Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
ADF Foods Limited (NSE: ADFFOODS) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Ravi Udeshi — Moderator
Bimal R. Thakkar — Chairman & Managing Director
Srinivas Ayagari — Chief Financial Officer
Analysts:
Unidentified Participant
Pallavi Deshpande — Analyst
Ankur Gulati — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The ADA Foods Limited Q4FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing STAR and then zero on your touchtone phone. I now hand the conference over to Mr. Ravi Udeshi from EY. Thank you. And over to you, Mr. Ravi.
Ravi Udeshi — Moderator
Thank you Sagar and good afternoon everyone. We welcome you to the Q4 and 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, Managing Director 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. On the results front, we delivered a strong performance in Q4 of the financial year 26 with consolidated revenues reaching an all time high of 196.7 crores representing a robust 23.7 year on year growth. On a standalone basis, revenues increased by 11.6% year on year to rupees 150.3 crores. Despite prevailing challenges including tariffs, West Asia conflict and supply chain issues, our business saw continued momentum fueled by significant traction from listings secured in the past few years and strengthening of our brand penetration and distribution across all our key markets.
Our consolidated EBITDA reached rupees 34.3 crores with healthy margins of 17.4%. On a standalone basis, EBITDA increased by 24.8% to rupees 36.5 crores. This was driven by improved product mix and continued focus on cost optimization. Our flagship brand Ashoka continues to strengthen its presence driven by strong diaspora demand and our mainstream brand Truly Indian has exceeded expectations with a marked acceleration in its growth trajectory. We are proud to announce that Truly Indian has won Nexty award in the Best Breads and Bakery category for its Tikka Masala Naan and also won the freezies Award in the Best Frozen Bread and Bakery category for its Garlic Naan.
We have successfully commenced operations at our Surat Greenfield facility in Q4 of financial year 26 with a scale up plan over the coming quarters. We continue to witness strong brand led traction supported by deeper penetration. The ongoing West Asia situation continues to pose challenges. However, with our sustained focus on execution, excellence and operational discipline, we remain cautiously optimistic in our ability to maintain the current growth trajectory over the long term. I will now hand over to Srini, our CFO who will comment on the financials.
Thank you. Over to to you Srini.
Unidentified Participant
Srini.
Bimal R. Thakkar — Chairman & Managing Director
Ravi I.
Operator
Yes sir, Please go ahead.
Srinivas Ayagari — Chief Financial Officer
Apologies for the technical disturbance. Thank you Bimal and good afternoon everyone. I’ll begin with the consolidated performance for Q4 and FY26. For Q4 FY26, consolidated revenue reached a record high of 196.7 crores, reflecting a strong growth of 23.7% year on year. Consolidated EBITDA stood at 34.3 crores, up 38.9% year on year, with EBITDA margins at 17.4%, expanding by 190bps over last year. Profit after tax was 25.9 crores, registering a robust growth of 57.6 year on year with PAT margins at 13.2%.
Coming to the full year performance, consolidated Revenue stood at 683.2 crores, up 15.9%. Year on year, EBITDA increased 32.8% to INR 130.7 crores, while EBITDA margins improved to 19.1%, an expansion of 240 basis points. PAT excluding exceptional items stood at 96.8 crores, up 39.7% year on year, translating into a PAT margin of 14.2%. Now I move to the standalone performance for Q4FY26. Standalone revenues were 150.3 crores, reflecting a healthy growth of 11.6% year on year. EBITDA for the quarter stood at 36.5 crores, up 24.8% year on year, with EBITDA margins at 24.3%, improving by 260 basis points.
PAT increased by 40% on a year on year basis and stood at 30.1 crores, with PAT margins at a healthy 20%. For the full year ended March 31, 2026. Standalone revenues stood at 527.9 crores, registering a 10.3% growth. Year on year, EBITDA Increased 24.6% to 131.1 crores while EBITDA margins expanded to 24.8% up to 80 basis points year on pat excluding exceptional Items stood at 104 crores with PAT margins at 19.7% as highlighted by Vimal. The improvement in margins was driven by a better product mix, sustained cost optimization initiatives and volumes.
We continue to be watchful of the ongoing geopolitical situation and its impacts on business. At the same time we continue to invest in our brands, manufacturing capabilities and leadership talent to build a strong platform platform for future growth. These investments are already delivering results. Our flagship brand Ashoka continued its strong momentum across both core and emerging markets supported by deeper market penetration and focused market execution. Our global mainstream brand Truly Indian is also scaling up well supported by new listings across leading chains, retail chains like Costco Rallies, Seyfe, Albertsons, Whole Foods Markets and several other chains.
