ADF Foods Limited (NSE: ADFFOODS) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Unidentified Speaker
Bimal R. Thakkar — Chairman & Managing Director
Shardul Doshi — Chief Financial Officer
Analysts:
Unidentified Participant
Pritesh Chheda — Analyst
Avnish Tiwari — Analyst
Charchit Maloo — Analyst
Bharat Sheth — Analyst
Hitesh Randhawa — Analyst
Pallavi Deshpande — Analyst
Siddharth Bhattacharya — Analyst
Priyanka Mulay — Analyst
Ankur Gulati — Analyst
Raman Venkata Kerti — Analyst
Nitin Shakdher — Analyst
Ravi Naredi — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the ADF Foods Limited Q3 and 9 month 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 this conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ravi Udeshi from EY. Thank you. And over to you sir.
operator
Thank you Palak and good afternoon everyone. We welcome you to the Q3 and 9 months FY26 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 Ltd. Represented by Mr. Bimal Thakkar, the promoter, chairman, manager and CEO Mr. Sumed 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 safe harbor clause applies while we start the call. With that said, I now hand over the call to Bimal. Over to you, Bimal.
Bimal R. Thakkar — Chairman & Managing Director
Thank you, Ravi. Good afternoon everyone. Firstly, I would like to introduce our new CFO, Mr. Srini Ayagari on the call. I welcome him to the ADF family. On the results front, we delivered a strong performance in Q3 FY26 with consolidated revenues reaching an all time high of 191 crores representing a robust 29.5% year on year growth. On a standalone basis, revenues increased by 13.3% year on year to 137.2 crores. The momentum was fueled by continued traction from listings secured in the past few quarters and strengthening our brand penetration across all our key markets. Despite prevailing tariff challenges, our US Business continues to show substantial progress benefiting from the enhancement of our sales force and strategic distributor level changes implemented at the beginning of this financial year.
Our consolidated EBITDA has also reached a record of 37.1 crores with healthy margins of 19.4%. On a standalone basis, EBITDA increased by 35.1% to 34.4 crores. This was driven by an improved product mix and continued focus on cost optimization. Our flagship brand, Ashoka, continues to strengthen its market presence and our mainstream brand, truly Indian has exceeded expectations with a marked acceleration in its growth trajectory. We have successfully completed pilot runs at our upcoming Surat Greenfield facility and phase one is on track to become fully operational by Q4 of financial year 26. We continue to witness strong brand led traction supported by deeper penetration and 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 Sin.
Shardul Doshi — Chief Financial Officer
Thank you Bimal, Excited to be a part of the ADF family. Good afternoon to all of you. I will first share the consolidated performance results for Q3 FY26 the consolidated revenues reached a record high of INR 191 crores, marking a 29.5% increase year on year and a 17.5% increase quarter on quarter. CONS Consolidated EBITDA for the quarter was a record INR 37.1 crores which is a 40.6% increase from the previous years. EBITDA margin was 19.4% which has increased by 150bps year on year and a decrease of 260bps quarter on quarter. The consolidated PAT excluding exceptional items for the quarter was INR 29.2 crores.
This represents a 55.7% increase year on year and a 10.7% increase quarter on quarter. The resulting PAT margin was 15.3%. This PAT excludes exceptional items of INR 6.8 crores which is a one time charge for changes in Indian Labor Code. Coming to the nine months performance, our revenues from operations were INR 486.5 crores up 13% year on year. EBITDA was INR 96.4 crores registering an increase of 30.8% year on year. EBITda margin was 19.8% and increase of 270bps year on year basis. PAT excluding exceptional items was INR 70.8 crores up 31.1% with the PAT margin of 14.6%.
I now move to standalone results. In the third quarter of the fiscal year 2026, standalone revenues were INR 137.2 crores reflecting 13.3% year on year growth and a 2% sequential decrease. The company’s EBITDA for the quarter was 34.4 crores which is a 35.1% increase year on year and 8.7% sequential decrease. The EBITda margin was 25.1% an increase of 400bps year on year. PAT excluding exceptional item for the quarter was INR 27.2 crores with a PAT margin of 19.8% as highlighted by Bimal. The margins increased due to improved product mix and continued focus on cost optimization for the nine months ended 31st March 2025.
Standalone result operations were INR 377.6 crores up 9.9%. Year on year EBITDA was INR 94.6 crores a growth of 24.5%. EBITDA margin stood at 25% and increase of 290bps and PAT excluding exceptional item was INR 73.9 crores up 26% with PAT margin of 19.6%. As mentioned in the past, we continue to invest in our brands and capabilities as an investment for future growth. This is already bearing results. Our flagship brand Ashoka continues to drive growth from core and emerging markets through focused market engagement and deeper market penetration supported by strengthened teams. As previously announced, our global mainstream brand, Truly Indian is performing extremely well with a significant ramp up in its growth trajectory.
This growth is arising from its listings in prominent supermarket chains including Whole Foods Market, Costco, Albertson, Safeway, Heb Stop and Shop, Giant Eagle and various other chains. The brand is available in more than 2,000 stores across the United States. The company’s capital expenditure program is on track. The Surat Greenfield plant has completed pilot runs and phase one is on track to be operational by Q4FY26. With this I now return to Ravi U Desi to 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 touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to two per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pritesh from Lucky Investments.
