Chatha Foods Limited reported revenue from operations of ₹165.72 crore for FY26, a marginal increase from ₹157.17 crore in the previous year. Profit after tax (PAT) clocked in at ₹6.40 crore, compared to ₹6.06 crore last year, while EBITDA margins improved to 7.4%. The board recommended no dividend for the year to support capital expenditure and working capital needs.

Financial Performance and Capacity Utilization

The company’s legacy chicken processing facility is currently operating at full capacity, limiting further contribution from existing assets. Growth is now dependent on newly commissioned capacities, particularly Unit II at Derabassi. This facility, focused on vegetarian products such as tortillas, paranthas, snacks, sauces, and gravies, has an installed capacity of 16,000 metric tonnes. Management identified improving utilization of this new unit as the immediate priority to convert installed capacity into revenue and profitability.

Strategic Expansion and Capital Allocation

To drive future growth, Chatha Foods has invested in a joint venture with Allana CF Foods for chicken category expansion and launched a separate meat product line in January. These initiatives, funded through IPO proceeds, preferential issues, and borrowings, have led to increased borrowings and capital work-in-progress on the balance sheet. The company aims to reach 30,800 metric tonnes of capacity by FY28 with an intended utilization of around 75%, targeting a revenue ambition of approximately ₹550 crore by FY29.

Governance and Board Resolutions

During the 29th Annual General Meeting held via video conferencing on September 28, 2026, shareholders approved several key resolutions. These included the adoption of audited standalone and consolidated financial statements for FY26, the appointment of Mr. Gurcharan Singh Gosal as Director liable to retire by rotation, and the regularization of Ms. Divya Babel as Additional Independent Director. Additionally, the meeting approved material related-party transactions with Allana CF Foods Private Limited.

Customer Concentration and Diversification Strategy

Chairman Paramjit Singh Chatha highlighted that the top four customers continue to account for a significant portion of revenue, identifying this concentration as a key risk. To mitigate this, the company is expanding its addressable market through its own brand Unifayre, QSRs, cloud kitchens, private label opportunities, and export channels. The shift towards vegetarian products aims to access customer segments previously unavailable when the business was predominantly focused on chicken products.

Organizational Evolution

Recognizing that running a multi-plant business requires different capabilities than a single-plant operation, Chatha Foods is strengthening its leadership structure. A dedicated plant head for the Allana unit will join in October, and leadership teams for the vegetarian business are being reinforced. Central capabilities across manufacturing, food safety, supply chain, and production planning are also being strengthened to support the transition.

What the Numbers Show

A divergence exists between the modest top-line growth of 5.4% and the company’s ambitious long-term targets. While revenue increased marginally, the board’s decision to retain all earnings suggests that current profitability levels are insufficient to self-fund the significant capital expenditure required for the planned capacity expansion. The reliance on external funding sources like borrowings alongside retained earnings highlights the capital-intensive nature of the transition from a single-plant operation to a multi-plant business model.

Chatha Foods Limited shareholders approved the regularization of Divya Babel as a Non-Executive Independent Director at the company's 29th Annual General Meeting held on September 28, 2026. The appointment secures her position for a fixed term of five years, extending through March 10, 2031.

Appointment details and tenure

Babel was initially appointed as an Additional Director by the Board of Directors with effect from March 11, 2026. The recent shareholder approval converts this interim appointment into a permanent role, ensuring continuity in board oversight. The regularization aligns with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, specifically Regulation 30 read with Para A Part A of Schedule III.

The director will not be liable to retire by rotation during her tenure. This structural stability allows for consistent governance practices over the next five fiscal cycles.

Professional background and expertise

Divya Babel brings over 10 years of experience in financial operations, taxation, compliance, and business consulting. She is a qualified Chartered Accountant with a Postgraduate Certification from IIM Indore. Her expertise spans financial reporting under IFRS, Ind AS, and US GAAP, alongside treasury management and budgeting.

Key areas of professional competence include:

• Financial reporting and MIS for strategic decision-making
• Fundraising, investor reporting, and project finance
• Implementation of SOPs, ESOP structures, and business automation
• Statutory compliance including GST, TDS, PF, ESIC, and ROC filings
• International accounting, transfer pricing, and transaction advisory

Babel is currently pursuing Certified Public Accountant (CPA) certification to further strengthen her expertise in international accounting and audit services.

Governance implications

The disclosure confirms that Babel is not related to any other directors of the company, reinforcing the independence of her role. Her background in financial controls and compliance suggests a focus on strengthening internal governance frameworks.

What the numbers show

While no financial results were disclosed in this specific filing, the appointment of a Chartered Accountant with IIM Indore credentials highlights a strategic emphasis on financial rigor. The five-year fixed term provides a stable window for implementing long-term compliance and operational efficiency initiatives, such as the business automation projects noted in her profile.