Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Manorama Industries Ltd (NSE: MANORAMA) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Ashish Saraf — Chairman & Managing Director
Ekta Soni — Vice president Investor Relations
Analysts:
Hiral Keniya — Analyst
Akhil Parekh — Analyst
Srinik Mehta — Analyst
Unidentified Participant
Presentation:
Operator
Good day and a welcome to the Manoroma Industries Limited Q4 and FY26 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 you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Hiral Kenya from EY. Thank you. And over to you sir.
Hiral Keniya — Analyst
Thank you. Shailendra. Good afternoon everyone. On behalf of Manorama Industries Ltd. I welcome you all to the company’s Q4 and FY26 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 Saraf, Chairman and Managing Director. Mr. Ashok Jain, Director and Chief Financial Officer. Mr. Pankaj Rathi, DGM Accounts and Finance. Mrs. Ekta Soni, 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’s 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 and A session.
I would now hand over the conference call to Ashish Ji for his opening remarks. Thank you. And over to you sir.
Ashish Saraf — Chairman & Managing Director
Thank you. Good afternoon. Thanks. On behalf of the entire Manoroma 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 standalone 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. Our solvent fractionation plant 2 increased installed capacity by 30% from 25,000 tonnes per annum to 32,500 tons per annum as part of an overall debottle making initiative solvent fractionation plant 1 of 15,000 metric ton.
A similar deep bottle initiative will be taken in this fiscal year through strategic capital expenditure commitment of approximately INR 460 crores over the next two to three years. This investment program spans Setting up of a new solvent fractionation manufacturing facility for Sal she palm, mango and other exotic seeds and esos Establishment of a new facility for cocoa butter alternatives Expansion of our refining capabilities with additional 200 tons per day refining 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 reliable 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. Net cash flow from operating activities stood at INR 259 crores, ROCE of 33.6% and ROE of 40.3%. At Manoroma 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 deep tech development. With that I will now hand over to our Chief Financial Officer Mr. Ashok Jain to walk you through the financial and operational highlights for the quarter and the full year. Thank you all.
Hiral Keniya — Analyst
Thank you Ashish sir and good afternoon everyone. I will take you through
Ashish Saraf — Chairman & Managing Director
Our financial performance for the quarter 4 and 2 year 202526 full year financial year 2526 financial highlights Manorum Industries delivered excellent financial performance in financial year 2526 with all key metrics reflecting operational execution and business momentum. Standalone 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 disciplined cost management Profit After Tax INR 233.2 crore translating to a packed margin of 17.2% Operating Cash Flow INR 259.4 crore rupees for the Quarter 4 Financial Year 2526 performance our performance of Quarter 42526 as follows standalone Revenue INR 382.3 crore 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 fluctuation resulted in the company recognizing a mark to market provision of 17.05 crore on standalone basis on forward contract enter 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 to of rupees 7.58 crore on standalone basis. Balance sheet and Return Ratios the company’s stand alone balance sheet continues to reflect financial strength and discipline. Net debt and equity ratio is 0.381 as of now 31 March 2026. Return on equity is 40.3% as of 31 March 2026 Return on capital employed 33.6% as on 31 March 2026. Working capital days also reduced 125 days for financial year 2526 from 151 days in 2425 reflecting continued focus on working capital efficiency, capital allocation and strategic outlook.
Our ongoing capacity debottlenecking and expansion along with strategic capex investment across India and Africa. We are fully aligned with our long term ambition to our global footprint and strengthen our position in the specific fats and market Fat and butter market. We will continue to allocate capital with disciplined prioritizing investment that generate high return and strengthen our competitive mood globally. That concludes our remarks. We will open the floor for question and answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their test on telephone. If you wish to remove yourself from the question queue, you may press star and two 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 Sarsa Capital. Please go ahead.
Ashish Saraf
Hello.
Operator
Yes sir, you are audible.