Please go ahead.
Pritesh Chheda
Yes sir. Few questions 1. You know what explains the variability in your revenue growth? You know when you look at the nine months versus the quarter and it always happens in a lot of quarters in the past. Also easy to do with the way this channel filling happens because you have to send the goods offshore. So easy to do with that and Hence one should look at, you know, a bunch of quarters as your number rather than looking at a particular quarter. That’s first question. Second, you are constrained by capacity. But when I look at this quarter’s number is the highest revenue.
So maybe you want to as absolute number. So I was just unable to correlate between constraining capacity and this 190 number. I have this another couple of questions, but maybe you want to answer these first.
Bimal R. Thakkar
Yeah. So as far as the quarter on quarter performance goes, so typically the second quarter and the fourth quarter are where you will see a bump up happening because of festive season sales. So you have quarter two typically leads into Diwali and quarter three or quarter four depending on the time Ramadan comes in. That’s another period where you have a slight bump up in sales. So.
Pritesh Chheda
I was asking you more from a yoy growth perspective and not quote on quarter. Quote on quarter. I tend, I understand the seasonality but from a yoy perspective when you map your growth numbers, a particular quarter is a single digit number and a particular quarter is a high double digit number. So there is it to do with the way the channel equally tends to fill it fill itself us whereby the variability in our numbers come?
Bimal R. Thakkar
No. So for example, this year, fourth quarter. Hello. Yes sir. Yeah, yeah. This year’s first quarter because of our GPCB issues, the production was at a low. Otherwise the first quarter also of this year should have been much higher. And some of the variances you will find is because if there are some new listings which have taken place in some quarter you will see a bump up in sales happening over the previous year beyond case.
Pritesh Chheda
Okay, what explains the absolute number and capacity constant?
Bimal R. Thakkar
Well, the capacity constraint is there on a few, few items, few lines, not on everything else. But you know, with the debottle necking which we have been doing over the last one year, we’ve been able to overcome that. So it was on a couple of our products where that debottlenecking has happened. So this quarter you’ve seen that we’ve been able to grow much more and this has been our best quarter so far for the company’s history. And now with the Surat plant addition also coming in, we will further have more capacity available with us.
Pritesh Chheda
Now on the Surat plant, you had a capacity on the Surat plant and the capacity constraint, are you adding any new products whereby your growth rate will look different from what you have grown in the past, a slightly accelerated growth rate or the sudh plant just addresses your capacity constraint and you still grow at the growth rate that you have been growing in the past and your workflow has been.
Bimal R. Thakkar
Yeah. So the Surat plant is going to have two new product lines. One is getting completed in phase one. So from impact from March onwards, one new product line is going to come out of the Sudat plant and some of the existing product capacity expansion is also happening at the Sudup plant. And the second new product line which is going to be there in the Surat plant will be done in Q2 of the next financial year. So it’s a combination of both that will happen. So there are two new product lines and some of the existing soda clients further capacity increase.
Pritesh Chheda
So one product line this year and one product line next year.
Bimal R. Thakkar
Correct.
Pritesh Chheda
And what are these product lines?
Bimal R. Thakkar
So these are also all frozen products which we are doing. So there are some frozen breads which we have added on new types which will be launched in the market soon.
Pritesh Chheda
Will it improve the growth rate from.
operator
Sorry to interrupt you sir, May we request.
Bimal R. Thakkar
The idea is that helps us grow our business and we are able to address a much wider target consumer group as well.
Pritesh Chheda
Thank you very much. Thank you ma’.
operator
Thank you sir. The next question is from the line of Avnish Tiwari from Wakariya. Please go ahead.
Avnish Tiwari
Hi. Can you explain that demand conditions in your end market, how they have been trending last quarter, second quarter and as you move in January that will be super helpful.
Bimal R. Thakkar
As you all know, America is one of our major markets and I’m really happy to say that even with the tariff situation the demand has been fairly robust and overall the demand continues to be robust for our products and our product line and ethnic Indian foods is gaining a lot of popularity within the mainstream clientele as well, which is where you’re seeing the growth coming in for the truly Indian brand in the US this fourth quarter has also started off well. I mean we’ve had a good month in January as well. And we feel fairly optimistic that this will now continue to.
Now with the tariff situation also getting cleared off, we feel fairly confident that we will have good, robust demand on our products.
Avnish Tiwari
Second question I had was related to the tariff related pricing increase which happened and also the margin if we see Q2 was very high and then Q3 is lower. So can you just combine these two now because the tariffs they go away, then the end prices come down. Will that help you on the demand side? Otherwise there have been a headwind. And what explains this margin volatility we are seeing in Q2 and Q3?