In US we now service close to 3,000 crores across the US markets. On the manufacturing front, we have invested approximately 124 crores in CapEx over the last two years in both greenfield and brownfield expansions. Phase one of the Surat Greenfield facility commenced its commercial production in March 2026. The company’s financial position remains strong with a net debt free balance sheet and a robust cash surplus of 78.2 crores, thereby providing strong financial flexibility for future growth initiatives.
The board has recommended final dividend of 30% of face value making the total dividend amounting to 60% for FY26. With this I now return to Ravi Udeshi to open the floor for question and answer session. Thank you.
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their touchstone phone. 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 again. To Register please press Star and 1. Your first question comes from the line of Saurabh Periya from Samiksha Capital.
Please go ahead.
Questions and Answers:
Pallavi Deshpande
Hello. First of all, congratulations for a great set of numbers. I just wanted to know since we just commenced the source facility, what is the current utilization and what is the ramp up timeline we are expecting? And in FY27 and also in coming years when the plant operates at safe full capacity, what is the incremental delta revenue we expect?
Bimal R. Thakkar
Yeah, is there any other question or should I answer this one?
Pallavi Deshpande
Yeah, you can answer this
Bimal R. Thakkar
Okay, so the Surat plant as mentioned by Srini, we just started production in the third week of March. So the last fiscal year we fairly executed two containers because we just had nearly only 10 days of operation this year. So the plant is going to be done in two phases. The phase one is two product lines which have been put in and in phase two which will be in quarter three of this fiscal year there will be another product line which will start. So we expect in terms of revenue around 40 to 50 crores contribution from the Surat facility in this fiscal year.
At its full capacity, the Surat plant will give us upwards of 200 crores in top line.
Pallavi Deshpande
Thanks Jamie. That answers. Well, just a follow up question on this. Since the Surat plant also serves international markets, should expect a initial operating leverage to impact. And what is the margin guidance on a console basis? So what margin labor this plant would have on the overall margins.
Bimal R. Thakkar
So you know, till it’s full at its full capacity, we expect to maintain the similar kind of margins that we are getting from our existing facilities.
Pallavi Deshpande
Okay, perfect. And can you provide a revenue
Operator
Sourabh. Sir, may we request you to return to the question queue for.
Pallavi Deshpande
Thank you.
Operator
Thank you ladies and gentlemen. In order to ensure that the management is able to address questions from all the participants in the conference, we request you to limit to two questions each per participant and rejoin the queue for any follow up questions. Your next question comes from the line of Rehan Syed from Prenatal Asset Managers. Please go ahead.
Pallavi Deshpande
Oh yeah, good afternoon to the team and thanks for taking my question. Sir, I have only two questions. First was that Ashoka continues to deliver strong growth despite already being a well established Dash Supra brand globally. So what according to the management are the key levers that can sustain the guided 25% growth trajectory from here and especially considering the large revenue base now. So is the next phase of growth likely to come more on from deeper penetration within existing geographies or from entering new consumption locations and product categories?
Bimal R. Thakkar
So it’ll be a combination of both. I mean we still have, we are still looking at widening our penetration in our existing core markets, adding on new markets and of course you know, continuous product development and adding new product lines. So it’ll be a combination of all these which will help continue the growth of the brand.
Pallavi Deshpande
Okay, fair enough. And so my second question is around like truly Indian seems to be gaining strong traction in the US mainstream channel
Unidentified Participant
With President across nearly 3,000 stores now. So could you help us understand whether the growth is currently being driven More by distribution expansion or by healthy offtake and repeat purchase at existing store. And also
Pallavi Deshpande
Are you seeing any meaningful difference in consumer behavior between India origin consumer and mainstream non India consumer in the terms of product acceptance and repeat consumption pattern?
Bimal R. Thakkar
So you know, that’s a great question. The truly Indian brand at the moment, the initial traction is more from a distribution point. We have had repeats happening with some of the Costco divisions. So that is very encouraging. Where we’ve already had two to three rotations in some divisions. The other supermarkets, some of them have had repeats which have happened. Some are fairly new listings. So it’s a combination of repeats as well as new listings which is leading to the growth. The ethnic Indian food category within the mainstream American consumers is getting more and more popular.
Consumers are preferring to go more vegan healthy products, you know, so you know, the Indian category is at this inflection point where we feel over the next few years it’ll just, there’ll be a huge growth in this category and which is where we feel truly Indian is poised to sit down and grow in this space.