Ashish Saraf
Yeah, hi. Hi. Congrats to the team Manorum on the fantastic result. So the question that I had was regarding, you know the processing plant Capex that we are doing in Burkina Faso. So like what is the Capex and how, how will it, what will be the capacity and how will it help us in the margin expansion?
Ekta Soni
Hi, thank you for the question. So the Burkina Fato 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 Partu project which should be eliminating our logistic cost which is currently buy on the seats perspective. Going forward it will be on the butters perspective which is approximately 4550 of the raw material. So accordingly we are going to save the logistic cost, raised cost on our seed import 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.
Ashish Saraf
Okay, that’s.
Operator
Thank you. The next question is from Rakhil Parikh from 361 Capital. Please go ahead.
Akhil Parekh
Hi, thanks for the opportunity and many congratulations on an extremely good set of numbers. And one kind of standout in the result has been your working capital improvement and operating cash flow generation. Now given that we are going to go in the Capex mode again for next one, two years, how do we see this whole operating cash flow and free cash flow generation and second, is 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.
Ekta Soni
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 460 crores over the next two to three years but that will be held in a phased 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 doubt about pressure on the margin from the current level and anything adverse which will be updating to our shareholders accordingly on a quarter to quarter basis.
So we have addressed it 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 this working capital days and inventory days which we have reported this quarter.
Akhil Parekh
Sure. That’s very good to hear. So we maintain that margin guidance of 25 to 27% and. And the cash conversion cycle which we clocked in FY26 broadly should be in line for next month. 2.
Ekta Soni
Yes. The company aims to maintain all the financials 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 and send this level.
Akhil Parekh
Sure. And second in 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 we are doing and margins you’ve already highlighted. But if on top line growth, if you can share some colors.
Ekta Soni
Yes. See 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 already which are there in the motion. So if we talk about the structural levers, there is capacity expense expansion in terms of the water leaking. So our existing capacity are in the mode of the bottlenecking for which one plant we already have done the bottlenecking and the output has been increased to 30% on our 25000 Mexican 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 production. So we are very hopeful and confident of having a very good strong growth year for FY27F as well.
Akhil Parekh
Sure. So just, 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% CAGR for last three years and now our base is also high. So would 25, 30% would be a right metric in terms of growth rate.
Ekta Soni
That is the company aim also. And we see our capacity also to be fully authorized. So the company is totally driven by and working very hard to achieve the growth which you have mentioned currently. And we are very, 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
Akhil Parekh
And just one last question if I can. Given that we are doing backward integration in Burkina Paso Right. And we we all know there are certain political currency and those kind of risk involved in in Africa. So anything you can share like what are your thoughts on it and how are we hedged against those kind of risks basically
Ekta Soni
And see we for that it’s a government backed project also because we have signed an MoU memorandum of understanding standing 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 parlance metrics of the business. It’s the political uncertainty or insecurity does not really affect our operation in Africa. And it is a government back project for which we have already signed the MoU of Government and we are very busy on it as well.
We have done some meaningful upgrades and status we have done in that project as well.
Akhil Parekh
Sure. Thank you for helpful best wishes to come in quarters.
Ekta Soni
Thank you.
Operator
Thank you. The next question is from Mr. Bharat Seth from Quest Investment Advisors Private Limited. Please go ahead. Sir,
Ashish Saraf
Congratulations whole Monorama team for excellent performance. Just let some sense that this working capital despite our inventory has gone up reasonably high. So may I have some idea whether it’s a finished goods or on how do we should look despite we have generated good free cash flow. So how should we look at in future? I mean going.
Ekta Soni
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 this 710 crores of inventory.
Raw material inventory is around 420 crores. The finished goods inventories are around 260 crores. The others co product and VIP. The work in progress products are around 30 crores. So this is the breakup of our inventory levels.
Ashish Saraf
Okay, great. Sorry I missed your earlier remark. I joined little later that this capex that around 400 plus crore that we have announced is if you can give little broader color and how do we think that can I mean help us in improving the top line as well as EBITDA side if you can give say more color.
