Sundrop Brands Limited, formerly known as Agro Tech Foods Limited, has notified the stock exchanges of its Audited Financial Results — both Standalone and Consolidated — for the fourth quarter and financial year ended 31 March 2026, pursuant to Regulations 30, 33, and 47 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were recommended by the Audit Committee and approved by the Board of Directors at their meeting held on 07 May 2026. The advertisement was published on 09 May 2026 in Business Standard (English) and Telugu Prabha (Telugu). Subsequently, on 11 May 2026, the company filed the transcript of its Investors/Analysts Conference Call held on 08 May 2026 under Regulation 30 read with Schedule III of the Listing Regulations, providing detailed management commentary on business performance, integration progress, and strategic priorities. The transcript is available on the company's website at www.sundropbrands.com/analyst-calls.aspx .

Disclosure Details

The company submitted the disclosures to both BSE Limited and the National Stock Exchange of India Limited in compliance with applicable listing regulations. Both communications were signed by Kavita, Company Secretary & Compliance Officer (Membership No.: A-27174), on behalf of Sundrop Brands Limited. Key details of the disclosures are summarised below:

Standalone Financial Performance

On a standalone basis, Sundrop Brands reported a significant improvement in financial performance for the quarter and full year ended 31 March 2026. Total income for the full year stood at ₹885.43 crores, compared to ₹794.79 crores in the previous year. The company returned to profitability, with net profit after tax and exceptional items for the full year at ₹20.88 crores, against a net loss of ₹110.72 crores in the prior year. The standalone financial highlights are presented below (₹ in crores):

Consolidated Financial Performance

On a consolidated basis, Sundrop Brands recorded a sharp increase in total income, rising to ₹1,552.25 crores for the full year ended 31 March 2026, compared to ₹901.19 crores in the prior year. Net profit after tax and exceptional items for the full year stood at ₹20.13 crores, against a net loss of ₹109.90 crores in the previous year. The consolidated financial highlights are presented below (₹ in crores):

The figures for the current quarter and the quarter ended 31 March 2025 are balancing figures between the audited figures of the full financial year ended 31 March 2026 and 31 March 2025 respectively, and the published year-to-date figures up to the third quarter. The full format of the financial results is available on the stock exchange websites ( www.nseindia.com , www.bseindia.com ) and the company's website ( www.sundropbrands.com ). The results were signed off by Group Managing Director Nitish Bajaj (DIN: 10835891) from Gurugram.

Management Commentary: Growth and Operational Highlights

Group Managing Director Nitish Bajaj, addressing participants on the earnings conference call, highlighted that the consolidated business delivered revenue growth of 11% for Q4 and 10% for the full year, with the B2B business growing at 12% and the e-commerce channel expanding by 35% for the full year. He noted that gross margin expanded by close to 4% in Q4 versus the same quarter last year, and that EBITDA for Q4 stood at approximately ₹28 crores (excluding ESOPs and one-off expenses), translating to an EBITDA margin of approximately 7.20%. For the full year, EBITDA margin stood at approximately 5.70% of top line, reflecting a growth of approximately 96% in absolute EBITDA terms. Advertisement expenses for the full year grew by approximately 18%, with the company maintaining a spend of approximately 5% to 6% of top line on advertising.

On the brand and revenue mix, Sundrop accounts for 57% of consolidated revenue and Del Monte for 33%. The Sundrop business accelerated its growth from 5% in the prior year to 12% in FY26, with Q4 growth at approximately 14%. Del Monte's overall growth was approximately 9% for the full year, with the Italian business (approximately 16% of Del Monte revenue) facing value decline due to olive oil commodity price deflation passed on to consumers, while volume growth in olive oil stood at approximately 16%. Key category performance highlights are summarised below:

Management noted that the core category portfolio (comprising popcorn, spreads, breakfast cereals, ketchups, sauces, mayonnaise, and Italian range) now accounts for approximately 62% of total revenue. The company completed approximately 70-plus product launches during the year, contributing approximately 4% of overall sales. Act II Popcorn has grown to over ₹400 crores at a net sales level, with Ready-to-Eat contributing approximately 34% and Ready-to-Cook approximately 66% of the popcorn business.

Integration Strategy and Margin Outlook

On the integration of Sundrop and Del Monte operations, Bajaj indicated that the two companies continue to operate independently, with integration efforts focused on back-end CFA network consolidation and a common ERP platform expected to be completed within approximately 12 to 14 months. The sales force of Sundrop Brands, covering approximately 475,000 outlets directly, has been fully onboarded onto the Bizom mobile platform to improve outlet-level visibility and coverage efficiency. Management guided that leveraging organisational complementarities and coverage optimisation is expected to yield approximately 100 basis points of efficiency in the near term, with a further approximately 150 to 200 basis points expected in FY28. On the overall EBITDA margin trajectory, management indicated an endeavour to deliver approximately 150 to 225 basis points of annual margin expansion on a consolidated basis.

On the gross margin profile, management indicated that the company-level gross margin stands at approximately 25%, with the food business approximately 4% to 5% higher and edible oil approximately 7% to 8% lower. Core categories are estimated to have grown at approximately 12% to 13% for the full year. On the peanut butter segment, management acknowledged continued pressure in modern trade and e-commerce due to competitive pricing from new entrants, while general trade grew at approximately 7%. Seven new high-protein variants were launched in Q3 to address the competitive gap, with distribution expansion and e-commerce investments underway. For the Italian portfolio, management indicated that price corrections are largely behind and that value growth is expected to recover from Q2 onwards, supported by a planned Italian brand campaign. Management also indicated a longer-term ambition to grow marketing spend to approximately 8% to 9% of top line, deploying approximately 40% to 60% of margin expansion back into growth initiatives.