Unidentified Participant
Okay, so thank you. And that’s it from my side and good luck for your coming quarter.
Bimal R. Thakkar
Thanks.
Operator
Thank you. The next question comes from the line of Dhananjay Bagrodiya from Alchemy. Please go ahead.
Unidentified Participant
Congratulations, a very strong set of numbers. I just wanted to ask you, are we seeing any impact of at least in us and people talking about Ozempic, Are we hearing anything from any of these players along accordingly?
Bimal R. Thakkar
Sorry, can you just repeat that? Any
Unidentified Participant
Impact from any of these players? Are they speaking about like ozempic and GLP1s reducing the intake for these kind of foods?
Bimal R. Thakkar
No, no, we are not seeing any kind of impact on that. And in fact, you know, our whole product range is vegetarian and vegan. So if anything it will lure the consumers towards these kind of products when compared to meat and other things.
Unidentified Participant
Okay, fine. And maybe a Mrs. But how is it, how is the numbers coming along in Middle east considering the whole world situation?
Bimal R. Thakkar
So the Middle east has been, I mean because of the current situation and the month of March and April we’ve seen not been able to service that market apart from a few ports because there are no shipping companies which are taking containers there. So March and April have seen a very insignificant sale out there and we hope the situation improves so that Middle east can start contributing as well in this financial year.
Unidentified Participant
Sure. Thank you sir.
Bimal R. Thakkar
Thank you.
Operator
Thank you. Your next question comes from the line of Charchit Malu with Genuity Capital, Please go ahead.
Pallavi Deshpande
Hi Saima everyone.
Bimal R. Thakkar
Yes,
Pallavi Deshpande
Hi. Thanks a lot for the opportunity and congratulations on good set of numbers. So what was the capacity utilization as of FY26?
Bimal R. Thakkar
So you know, we have different lines, different product lines. So at an average I would say we were anywhere between 70%, 70 to 75% capacity utilization.
Pallavi Deshpande
Okay. And like with Surat plant getting started, what kind of utilizations are we expecting going forward in F27 and F28?
Bimal R. Thakkar
So as I mentioned, Surat is going to be done in two phases. So the phase one we would expect about close to 35% or 35 to 40% capacity utilization in phase one. Phase two will be towards the third quarter of this financial year. So that would hardly be 10, 15% capacity utilization for this financial year.
Pallavi Deshpande
Understood. And just one more thing like, just wanted to understand at what extent are we impacted from this wall situation like from the export business. If you can just.
Bimal R. Thakkar
I’m sorry, can you please just repeat your question.
Pallavi Deshpande
So at what extent are we like getting impacted from this war situation because we are unable to export? You know.
Bimal R. Thakkar
So at the moment for us our biggest challenges has been servicing the Middle east market, the GCC market because there is no availability of ships, no one’s going there, few ports are only open. So I would say the GCC business has been impacted by at least about 80, 85% for us. All the other markets what has happened is we have containers going. I mean ships are accepting cargo there. It’s just that the transit time is longer and the freight rates have increased a little bit. But all these other markets, we’ve not had any impact.
The main impact has been in the GCC for us.
Pallavi Deshpande
So like what kind of, you know, hit we can.
Operator
Sorry to interrupt. Maybe request to return to the queue for any follow. Just one
Pallavi Deshpande
Follow up question.
Operator
There are several other participants waiting for that and really apologize to the same.
Pallavi Deshpande
Okay,
Operator
Thank you. Your next question comes from the line of Rashee Maheshwari with AXA Capital. Please go ahead.
Pallavi Deshpande
Thanks for taking my question. A couple of questions. Firstly the color revenue for Q4, can you break it down versus volume and value given the benefit of rupee depreciation that you would have also witnessed in this quarter. And if there was what was, if you can quantify what was the impact of the, the export to the GCC countries.
Bimal R. Thakkar
So I would say the growth is more 60, 65% towards the volume growth. There has been some benefit with the devaluation but majority of the growth has come through with volume growth. And the Middle east business as I mentioned, I mean March was literally, we didn’t have any shipments going to the Middle east in the month of March. April has started off with one or two ports. The GCC overall accounts for about a little under 15% of our overall revenues. So that is, that is the area right now which we are, that is the markets which we are struggling with at the moment.
So they haven’t contributed at all for March and April and we hope the situation improves because then that will help us feeding these markets back again. Sure.