Ekta Soni
So sir, we have been making progress on this 460crores. So if I can explain for this project we already have spent around 52 crores out of the 16 crores is the work in progress towards CAPEX investment and we already have acquired the land also for Indian plant. 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 olene into the hard fractions. So this is the one project which will include the CBA plant vaccination plant and also the refinery plant of 90,000 ton metric ton per annum.
Ashish Saraf
So this forward integration if you can do. Sorry, yeah sorry. You are saying that please continue
Ekta Soni
Because these projects are at different stage of implementation and ramp up and the company is focused on maintaining the recipient capital allocation. Also because we have given our earlier communication we are expecting around 6x more than 6 years of asset done on our forward integration project which is around 33040 crores of the total CAPEX amount.
Ashish Saraf
And that forward integration is what you said something I missed it, sorry.
Ekta Soni
It’s a CBA source plant and the solvent vaccination free plant along with the refinery plant.
Ashish Saraf
Okay. And so how that
Ekta Soni
Also if you want to have more details on it you can go through the presentation presentation uploaded with respect to the CAPEX announced also
Ashish Saraf
And this forward indication is a more value equity or in EBITDA term or if you convene it’s a very high I mean asset turnover. So how do we think about it?
Ekta Soni
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 you that it will be having the same kind of potential margins in the business which we are reporting currently or even when even it could be potentially better once we ramp up get into a fully optimized products get into a better product mix as well so that we are going to communicate you and update you quarter to quarter because these projects are being set up in a phased matter.
So but this project what we are setting up are going to be giving a good credit on terms of value margins and also top lines as well.
Ashish Saraf
Okay, great. And when do we expect that to commission those phase manner? I mean project.
Ekta Soni
So all our projects are we targeted to be commissioned by the year 28 financial year 28 that particular. So that is how we are targeting it to spend it is like two to three year window. We are targeting to complete it
Ashish Saraf
And is it fair? Understood thank you. If
Operator
You can request you to comment back. I just want to
Ashish Saraf
Understand the cash flow part of it. I mean funding part.
Srinik Mehta
Yeah, Mr. Versatile, please go ahead, ma’. Am.
Ekta Soni
So from a financial strength 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 approval. Thank
Akhil Parekh
You. Okay, thank you. Thank you very much. Thank you.
Operator
Thank you. Sir. The next question is from Kushal Shah from Nexus Equity Growth front. Please go ahead.
Ashish Saraf
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 the growth part. So basically ma’, am, you just mentioned, you know that we do have a CAPEX program which is spread across next 2, 3 years. So of course FY27 growth will be taken care of with the current deep autonomous capacity which we have increased. So what about FY28? Because as I can understand this entire capital X will be commissioned together.
So the. So then I mean the growth of. I mean the growth for the business beyond 27. So from where we can expect the growth to come for FY28? Because capex will commission effort you will witness in FY29 and 30. But for FY28 just wanted to understand how do you plan to grow.
Ekta Soni
So first of all you need to understand company from a long term perspective. Not a quarter to quarter thing. It’s not a thing that there will be there. Of course the company is very poised and fuel for the growth given the capacity we have. Existing capacity are on a utilization level of 85% of 40,000 tons. We have said that we are deep water making capacity on 40,000 tons which will take a capacity to 52,000 tons per annum. This is the input capacity. We are upgrading our value added product 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 getting to be there on an optimized level and we expect a price realization growth also 5, 10%. So if you calculate all the metrics so there is a clear output which is visible of a 30% volume accretive growth and 5, 10% could be our price elation benefit also on top of that we are yet to utilize our 15% capacity of existing plant as well. So the max is clearly visible for you to calculate how the turnover will be looking in the next two years as well along with us for the CAPEX plans.
Ashish Saraf
Okay. And you know, I think, you know, I mean, 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?
Operator
So this is, you are talking from the war standpoint of view.
Ashish Saraf
Yeah, yeah, yeah. Yes ma’. Am. From the worst end of.
