Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Madhusudan Masala Ltd (NSE: MADHUSUDAN) Q3 2026 Earnings Call dated Jan. 20, 2026
Corporate Participants:
Rishit Kotecha — Chairman and Managing Director
Unidentified Speaker
Analysts:
Sanchita — Analyst
Risha Mehta — Analyst
Vijay John — Analyst
Unidentified Participant
Amit — Analyst
Unidentified Participant
Amit Mahind — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Rishit Kotecha — Chairman and Managing Director
Ladies and Gentlemen,
Unidentified Speaker
On behalf of Captify Consulting Investor Relations team, I welcome you all to the Q3 and 9 months FY26 post earnings conference call of Madhusuddhan Masala Limited. Today on the call from the management team we have with us Mr. Rishit Kotecha, Chairman and Managing Director, Mr. Hirin Kotecha, Full Time Director, Mr. Kirit Dharavia, CFO and Mr. Sarvesh Goel, Auditor. As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties.
Also a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended December 2025. The growth, perspective and vision for the coming year post which we will open the floor for Q and A Over to the management team.
Rishit Kotecha — Chairman and Managing Director
Yes, thank you Vin. Good afternoon everyone. I hope all are well and thank you for joining us today for the quarter three results of our Mad Masala Limited. On behalf of the management team of Madhusuddin Masala Limited Myself Rishi Kotecha, Chair Medical Managing Director, pleased to welcome you to the quarter 3 and 9 months of financial year 26 earning discussion. We truly appreciate your continued interest and support. I will now briefly take you through our quarter three and nine months FY26 financial performance for quarter three financial 26 marked a strong operational and financial quarter affecting the scalability of our business model, improving mix and discipline execution.
Revenue for quarter three FY26 has been screwed at 763.2 million and a growth of 20.3 year on year growth and there’s consequential of speed upstream by high volumes, improved capacity utilization and strong traction in branded products. Our EBITDA has also been increased to 82.5 million, a growth of 79.6 million year on year with EBITDA margin expanding to 10.8% which is up by 357 basis points year over year supported by our operating leverage and better product mix. Also our net profit for the quarter was 47 million which is up by 104% which is almost double year on year with net margin improving to 6.2% which reflecting our improved profitability across the value and financial performance for the nine months period has below like revenues.
Food at 1945 million reflecting the 19.3% year year over year growth while EBITDA rose to 222 million. A growth of 40% by year over year with margin improving to 11.5% while net profit increased to 123 million which is also up by 40% year over year demonstrating a strong earning momentum. Operational and business highlights during the quarter three of finance year 26 our cap capacity utilization has been reached to 98% from our jam unit and at Rajput unit we have utilized 100% of our capacity. Underscoring the strong demand in operational efficiency.
We continue to strengthen our brand portfolio which branded for the continuing more than 70% of total revenue in nine months FY26 and non branded student at 30%. While total sales volume during the nine months FY26 screwed at 16,983 metric ton with 1101187 metric Toncom branded products and we sold 106 million packets reflecting a good return penetration. Our distribution footprints expanded meaningfully with present sequence across seven plus states. Over 42,500 retail outlets, 6,6400 plus wholesalers and 358 plus distributors as of December 25th.
Strategic progress as we continued investment and towards our continued investment in capacity expansion including capacity addition during the quarter three and progress on our greenfield expansion project in Janagarapur highway which will add 6,000 metric ton in phase one. Positioning us well, positioning us for the main future growth in quarter three financial year 26, we added a 1,200 metric ton of manufacturing capacity at our Jamnagar facility through a brownfield expansion. Overall quarter three and nine months financial year 236 has reflecting a strong execution margin expansion and steady progress on our strategic priorities.
As we move forward. Our focus remains on scaling the branded sales, expanding our Pan India distribution, enhancing capacity and operational efficiency, delivering consistence and profitable growth. With this I will now hand over the poll for further discussion in question and answers. Thank you.