Pallavi Deshpande
And you projected for thousand crores of revenue in FY27? We have done 308 crores via Ashoka. And you predicted 20 to 25% growth. There are, that’s about 385 crores. So to get the balance 615 crores in FY27 you’d require about 75% growth from the rest of the business. I was wondering what really is scaling up over here. I know that the distribution growth over here is about 100 crores is what you already exhibited in the presentation. TI in the last call you mentioned that in three years time you intend to reach to about 100 crores.
Which means that by this year end it may give up 50, 60 crores. So what is really the balance that I’m unable to reconcile with the 74, 75% growth.
Bimal R. Thakkar
So you know the guidance on the revenue, we’ve, we’ve said 925 to 1,000 crores. That’s the kind of band which we are looking at and we feel fairly confident of being able to achieve it provided the geopolitical situation improve. I mean if it continues that way, we will have to relook at the numbers and our guidance. But if things stabilize within the next month or so, which we hope then we would be able to meet our guidance of around between 925 to 1000. Truly Indian brand has grown more than what we had expected in this last fiscal year.
This year also we are hoping for a much higher growth. I mean our estimate is if everything goes well, we are looking at anywhere between 75 to 80 crores on truly Indian for this year. So that will help grow. The Ashoka brand also we feel will grow much more than what it is currently we are opening up. As I mentioned, we are looking at deeper penetration. There are new markets which are coming into play. So we expect the Ashoka brand to grow close to 30, 35% in this fiscal year.
Ankur Gulati
Got it, got it, got it. Is it possible to. Sorry to Interrupt.
Operator
Rishi sir, we request you to rejoin the Q4 follow ups please.
Ankur Gulati
Thank you.
Operator
Your next question comes from the lion of Nitech from NV Alpha Fund. Please go ahead.
Unidentified Participant
Hi sir, thanks for taking my question. So my first question is, you know, Ashoka brand, we have roughly 300 crores of top line currently and the reach of roughly 3,000 stores. So what, what sort of, you know, store additions do we anticipate to be adding for you?
Bimal R. Thakkar
No. So the Ashoka brand is not 3,000. So Ashoka is much more than that. 3,000 stores is for the truly Indian brand, which is what we achieved. So Ashoka continues. As I mentioned, the growth on Ashoka is going to come from deeper penetration within the existing stores across all our main markets. New product categories, new products that we will introduce and new markets which we are going to open.
Unidentified Participant
And if you could just mention, I believe core markets would be usa. But apart from that, which markets North
Bimal R. Thakkar
America is, which includes Canada is our core market. UK and Europe is our core market for the Ashoka brand. Australia, New Zealand, that’s also a market which is growing well for us. So these are the main markets where the Ashoka brand focus will be.
Unidentified Participant
Got it? Got it. Sir, last question. If you could give us a breakup of, you know, how much percentage revenue is coming from private people and 2D intent, I believe it’s 100.
Bimal R. Thakkar
So truly Indian. So okay, the B2B and private label business accounts for about 20% of our overall revenue. So. And the truly Indian brand is approximately 4. 4 million. 4. For 4 and a half million dollars.
Unidentified Participant
Thank you so much.
Operator
Thank you. The next question comes from the line of Ankur Gulati with Genu D Capital. Please go ahead.
Ankur Gulati
Thanks. In Q4 I guess you said there’s no Middle east revenue in March. So what was supplement
Bimal R. Thakkar
Only in the month of March? There was no shipments in the Middle East.
Ankur Gulati
Yes. What was the revenue from Middle east in January out of 197crore?
Bimal R. Thakkar
You know, I don’t know the exact number but as I mentioned, the GCC accounts overall for about under 15% of our revenues.
Ankur Gulati
Okay. Sort of let’s say 200 on a run rate basis. 30 crore is where there is a bit of a potential risk on a quarterly run rate basis. Is that fair?
Bimal R. Thakkar
Yeah.
Ankur Gulati
Okay. Second, what is the increase in logistic cost for the entire quarter which I’m assuming escalation happened in March. But if you can give me the increase in logistic cost, shipment cost. So
Bimal R. Thakkar
The increase has been roughly about 3 to 4% at the moment.
Ankur Gulati
Yes.
Bimal R. Thakkar
Of the total revenue. Yes, that’s correct. And markets like the Middle east which have just started operating there, the freight costs are very high and as I mentioned it’s just one or two ports that are currently operational. So in those markets we are sharing the cost with our distributor on a 5050 basis. So the distributors are also contributing 50% towards that cost.
