oh, got it. The balance... 40 to 50 crores by the end of this fiscal year will be towards the brownfield. Which we've already spent in these last two years, and there will be some amount which will go in Nadiad Nasik, maybe around 15 to 20 crores this year, and another 10-15 crores balance left for Surat.

So, sir, what… Sorry to interrupt. Anubham, sir, we request you to return to the question queue. Sure, I'll come back in the queue. Thank you so much. The next follow-up question comes from Rishi Maheshwari with AXA Capital. Please go ahead.

Thanks, Fadeep Borchati again. There is a directive from the Supreme Court on the refund of the tariff, which you may have been charged earlier. Is there any benefit that has already arrived to ADF via its subsidiaries or anything that is in prospective that we should assume?

Yeah, that's a great question. Firstly, no, nothing has been received in this last fiscal year. We have made applications for refund, and we are keeping our fingers crossed that we get it in this financial year. So when it does come in, we will approve it in this fiscal year. And how much does that application amount for? So, it's upwards of $1.5 million. All right.

And initially, you mentioned the benefit of rupee depreciation, I asked in the color review for Q4. You mentioned 60% to 65% was volume growth. Was the balance on account of rupee depreciation, have you taken pricing improvements as well?

So, it's, again, product mix, and, no, we haven't increased the price. So, it's volume growth, product mix, and some benefit towards the rupee depreciation, yes. So, a combination of these.

Thanks so much, all the best.

Thank you.

Thank you. Ladies and gentlemen, we request participants to limit themselves to one question each and rejoin the queue for any follow-up questions. The next question comes from Aditya from Securities Investment Management. Please go ahead.

Hi, sir. You mentioned that we had 16 crores of PLI incentive this year. I believe this is the last year for this PLI incentive. So would this amount be zero next year?

No, so it's, I think there's two, this financial year 27 is, yeah, this year will be the last year. And then, yeah, after that, I don't know what, if there are any new schemes which will come in from the government. The PLI scheme which we got was for marketing expenses. So whatever marketing monies we spent, 50% of that was given to us by the government. So, that is how, that was the scheme we got. We did not take, we did not get anything under the capital expenditure or anything of that sort.

Understood. And how much we are expecting for FF27?

So, 30, 30.

Yeah, it should be in the same range. It should be in the same range. Understood.

Sorry to interrupt, Aditya sir, we request you to return to the team for the call. Thank you. We request participants to limit themselves to one question per participant. Your next question comes from Saurabh Peria with Samiksha Capital. Please go ahead.

Thanks for your opportunity again. I just wanted to understand one thing. You created F.27 revenue to be in the 15% range if there is zero contribution from the Middle East, but if the contribution is there, 30% growth. Am I right on this part?

Yes, sir.

But the middle is contributes 15% to the total revenue. So I don't understand the math behind if the middle is just not contributing, we are able to grow at 20%.

Sorry, Sweeney, do you want to just?

Yeah, so, no, so the question from one of the participants was what would be the contribution for Middle East? So, here, what Bimal answered, Mr. Bimal answered that if there is zero contribution from the Middle East, then you go down to 15% in terms of your growth rate. But if If the situation holds good, in the next couple of months, we are on the target to grow at upwards of 30%.

Overall, not just me, that's right. Correct. Okay, can you give me a revenue by application of...

Sorry to interrupt. Saurabh, sir, we request you to... And Saurabh, you can... Yeah.

Can you give me a broad revenue bifurcation between all your brands? So, basically, a total revenue breakup of your F526 revenues.

No, we don't. We share detailed information, but as I mentioned, 70% of our revenues comes from all our brands, and there is then the B2B and private label business, which is the balance part.

Okay, thank you. Thank you. Also, as a guidance, you could see actually Ashoka, we have been giving the guidance of a flagship brand, so you can actually work out those numbers.

Okay, thank you.

Thank you. Your next question comes from Manupam Agarwal with Lucky Investments. Please go ahead.

Thank you for the follow-up. So, you mentioned about 60-65% of growth coming from volume growth. What percentage of that growth has come from de-bottlenecking activities at Nadia and Nasik in FI26, and how much are we looking to de-bottleneck further in existing capacities in FI27?

So, you know, in the de-bottlenecking, there were certain lines which we ate were totally full up on capacity. So that has helped us get this growth coming in. So these are certain flatbreads, snack lines, which have helped in growing. So most of the growth has come from de-bottlenecking and addition of these capacities.

Any further de-bottlenecking in the FI27?

Yes, we are, as Srini mentioned, there is about close to 15 crores, 15 to 20 crores, which will further be invested this year in both these plants. Some will be, again, de-bottlenecking, and some will be for modernization.

Understood. Thank you so much for all your questions.

Thank you.

Thank you. Participants, you may be a star and then one to ask a question.

To ask a question, you may press star and 1.

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

Well, thank you, everyone, and hope to catch up with you all in the next earnings call. Thanks once again, and have a great day.

Thank you. On behalf of ADF Foods Limited, that concludes this conference. Thank you, everyone, for joining us and you may now disconnect your line.