Sanchita — Analyst
Thank you sir for your detailed opening remarks. So all those who wish to ask a question may use the option of raise hand or just drop a message on the chat window and we’ll invite you to ask the question. We’ll take the first question from Risha Mehta. Risha, you can go ahead please.
Questions and Answers:
Risha Mehta
Yes, thank you. Good afternoon, sir. So my first question was, you know, so there was a report, you know, which said that China has become very active in the chili powder space with chilies basically. And that could, you know, lead to depressed prices in the Indian markets also. So you know, since Chile, if I understand correctly, is close to 1/3 of our revenues, right? So how does this impact us? So let’s say if you know, the chili prices come down, right? The Commodity prices come down. Then you know, how does it impact our revenue and margins?
So you know, because from a value growth standpoint, do we need to pass on the price cuts to the consumers? Which I think we will have to assuming competition also takes price cuts. And. And then how do we think about EBITDA margins margin level pay up EBITDA per ton maintain. Do we try to increase the EBITDA margin? Basically just trying to understand. Like with this example of Chile inflationary environment or deflationary environment revenue margins when the commodity undergoes inflationary or deflationary cycle.
Rishit Kotecha
Yes, that is a quite controversial because example, China may put global issues here. Actually, China is a net importer of tea from India. China is not exporter. China export. Almost. Increment. Pain. Price prediction at the time of procurement. Projection. Raw material available. So. Throughout the year optimum level.
Risha Mehta
I take your point. China find their net importer. But I’m not talking. I mean I’m not. I. I don’t want to talk specifically about Chili example. Right. Because see company list. Deflationary environment. Right. Inflationary environment. Right. And then prices largely muted. Deflationary environment. So is it that commodities may price up trend. You know, chili, you know, 100 rupees, you know, rise 25, 30 rupees. But it is versus what time period is it? One year ago season comparison May. Yeah. You know what time period inflationary cycle start?
Is it still, you know, deflationary cycle stable prices.
Rishit Kotecha
Price comparison. That is a particular third quarter. So compare it. Comparison. Price difference.
Risha Mehta
Before the deflationary cycle start. Higher already.
Rishit Kotecha
History historical price or Jada futuristic price is a better person to give your answers. So I will request AEN to answer your question.
Vijay John
Hello. Hello.
Unidentified Participant
Please go ahead.
Unidentified Participant
Yes. Hello.
Risha Mehta
Yes. Yes, sir. Okay. And normally from a pricing standpoint, last question is. Okay. Largely volume growth, mix led growth.
Unidentified Participant
Market develop area.
Risha Mehta
Understood. So basically deflationary environment, Percentage margins. You know, so because it’s like a commodity business, right.
Unidentified Participant
Extra commission.
Risha Mehta
Okay. All right. Thank you so much.
Unidentified Participant
Okay, thank you.
Sanchita
We’ll take the next question from chat. This question is. This question is asked by Rehan Sayed. His question is. Management has reported that Unit 1 and Unit 2 are operating at 98% and 100 capacity utilization respectively with the 6,000 metric ton Phase 1 greenfield expansion currently under construction in Jamnagar. What is the specific targeted commissioning date and how does the company plan to service the project at 30% CAGR demand in interim period before this new capacity comes online.
Rishit Kotecha
Yes. Yes. Both the units are operating at 100% utilization. You can say that JN and both are at 100% utilization. And our new greenfield project which is commencing at Jamnagar Rajkot highway which will be operational by end of this September 26th. And hopefully we will start our commercial production from the from that unit from October 26th.
Unidentified Participant
In the meanwhile 30.
Rishit Kotecha
30%. 2030. Geographical expansion, Existing. Regional regions.
Sanchita
Okay sir. And he has asked another question. Like following the 100% acquisition of Vining products and the onboarding of the Double 7 Green brand. How much of the current distribution network is now fully integrated? And furthermore, as you aim for 1% total market share in Indian spices industry. Is the current 30 CAGR guidance purely organic? Or does management intend to pursue further bolt on acquisition to gain immediate access to new regional distribution silos.