Ankur Gulati
So 3% increase on 200 is 6 crores. That’s the increase in logistic cost for one month on a quarter basis. This roughly 15 18.
Bimal R. Thakkar
Correct. But the, the increase for the last quarter happened only in the month of March.
Ankur Gulati
Correct. So 6 crore increase is in one month on a quarter hundred this will be 18 crores which will show up in April quarter. Is that fair?
Srinivas Ayagari
Maybe. Bimal, I’ll take it. So March was a very big aberration month because the West Asia situation unfolded and there were a lot of containers and vessels which had not. Which had got jammed and we could not get vessels and we had to use long transit timelines towards the US markets. April we saw the slightly toning down of the freight cost coming down March you have to look at it as a very, very aberration month.
Pallavi Deshpande
After the
Srinivas Ayagari
Second week of April these numbers have toned down slightly because the situation now is more or less the same or static for some time. So you can’t just extrapolate that number. But March being a very exceptional month, we had to, we had to spend additional amounts on freight costs for. For our shippings.
Ankur Gulati
So that’s comforting. Sir, just let’s say 59 crores was your other expense in Q3. So if I have to pencil in for this quarter or next quarter, should I add 10, 10 crores at least purely because logistic cost is bumped up. I’m referring to Q3 as a base, not Q4 as a base
Srinivas Ayagari
I think you can very well add roughly around a percentage basis points in terms of the freight of what we spent right now. So apart from that I think the situation will should come into control over a period of the next two months basically.
Ankur Gulati
Got it.
Operator
Thank you. The next question comes from the line of Ravi Naridi with Naridi Investment Private limited. Please go ahead.
Pallavi Deshpande
Thank you very much. Vimalji in this adverse situation, Adfood has done very well in this March quarter and for the full year. I am shareholder since last 10 years. I never saw such energetic number in our company which you deliver now sir, how much BLI incentive we received from government in quarter four or full year of 2026?
Bimal R. Thakkar
Srini, do you Want to get that? Please. Thank you. Thank you for your encouragement.
Pallavi Deshpande
Welcome, welcome.
Srinivas Ayagari
Just one second. Yeah. So from a pli perspective for the full year, our number is roughly around 16 crores for FY26.
Pallavi Deshpande
Okay. Okay, sir, US warehouse working at what level of our capacity? Can you tell in that way?
Bimal R. Thakkar
So I mean there’s. In terms of utilization of the. We have. The warehouse is split between freezers, ambient products.
Unidentified Participant
The
Bimal R. Thakkar
Freezer is in excess of 100%. So I mean we in fact are using outside storage because our freezer space is small. Small. I mean it’s less compared to what the demand is. As far as the ambient products go, we have about 85% utilization on the ambient products.
Pallavi Deshpande
So it means we are. We will go for new warehouse designs soon, right?
Bimal R. Thakkar
Yes. The plan is to open up another warehouse as well later on in the. Probably in the third quarter. We just want to see how everything stabilizes and then we’ll open up one more distribution center
Pallavi Deshpande
In America. Okay. Okay, sir, my last question. In 2027 you had predicted 1000 crore top line. So our margin will be same or higher.
Bimal R. Thakkar
Well, you know, as the Surat facility would not be fully utilized. But we feel fairly confident that we will maintain these high teen Ebitdas which we’ve been giving guidance for. So we feel fairly confident of being able to do that. And hopefully the situation in the Middle east improves and things start stabilizing. So these are the assumptions that we are making.
Pallavi Deshpande
Fantastic result. Really. Okay, sir. Okay.
Bimal R. Thakkar
Thank you. Thank you.
Operator
Thank you. The next question comes from the line of Shiladitya Chaudhary, individual investor, please.
Pallavi Deshpande
Hello, can you hear me?
Bimal R. Thakkar
Yes, sir.
Pallavi Deshpande
Okay, so my question is on this, can you both the phases you talked about. Right. So can you tell me the peak revenue potential for each of these phases and how the ramp up of the will happen? Timeline slides
Bimal R. Thakkar
So as I mentioned earlier, at full capacity and with the second phase being executed, the Surat facility will give upwards of anywhere between 200 to 250 crores in top line.
Pallavi Deshpande
Okay. Okay. And how the ramp up we should expect over the next couple of years.
Bimal R. Thakkar
So we are hoping to get to full capacity utilization in year three.
Pallavi Deshpande
Okay. So this year we are FY27. We are expecting around 35% and then gradually ramp up to utilization.
Bimal R. Thakkar
Yes.
