Foods And Inns Ltd (NSE: FOODSIN) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Milan Dalal — Managing Director
Anand Krishnan — Chief Financial Officer
Moloy Saha — CEO
Analysts:
Deepali Kumari — Analyst
Krishan Sharma — Analyst
Venkatesh Rangathan — Analyst
Shaket Kapoor — Analyst
Natasha Singh — Analyst
Kaushal Sharma — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome TO Foods and INS Limited Q3 FY26 earnings call. As a reminder, all participants 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. Please note that this conference is being recorded. I now hand the conference over to Ms. Deepali Kumari. Thank you and over to you.
Deepali Kumari — Analyst
Hello and good afternoon to everyone. On behalf of Orient Capital Markets Limited, I thank you all for joining the Q3FY26 earnings conference call of for Sanins Limited today. From the management we have Mr. Miller Dalal, Managing Director, Mr. Moloy Saha, Chief Executive Officer and Mr. Anand Krishnan, Chief Financial Officer. So without any further delay, I would like to hand over the call to the management for their opening remarks. Thank you and over to you Sir.
Anand Krishnan — Chief Financial Officer
Hi, good evening. This is Anand here, the CFO at Foods and Inns. We have with us Mr. Molai who is the CEO as well as Mr. Milan Dilal who is the MD at the. Thank you for joining us today. Q3FY26 was a very steady quarter operationally marked by stable volumes and continued progress. Across our growth platforms. While overall sales tonnage in Q3 remained flat, this was largely due to deferred call offs from US customers amid tariff related uncertainty. Average realizations were lower on a year on year basis reflecting sales from inventory produced during 2025 crop season at significantly lower raw material costs. As highlighted earlier, our pricing continues to remain a pure pass through of raw material movements with no structural impact on absolute gross margins across our core fruit. And vegetable pulping business. Export demand for mango products remain strong supported by onboarding of new customers. Early indicators of favorable Totapuri flowering suggest continued softness in raw material prices in the upcoming season, enhancing India’s competitiveness versus other countries. In tomatoes, crop procurement commenced with a slight delay compared to prior years due to seasonal factors and is progressing as of now. Our frozen food business continues to demonstrate strong growth momentum with Q3 volumes up approximately 30% and 9 month FY26 volumes up around 37% on a YOY basis. Improved realizations were driven by a higher contribution from value added products in the frozen category and during the quarter we commenced supply to two large financially strong airline customers.
We remain optimistic on sustained global demand growth in this particular category. In line with our focus on building scalable and differentiated platforms, we have initiated a spray drying capacity expansion of 120 metric tons per annum and are progressing on the international expansion in Tetra recart with improving capacity utilization and repeat orders, and are strengthening our brands through targeted marketing and digital initiatives. Alongside this, investments in automation as well as solar energy at our Wankel and Gunde plants and our Pectin project continue to reinforce our focus on efficiency, sustainability and long term value creation. Finally, our FY25 incentive claim has been submitted to the Ministry of Food Processing with all required documentation completed before December of 2025 and as we speak we are awaiting disbursement at any point of time.
It could be either tomorrow, the next week or probably in a month’s time that we expect. Overall, we remain focused on disciplined execution, cost efficiency and leveraging structural tailwinds across our key verticals to drive sustainable and profitable growth. With that, we’ll be happy to walk you through the details and take your suggestions. The forum may be open for questions. Thank you.
Questions and Answers:
operator
Thank you very much. So we’ll 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 N2 participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Kaushal Sharma from Equinus Capital Ventures Private Limited. Please go ahead.
Krishan Sharma
Hello hi, very good evening. I’m audible.
Anand Krishnan
yes you are.
Krishan Sharma
Good evening. Yeah just want to get some clarification on Q3 flat volumes. So could you please tell me what percentage of revenue is coming from the US and what kind of tariff was earlier in exporting to the US and what is the current status.
Anand Krishnan
US volume overall annual basis approximately 10 to 12% but overall we see the business is growing in last one year it has grown and we though due to the tariff it is temporarily paused and again it started and it’s likely to increase because we are getting good traction on the frozen category business from us.
Krishan Sharma
So was there any tariff on our products we are exporting to the US because of the receipt of tariff it.
Anand Krishnan
Was at the peak time it was 50% because including the additional tariff on Russian oil 25% so it is 50% now. Mango pulp had reduced to 25% but frozen category till continuing 50% but with the recent development likely to be 18 or 19%. But that’s the formal notification yet to receive.
Deepali Kumari
So just to clarify and add more on this, we were not impacted with Our orders. It’s just that the call offs were slightly slower basically because there was lack of clarity because the government of us has actually now promised some tariff refund to the importers there as such. So there was some slowness to that. But most of our customers were happy to actually not happy but then they were willing to actually take some hit at their side so that the business could continue.
Anand Krishnan
Okay, sir. And sir, we are expecting a good call off in Q3 as per the last call. So what is the status for going forward?
Moloy Saha
So in terms of the local demand, Q4 is expected. Q4 and Q1 is supposed to be the best that happened historically and we are in line with that. As we actually have seen in the month of January and February.
Krishan Sharma
Could you please tell me any guidance in the absolute EBITDA and the gross profit in the next two years as our raw material, the cost has been reduced and our absolute margin is hit. So can you please guide make any guidance on absolute number of gross profit in terms.
Anand Krishnan
Thank you. That you are actually first of all asking for the absolute number. But I mean at least I understand that you’ve understood our business. Right? But having said that, there is no guidance that we want to stick to this. But rest assured, as much as you want incremental EBITDA and gross margins on an absolute basis, there is a target that we have internally to achieve. And I mean all of us are in our jobs just to have that incremental number in. So you can be rest assured that those are decent targets that we have.