Company Information

Sundrop Brands Limited operates with its registered office at 31, Sarojini Devi Road, Secunderabad-500003, Telangana, India, and its corporate office at Tower C, 15th Floor, Building No. 10, Phase-II, DLF Cyber City, Gurgaon-122002, Haryana. The company's CIN is L15142TG1986PLC006957, and its official website is www.sundropbrands.com .

Source: None/Company/INE209A01019/218fd3ddb1664748.pdf

Sundrop Brands Limited (formerly known as Agro Tech Foods Limited) has reported a strong turnaround in its financial performance, posting a standalone net profit of ₹20.88 crores for the financial year ended March 31, 2026, compared to a net loss of ₹110.72 crores in the previous financial year. The Board of Directors approved the audited standalone and consolidated financial results at their meeting held on May 7, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, M/s BSR and Co., Chartered Accountants (Firm Registration No. 128510W), issued an unmodified audit opinion on both the standalone and consolidated financial results. The financial results were reviewed and recommended by the Audit Committee, and the Board meeting commenced at 5:10 pm and concluded at 5:26 pm.

Financial Performance Overview

The company's standalone total revenue from operations grew to ₹882.17 crores in FY26 from ₹792.95 crores in FY25, driven by higher product sales. On a consolidated basis, total revenue from operations rose significantly to ₹1,549.44 crores from ₹898.87 crores in the prior year, reflecting the full-year contribution of Del Monte Foods Private Limited (DMFPL), which was acquired on February 6, 2025. DMFPL contributed ₹667.14 crores to consolidated revenue for the year ended March 31, 2026, compared to ₹104.44 crores (for two months) in FY25, making year-on-year consolidated comparisons not directly comparable. DMFPL contributed ₹166.32 crores to consolidated revenue for the quarter ended March 31, 2026.

The following table presents the key standalone financial highlights for the quarter and year ended March 31, 2026:

On a consolidated basis, Q4 net profit came in at ₹9.85 crores versus a loss of ₹114.05 crores in the same quarter of the prior year, while Q4 EBITDA turned positive at ₹208M versus a loss of ₹4M, reflecting a significant improvement in operating profitability. The table below presents the consolidated financial highlights:

The prior year's results included exceptional items of ₹146.75 crores, comprising impairment provisions of ₹70.57 crores related to three cash-generating units, impairment of ₹65.47 crores related to specified property, plant and equipment, business acquisition-related costs of ₹5.16 crores, and a provision for custom duty litigation of ₹5.55 crores. No exceptional items were recorded in FY26.

Balance Sheet Highlights

The company's standalone total assets stood at ₹1,598.23 crores as at March 31, 2026, compared to ₹1,553.90 crores as at March 31, 2025. On a consolidated basis, total assets were ₹1,831.49 crores versus ₹1,787.20 crores in the prior year. Standalone equity attributable to owners increased to ₹1,477.65 crores from ₹1,437.42 crores, while consolidated equity attributable to owners rose to ₹1,478.48 crores from ₹1,438.38 crores. Other equity on a standalone basis stood at ₹1,439.95 crores and on a consolidated basis at ₹1,440.78 crores as at March 31, 2026.

Cash Flow Summary

On a standalone basis, net cash generated from operating activities was ₹11.66 crores for FY26, compared to ₹77.86 crores in FY25. Net cash used in investing activities was ₹5.72 crores, while net cash used in financing activities was ₹3.36 crores. Standalone cash and cash equivalents at the end of the year stood at ₹24.59 crores, up from ₹22.01 crores at the beginning of the year. On a consolidated basis, net cash generated from operating activities was ₹30.75 crores, with consolidated cash and cash equivalents closing at ₹31.36 crores.

ESOP Grant and Forfeiture

The Nomination and Remuneration Committee (NRC) of the Board approved the grant of 1,54,367 employee stock options under the "Agro Tech Foods Limited Employees Stock Option Plan, 2024" (ESOP Scheme 2024) to eligible employees of the company and its material subsidiary, Del Monte Foods Private Limited. The NRC also approved the forfeiture of 32,000 options granted earlier on June 7, 2025 under the same scheme; these options will be available for re-grant under the ESOP Scheme 2024.

The Group recognized share-based payment expenses of ₹19.25 crores for FY26, including ₹4.88 crores for Q4 FY26, included under Employee Benefits Expense. The company has cumulatively granted 14,80,411 employee stock options to eligible employees of the company and its subsidiaries, with exercise prices of ₹809 and ₹515 per option depending on the type and level of grant. The ESOP Scheme 2024 is in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Regulatory and Audit Compliance

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) under Section 133 of the Companies Act, 2013, and comply with Regulation 33 of the SEBI Listing Regulations. KPN Srinivas, Chief Financial Officer, issued a declaration confirming the unmodified audit opinion in compliance with Regulation 33(3)(d) of the Listing Regulations. The consolidated financial results encompass the company and its wholly-owned subsidiaries: Sundrop Foods India Private Limited, Agro Tech Foods (Bangladesh) Pvt. Ltd., Sundrop Foods Lanka (Private) Limited, Del Monte Foods Private Limited, and Del Monte Foods India (North) Private Limited. The notification was signed by Kavita, Company Secretary and Compliance Officer (Membership No. A-27174), on May 7, 2026. The results are available on the stock exchanges' websites and the company's website at www.sundropbrands.com .