Ekta Soni
Okay, so the ongoing, ongoing geopolitical tension including Iran, us, Russia, Ukraine or some, you know, the tariff. We 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 freight cost and currency volatility. But however, from a business fundamentals perspective on Manoruma Industries, the company remains largely insulated from any direct substantial impact. Its key raw materials which we are importing or having indigenous textile, mango or Sia are not 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, inflation on freight cost or anything but that is not materially in fact 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 US Iran conflict, the company has a sustainable margin despite all the headwinds and we are going to, we and EPM to maintain and sustain this level also.
Ashish Saraf
Yeah, I mean wonderful to hear that. And I’m on the, I mean on the CAPEX side, I mean just referring to your previous participants conversation. So as you just mentioned that you know the CAPEX plan and the funding mix, so you have, I mean you have entered across roughly around 120 crores every year. Along with that you have debt, 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 capex?
Ekta Soni
Basically the funding of the CAPEX is one thing, the QIP resolution is another, another thing. It’s not, it will be a, not very, 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 permissible 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.
Ashish Saraf
Okay, and this last question. Thank you.
Operator
Please back into the queue. Ladies and gentlemen, 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. Harshil Solanki from Equity Capital. Please go ahead.
Srinik Mehta
Hi team, good afternoon. I had three questions. First if you can help me with what was the percentage of raw material we purchased from banorama Africa for FY26 and FY27? Because for 27 we would have already bought our raw materials.
Ekta Soni
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.
Srinik Mehta
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
Ashish Saraf
So around 20 to 25%. We bought the raw material from Anurma Africa Limited this financial year 2526
Srinik Mehta
And for 27 what would it be?
Ashish Saraf
It would be depends on the we will be same line of procurement will be continuous.
Srinik Mehta
Okay, understood. And CFSR one question to you as well. Our gross margins 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 Q OQ basis. So if you can highlight why this difference is arising. There’s a 5% difference on a console basis.
Ashish Saraf
So if you see the gross margin in console basis. So this all subsidiary company just we are newly incorporated this financial year and we are going to streamline all this operation. So companies expanded to global footprint with established nine subsidiaries across different countries and marking important strategic step towards building a diversified international presence as this is the first year of operation for most of these entities, initial setups related to cost including employee cost, 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 operation scale up, this investment fee was met to support long term business expansion.
Srinik Mehta
I get your point on the operating cost but why are the gross margins impacted? Because the employee cost and operating cost would come below gross margins.
Ashish Saraf
It is the primary influence by the freight cost and the other detector production cost 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 also subsidiaries. So the chemical input cost and other product are increase the cost of production. So we are be confident to maintain going forward all subsidiary companies Also healthy financials as well.
Ekta Soni
And just to add to the point sir has made anything between the 45 to 50% level of gross margin is normal in the balance of the business model. This we have repeated and emphasized on the past as well. So anything between this range is considered to be a normal gross profit margin from a company’s point of view.
Srinik Mehta
Got it Ma’, am, I’ll take it offline. I have one more question. We had posted a revised result so what was the error and why did we have to revise our results? If you can highlight.
Ekta Soni
Yeah. This revised financial statement file has been uploaded inadvertently and it’s been submitted to ensure accuracy and completeness of the reported information. So the revision is purely corrective in nature. So the inadvertently because of the technical issue the wrong file was uploaded earlier. But see company remains committed to maintaining high standards of transparency and primary disclosure. That is why we have submitted the revised file soonest once we have uploaded the the technical wrong file in the stock exchange.
But for any financial correctness of the matter you can confuse consider the revised file financials and those numbers for your further questions please.
Srinik Mehta
Understood. Yeah, this was my questions. Thank you for answering.
Operator
Thank you. The next question is from the line of. Mr. From my thought please go ahead.
Unidentified Participant
My first question is regarding the total fractionation output for FY26 and in that if you could share the steering and olene split up that would also help.