Guidance on your target that would be very useful for us to track. Sorry, sorry, I didn’t get your question.
Krishan Sharma
As you said, you have a target to achieve in absolute terms. Would you please give me the absolute, the target that you have so that we could track on that basis?
Anand Krishnan
We don’t want to give a public guidance. That’s the only thing.
Krishan Sharma
So Anand, I would just say that we, the team will have to endeavor to do better than the current EBITDA margin margin absolute.
Anand Krishnan
Absolutely.
Krishan Sharma
Got it. Thank you very much for answering my question.
Anand Krishnan
We are internally looking at anywhere between 10 to 15% growth on EBITDA as well as gross margin on a minimum basis on a year on year basis. That’s the internal target that we have. But that’s not a guidance. Please. 10 to 10 to 15% in EBITDA and 20% in what I said around. 10 to 15% in both gross as well as EBITDA is the internal target, not the margin, the growth absolute ebitda. I am talking to in the absolute term that you are targeting 10 to 15 in EBITDA and gross. Right?
Krishan Sharma
Correct. Correct.
Anand Krishnan
No, I’m sure you have understood because you have understood. You have asked me the right question. Just for the clarity of others, I’m just repeating this. That’s it.
Krishan Sharma
Thank you very much.
Anand Krishnan
Yeah.
operator
Thank you. A reminder to all the participants that you may press Star in one to ask a question. The next question comes from the line of Venkatesh Ranganathan from Banana Capital. Please go ahead. Mr. Venkatesh Rangathan from Banana Capital, please proceed with your question.
Venkatesh Rangathan
[Foreign Language]. In terms of strategic partnership.
Anand Krishnan
Venkatesh ji, we always keep on exploring all these options and a lot of things are actually going on in the company with respect to exploring options. But unfortunately till the deal is signed we might not be able to tell you anything on it. We sell to Laknor for our mango pulp and we have a lot of other retail traders. We have agents who are now working with various companies.
Venkatesh Rangathan
Any MNC companies or any listed group that you supply to in the uae.
Anand Krishnan
We have MNC companies in India whom we sell to like Unilever, Nestle, etc. But Middle east, we see tremendous scope in our frozen foods and Tetradicat and other areas. Lucknow of course has been our client for over 45 years.
Moloy Saha
And Mr. Venkatesh, we are exploring with large retailers based out of Middle East. As such, I wouldn’t want to name them as of now. Once the deal is signed probably you might be able to know about it.
Venkatesh Rangathan
When is that deal expected to be signed? Are you in talks to sign any deal, sir?
Anand Krishnan
It is not one time for that, sir.
Moloy Saha
As I. As Mr. Anand communicated sir, for any company we look for all the bit of better opportunity. Many things is we are working on it the appropriate time. I’m sure the company will be able to convey all the good news with our shareholders.
Anand Krishnan
Yeah. So Mr. Venkatesh, and as I already told in the opening remarks as well as in the investor presentation that we have already signed up with two large financially found airlines. So in tune with that we are actually working on some other. I mean strategic partnerships as such. Hopefully everything should be in place and we will be able to announce airlines.
Venkatesh Rangathan
Are from Gulf region or are they from the US region?
Anand Krishnan
We don’t want to give any details as of now due to. I mean competition data. That’s. I mean we don’t want our competitors to go there. As of now we have cracked a few airlines is all that we can tell you.
Venkatesh Rangathan
And sir US Tariff business affects kia effect or change what is the percentage terms?
Anand Krishnan
Venkates, this question was asked by your previous by the previous caller I would.
Venkatesh Rangathan
Request you to Sorry, I might have joined late so that is why I. I’m asking you just repeat you sir.
Anand Krishnan
There is no cancellation of any order. In fact order volume and value is increased compared to last year. However, due to this non clarity on the tariff situation temporarily customer had paused.
Moloy Saha
The dispatch but difference you didn’t.
Venkatesh Rangathan
I don’t know if you got my question right. I am asking the percentage different before tariff it was how much and after tariff it is it will be how much. What is the percentage difference in both the way.
Anand Krishnan
Duty. Yeah, okay.
Moloy Saha
Yeah. Earlier it was before the tariff it was 0.06% when the tariff that is. In quarter two you are talking or quarter one.
Venkatesh Rangathan
Quarter one prior to Trump having announced I’m having the tariffs the peak tariffs of 50% now we will be down between 18 to 25%. But final clarity would come general guidance given by the trade department India and the US says it would be around 18%. Having said that our clients were accepting at 50% as well. But with the delayed call off now with things getting little better and the possibility of them getting a refund and all that we our orders which were put on hold are now likely to be dispatched soon enough. And our total market share out of the revenue top line that we were doing, what is the US related revenue?
Anand Krishnan
Around 12%.
Venkatesh Rangathan
Only 12%?
Anand Krishnan
Yes.
Venkatesh Rangathan
Okay. Sir, what about tomatoes? You said we are coming with the late season. So we did not make the required sales in the this quarter result. Will that be translated into the sales in the quarter four results?
Anand Krishnan
Partly yes and partly already.
Venkatesh Rangathan
45 days are over and another 45 days are pending. So how much was the order of which is executed in the 45 days and how much will be executed in the next 45 days?
Anand Krishnan
Very difficult question you have asked because. Tell me what is the total order of tomato that we have already? It’s a Since the season is going on order negotiation is under process and. We are on date. While we are speaking how much order. You have that we won’t be able. To give absolute figure again I’m highlighting.