Bimal R. Thakkar
So on the margin front. If you see between Q2 and Q3 our standalone sales, if you look at the standalone revenues, the margins on the standalone have in fact improved and the consolidated margins have come down. Because this Q3, the sales of the subsidiaries, which includes our distribution business and also the the truly Indian brand business, it’s because of that that you’ve seen on a consolidated basis there has been a margin reduction but otherwise on a standalone basis the margins continue to remain strong and sorry, what was the other.
Avnish Tiwari
Question you had now the tariff, if they go away, your end consumer prices will be down. Earlier they were up. So was there any elasticity or demand which was observed earlier and would you expect now to help you out?
Bimal R. Thakkar
Well, definitely what will happen now is, you know, there were a lot of new products which we wanted to present to the supermarkets but because of the uncertainty on tariff, we refrained from doing that. Now with, now with the charity being there, we will be aggressively pitching new products to the supermarkets and we didn’t see any kind of reduction in demand. Which is where you saw the growth in the Q3 business as well. Even with the price increase happening, the consumer demand continued strong. And now with this clarity, I think we will have a lot more product offerings to the supermarkets.
So we feel fairly confident that this is going to help us further grow our business.
Avnish Tiwari
Great, thank you.
operator
Thank you sir. The next question is from the line of Charchit Malu from Genuity Capital. Please go ahead.
Charchit Maloo
Hello sir. Am I audible?
operator
Yes sir.
Charchit Maloo
Hi, I have question regarding the capacity utilization. So what was the utilization in Q3? So you know, in Q3 we were again we have many products so but at an overall weighted average, I would say with the increase now on the debottlenecking, we were probably at about 70, 75% on a weighted average. And like you are telling from 28,000 tonnes blank. Right, I’m sorry, I didn’t hear you. So like this capacity is from the old plant and like going forward, the addition that we are doing of 10,000 ton. So what kind of utilization we can expect in Q4?
Bimal R. Thakkar
Oh, the Q4.
In fact it’s just going to be in the month of March that we will start production, you know, in the second week of March is when. So it will just be a few weeks of shipments of that new product line which we’ve gone in the next fiscal year we would probably see around 30 to 40% capacity utilization because there is another product line as I mentioned, which will only start in the the second quarter of next is clear.
Charchit Maloo
Got it but like I have just that calculated a realization. But then so like is it approx.
2.6 lakh per ton? Right?
Bimal R. Thakkar
You know your voice is very muffled. Sorry, I couldn’t understand the question.
Charchit Maloo
So like I was trying calculating the realization per ton. Hello.
Bimal R. Thakkar
Yes.
Charchit Maloo
So. So I got the number of 2.6 lakh per ton. I calculated from the volume data and our capacity. So am I getting it right?
Unidentified Speaker
It varies as per product line frozen generally tends to have a higher utilization. I mean a higher realization. But it completely varies as per product. Line Spices if possible.
Charchit Maloo
Can you quantify or on broad basis.
Unidentified Speaker
We typically don’t give that information.
Charchit Maloo
Okay, so my last question is regarding margin. So what will be the impact of on our EBITDA margin going forward?
Bimal R. Thakkar
Sorry, I can’t understand. I can’t understand your question. So there are certain. Like Sumar said, it depends. The realization on a per ton basis depends on the product mix. And we don’t normally calculate based on a ton basis on a weighted average. So it depends on product category. It depends on the product mix. There are lots of variables for a per metric ton price.
Charchit Maloo
Okay, just last one thing till now. What kind of. Just one follow up.
operator
Sorry sir, please follow up your question in the question queue.
Charchit Maloo
Okay.
operator
The next question is from the line of Bharat Seth from Quest Investment Advisors Private limited. Please go ahead.
Bharat Sheth
Thanks for the opportunity. Sir, if you first my question is related to. I mean when Indian true Libra where we were in investment phase. So how we are seeing and when do we really expect to turn EBITDA positive? If you can give some guideline.
Bimal R. Thakkar
So. You know based on the current trend which we are seeing. So if you see our business model, the standalone company sells the goods to the subsidiary. So there is a margin which the standalone company makes while selling goods to the subsidiary. And then there is a margin which the subsidiary makes while selling down to the supermarkets. So when you add up both the margins of both the companies we will see a breakeven happening in about 18 months. If you look at it just on a subsidiary level then you will see a break even after three years.
operator
The next question is from the line of Hitesh Randava from CAGR Quest Capital. Please go ahead.
Hitesh Randhawa
Hi, am I audible?
operator
Yes sir. Please go ahead.
Hitesh Randhawa
Okay. Yeah. So my. I’ve got two questions. My first question is is on tariffs in the Last conquest. Basically you alluded towards that we are not taking any tariffs and that tariff is borne by distributors and it will be passed on to the consumers. So now that the tariff has come down so basically my question is that does this, can this increase our margins going forward as far as the US business is concerned? And why I ask this is that because for example for a $2 product due to tariff, you had increased the product price to say maybe $3 50% tariff and the entire tariff increase was absorbed by the consumers.
Ours is a product which is maybe closer to necessity. Our enter segment, target segment, consumer segment can afford to absorb those prices. And as well as it’s not a very high ticket price product. So the end price, is there a possibility wherein the end price remains the same and certain part of tariff is shared between the distributor and our company and thereby increasing our margins.