Pallavi Deshpande
All right, so the next question I have is on the Middle east. As you said, almost 15% of your revenues come from there. So it’s a sizable portion of the revenue. And obviously we don’t know what the situation is going to be in the future. So, so if the situation stays worse, if let’s say it stays as it is currently for the next foreseeable future, what is the impact on your guidance and what is the kind of mitigation you are looking? Can you
Bimal R. Thakkar
So throw
Pallavi Deshpande
Some light on that? Yeah,
Bimal R. Thakkar
You know all the other markets are all other core markets. We are aggressively growing in those markets and we are continuing to put it, make investments in terms of people, in terms of marketing activity. So we feel fairly confident in all these core markets on our core brand Ashoka, that we will grow upwards of 30%. That is what the goal is. So if this situation in the Middle east continues, of course it will have an impact and then we will look at revising our guidance. But at the moment we feel fairly confident of being able to get to the, I mean with the hope that over the next one or two months things stabilize, we feel confident of being able to achieve the guidance which we’ve given of around 9, 925.
Between 925 to 1000 crores.
Pallavi Deshpande
And so what is, what could be the impact in the worst case let’s say, because none of us knows what happens in the future right here in India. So let’s say it continues like this. So the impact is like 100 crores kind of an impact. What kind of impact we should think in
Bimal R. Thakkar
Terms of growth then over our financial year 26 we would look at growth of about 12 to 15% overall if the Middle east remains at
Pallavi Deshpande
Zero
Bimal R. Thakkar
Level. Right?
Pallavi Deshpande
Yes. That’s all. Thank you.
Bimal R. Thakkar
Thank you.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question you may press Star and one now. Participants, you may press Star and then one to ask a question. The next follow up question comes from the line of Mapic. Sorry, it is from the line of Aditya from Securities Investment Management. Please go ahead.
Pallavi Deshpande
Yeah, hi there. Thanks for the opportunity. The first question was on a distribution agency distribution business. So for the last two quarters we are seeing strong growth over there. So if you just help us understand what is leading to this growth and what is the outlook for this business. Have we added any new customers?
Bimal R. Thakkar
So we’ve added some new brands onto the distribution. It’s not just the tea brands that we had. There are a couple of new brands which have been added on which has helped in growing the business. And these are again brands which are complementary to our current product line. Whereas synergy with the distribution. So we continue to look out for adding on some more brands. That’s what the plan Is again which are complementary not conflicting with our products. And where there’s synergy in distribution.
Pallavi Deshpande
Are these brands larger brands like the 3 brand which we had or these are much smaller brands?
Bimal R. Thakkar
No, they are smaller regional brands which are there which we are adding on. And then even our product line in the Ashoka range also has increased which is going through this distribution company. Again where we’ve added on staples, certain oils, flour. So it’s a combination of all these things which is helping us grow this business.
Unidentified Participant
Understood? Understood.
Srinivas Ayagari
Yeah. Just. I’ll add one more thing point to this. We also have increased our SKUs also from 440 to roughly around 600. So that also helps us basically in terms of our distribution and achieving this growth.
Pallavi Deshpande
Sorry
Operator
To interrupt. We are not able to hear you. Aditya sir, sorry to interrupt. We are not able to hear you.
Pallavi Deshpande
Wanted to get a better understanding. Sorry to
Operator
Interrupt. Aditya sir, we are not able to hear you. Aditya sir, we were not able to hear you. Your questions were not audible as there is no response from the line of current participant. We’ll move on to our next question. Your next question comes from DIA from Sapphire Capital. Please go ahead.
Unidentified Participant
So am I audible?
Bimal R. Thakkar
Yes.
Unidentified Participant
Also this 12 to 15% revenue growth that you’ve mentioned. That is for FY28 or FY27.
Bimal R. Thakkar
No, no. Firstly this 12 to 15% is in. If the Middle east contribution is zero altogether. Okay. And that’s for FY27. If we are able to resume business with the Middle east as normal then we are looking at a much higher growth which is in the range of around 30% plus.
Unidentified Participant
Okay. So this 12 to 15 will give us around 925 to 1000cr revenue. Right? Obviously
Bimal R. Thakkar
No. 12 to 15 will not get to get us to that. Right. That will get us to more towards the 800 to 850 kind of number. When it gets up to the upwards of 30% that’s when we will come to the 935 to.
Unidentified Participant
So conservatively we can take 800 to 850 and if things normalize then we can reach a target of thousands. Yes. Okay. So thank you. All the best.