Venkatesh Rangathan
How can you not give? Sir, we are the shareholder. You are putting all disasters results from many quarters. According to me, I’m not getting any value appreciation when I’m asking you question. You said he cannot tell you this.
Anand Krishnan
Is not how a problem and you are ready like doing it. Just have patience. Let him Answer and then have a counter question. Kindly don’t interrupt. This is the answer.
Venkatesh Rangathan
Okay. How much is the revenue?
Anand Krishnan
Revenue till 3/4. For the 3/4 we are able to get around 65 crore from tomato paste and other tomato related product. And we are able to. I believe that if we can able to produce now we have started, it can increase by another say 20%. But our overall order position is much higher than that. And tomato production.
Venkatesh Rangathan
What is the balance order position as on date we are talking or. Or the latest that you don’t allow me to talk. Then how can you continuously you are. Pausing me and asking. Let you have some patience. You just allow me finish and then you ask me. I am very happy to give all your answers, sir.
Anand Krishnan
No, not necessary, Venkatesh. If you are going to talk so rudely, we don’t need to necessarily give you answer. It’s your choice to either be invested in the company or not. It’s about our strategy to actually say as to what we need to do with our business. And what information is public and not public. So I don’t expect you to actually speak to us in this manner.
Venkatesh Rangathan
You have been saying I cannot say. I cannot say. And you see your own performance from past two years, three years. You will come to know what we invested for so long. You will also come to know we.
Anand Krishnan
Understand what we are doing. There are certain times there are problems in certain businesses because of certain different reasons. Not everything can be explained to a shareholder. And it is not necessary to explain everything to a shareholder.
Venkatesh Rangathan
I just ask you the motor order that you have as on date. That’s all.
Anand Krishnan
So again I am repeating the tomato order. I told you that already we are. How much we have sold in three quarters. And what is the likely to happen in next quarter? Also already I answered this. Now you are asking the tomato. What is the thing? I told you that everything is under negotiation. Because during the processing time negotiation is always. There will be negotiation. And once the season is over, then the final order always crystallized and signed. So unless both the parties sign the contract, it will not be a right for my side to give you the figure. Because that is the industry’s practice. Industry never get order during the season time.
When the season is over, then only all the orders get crystallized. Because this is a agricultural commodities pricing of raw material to be fixed once the season is over. That’s the standard practice, sir.
Venkatesh Rangathan
So my question was again I’ll repeat it. What is the balance order as on date that you have in hand which I still have not received a reply to.
Anand Krishnan
I just told you, sir. We have already have around 60. 65 crore. And this quarter we’ll be able to do another 20%. I already gave this answer to you.
Venkatesh Rangathan
Okay. I’m sorry. I did not hear that. So my understanding is 65 crore. We have to execute, right?
Anand Krishnan
Mr. Ventures, you can join us.
Venkatesh Rangathan
Current question going on. I. I just want the clarity. Please don’t cut me here.
Anand Krishnan
We have. If you allow me to tell. I’ll tell you anyway. Continue. Okay. I think your something is selling. Tell me, sir. Any other thing from your side?
Venkatesh Rangathan
Yeah. So my understanding is 65 crore is the unfinished order we have in hand for tomatoes. Am I right? Is my understanding correct?
Anand Krishnan
Your understanding is wrong.
Venkatesh Rangathan
Okay.
Anand Krishnan
We have already sold worth 65 crores. Mr. Venkatesh.
Moloy Saha
Doing. Why? Why are you unnecessary being aggressive into it? This is a commodity. And the nature cannot. We cannot dictate to nature that what the matter at what date we will get our customers and we will. Please do not interrupt me. You ask a question. You better have the patience to listen as well. So our CEO has told you that as in our Coca Cola contract with for mangoes it is at the end of the season that the final contract and the final pricing is done. He’s told you. 65 crores has already been executed. And 20% more is expected.
Now if the procurement can happen more there would be further order book position. If there is a delay in it, there would be an overflow to next year.
Venkatesh Rangathan
Okay, now I get it. Thank you. I’m done with my questions.
Anand Krishnan
Thank you.
operator
Thank you. I reminded to all the participants that you may press star and one to ask a question. The next question comes from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Shaket Kapoor
Namaskar teams. Hope I’m audible.
Anand Krishnan
Yeah. Hi. You are audible.
Shaket Kapoor
If you could just explain to us the seasonality aspect on a quarterly basis. On the pertaining to the nature of the business. And then also to the debt level that we are carrying. I think so. Our finance cost payment is to the tune of 1211-13 crore on a quarterly basis. However, there has been a significant deduction from this number for December 24 and 25. So these are my first two questions.
Anand Krishnan
Hi. With respect to the interest cost reduction. I’ll take that answer first. I’ll take that question first. Sorry. That there was a basis point reduction that the RBI actually did around 100225 basis point. So that that benefit has actually come on to us. So if you see on a Yoy basis the interest cost has come down. But with respect to the long term debt we had actually paid down around 20 odd crores as compared to what it was in the last year, same quarter. So all in all that’s where the mix has actually changed and the interest rates have.
Interest cost has actually come down. So if I’ve answered this question right and if you’ve understood then probably I’ll move on to the next.
Shaket Kapoor
So then you provide me with the net debt number. Sir, whether between breakup of both long term and the working capital requirement.
Anand Krishnan
Okay, just a second. As of now my total Debt is around 460 crores approximately. All long term and short term put together.
Moloy Saha
No, no. Long term is only around 50.