Rishit Kotecha
See, as of now we are searching for a good. That will be add on to the 30% of cagrin. Almost 70%.
Sanchita
Okay sir, we’ll take the next question from Amit. Amit, you can go ahead please.
Amit
Good afternoon sir. Am I audible?
Rishit Kotecha
Yes.
Amit
Yeah. Thank you for the opportunity and the congratulations for good set of members. Sir. First was like connected to branding. Like branding expense. Like what is the budget towards like social and digital media. And second next question was connected to the hiring. New hiring. Hiring Specifically marketing. Branding like sales distribution.
Rishit Kotecha
Exactly. First of all hiring related question because of recently North K team. Which will which. Before that they worked with. Yes.
Amit
Understood.
Rishit Kotecha
Yes. Sorry. Branding budget season January. General marketing. Recently E commerce site response. Conversion ratio quarter four say digital.
Amit
Connected to this. The follow up like bandit sales.
Rishit Kotecha
In part three 72% or last quarter three May was 62% almost brand itself.
Amit
Understood sir. Congratulations. And sir, all the best for the future.
Rishit Kotecha
Yes, thank you.
Sanchita
We’ll take the next question from Sanchita. Sanchita, you can go ahead please.
Unidentified Participant
Yes. Hi. Thank you for the opportunity. So Mera question. At peak Kitna revenue and once the new Jam Nagar facility comes on stream. Total 12,000 metric tons.
Rishit Kotecha
See as of now. Maximum.
Unidentified Participant
Okay sir. Thank you. And all the best. Understand my
Rishit Kotecha
Point.
Sanchita
Thanks. We’ll take the next question from Amit Mahind. Amit, you can go ahead please.
Amit Mahind
Hi. Thanks for the opportunity. Sir. Previous questions. Right. Sir, I think there was another Capex which was planned. Joe. I think. I’m not very sure. Is that a plan also Phase two Capex.
Rishit Kotecha
Yes. Production.
Amit Mahind
Okay, so clarify. So phase one. Phase two.
Rishit Kotecha
Phase two. Phase one.
Amit Mahind
Any fundraising plan for that equity capital. Hello.
Rishit Kotecha
Whether we are going with date or fund region.
Amit Mahind
Right sir, I mean broadly. We can understand broadly. 40 50. Right?
Rishit Kotecha
Yes. Yes.
Amit Mahind
Okay sir. And finally on the distribution side or the marketing side. Regional distribution. Distribution network. Consumer points currently suppose 27 28. Any granular color on that will be great.
Rishit Kotecha
As you see presentation. Consistent figures.
Amit Mahind
Product shelf. How will working capital impact over working capital?
Rishit Kotecha
Working capital. Market.
Amit Mahind
Okay sir. And my last question is on the margins. Joe. I think. Suppose raw material prices 10% drop. Finished goods prices also similarly generally competitive intensity rising power.
Rishit Kotecha
Actually will answer the question more precisely than me. Yeah, I mean see,
Amit Mahind
I’ll just clarify. See our understanding is that for some products.
Rishit Kotecha
Comparatively price.
Amit Mahind
Right sir. Thanks. And my last question if I may. Distributors commission extra distribution. In short term. Discounts better pricing.
Rishit Kotecha
Structure. Similarly region wise distributor margins. Distributor margin similarly MRP method.
Amit Mahind
The same distributor is selling some other product Currently Maybe.
Rishit Kotecha
Existing well known player. Organized players. Well known players. Distributor margin already higher sided. Price to retailer well established. Pricing structure. Or distributor structure. Commission or ptr similar.
Amit Mahind
Okay sir. Thank you. Thank you very much for detailed explanation. Thank you. Thanks. Amit.
Sanchita
We’ll take the next question from Sheikh Muji Ahmed. You can go ahead please. Sir. We’ll move on to Vijay John. Vijay, you can go ahead please.