Bimal R. Thakkar
Thank you.
Operator
Thank you. The next question comes from the line of Rakesh individual investor. Please go ahead.
Pallavi Deshpande
Hi there. Congratulations on good set of numbers. First of all, kudos to the whole team. And my question is do we have any plans of entering Costco in the uk?
Bimal R. Thakkar
So we are based on the success we’ve had in the us. Our team in the UK is connecting with The Costco buyers and presenting the products there. So yes, we do have plans. We’ve already entered in Costco in Australia. We are also pitching for Costco in Canada. So yes, we are going to go try and pitch for Costco everywhere.
Pallavi Deshpande
Fantastic. Because one of our competitors already in there. So just wondering if we have any plans. Good to know that. And also in the Surat facility do we have any plans of like making any pizza products like frozen pizza, pizza pockets kind of stuff.
Bimal R. Thakkar
So we’ve got a line which is going to be installed in the third week of third quarter of this fiscal year where we have the capability of making pizza base.
Pallavi Deshpande
Lovely.
Bimal R. Thakkar
Yes.
Pallavi Deshpande
Fantastic. Thank you very much.
Bimal R. Thakkar
Thank you sir.
Operator
Thank you. Your next question comes from the line of Anupama Agrawal from Lucky Investments. Please go ahead.
Pallavi Deshpande
Yeah. Hi. Thank you so much and congratulations on great numbers. Sir, just one question. So you mentioned in your opening remarks you spent about 124 crores capex in the last two years. All of that has been gone into the Surat plant including land, building, machinery, everything. And how much are we going to spend on the phase two?
Bimal R. Thakkar
No, no. So 124 crores has been spent over the last two years which includes our Brownfield which is Nadiad and Nasik facility and Surat. Surat. Total investment in surat with phase 2 completion will be a little above 100 crores. The balance amount has gone towards the existing factories where we increased capacities and done some modernization.
Pallavi Deshpande
Is there still some portion of Capex spending for the phase two?
Bimal R. Thakkar
Yeah. Srini, do you want to let them take that question please of how much is still pending in phase two?
Srinivas Ayagari
Yeah. So basically if you look at our overall Capex the spends have been 124 crores for both Greenfield and Brownfield projects. The majority of the Capex spends have happened in the last two years. There will be some bit of Capex still. As Bimal was saying the new line for pizza base will be coming up. So those payments will be coming up. This will be roughly around 20 to 25 crores this year we will be still spending on Capex. A majority. Part of it would be the new line and some balance payments for the phase one and phase two basically which will happen.
Pallavi Deshpande
Understood. And so just try to assume that hundred crores phase one and another 20, 25 crores phase two. So put together 125 crores should give us upwards of 200, 250 crores.
Bimal R. Thakkar
Yes
Operator
And
Bimal R. Thakkar
No. So the again I don’t know the Surat total. Surat phase one, phase two is about 100 crores.
Pallavi Deshpande
And
Bimal R. Thakkar
The balance 40 to 50 crores by the end of this fiscal year will be towards the brown fee which we’ve already spent in these last two years. And there will be some amount which will go in Nadiad nasik. Maybe around 15 to 20 crores this year and another 10, 15 crores balance left for Surat.
Pallavi Deshpande
So. Sir, sorry to interrupt.
Operator
Anubam sir, we request you to return to the question. Sure, I’ll
Pallavi Deshpande
Come back in the queue.
Operator
Thank you so much. The next follow up question comes from Rishi Maheshwari with AXA Capital. Please go ahead.
Pallavi Deshpande
Thanks for the opportunity. Again, there is a directive from the Supreme Court on the refund of the tariff which you may have been charged earlier. Is there any benefit that has already arrived to ADF via subsidiaries or anything that is in prospective that we should assume?
Bimal R. Thakkar
Yeah, that’s a great question, Rishi. Firstly, no. Nothing has been received in this last fiscal year. We have made applications for refund and we are keeping our fingers crossed that we get it in this financial year. So when it does come in we will accrue it in this fiscal year.
Pallavi Deshpande
And how much is that application amount for?
Bimal R. Thakkar
So it’s upwards of one and a half million dollars.
Pallavi Deshpande
All right. And initially you mentioned the benefit of rupee depreciation. I asked in the color revenue for Q4. You mentioned 60 to 65% was volume growth. Was the balance on account of rupee depreciation. Have you taken pricing improvements as well?