Shaket Kapoor
Yeah. So long term is 50 crore.
Anand Krishnan
Correct. And the balance is our working capital requirement short term.
Moloy Saha
That’s right. So it increased from 350 to 410 recently. It is basically because of the incremental production in tomato and all that we have actually done and the other inventory which is still there in the books.
Shaket Kapoor
Okay, sir, then you could now explain the seasonal aspect of the business and how should investors look for our performance on a quarterly basis with the peak and the lean quarters.
Krishan Sharma
Okay. Going to be very difficult because basically mango is a summer fruit and production happens in summer. And basically our clientele is a juice manufacturer. And generally, especially in India, not necessarily around the world, but in India it’s a summer drink and not necessarily a winter drink. So our typical contract goes over 15 to 18 months. And the call offs do happen. Production has to happen around summer. But there is extended summer, there is short summer and generally, generally the pattern is anywhere from April to July. As far as tomatoes are concerned, there are two seasons and it’s more in the colder times like winter, which should have started by end December, was slightly delayed and has started in early February.
Having said that, quarter to quarter is not a great way. Yes, we have to come up with our quarter to quarter performance and report. But year to year we are almost comparable by way of our production, by way of our sales. If anything, Maloy or Anand want to add.
Moloy Saha
Anand, if you want to add.
Anand Krishnan
So with respect to the seasonality of the business, basically what you need to understand is that since the raw material is available only three months of a year and our production needs to be done. So you cannot look at this business typically on a quarter on quarter basis. You have to look at it as to what the company is doing on. A year long basis. So a lot of our contracts are more than a year Long say example Coke and all that we actually deal with have a 15 to 17 month contract window that we actually have. So ideally it’s that contract period that you have to see to actually assess the business. But having said that, it’s very difficult to assess it that way. So it’s the year on year absolute growth in gross profit, absolute growth in that you should actually track to see as to how the business is doing. So that’s the best way for any analyst to track this business.
Moloy Saha
Just to get to that point then what factors have alluded to the drop in profitability and the revenue for the nine months. If we compare the nine months performance.
Shaket Kapoor
Sorry, sorry, can you just repeat the. Question I am pointing towards?
Anand Krishnan
Yeah, definitely Sir. For the nine months ending 31st December 25th our revenue has been to the tune of 580 crore which was 610. Crore. For the previous year where the profitability has taken a toll from. It has dipped from 20 crore to 12 crores. Whereas there has been savings in front of for finance cost also. But then also the profitability is lower. So what explain these dips in their business, the turnover as well as profitability for the nine months. The standalone numbers, if you were to actually see the gross profit. I’m just talking about the main business first and then we can actually come to the console if you want. So it’s important to understand the main business. Right. So that’s why I’m stressing on the standalone numbers for now. First the gross profit has actually increased from 216 crores to 235 crores. So there has been an 8.7% increase in the gross profit on a nine month basis. But you are right in actually saying that the EBITDA has actually gone down wherein it is down by around 10 odd crores in the 9th month basis.
So a part of it, a large part of it can be explained by the M2M margin. That’s the M2M forex loss that we actually incurred wherein we had hedged the exports that we had actually done at a certain rate and because of the depreciation in rupee that has actually hit our mark to market in the business. So that’s necessarily not a cash loss in the business. But then since the exchange is booked we receive only that much of inflows. Right. So that’s what has actually happened. So optically that’s looking like a loss. So that’s one part of it.
The other part has also been because of the freight related things that have actually happened and the other operational expenses that have increased. But having said that come Q4, I think we should be in a much better position on the EBITDA basis with a growth as compared to what it was last year. That’s something that you can take for granted.
Shaket Kapoor
So now can you give the color for the console part? I am trying to make sense when we are valuing the company, we are always looking this as a consolidated entity.
Anand Krishnan
What you need to understand is that between the standalone and the console it’s only a difference of revenue of on a full year basis around 20 to 23 crores. Because Kusum is the business that actually adds on to the console right as of now. And that business is slightly at an EBITDA loss as we speak today. Basically because we are actually expanding our footprint geographically and we are trying to invest into the brand Kusum as such. So I deliberately excluded that just so that you could understand the core business as well as the Kusum business.
I mean if you were to just understand that.
Shaket Kapoor
I got your point there, but a small point and then I may join the queue is that I’m trying to just work out that on a top, on a, on a top line decrease of say from 609 to 580, the profitability has gone down by 8 crores. So just if you could just give that mix that what has attributed to this decline and then on a comparable basis for the year as a whole last year we have done closer to 50 crores of profit. PBT number. So this performance, this, this gap is going to continue for this financial year.
So for this year we are not expecting any growth on, on the property.
Anand Krishnan
No, we are. You can expect the gap to be closed and be bettered by Q4 is all that I’m trying to say. Because what is there in that? 50 crores is basically the PLI income as well. So the PLI income is going to be coming and our PLI incentives are at a much higher number than what it was last year. That’s number one. Number two, our Q4 is supposed to be one of our stellar quarters. Historically that’s been how the business has actually performed. So ms, if you need to add.
Moloy Saha
Something, I think sir, we’ll be able to what you told that last year total profit before tax is around 52 crores I believe. And, and though this year revenue is a challenge because our realization is lower compared to earlier years. But we are expecting a higher volume if we consider the projected sale of Q4. So while there will Be a higher volume but revenue will be under stress due to the rural relation but profitability will be maintained and likely to be better than last year.
Shaket Kapoor
Okay and the last point on the PLI friends are what’s. What is the number that we have factored for the last financial year and what should be factored for the current year? FY26, March 26. How much are we factoring in in.