Ekta Soni
So for the vaccination output around 85% stands the utilization on portfolio basis out of which we can just share you the volume for our products main value added product of Stearine and CBE steering volume was around 8,000 reported on a full year metric turnaround and CBE volume has been reported state around 7,500 metric ton per full year.
Unidentified Participant
And ma’, am, this 85% utilization includes the debottleneck capacity, right?
Ekta Soni
No, this doesn’t include our debottlenecking facility.
Unidentified Participant
Okay. And regarding the arrangement with decal in Brazil, I just want to Understand what is the like commercial agreement? Is it like a royalty or revenue share model or some tolling fee? Could you just throw some light on that?
Ekta Soni
No, it’s a cost model thing there. It’s a processing cost which the company needs to pay them for processing of the person 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.
Unidentified Participant
Okay, so just the processing cost.
Ekta Soni
Yes, just the process.
Unidentified Participant
Okay. And in Q3 the contribution was minimal is what you had said. So maybe for FY26, what is the actual volume in decim?
Ekta Soni
We have just started the decal operation. It has been the first quarter we can see on the first year of operation in the Brazil through our own provision facility. So we are still scaling up but a better number guidance maybe we can give you going forward of this. But this is just. It’s just that we have just started with article operations currently.
Unidentified Participant
Okay. Okay ma’, am, I’ll follow up this next question or something. Thank you.
Ekta Soni
Thank
Operator
You. A reminder to all participants, please limit your question to two per participant. Should you have a follow up question, we will request you to rejoin the queue. The next question is from Kumar Soumya from Ambit Capital. Please go ahead. Kumar Somay, the line is open.
Ashish Saraf
Yes. Am I audible? Hello.
Operator
Yes, you are.
Ashish Saraf
Yes. Hi. Good afternoon sir. So my question is on the decal, do we pay the entire year’s processing cost upfront at the start of the year or we pay it as we process. Is it
Ekta Soni
So we pay as we process as per. Per metric done for just for give you example, if we are processing 100 ton per month or per day, so we are going to pay them accordingly post the processing. So there is no cost which is uploaded up front on those detail arrangement.
Ashish Saraf
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 Delta is coming from deck.
Ekta Soni
So 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 be coming here.
Ashish Saraf
Okay. In the subsequent quarter things will start to cover up as we ramp up. Yeah. Is that right?
Ekta Soni
That is. Yeah. That is right.
Ashish Saraf
Thank you. Thank you. And secondly, on our long term goals, the plans that we have say more than 3,500crores of revenue by FY30 with the 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?
Ekta Soni
Yes sir, 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 solvent 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 should 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 the past records, with the past records, we are very like 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 financials FY26, we have achieved a significant financial milestone underscoring the strength and scalability of this business model because the annual cash profit, which include our patent depreciation, stood at 258.77 crores which has already exceeded our gross block of 250 crores.
So this indicates us, you know, capital efficiency, what the company can do going forward with the plant capex.
Ashish Saraf
So working capital improvement was really commendable.
Ekta Soni
Thank you so much. That has been the stress on working cash flow as well. And the company has done meaningful improvement in that balance as well.
Ashish Saraf
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 understanding right?
Ekta Soni
Yeah, it should improve there. When we are crushing and processing this seed immediately, it will definitely have a better yield compared to what we need what we currently process after 60 days.
Ashish Saraf
Yeah. So the FAT output would be better than what we have today.
Ekta Soni
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 a processing facility in Burkina Faso for this age.
Ashish Saraf
But then while we will have to bring it to India, right?
Ekta Soni
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 seed 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. It is a dual benefit. If we are putting up Burkina Plaza plant there first it will be a very helpful in nature for shear nut 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 a better optimized for Indian exotic seeds like salad mango kernels and other.
Ashish Saraf
Yeah. From what I understand you mean the freight cost as a percentage of raw material when it was sealed now it will be oil. So that will be better now.
Ekta Soni
Yes.
Ashish Saraf
Thank you. Yeah. Thank you. Thank you.