Bimal R. Thakkar
So firstly, you know the 50% tariff doesn’t translate into a 50% price increase at the MRP level. Okay. It translates, that is just an example. Yeah, I’m just clarifying that it translates to a 25% price increase. And secondly we did not increase, I mean we did not reduce our price while selling during the tariff time. Our price to our various distributors is a CNF price. So the tariff, whatever the tariff price, whatever tariff they paid, they put it in their selling price and it’s passed on directly to the consumer. Now whether firstly everyone has a two or three month holding, I mean stock holding which they keep because of the transit kind.
So this price reduction if they decide to do and of course our sales team will encourage the distributors to reduce the sales price. That will only start happening after two months or so. So yes, it will definitely help in increasing sales going forward. But like you said, you know, our products are low priced products. So if at all any reduction is there, it will be 20, 25 cents at the consumer end. So I don’t know how much that will help in further uptake. But. But it’s still a positive thing. Yeah, yeah, yeah.
Hitesh Randhawa
But my question was different. Is it possible that, okay, we don’t reduce the end product price and whatever benefit that we get due to the tariff delta reduction second of the distributor and the company shares it and we benefit out of it.
Bimal R. Thakkar
So as I mentioned, you know, the increase in price has happened at the distributor level, not at our level. Right,
Hitesh Randhawa
okay.
Bimal R. Thakkar
Okay.
Hitesh Randhawa
Yeah, I get that. Yeah. Okay, sure. And the second question is around the kind of, I think in your presentation you mentioned the potential to reach the thousand crores by FY27. And in, in the past as well as a kind of couple of Congress you have spoken about reaching 1000 crores by FY27. So do you think we would be able to Achieve that in the coming financial year given the Surat capacity increase.
Bimal R. Thakkar
So we feel see for that thousand crore guidance, we feel fairly confident of being able to achieve anywhere between 925 to 1000 crores. The difference is mainly because of the domestic market. But we are relooking at our own domestic market strategy. And by the second quarter of next year we will have a much better plan for our domestic market which will. If everything goes as planned then yeah, the 1000 crore number seems doable. But otherwise we feel fairly confident of anywhere between 925 to 1000 crores.
Hitesh Randhawa
Okay, and in terms of margins, do you think we will remain around current 19% odd. Is it talking about annual?
Bimal R. Thakkar
As you know we in all these new businesses we are in investment mode. We’ve been investing in marketing and we’ve been investing in people. So yes, we will continue to having margins in the high teens. We feel fairly confident of that.
Hitesh Randhawa
Sure. Thank you very much.
operator
Thank you. Sir, the next question is from the line of Bharat Seth from Quest Investment Advisors Private limited. Please go ahead.
Bharat Sheth
Hello, am I audible? Sir?
operator
Yes sir, please go ahead.
Bharat Sheth
My question, I mean for this Surat, these two line is mainly for Ashoka Bran or will it be Indian? Truly, how can you. We can understand from that.
Bimal R. Thakkar
So it will be for both the brands. It’s not just exclusively for Ashoka, it will be for both brands and maybe some amount may and be towards some private label brands as well.
Bharat Sheth
Sorry, sorry, last. Can you repeat what last you said?
Bimal R. Thakkar
I said it’s for both the brands and also for certain private label brands which we do.
Bharat Sheth
Okay, okay, good. And how are you seeing.
operator
Your voice is breaking.
Bharat Sheth
Hello. Now am I audible?
operator
Yes sir, please go ahead.
Bharat Sheth
So my question is how are we seeing the demand in European market which is contributing roughly 30% of the sales. So how. What kind of attraction are we envisage
Bimal R. Thakkar
again in Europe also we are seeing a good offtake of our products. There are new listings which we are doing there as well. So even Europe continues to grow for us. UK and Europe is also growing for us. America is growing faster. But these markets are also growing for us.
Bharat Sheth
Okay, how do we think about, I mean exchange gain that which might have help us in this Q3.
So how much was that on account of that exchange gain?
Shardul Doshi
So can I take this?
Bimal R. Thakkar
Yeah, yeah, yeah.
Shardul Doshi
If you look at the numbers of Q2, the Q2 had a higher exchange gain rate. But coming Q3 the dollar has actually quite balanced out. So our gain has come down in Q3. What we anticipate is the dollar with the rupee now strengthening for the coming quarters we would not be having too much of a gain in terms of our forex. So that’s our guidance for the coming quarters. And Q3 has very negligible amount of forex in our level.
Bharat Sheth
And can you explain our hedging mechanism?
Shardul Doshi
So we do not do any hedging. Whatever contracts we had we have almost squared it up and it’s very negligible hedging at our level. See we are a net exporter and most of our fgs actually go to the US markets or the European markets. So the rupee has been weakening and the dollar has been strengthening. So our strategy is not to do hedge. And basically there is always a depreciation which the rupee has. So the gains of foreign exchange actually flow into our books. So we do. We are not actively hedging as of now.
Bharat Sheth
My question, last question is pertain to. I mean we have a large opportunity. Opportunity. So to really I mean encase those opportunity before I mean competition plugin. So what are exactly we are doing? I mean say for in next couple of year that what would be our strategy for that?