Anand Krishnan
Terms of plidding the PLI amount for the current year? Last year we have given around 25 crore. This year we have submitted our application it is under process. So today we may not be able to give the exact figure but we believe that based on the our sales and all these things it will be similar like last year maybe little higher than last year.
Moloy Saha
Yes, higher than last year is what the number is. We don’t want to confirm on the number because it is all government related. So we have applied for a certain number. We are 99 hopeful that that should be the number that we should get. So. Amount we have received sir, 25 crore.
Shaket Kapoor
Correct sir not in FY25. That was for FY24.
Moloy Saha
Yes, that was for FY24 received in FY25.
Shaket Kapoor
Okay and the figure for 25 crore that we have factored for March 25 that money has been received by us or that is still pending.
Anand Krishnan
We. We approve on actual basis on cash receipt basis. Come again sir, we book the income in P L Since it’s a government related thing we book that on actual receipt basis.
Shaket Kapoor
Okay, yes. And lastly sir, out of the 50 crore long term debt can you please put forward the reasons for which the long term debt is being there? For what kind of capacity addition or product mix change we are anticipating how is this money going to be utilized?
Anand Krishnan
Sorry, the long term debt that actually we have actually repaid around 20 odd crores.
Shaket Kapoor
No, no 50 crore. For what purpose?
Anand Krishnan
So basically we are getting incentives under the PLI Right? So we have invested under the PLI as well as outside the PLI I mean for the growth of the business as such. So that’s something that we have been talking about in all the previous investor concur that we have actually had. So it was for that related capex. That we have done so I again.
Shaket Kapoor
Missed it sometimes My manager line was not. I could not hear you out completely. Can you come again? Once again.
Anand Krishnan
Was actually taken for the capex that we had done for the incentives that we are receiving under pli. So there were certain commitments that were done if you see our investor presentation so the greenfield plants have actually been given if you were to even see the annual report the greenfield plants at Vankal is one of the capex that we actually did apart from a few brownfield capex that we did at Gunday for the spray drying plant, for the cold room, for the frozen food factory and all those things. So all of it is a part of that PLI Apart from which non PLI investments was the tomato processing plant that actually was commissioned around November of 2024 as such so.
So all the capex was actually a part of the 50 crore long term loan that you actually see.
Shaket Kapoor
Okay and last point is that then what is precisely our cost of fundman? I’m just trying to make sense that we paid 58 crore as the finance cost on a consolidated basis for March 25this year would be fighting. So on the lower side since 9 month number is 36 so are other factors also that has been embedded in this finance costs. Any bank charges or some something more than the working capital and the long term finance cost that is being embedded in this number 58 crore.
Anand Krishnan
Yeah, the bank charges whatever is a part of that is actually a part of this interest cost. Yeah. In entire bank related cost everything comes.
Shaket Kapoor
In this because what is the blended cost of fund then?
Anand Krishnan
And our current rating, Current rating is triple B as per the crystal and the current interest range is around 9.22 9.8% range.
Shaket Kapoor
And when is this rating due sir?
Anand Krishnan
April. Apr 26. After the financial year.
Shaket Kapoor
Okay. Right sir, to have better understanding post the call so this. Is there any window or medium by which we can have an interaction going ahead?
Anand Krishnan
Where do we just write the mail to us we’ll be happy to respond.
Shaket Kapoor
Correct. Thank you sir and I’ll join the queue.
operator
Thank you. I reminded to all the participants that you may press star and one to ask a question. The next question comes from the line of Natasha Singh, an individual investor. Please go ahead.
Natasha Singh
Yeah. Hi. Thank you so much. I have a few of the questions. One is that recently that you have fraud fraud into Hong Kong, Finland and the Gulf region.
operator
Which of this job is showing but clear? Can you probably speak on a phone directly? Maybe I don’t know whether you’re using a speaker or something.
Natasha Singh
Am I. Am I clear now?
operator
Yes. Please come closer to this mic if you are using your mobile phone or your headset.
Natasha Singh
I’m using my phone and which is. On my ear now it is better.
Anand Krishnan
It’s better.
Natasha Singh
Yeah. So I was saying so. Yeah. So in recently you have gone to the international market Right. Where you have fraud into fried into Hong Kong, Finland and the Gulf region. Which of the geographies is showing the strongest initial traction for your B2C brands like GreenTop and Madhu.
Anand Krishnan
As of now, if you ask me, I think we are doing quite well in Russia.
Natasha Singh
Okay.
Anand Krishnan
Middle east has also. Middle east just started, but it will take some more time. Hong Kong is steady. It’s a steady growth, not a big growth. But yes, we launched our product, we got the repeat order. It’s multiplied by two X. But since the base is low, so it may not be a quite substantial figure. But we expecting that Hong Kong likely to be more in near future. We have added new product but our B2C Russia is doing quite well now. And soon we may start in us also our B2C program product team Tetradicate pack. So I think I must say that Tetradicat is something is giving a very encouraging visibility for the company.
Not only in our own brand but as well as a private level. From USA customer, from Russian customer, from Europe customers. So we see a good opportunity near future.
Natasha Singh
Okay. Okay. So recently your packing has been approved by the large mnc. Right. So what is the current status of converting these approvals into commercial contracts? And what portion of the 15 crore revenue potential is expected to be realized in financial year 26?
