NFP Sampoorna Foods Limited is expanding its integrated cashew processing operations with the installation of a Cashew Nut Shell Liquid (CNSL) extraction facility at its Neemrana manufacturing complex in Rajasthan. The company aims to enhance value realization from cashew shell by-products by processing up to 1,000 MT of cashew shells per month. This strategic addition is designed to create new revenue streams and improve profitability through better utilization of by-products, marking a significant step towards a sustainable cashew processing ecosystem.

Extraction Process and Value Addition

The proposed facility will focus on converting raw cashew shells into high-value industrial inputs. The extraction process is expected to yield approximately 22-23% CNSL and 72-73% biomass fuel, with the balance comprising moisture and process residue. By processing these by-products in-house, the company intends to maximize the value derived from the entire cashew processing cycle.

Market Opportunity and Strategic Benefits

CNSL is increasingly adopted as a sustainable alternative to petroleum-derived chemicals in industries such as friction materials, resins, paints, and specialty polymers. The global CNSL market is projected to grow from US$ 512 million in 2025 to US$ 876 million by 2030, registering a CAGR of over 11%. Additionally, the global biomass fuel market is estimated to reach US$ 84.2 billion by 2033 from US$ 54.9 billion in 2026, growing at a CAGR of around 6.3%.

The facility is expected to reduce dependence on a single product category and expand the company's presence into industrial and specialty chemical value chains. Management believes that maximizing value from every component of the cashew value chain will significantly enhance operational efficiency and long-term margins.

Management Commentary

Yash Vardhan Goel, Managing Director of NFP Sampoorna Foods Limited, stated that the addition of the CNSL extraction facility marks an important milestone in building a fully integrated and sustainable platform. He highlighted that increasing global focus on sustainability and green chemistry offers attractive long-term growth opportunities for CNSL and biomass. The initiative is intended to strengthen the company's circular economy approach while diversifying into high-growth industrial applications.

NFP Sampoorna Foods Limited reported a consolidated net profit of ₹45.26 crore for the financial year ended March 31, 2026, marking a 68% increase from ₹26.94 crore in the previous year. This growth was driven by a 43.28% rise in revenue from operations, which reached ₹510.61 crore compared to ₹356.37 crore in FY25. The company’s EBITDA surged 96.23% to ₹92.41 crore, with margins expanding by 489 basis points to 18.10%, reflecting operational efficiencies and scale benefits.

The Board of Directors approved the audited financial results for the year and half-year ended March 31, 2026, during a meeting held on June 10, 2026. The statutory auditors, Ajay K. Kapoor & Company, issued an unmodified opinion on the standalone and consolidated financial results, confirming compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Consolidated Financial Performance

For the full year, the company reported a profit before tax of ₹66.29 crore, up from ₹36.04 crore in the prior year. Total expenses increased to ₹442.99 crore from ₹321.54 crore, primarily due to higher costs of materials consumed and purchases of stock-in-trade. The basic earnings per equity share improved to ₹5.89 from ₹4.34.

Standalone Results and IPO Impact

On a standalone basis, the company reported a net profit of ₹49.58 crore for FY26, up 84% from ₹26.94 crore in the previous year. Standalone revenue from operations increased to ₹508.52 crore from ₹356.37 crore. As of March 31, 2026, the company’s standalone shareholders' funds stood at ₹172.08 crore, supported by a rise in share capital to ₹81.74 crore following an Initial Public Offering (IPO). The company completed its IPO of 2,460,000 equity shares at an issue price of ₹55 per share, with listing on the NSE Emerge platform effective May 25, 2026.

Balance Sheet and Cash Flows

The standalone cash and cash equivalents balance increased to ₹9.62 crore from ₹4.36 crore. However, net cash flow from operating activities was negative at ₹44.03 crore, compared to a positive inflow of ₹13.21 crore in the previous year, largely due to increases in trade receivables and inventories.

Management Outlook

Yash Vardhan Goel, Managing Director, attributed the performance to the benefits of scale, product diversification, and operational efficiencies. He highlighted the company's strategic presence in Khari Baoli and direct sourcing network across Africa as key competitive advantages. Going forward, the company aims to strengthen its farm-to-factory sourcing model and expand its premium nuts and healthy snacking portfolio.