Bimal R. Thakkar
So as you can see we’ve been investing in brands, we’ve been investing in people. We are increasing our consumer base by catering to the mainstream market within the ethnic market. We are further increasing our depth into stores, opening up new markets. So that’s a continuous process and that’s why you’re seeing the growth happening.
So we will continue to build on that.
Bharat Sheth
Okay and last question on how much you have borrowed.
operator
Okay, request that return to the question. Thank you sir. The next question is from the line of Pallavi from Samiksha. Please go ahead.
Pallavi Deshpande
I just wanted to understand what would be the share of frozen food. And I understand we were operating at 100 utilization. So would that share have come down because of that quarter and coffee.
Bimal R. Thakkar
So as I mentioned to you earlier on we were at about 75% capacity utilization in this last quarter on a weighted average basis. And frozen food continues is a dominant product range in our entire portfolio. And it accounts for upwards of. It’s around 40% plus of our total revenues.
Pallavi Deshpande
Right. So there is no capacity constraint on frozen as of now for the fourth quarter, is that right?
Bimal R. Thakkar
No, we all the investments we did in debottlenecking etc has given us more capacity. And now with the Surat plant coming in that will further. I mean give us more capacity.
Pallavi Deshpande
My second question would be what is the kind of realization increase we’ve seen on the frozen side, year on year.
Bimal R. Thakkar
I’m sorry, what is there about realization.
Pallavi Deshpande
Increase for frozen that we would have seen?
Bimal R. Thakkar
Realization as in,
Pallavi Deshpande
I mean rupees for. Like whatever, you know.
Bimal R. Thakkar
I’m sorry, you know your voice.
Pallavi Deshpande
Like the previous question he was asking weighted average realization per ton. I’m saying realization for the frozen section is. I mean since demand for this. You said earlier frozen food is very good demand. So have you been able to take price hikes?
Bimal R. Thakkar
Again, I apologize but I am unable to hear you clearly. Sumesh. Have you all heard the question? Can you all respond?
Unidentified Speaker
No, not. No, not really. Actually.
operator
Pallavi ma’, am, can you please use your handsets?
Pallavi Deshpande
Yeah, is this better? Hello?
operator
Yes ma’, am. Can you speak something?
Pallavi Deshpande
Yeah, yeah, yeah. I just wanted to understand because we are getting into the large retail chains, so what’s the kind of realization uptick we would have seen? So I’m just looking at it, you know, one category, maybe frozen foods. What’s the price increase in realization basically for these categories that we’ve seen? And my last question would be which are the new chains that are we expecting to add in the fourth quarter? Any new.
Bimal R. Thakkar
So as far as the new chains go, we continue to keep pitching to various chains and our goal is to continue to increase the number of outlets for the mainstream side. So I can’t really. It all depends on which chain gives us an opportunity for listing. But our efforts are on for continuously looking at growing our distribution. And I couldn’t understand your first question in terms of realization.
Pallavi Deshpande
Right now I’m just trying to understand only on frozen food so that I take one category and get a sense because that’s the predominant category in these detailed chains that’s going to Costco, etc. So what is the kind of price increase we’ve been able to get due to a shift to these larger retail chains? Frozen food increase in realization per ton for frozen.
Unidentified Speaker
Typically frozen food for a Ashoka brand. Operates at about a 6ft margin. Truly India’s position is slightly more premium. So that’s between 65 to 70%. But if you look at it at a EBITDA level because Truly Indian is in the brand building phase right now. We’re spending a lot on marketing, but in terms of gross margins, Truly Indian would be higher than Ashoka for frozen foods.
Pallavi Deshpande
And so till when would the elevated marketing spends continue for Truly Indian? Another year or more?
Bimal R. Thakkar
No, no. So this is in the Indian is still in the investment phase and as I mentioned it will be about three years being in The FMCG space investment in brands is a continuous and an ongoing process. When you’re launching something new, you know, and for it to start showing results, it’s a three to four year period. So over the next three years this brand will still continue to be in an investment mode.
Pallavi Deshpande
Right? Yeah. Thank you, sir. I’ll come back in with you for more.
operator
Thank you, ma’. Am. The next question is from the line of Siddharth Bhattacharya from Autumn Investment and Infrastructure. Please go ahead.
Siddharth Bhattacharya
Hello.
operator
Yes, sir. Please go ahead.
Siddharth Bhattacharya
Yeah, just on the earlier question. Sorry I missed. What were the numbers for the realization for the various products? If you could again help me with that.
Unidentified Speaker
No, we. It all depends on the product mix. There are different realizations for different markets for different categories across. Yeah.
Siddharth Bhattacharya
Okay. So if I ask this differently, can I know the highest realization that you are getting? As of today, you need not name the product and the lowest realization that you’re getting to the premium brand.
Unidentified Speaker
The premium brand for us in our portfolio is the truly Indian brand. So truly Indian in terms of realization is the highest.
And then we have the economy brand, which is aeroplane, which gets the lowest realization.