Anand Krishnan
Yes, it’s a good question. Last call. Also we told that we have submitted our sample and the sample is getting tested at their site. Because it’s a long process. As you know, this is this product is used in their processing very minimal quantity. So unless they complete the consumer testing, we may not be able to start the commercial supply. So as of now we from the only couple of customers we have some visibility that in the month of March we may get some commercial order. But major customers likely to come from the Q1 of next year. So it’s a long process. It’s almost six to seven months process before we get the final order.
So that’s the concern. But this year may not be substantial sale. I mean revenue in our kiti. But next year onwards you are expecting that at least 70, 75% of our capacity we can able to utilize.
Natasha Singh
Okay. Okay. And so in your last quarter the financial 26 your volume growth was 35% and the addition of two airline customers has been done. So. So what is the current capacity utilization for the frozen food lines at Sinal and Vankal?
Anand Krishnan
I must say now Vankal is a vegetable processing. Whenever vegetables are available, it’s 100%. If vegetable not available, we Are unable to run. But since we have installed fungal vegetable processing utilized more than 65 to 70% and we expect that it will likely to grow and snacks line in nastic and Indian bread snacks and some of the part of the vegetable in Nasik facilities for fully running. In fact we are. I mean I must say we have a larger order than our capacity. So that’s why we are running three shifts now night shifts also working.
So it’s a very good moment for the frozen and whatever report we are having and statistical report as well as customer feedback. We strongly believe this this segment is likely to grow in the same pace for next three to four years across the world. So a company I think we must very seriously look in this sector and continue to grow. And wherever we need to do tweaking of the capacity. We are looking into it as a short term. As a long term. Short term and long term both we are looking how to increase the capacity to fulfill the commitment.
Natasha Singh
Okay. The last time we spoke about this tomato pulpy, right? And because of some delay in tomato crops because of the seasonal sector. So how long this delivery impact your ability to meet the. You know, more than the doubling of your market share.
Anand Krishnan
Yes. Yes. As you guys are doubling the market. Not market our capacity we’ll be able to targeted double. But unlikely this year we will be able to do because already crop delayed. And then as of now we have started getting whatever is our part a requirement. And we hope to continue the same thing till April. If being agricultural commodities we do not know. But we are quite hopeful that till April we will be getting the same pace. If we able to produce till April at the full capacity which you are doing currently. I believe that we can able to recover substantially as of today.
May not be able to tell you how much you have to do, but substantially able to cover.
Natasha Singh
Okay. Okay. That’s it from my side. And thank you so much for answering the question. Thank you.
operator
Thank you. The next question comes from the line of Kaushal Sharma from Equinix Capital Venture Private limited. Please go ahead.
Kaushal Sharma
Just one follow up on our boring. Like you said that currently we are having 410 crores of short term borrowings. And as compared to the March we have around 362 short term borrowings and the total prices has fallen significantly. And you have mentioned in Q1 Financial 26 that the working capital requirement should be less. So I just want to know why the inventory is being increased or why the borrowing increase in the form.
Anand Krishnan
As you know, we are more focusing on Non mango business. Non mango business means we are focusing on guava, Tomato is the big bet. Then chili, garlic, ginger, these are all seasonal. During the season we have to produce and that same stocks we need to hold for call off for next average next six, seven months. And other than mango. So as we produce we need to have the stock built up. We need to have the working capital requirement. So this scenario is going to continue. As and when we are diversifying our business. Other than mango, if there is a mango then there is a clear graph that between April to July maximum utilization then from October onwards working capital blockage likely to reduce. But if you add more non mango business then definitely you need more fund to produce during the season period and as call up take place. So I believe that this cycle will. Be much more clear to all everybody in two years time when we have a multi product in our kitty. So that time we have a very clear picture that we are producing season and then selling and again recovering. So you have more visibility as of today. As I. As you rightly said, it is a little confusing when we are telling one way that mango price has reduced, other way working capital has increased. This is basically for the non mango business product.
Kaushal Sharma
What amount of non mango inventory do we have Currently.
Anand Krishnan
As of today we are around 26% non mango, 74% mango. But our objective is that how soon we can do mango 60 non mango 40% we are all working in that direction.
Kaushal Sharma
We have a majority of pigmentry coming from the mango 33% it has been corrected and the tonnage is just grow 11%. So is there I guess there is some mismatch?
Anand Krishnan
No. You know, being a as multiple call, we have communicated that mango production in the month of mid April to July. Okay, so I’m giving example in the man. We have produced mango in the year 2024 when the price is in higher side. And that stock till we are carrying forward because as per the order of Coca Cola Pepsico it is likely to be completed by the month of June. Because it’s a 21 month to 24 months contract. So we are still carrying forward their stocks which is to be billed at 2024 agreed price. Now unless that product is fully sold, you will be seeing the inventory valuation not in 100, not in lower value.
Some of the products are lying at. Higher value of 2024 are balanced in 2025 mango which is a lower value. That’s why you are seeing this mismatch. Less blockage in the working, right?
Kaushal Sharma
Pardon sir, I could not hear you.
Anand Krishnan
In the next year like you said that the inventory you are carrying for 24, so now it is in a higher price. But in the next year we have the lower price of inventory. So the block would be.
Moloy Saha
Yeah, yeah, yeah, some lower price. But mango seasons to start in the month of April. We do not know how the price looks like as of today looks a good crop. But if the price goes up again there will be inventory or high valuation. So this cyclical effect is always there in our business.
Kaushal Sharma
So this is not a peak that, that we have currently. It may rise in future as well as we said.
Anand Krishnan
Yeah, it may. But yes, I think if this quarter we believe that till June there’s a good summer expected as per various reports we are getting from brands like Coca Cola, Pepsico and even Unilever. If that is so, then I think we can see a very good sales till June. That will give a substantial reduction in our working capital blockage as the stocks moves out.