Bimal R. Thakkar
So it’s again product mix and. No, we haven’t. We haven’t increased the price. So it’s volume growth, product mix and some benefit towards the rupee depreciation. Yes. So combination of these. Thanks so much. All the best. Thank you.
Operator
Thank you. Ladies and gentlemen, we request participants to limit themselves to one question each and rejoin the queue for any follow up questions. Your next question comes from Aditya from Securities Investment Management. Please go ahead.
Pallavi Deshpande
Yeah. Hi. Sir, you mentioned that we had 16 crores of PLI incentive this year. I believe this is the last year for this PLI incentive. So would this. Would this amount be zero next year?
Bimal R. Thakkar
No. So it’s. I think there’s two. This financial year. 27 is. Yeah. This year will be the last year and then. Yeah, after that. I don’t know what if there are any new schemes which will come in from the government. This PLI scheme which we got was for marketing expenses. So whatever marketing monies we spent, 50% of that was given to us by the Government. So that is how. That was the scheme we got. We did not take. We did not get anything under the capital exp. Expenditure or anything of that sort.
Pallavi Deshpande
Understood. And how much we are expecting for FY27?
Srinivas Ayagari
Yeah. It should be in the same range. It should be in the same range.
Pallavi Deshpande
Understood. And now sir, sorry to interrupt.
Operator
Aditya sir, we request you to return to the queue for. For the. Thank you. We request participants to limit themselves to one question per participant. Your next question comes from Sourav Peria with Samiksha Capital. Please go ahead.
Pallavi Deshpande
Thanks for the opportunity again. I just wanted to understand one thing. You guided FY27 revenue to be in the 15% range if there is zero contribution from the Middle East. But if the contribution is there, 30% growth. Am I right on this point?
Bimal R. Thakkar
Yes, sir.
Pallavi Deshpande
But the middle is contributes 15% to the total revenue. So I don’t understand the math behind it. The middle is just not contributing. We are able to grow at 30%.
Bimal R. Thakkar
Sorry, do you want to just.
Srinivas Ayagari
Yeah. So. No. So the question from one of the participants was what would be the contribution for Middle East? So here what Bimal answered. Mr. Bimal answered that if there is zero contribution from the Middle east then you go down to 15% in terms of your growth rate. But if the situation holds good in the next couple of months we are on the target to grow at upwards of 30%
Pallavi Deshpande
Overall. Not just new industry.
Bimal R. Thakkar
Correct.
Pallavi Deshpande
Can you give me a revenue bifurcation?
Operator
All right. Saurabh sir. Yes. Please go ahead.
Pallavi Deshpande
Can you give me a broad revenue bifurcation between all your brands? So basically your total revenue breakup of your FY26 revenues.
Bimal R. Thakkar
No, we don’t normally share detailed information. But As I mentioned 70% of our revenues comes from all our brands. And there is then the B2B and private label business which is the balance part.
Pallavi Deshpande
Okay. Thank you. Thank you. Yeah.
Srinivas Ayagari
Also as a guidance, you could see actually Ashoka, we have been giving the guidance of a flagship brand. So. So you can actually work out those numbers.
Pallavi Deshpande
Okay. Thank you.
Operator
Thank you. Your next question comes from Anupa Magarwal with Lucky Investments. Please go ahead.
Pallavi Deshpande
Thank you for the follow up. So what so mentioned, you mentioned about 60, 65% of growth coming from volume growth. What percentage of that growth has come from debottlenecking activities at Nadiad and Nasik in FY26? And how much are we looking to debottle next further in existing capacities in FY27?
Bimal R. Thakkar
So you know, in the debottlenecking there were certain lines which we were totally full up on capacity. So that has helped us get this growth coming in. So these are certain flatbreads snack lines which have helped in growing. So most of the growth has come from debottlenecking and addition of these capacities.
Pallavi Deshpande
Any further debottlenecking FY27?
Bimal R. Thakkar
Yes, we are. As Srini mentioned, there is about close to 15 crores. 15 to 20 crores which will further be invested this year in both these plants. Some will be again debottlenecking and some will be for modernizing modernization.
Pallavi Deshpande
Understood. Thank you so much for all your questions.
Bimal R. Thakkar
Thank you.
Operator
Thank you. Participants. You may press STAR and then one to ask a question. To ask a question. You may press star and one. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Bimal R. Thakkar
Thank you everyone and hope to catch up with you all in the next earnings call. Thanks once again and have a great day.
Operator
Thank you on behalf of ADF Foods limited that concludes this conference. Thank you everyone for joining us. And you may now disconnect your lines.