Siddharth Bhattacharya
Okay, sorry, just one small question then. In terms of, you know, peaking of capacities, are we sort of peaking out on the higher realization bands or on the lower realization banks?
Unidentified Speaker
Also we were picking out more on the. In certain product categories. Okay. Which. Which has. As I mentioned with brownfield projects that debottlenecking has gone. And now we are not constrained with any capacities. And those are for certain frozen products which has now been taken care of. So yeah, we will not have that problem anymore. And those. The frozen product is a higher gross margin product category. Higher gross margin.
Siddharth Bhattacharya
And finally, the new products that they are launching in terms of realization, where do they stand in the spectrum?
Unidentified Speaker
They are again frozen. They are again frozen products. So they will be at a higher realization. Thank you so much.
operator
Thank you, sir. The next question is from the line of Priyanka from Nirmal Bank Securities Private Limited. Please go ahead.
Priyanka Mulay
Thank you for the opportunity and congratulations on the.
operator
Sorry to interrupt you, ma’.
Priyanka Mulay
Am.
operator
Your voice is very low. Please use your handsets.
Priyanka Mulay
Is it better?
operator
Yes, ma’. Am. Please go ahead.
Priyanka Mulay
Yeah. So thank you for the opportunity and congratulations on the good set of numbers. So just a bookkeeping question. What would be the market expenses to our percentage of revenue on a console level for the quarter?
Shardul Doshi
Yeah, I’ll take this question. Our growth investments in marketing have increased and approximately 24 year on year and a quarter on quarter, as Bimal has said, we continue to prioritize our on. On brand building and marketing across all our key parts markets to fully leverage the growth potential and opportunities across us and the European markets.
Priyanka Mulay
Yeah, so I just wanted the number percentage of revenue for the quarter.
Shardul Doshi
We refrain from giving absolute numbers but when you look at the growth, it’s a 24% growth year on year and around quarter. So you can imagine the kind of investments which we are being doing on our mainstream truly categories.
Priyanka Mulay
Got it, sir. And then the last question is if I look at your margins for the distribution business, those are at around 11% for the, for this quarter and also for the quarter three FY25 it was in the same range. If, but it, if I look at the last two quarters, it, it was in the high double digit. So how should I look at the margins for this particular segment overall?
Shardul Doshi
So Vimal, maybe. I think. Yeah, so. Yeah.
Bimal R. Thakkar
Okay.
Shardul Doshi
So Priyanka, our distribution margins as we have been previously mentioning remains at 12 to 14% in terms of our margin on an ongoing basis. We were better off in the last few quarters due to extra promotional supports. But on a steady state the margins will be at around 12 to 14%.
Priyanka Mulay
Okay. Thank you sir.
operator
Thank you. Ma’. Am, the next question is from the line of Ankur Gulati from Genuity Capital. Please go ahead.
Ankur Gulati
Hi, just a quick question. When you’re doing white labeling, are the margins same or the diploma?
Bimal R. Thakkar
Sorry, can you repeat that please?
Ankur Gulati
I think you mentioned that.
Unidentified Speaker
So they reduce when it comes to private label, but we also don’t have to spend in marketing. That’s where the Delta is. But private label is at a lower margin, but it’s still a relatively healthy margin.
Ankur Gulati
So assume similar EBITDA for private labeling as well.
Unidentified Speaker
Slightly less, but similar.
Bimal R. Thakkar
No, not. Yeah. So these are all value added products that we do. Right. So it’s not like a commodity business where you work on wafer thin margins. So as Sumayr mentioned, the gross margins are pretty decent, but obviously not as high as what it is for our branded products.
Ankur Gulati
And what percentage of the capacity is dedicated to white labeling.
Bimal R. Thakkar
So at an average, our B2B and private label business accounts for about 20% of our overall revenues.
operator
Thank you. Sir. The next question is from the line of Raman from Sequent Investments. Please go ahead.
Raman Venkata Kerti
Hi sir, can you hear me?
operator
Yes sir. Please go ahead.
Raman Venkata Kerti
Sir, for the quarter, for the quarter and nine month and ended the year, can you give a figure for Ashoka brand?
Bimal R. Thakkar
You know Raman, we don’t Sorry we don’t give details on the brand breakup.
Raman Venkata Kerti
Understood sir.
Bimal R. Thakkar
Ashoka continues. Ashoka continues to remain the flagship brand and the leading brand at the moment.
Raman Venkata Kerti
Understood sir. Answer with respect to the frozen products. What the capacity which is in the. Greenfield expansion you’re doing, is this included in the 250, 270 crores greenfield expansion you plan to do? And also I just want to understand just a ballpark figure if you can, with respect to total percentage sales from. Your from frozen products. Just a ballpark figure will be helpful
Bimal R. Thakkar
. So frozen, as I mentioned earlier is upwards of 40%. That remains to our fastest growing category for our company. And yeah, the Surat plant is obviously part of the whole greenfield expansion that we budgeted for.
Raman Venkata Kerti
Just a follow up on this. Can I get the figure which was a year back? I just want to understand the trend with respect to frozen.