Kaushal Sharma
Thank you very much.
Anand Krishnan
Okay. Thank you sir.
operator
Thank you. The next question comes from the line of Kaushal Shah, an individual investor. Please go ahead. Mr. Kaushal. Please go ahead. Mr. Shah, are you there on the line? Mr. Kaushil Shah, are you there? We’ll take the next question from the line of Saket Kapoor from Kapoor and company. Please go ahead.
Shaket Kapoor
Yeah. Yes sir. Hello.
Anand Krishnan
Yeah, hi.
Shaket Kapoor
Yeah. Yes, my question is pertaining to the the Techspin project and the Tetra Record project. So if you could just explain to us how much have we invested in these two verticals and what has been the contribution for nine months and going ahead, what are the growth fillers for these two segments?
Anand Krishnan
Okay, so with respect to the investments, basically the Pectin project is around 12 to 13 crores of investment that we have actually done. And with respect to the Tetra Recart, Basically it’s a 30 crore investment that we did broken up into 24 crores for the equipment and the balance 6 crores for the infrastructure that we built. But the infrastructure is such that it can house three more machines of the same kind as such. But having said that, the capacity utilization in Tetra Recart is very low as of Now. In the nine months we would have reached around 4 to 5 crores of revenue as we speak.
But a lot of things are happening and we are hopeful that we might be able to do better in the coming quarters. But in the 9 month the actual figure is around 5 plus odd crores is what the number is for the Tetra Recast. With respect to the Pectin as we have already said during the call this year was actually wherein we submitted our actual production to all these large brands who had already accepted our labyrinth test. And till the point of time they don’t make formulation changes. It is not going to translate into commercial revenue for us.
But we are hopeful that it should happen in FY27. So in terms of revenue it is nothing to speak home about with respect to pictins.
Shaket Kapoor
But if you could just give us some color on the type of potential because in your opportunity column you have mentioned about it is sexy will be considered as one of the safest food additives. So if you could just give us some color.
Anand Krishnan
What. What is our. The. The optimum capacity that you will be running the plant. And taking that into account once the approvals are received what kind of revenue this unit can can exhibit. So with a discount to the import parity prices. Basically pectin is actually 350 crore to 400 crore market in India as we speak. And 95% of it is actually imported. And basically if we were to run our pectin plant on a single run basis then we can generate around 15 crores of revenue. But that 15 crores would be actually split into 5050 wherein we will be consolidating only 50% of it. Because it’s a joint venture per se. So on a single shift basis it can do around 15 crores of revenue. To answer your question. But it’s a highly scalable business basically because we have more than enough raw materials for pectin as compared to the plant size that we have put up initially.
Moloy Saha
I just would like to highlight one point. I understand the repeated question on the pectin because. Because we are talking on this project for a long time. Sir, these are. The product is very high end product. It’s not just like a commodity. It’s something that as I just before that I was talking to in this forum that to produce say a thousand liter of juice this pectin may require only say 10kg. So you can understand if anything goes wrong with the product, the thousand liter product goes wrong. So that’s why whenever any change required at the customer end they will not just change in a month or two or three they will carry the product, they will do the trial, they will do the consumer testing and then only brand will change for a new ingredients.
So that’s the reason it’s taking more time. But once it established, as I told. You the high end product once is approved by any vendor then quickly they don’t change. Unless there is a substantial commercial benefit to the brands. So we are very, very confident though it’s taking time. But this is a game changer for us because waste to waste what is talking everybody. And we are also in the similar line today. We cannot show the revenue generation because it’s taking time. But in near future you will be able to see a significant margin or EBITDA benefit for this product as well as I mean good benefits on overall basis.
So that’s why we are very hopeful and we believe that. But it’s a. It’s a very good platform for us to present us to the world market on the circular economy.
Shaket Kapoor
Right. And sir, on the. On the tetra record part. Sir, if you could just explain to us there in. Sir, we are only. We are only doing these boxes or when I can you explain what is the scope of work exactly in this part. And we are doing B2B business here in this vertical.
Anand Krishnan
Okay, I’ll give a. Sorry, I mean I may take little time to explain you since you are asking. So Tesla Descartes basically a new generation packaging solution alternative to can. We all know in the market can product available okay. Versus a hinge baked beans or some other products. Everything is available now over a period of time. World is trying to get out from the can business. The reason is that it is high probability when you open the can foreign particle go into the product from the team. So class can discard after uses is a big challenge across the world.
So Tetrapack has come with a solution. It’s a Tetra recut. It’s a similar shelf life but retention of color. And the product test is much much better than can. Now in worldwide this concept is very well accepted. US is having almost six machines. Argentina is having seven eight machines like that. And recently Sri Lanka also launch installed one more machine now India when we bought it. And we have tried to work with the many brands but I think awareness about this whole packaging is taking time. Tetra pack also jointly working. Meantime we have changed our focus from India market to export market where we are seeing that export market already very well aware about this product and easily acceptability.
So we are able to gather a momentum which was temporarily paused. Since we are focusing on domestic market. Now we are getting good traction. We got a large order from US customer and we are also getting good order from Russia. We are already started repeating order in Europe. Now your question is whether it’s a B2B or B2C. If you tell me it’s a private level so likely to be to B2B for the export market. But we are also trying to explore in B2C in India market. Which may be little slow pace. But first we want to gather our momentum in export market.
So that we can quickly recover the revenue loss. Whatever it happened earlier, we can able to recover. That’s what. Is what have been the revenue booking and how much revenue we have booked as of now. Is it in very Nathan’s case. Told. That it’s around 5 crores so far. And next year onwards we are expecting that it can be 5.6x of current volume.