Operator
Thank you sir. Participants, we request you to please limit your questions to per participant. We have the next question from Mr. Jainam Doshi from Chris PMS. Please go ahead.
Ashish Saraf
Yeah, good afternoon. So just two things. One is by the end of FY26 we have added 7,500 tons capacity to the solvent fractionation plant. So by when are we expecting the balance 4,500 tons to 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 it. Yeah.
Ekta Soni
Yes, we are expecting that also to be streamlined in this financial only. We will update you once that also has been done. And utilization we are expecting of 52,000 tons of around 85,090% for this fiscal year as well. So we will update you what utilization we have reached maybe end of this year with the total increased capacity of 52,000 ton Mexican.
Ashish Saraf
Got it, got it. And some data points like just wanted to understand in terms of value what is the CBE contribution to the total revenues and what is the total value added product mix.
Ekta Soni
So CB he has contributed around 30% to our top line along with our value added product steering it is around 70, 75% to it. So if you see 30% today what we have done with CV it was 10% two years ago. So the company has also done done a very remarkable improvement on improving the product mix for our specialty pads and butters as well.
Ashish Saraf
Great, great. And just the last thing, what has been the total volume growth for us like compared to last year? So volume growth at this financial year 25, 23 around 80 to 90% and 5 to 10% is the price growth approximately.
Akhil Parekh
Sure. Thank you. Thank you so much. That was it from my end.
Operator
Thank you. The next question is from Srinika Mehta from Indo Alps Wealth. Please go ahead
Srinik Mehta
Hi, 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 deeper than the standalone number?
Ekta Soni
So sir, 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 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 the subsidiary has been recently formed. From company’s point of view, this has been in the first year of operation.
So maybe coming forward we can, you know, start a practice of giving a consolidated numbers in in press release as well. Because this has been our past practices or given a standalone number on press release because there’s no regulatory requirement which is there to give consolidated number on press release. But in newspapers there is four reported numbers.
Srinik Mehta
So in the seven audited African subsidies, we posted a 13 and a half 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 subsidy 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 cading PNL on these entities?
Ekta Soni
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 9 geography. We are running a 9 subsidiaries which the current fiscal FY26 has been the first year of our operation and it is very diversified. Not only 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 setup, related cost, 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 the expense, this operational cost which is there going forward, once you see these numbers will be steady life. 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 losses. This you need to understand
Srinik Mehta
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.
Ekta Soni
That is right. But you have a have to see on a console level also including our standalone if you only talk about consolidated balance sheet the consolidated beta margin level is around 26% compared to 27% in standalone. 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 underlying understanding. We also expect our, you know, shareholders to have once we are doing this.
Srinik Mehta
Yeah, as long as it is one time expense and you know 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. So what is the hedge ratio policy and has it been recalibrated after this year’s experience?
Ekta Soni
Because see 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 860% of our company’s net foreign exchange is currently hedged through forward contracts. It also provide earning visibility and protecting against any adverse currency movements. But for the remaining unhinged 40% exposure the company retains the flexibility to benefit from any favorable movement which can also be there in the currency rates going forward.
So that is the practice which company do 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 unhinged exposure which is there because we have a natural hedge also in terms of import and export.
Srinik Mehta
Okay,
Akhil Parekh
Thank you.
Operator
Thank you sir, the next question is from Kaushikam from Ashika Group. Please go ahead.
Akhil Parekh
Hi sir, I just wanted to understand couple of things. Most of my questions got answered but yeah we did debugging, right. So currently our capacity should be around almost around 52,000 metric tons. In the presentation we mentioned it is 47,500. Can I understand what’s the reason?
Ekta Soni
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 deep water making of 30% has been done on 25000 solvent vaccination plant. So that is how the result is. Total vaccination is 47, 500.
Akhil Parekh
Got it, got it, got it. So then the new making of addition will not be any cost. There is no any cost,
Ekta Soni
Not much. That is a plant under 8 to 10 crores of cost which is there for both.