Bimal R. Thakkar
Well, on a frozen was probably a couple of. So we’ve probably grown by about 10% over last year. But it’s on a higher revenue as well. Right. So continues to grow for us.
Raman Venkata Kerti
Okay, sir.
operator
Thank you sir. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to one per participant. The next question is from the line of Nitin from Green Capital Single Family office. Please go ahead.
Nitin Shakdher
Hi, good afternoon, this is Nitin Shakta. From the Green Capital Single Family Office. My question pertains more to the European market. If you could just sort of summarize the new countries that the company is exporting to, any initiatives on new master. Distributors appointed and any specific new product. Ranges that you’re introducing in the European. Market and how will it impact the import export duty structures between Indian foods going into Europe now? Thank you.
Bimal R. Thakkar
So you know, we constantly keep adding as part of our process. There is always continuous innovation which keeps happening. Looking at the consumer trends. So it’s not just Europe but worldwide. We keep introducing new products specifically for Europe. New markets that have opened up are certain markets in Eastern Europe. We’ve also opened up some markets within Western Europe as well. It’s serviced right now we have a network of about 12 or 13 distributors within Europe and we continuously again strengthen, increase our penetration within these stores. We’ve added on some new supermarkets in the Netherlands, in Germany.
So it’s an ongoing process for both the Ashoka brand and also the truly Indian brand is in Germany. So that also continues to grow for us and more products are being added on. So the truly Indian brand in Germany for Example did not have frozen foods. We had just launched this quarter certain frozen products under the truly Indian brand. And now we’ll be expanding some more product lines under the truly Indian brand in Europe as well.
Nitin Shakdher
Okay. So.
Bimal R. Thakkar
Yeah, with FTA coming in out there in EU as well that will further help in the pricing being a little bit more competitive and we should see more penetration there as well.
Nitin Shakdher
Okay, thank you. So all the best.
operator
Thank you sir.
Bimal R. Thakkar
Thank you.
operator
The next question is from the line of Ravi Naredi from Narendi Investment. Please go ahead.
Ravi Naredi
Thank you. Ji. On how much PLI incentive received in 9 months period of current year.
Bimal R. Thakkar
So we’ve received about. For the first year we’ve received about 70% of the PLI incentive. Year two and year three are still under process and we hope to get year two and the balance part of year one before the next, before September of this year, 70%.
Ravi Naredi
Can you quantify in the money term?
operator
May we request you to come back?
Bimal R. Thakkar
Anyway it’s about 7 crores I think approximately that we’ve received so far.
Ravi Naredi
Sir, one more question.
operator
May we request you to come in the follow up?
Ravi Naredi
Madam, this is first question only our second question I can ask why are you making a preventing me?
Bimal R. Thakkar
Okay, go ahead Sir.
Ravi Naredi
Sir, in 19 financial year 27 you give 1000 crore top line. So what will be our margin dead time? Can you predict something?
Bimal R. Thakkar
So we expect to continue the high teens. As we are doing so we feel fairly confident that we will continue to maintain margins in the high teens.
Ravi Naredi
Nice, nice, nice. Thank you. Thank you sir.
operator
Thank you sir. The next question is from the line of Ashish Agarwal, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. I just wanted to understand what is the volume growth that we have achieved in this quarter and what is also. The value growth if we can break. It on console level.
Bimal R. Thakkar
Srini, do you want to get that?
Shardul Doshi
Yeah. So basically our volume growth accounted for nearly 70% of the total growth with the balance attributable to the price growth.
Unidentified Participant
So okay, so volume has resulted into 70% of overall revenue growth and 30%. Due to value growth. Correct?
Shardul Doshi
Yeah.
Unidentified Participant
And that’s a normal trajectory that lies with plus minus 10%. But is that the normal range that we normally want to keep and keep normal?
Shardul Doshi
See this is a yoy growth. So basically we would like to keep this at the same level. And with coming up the volumes definitely will go up which will result in higher growth.
Unidentified Participant
Okay. And what is our current sole revenue run rate per month? Used to give this figure earlier.
Unidentified Speaker
So the sol as mentioned, you know Seoul is going. We’ve gone back to the drawing board. We’ve got a new sales head who has joined us. From December of this year. We’re back in relooking at our entire product range. Our business plan for Seoul. And we will have much better guidance for you all in the first quarter of next year on that. But at the moment Seoul is only in the Bombay markets and in limited channels. And we are doing about 50 lakhs in our sales into the market.
Unidentified Participant
50 lakhs per month.
Unidentified Speaker
Yeah, yeah. Yes. And on quick commerce and e commerce and very limited modern trade. Okay. So it’s negligible as of now. It’s needed to explode.
Unidentified Participant
Okay. Yeah. Thank you. And when do we expect truly Indian to be.
operator
Sorry to interrupt you to the question for the follow up.
Unidentified Participant
Okay, thank you. Thank you. And all the best. Thank you.
operator
The next question is from the line of Avnish Tiwari from Vikarya. Please go ahead.