Moloy Saha
Okay. And just. Just to add to it. The scope of work is only the job work type that that we will be doing sourcing the material and doing the packaging and the leveling. Or what is the exact source or scope of work in this packaging part?
Shaket Kapoor
We are not doing any job work, sir. Everything is under contract manufacturing for B2B so it’s not a job work. We do not do any job work. So we have to buy. The recipe is ours, raw material is ours. Everything is ours. And then we’ll be manufacturing for them and in their in customer level in the export market likely to sell for domestic market. Easiest we are looking our own brand.
Anand Krishnan
So there will be two two types of billing. First is the on the material sourcing to to the finished product margins. And then the packaging part. So that is what the understanding should be.
Shaket Kapoor
Yes. Yes sir. Yes sir.
Anand Krishnan
Okay. And lastly on the frozen food and the spare drying part of the story also there is therein also this similar concept conceptualization is there that when we look at your the frozen food part it is the sourcing of when how if you could just explain to us these two verticals also. And the scope that we have currently I think so in the spray drying. You have mentioned about capacity of 1100 metric ton. So if you could just explain these two articles also.
Moloy Saha
Okay. Frozen food is B2B similar kind of thing. We are since to 1993 we are in frozen food business. So we are doing private level for export market. Initially started with UK but now it has expanded to across the globe. Like US is a big business. Canada is quite a big business and Australia started. Now we are starting Gulf countries also. So It’s a pure B2B business. And in India we have started our own brand called Green Top. But not in a big way. We have started. We are geography, small phone geography. We are considering and trying to concentrating our product in that geography.
So it will take lot of time. But export market is growing in a Phenomenal place. So it will be a B2B segment and spray drying. Spray drying 100% B2B. Because this is not a final product. This is an ingredient for seasoning. Like any confectionery or any snacks industry you they need the season seasoning. Basically I’m sure you are having lot of potato chips. On the potato chips there is a. On the top there will be a dressing, a powder type product like lace potato cheese or balaji. So that dressing is our product and our product goes for making the seasoning.
So it’s 100% B2B.
Shaket Kapoor
And here in sir, you have mentioned about robust capacity in place. So currently what is the contribution from this segment and how are. When are we expecting to scale up or optimum use of the capacity for.
Anand Krishnan
The spray dying is 100% capacity. We are using and we are expanding mentioned in the investor note. We are expanding our capacity by 120 metric ton in a year. Construction is already started and likely to complete in another nine months period. We are going in a slow pace but we are under discussion and with the strategic. Some kind of strategic relationship. We are also trying to do with some customers for the further bigger expansion. So it is a small expansion. We are doing it. And if everything goes smooth then in future we may go for a bigger expansion in this sector.
Moloy Saha
And we are. If you could just mention the name of some of the clients we are doing business with big giants like ITC also. They are also big into this food and all category. Where you have mentioned. Is the PepsiCo for their lays. We are supplying. We are also supplying Unilever for some of their product. We are supplying to itc. We are supplying to Dabber Nestle. So a lot of customers, many, Most of the MNCs are our customer base. If you see most of the customers are from MNCs that’s a good part of us. In fact if you see our revenue, 65% of revenue comes from almost 12 MNC companies.
Shaket Kapoor
Okay. And sir, can you give me a peer comparison also in the space wherein we can look at the margin comparison and the business profile.
Anand Krishnan
Very difficult. So the only listed company which is actually there in this case is basically Gen Irrigation. But they have a subsidiary of that company which is called as Gen Farm Fresh. As far as I understand they are expected to actually list that company separately is what they have actually indicated in the pre. I mean recent investment call and all those things which have happened. But there is no direct numbers that you can actually get from them because. The product basket are different for every house. So that’s the difficulty.
Shaket Kapoor
Thank you. Thank you for all the elaborate answers.
operator
So our answers are being addressed by Mr. Anand, our CFO and Mr. Molloy, the Chief executive officer. He was also contributing as in the three of us on the call, it’s. A team that works at foods and in. So whether I’m silent, there are people who have to play the silent role as well. When. When they’re doing well, why bother them?
Milan Dalal
I’m new to the. To the team. Yeah, because it was quite an elaborate thing. They have already replied. But as. And when I’m always available. You know, Mr. Milan, recently one movie. Slighter not one movie recently came. It’s called Silent. The entire two hour movie is silent. Really?
Anand Krishnan
Yeah. Okay. There is more in direction. Very nice talking. Sorry we can’t do that on a call.
Shaket Kapoor
No, sir. Thank you. Thank you for the elaborate answer. Today would dig deeper and get further understanding and we’ll get back to the team in case of any further. And all the best. Thank you, sir. And please do continue with the call so that we get an opportunity to participate.
Anand Krishnan
Thank you very much.
Shaket Kapoor
Thank you, sir. And all the best to the team. No schedule.
operator
Thank you. Ladies and gentlemen. As there are no further questions, I would now like to hand the conference over to management for closing remarks.
Anand Krishnan
Thank you so much guys for all the questions that you guys actually put forth. I mean, we might not have been able to answer all questions basically because some due to competitive reasons, some due to certain reasons at the operational level as such. But having said that, your continued support is of great, great value to us and we hope that you will continue supporting us and we’ll hopefully deliver value to you pretty soon. Thank you.
Moloy Saha
Thank you so much. Thank you.
operator
Hi. Thank you on behalf of Orion Capital Markets Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
Anand Krishnan
Thank you.