Akhil Parekh
And now can I understand one more thing like in the meanwhile of the conversation only you mentioned that we will be doing a volume growth of 20% to 30% plus and the price also will be hide by will be hyped by another 5 percentage. That means that for the next year when it comes to FY27 which we are current running years 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 returned or like not volumes or at least fractionation how much utilization that you are thinking in this financial year for getting something
Ekta Soni
And aiming to utilize around 85 90% of our 85% of plant on our 52000 tons full capacity. So that is the kind of of utilization we are targeting for this fiscal year should be around
Akhil Parekh
80 percentage is what we mentioning. That means that is 4136.
Ekta Soni
Yes and then we will update you quarter to quarter how has been the progress on it
Akhil Parekh
And just for a clarity purpose only. I understand this 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 day But I understand that it is coming through the African companies and the setups. Is it going back to normalization situations? Can I understand it will go back to 2728 or like 25 to 30%.
Ekta Soni
We always have guidity on our 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 we the company has reported be it on console level or be it on standalone number. There could be a minor range which you have to take into consideration of a around 45 to 50% on gross margin level and 25 to 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 on many levers to improve the margins going forward. But then we will update you once we have have the visibility of the.
Akhil Parekh
Thank you sir. We
Operator
Will request. We will request you to come in the queue, sir.
Akhil Parekh
Thank you.
Operator
Thank you. The next question is from Mr. Shumant Kumar from Motila Loswell. Please go ahead.
Akhil Parekh
Yeah. Hi. So my question is for FY26. We have seen a 230Whips margin expansion. So is this all because of better product mix, value added product mix or efficiency of the manufacturing plant and mix of both.
Ekta Soni
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% 12 years back. It is now 30% 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 attributing to this levels.
Akhil Parekh
Okay. And one suggestion. Can we. Can we include in our PPT OER oil extraction ratio? Okay. I have seen all the palm oil company used to show that number.
Ekta Soni
Oh, sorry, oil extraction. Yeah, yeah.
Akhil Parekh
Oer, oer,
Ekta Soni
Oer. Okay. We will see this internally to see what is OER and we will take the actions accordingly as per company’s policy.
Akhil Parekh
Okay. Okay. Thank you. Thank
Ekta Soni
You. Thank you sir. Thank
Operator
You. The next question is from Divyan Stocker from Fintrus Capital. Please go ahead.
Ashish Saraf
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 25, 7% is a sustainable margin going ahead. So is it a yearly guidance or is a quarter to quarter
Ekta Soni
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.
Ashish Saraf
Okay, thank you, ma’. Am. And Also the remaining 4,500 metrics and debordle netting is expected to be happening in this quarter or the coming quarters going ahead.
Ekta Soni
That is in the way, sir. Once we have implemented that then we will, you know, share the disclosure of that. But that is under way of doing it. We will just update you once it is done.
Ashish Saraf
Okay, just the last question, ma’. Am. What is our Middle east exposure that you had mentioned? I missed that in the call.
Hiral Keniya
So. Exposure only 2 to 3% of total revenue.
Ashish Saraf
Okay, thank you so much and all the best.
Unidentified Participant
Thank you, sir.
Operator
Thank you. Ladies and gentlemen, due to the due to time constraint, this will be the last question for today. I now hand the conference over to management for closing comments. Over to you,
Ashish Saraf
My dear friends and my stakeholders. On behalf of the entire management team, I would like to sincerely thank all for participants for Joining Manorama Industries Q4 and financial year 2026 earnings conference call. 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. Manorama Industries continues to solidify its position as a reliable supplier. Committed to meeting the fast growing global demand for sustainable cocoa butter equivalents, specialty fats steering 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 Fed formulations and application specific products. Strengthening our sourcing capabilities in key raw material 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 our customers. 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 investor analyst community and remain available for follow up discussions. I thank all our stakeholders, our suppliers, our tribal families, our Manoroma team members and every person associated with Manoroma.
Thank you once again for your time, for your trust and your continued support. Thank you.
Operator
Thank you on behalf of ey. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.