Avnish Tiwari
Hi. If I subtract standalone revenue from a consolidated revenue, that difference comes to around 54 crore. It was around 23 crore last quarter and it was around 226 crore year before. It has grown significantly whether we compare to last quarter or year before quarter. What has driven this massive increase here?
Bimal R. Thakkar
So you know all the. Firstly truly Indian has grown substantially for us in this last quarter and our distribution has grown. The changes we’ve made in our subsidiary Vibrant Foods that has helped grow our business. So all the three subsidiaries led to increase in revenue. And we feel fairly confident that we will be able to continue this growth trajectory. These are all the investments made in the new sales team, the brand investments which have all helped in this growth.
Avnish Tiwari
Thank you.
operator
Thank you sir. The next question is from the line of Bharat Seth from Quest Investment Advisors Private limited. Please go ahead.
Bharat Sheth
Yeah sir, thanks for being for the opportunity. Sir. How much new SKU have we added in this FY26 and how much we plan to with in FY27 with the Surat plant becoming operational.
Bimal R. Thakkar
So you know Mr. Bharat, we add product, we take out products. So at an average I would say about 15 to 25 new SKUs get added in different brands. Tuli Indian had some more additions this year. Ashoka also had some additions. So it’s a continuous ongoing process. And now with the Surat plant coming in also there will be an addition of. At least in this next financial year we will see another 10 to 12 more products being added out from the Surat plant as well.
Bharat Sheth
Okay, great. Bookkeeping question. May I. Go ahead.
Bimal R. Thakkar
Yeah, please.
Bharat Sheth
Yeah. Hello. So what is our end of the December gross debt and net debt?
Unidentified Speaker
See, we remain from giving numbers in the quarter of the balance September and March. So you will see the guidance in March. But we. We will give you at that point of time.
Bharat Sheth
Okay, thank you.
operator
Thank you, sir. The next question is from the line of Avnish Tiwari from Baikaria. Please go ahead.
Avnish Tiwari
Hi. If you can explain the margins or maybe the profits. If you compare the EBITDA differences between Consol and standalone, that number also improve this quarter. Is it a sales driven or any other sector?
Shardul Doshi
So if I. If I understand the question correctly, you want the difference between EBITDA of console and standalone.
Avnish Tiwari
What is that number is also significantly improved this quarter compared to last quarter or year before.
Shardul Doshi
So basically if you look at the numbers, the difference is mostly in the growth investments which you have. The standalone will have a higher number in terms of the ebitda. But when you see the conso. The CONSO is a combination of both, as Bimal said, the subsidiaries where we have been investing and the standalone business where our EBITDA margins will be higher. So that will be overall mixture. That’s why you see a consolidated number lower than the standalone number.
Avnish Tiwari
We have one more question I can just ask on this. If you look at the EBITDA distribution between processed foods distribution and then you also report consolidated ebitda there is a negative entry which comes after adding processed food distribution. There’s some negative entry. Is this some corporate head or corporate cost or headquarter cost which are located there or what is that negative entry there?
Bimal R. Thakkar
So basically see what we report in our segment revenues is the segmental revenues of our distribution and processed and preserved foods categories. The number we which you see is a PBT level. The balance is a part of the unallocable expenses which basically includes the finance cost and any exceptional item. This time there has been an exceptional item of 6.83 crores due to labor code. The rest of it is the unallocable income or unallocable expenditure which is roughly around 5.6 crore.
Avnish Tiwari
5.6 crore per quarter.
Bimal R. Thakkar
Yeah, for this quarter.
Avnish Tiwari
And if expense would be more like your headquarter or more like a top level.
Bimal R. Thakkar
Yes, yes, mostly the. The overall cost at a perfect level.
Avnish Tiwari
Maybe last. One more question if I can ask. The standalone EBITDA margins last two quarters have been very good. 25 this quarter. 26 last quarter compared to typical range of 21 to 23%. Is there any change? This is a new normal or they will revert back to again, 21 to 23% range.
Bimal R. Thakkar
So, you know, the EBITDA margin depends on the product mix. We, I mean our endeavor will be to try and maintain these similar kind of EBITDA margins going forward, but it’s very dependent on the product mix. But we are fairly confident of being in the 20s on the EBITDA margin for a standalone basis, which partly.
Avnish Tiwari
What is the range of margins? You’ve made different kind of products here.
Bimal R. Thakkar
I’m sorry,
Avnish Tiwari
what is the range of. Margins in different kind of products?
Bimal R. Thakkar
Well, again, we don’t give category wise breakdown so I’m unable to give you that details.
Avnish Tiwari
Okay, great. Frozen is higher margin and the other one is lower one. Right? That’s how it gets.
Bimal R. Thakkar
Yes, yes, absolutely.
Avnish Tiwari
Thank you and wish you very best.
Bimal R. Thakkar
Thank you.
Shardul Doshi
Thank you.
operator
Thank you, sir. Ladies and gentlemen, in the interest of time. That was the last question for today. I would now like to hand the conference over to management for closing comments.
Bimal R. Thakkar
Thank you very much for the time and look forward to catching up in the next quarter. Thanks and all the best.
operator
Thank you, sir. On behalf of ADF Foods Limited, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.