Vijay John
Thank you for the opportunity. So majority of my questions on the business are answered. So my question is on the exit run rate side. So we have done somewhere around how many? 195 in the first nine months. So are we on track to even deliver 25 or to 30 guidance for this year? Or we will see maybe the mother. We will see some deviation from the target that we have set.
Rishit Kotecha
No, no. We are not taking extremely sick. We stick our stick at our projected target of 30%. Definitely we will achieve the target with more than 30%.
Vijay John
Okay. So Hamlog at least 280 to 300 target consolidated basis that we will be trying to achieve, right? Yes,
Rishit Kotecha
Already on the track. And that will be more than 300 is for our confidence over the market.
Vijay John
Right. And typically quarter four or quarter three may. So quarter four is the strongest or the quarter three is the strongest as per your like experience.
Rishit Kotecha
Actually quarter four season cup.
Vijay John
Right? Right. Or have we decided something on FY27 revenue consolidated basis. If you have decided some internal target or EBITDA margin guidance. Would you like to give it right now?
Rishit Kotecha
See look now. 30 it will continue. That will be sure.
Vijay John
Okay, so that’s all from my side. Thank you. And once again best of luck for the future. Thank
Sanchita
You. Thanks. You can go ahead please. Yeah,
Unidentified Participant
Thank you very much. And congratulations for a good set of numbers. Sir, I have a couple of questions. Actually you can say that this is a continuation of the earlier caller. Sir, right now still we are 100 crores short of 300 crores target for this FY26 top line. Correct. That means if. If we see the total growth in the last nine months also it is coming around 20%. So our target is at 30%. So how we are going to achieve this gaps fill this gap.
Rishit Kotecha
Yes, you. You are right because in last quarter four you achieved 25%. And also in this quarter four we. We have a dedicated plan for northern states. Like I already mentioned that in UP we have acquired a team in they will open their new distributors and new regions in other part of up. So that will be help us to achieve our target also. And our existing market is also getting there. There were no carry for a stop for at our distributor level. So quarter 3k distributable. Be. So hopefully quarter plus
Unidentified Participant
Okay. Ebit margins if I compare with Q2 it has been dropped from 14.5 to 10.8. What is the reason sir for such a drastic drop in a quarter?
Rishit Kotecha
You know. Procurement. So that’s why our margin is consistent compared to the Q2. But overall 3.
Unidentified Participant
So what we can expect sir in coming quarters what will be the margins sustainable margin it will be around 10, 11 or. Yeah.
Rishit Kotecha
For the entire financial year the EBIT would be between 20.8 to 11%.
Unidentified Participant
Okay. Okay. Earlier just in this concord you have told that you are planning for 600 crore top line with the capex. Is this with the 6,000 metric ton greenfield expansion what you are doing or with the 12,000 metric ton?
Rishit Kotecha
No. 600 crore revenue is for 6,000 nutrition vehicle and existence will be gone.
Unidentified Participant
Okay. Okay. Okay. Sir, with the. With the addition of the new capacity in this quarter I think around 1000 plus.
Unidentified Participant
Something you have added right?
Unidentified Participant
With this one is the. The demand what we are getting from the outside are we still giving for outsourcing? Are the internal capacity is fulfilling the requirement?
Rishit Kotecha
No, we still have to give the material for outsourcing because our capacity is not yet sufficient to process the entire categories.
Unidentified Participant
Okay. Okay. Sir the one more question. How are the chili prices now compared to Q2? Because in the Q2 I think the Q2 or Q1 it was. That means the prices were very low. But you told in the last quarter that the prices have been significantly improved. How are you seeing the trend in this quarter?
Rishit Kotecha
Yes. So average sale price for our chili powder was 174 in quarter two. And in quarter three the average sale price of chili powder is is 241. So you can see the difference like more than 65 rupees per kilogram.
Unidentified Participant
I think that one is being reflected in your bottom line also because bottom line has been increased by 40% whereas the top line is around 20%. I think easy to.
Rishit Kotecha
Yes. But our quantity, quantity wise sale is also increased.
Unidentified Participant
Okay. Okay. So in quarter four because now I think around 20 days have passed. Are these prices are being sustained or are you seeing any pressure?
Rishit Kotecha
As of now we are seeing that price will be not only sustained but it will go more higher side over chile, turmeric and coriander. All of three the commodity will price will go higher side is of now we are seeing is for markets.
Unidentified Participant
Okay, so can you at the last can you just update on the expansion? What kind of works are going in the greenfield expansion and the machinery and other things have been ordered or what is the status?
Rishit Kotecha
Definitely we have given a project to a single entity on turnkey basis. So all of the construction and PV structure and the machinery will be provided by a single supplier. So we already ordered a machineries to them and they are doing a civil work at as of now and by end of this March the civil work will be 100 completed. And after March up to April to June they will start a start and completed the fabrication work. And in July August they will start commissioning of machineries and the final run in August.
Unidentified Participant
Okay. Okay. It would be help very great if you add the latest photographs in upcoming presentation with the construction status that
Rishit Kotecha
Will. I will ask my team to see.
Unidentified Participant
Thank you very much sir. Thank you very much and all the best to you. Thank
Sanchita
You sir. We’ll take the last follow up question for the day from Amit. Amit, you can go ahead please.
Amit Mahind
Sir. So my question is on the Phase 2 CapEx and we discussed about that little bit. See from whatever we understand of the business, right, phase one top line. Right to our capital requirement will also be around 40 crores. And assuming that we you know take 50% debt, you know, 50%, You know the capital expands, EPS drops, voice ups in a bull round. How
Rishit Kotecha
Concerned.
Amit Mahind
I couldn’t understand.
Sanchita
Hello. Yeah, I’m not audible.
Unidentified Participant
Dropped off.
Amit Mahind
Some issue with the audio.
Unidentified Participant
Yeah. Hello, am I audible? Yes sir, please go ahead.
Rishit Kotecha
Yes, I, I just asked the concern that I, I, I, I cannot understand the concern what he raised for the cap capacity expansion. I didn’t get the question correct.
Amit Mahind
Am I audible now?
Sanchita
Yes, yes you are audible.
Amit Mahind
Okay sir, should I repeat the question? Yes,
Rishit Kotecha
Yes. Your voice is not getting loud loudly. Your voice is very slower.
Amit Mahind
I think there’s some issue with the. Audio but I’ll repeat the question. Yes. Is it
Rishit Kotecha
Better now? Yeah,
Amit Mahind
Yeah
Rishit Kotecha
It’s better now. You can go
Sanchita
Ahead. Right. And profitability,
Amit Mahind
You know will also, I mean assuming that we do same level of bit we should do, you know anywhere between 30, 35 crore type of profitable, you know profit after tax. Yes.
Vijay John
Or phase two
Amit Mahind
Expansion. If we assume the same, you know, size of machinery or the type of process or quality then we were assuming that we’ll take about 30 by 40 crore of capex or around 50%, around 50 debt. So we will not need to raise any further capital.
Rishit Kotecha
Yes. Under 50%. Pending. Promoter forum.
Amit Mahind
Right sir. Or Promoters subscribe. Okay sir. Okay. So that’s it from my end. Thank you very much.
Sanchita
Since there are no further questions, would you. Would you would like to give any closing comments?
Rishit Kotecha
Yes. Am I audible?
Sanchita
Yes sir, you can go ahead.
Rishit Kotecha
Yes. Thank you all, all of investors and well wishes for taking your good time to connect with us. And I hope in future your support will be available to us in the. Thank you. Good night Jessica.
Sanchita
Thank you to the management team for your valuable time and thank you to all the participants for joining on the call. Thank you. This brings us to the end of today’s conference call. You all may disconnect now. Thank you.