Foods & Inns , a leading food processing company, has recently seen a significant development in its shareholding structure, alongside positive business trends across various segments.

Promoter Share Pledge

Mrs. Rekha Dalal, a promoter of Foods & Inns, has pledged 339,000 shares, representing 0.47% of the company's stake, to Tata Capital Limited. This pledge, executed in two separate transactions on November 18-19, 2025, involves shares from her total holding of 2,261,500 shares (3.09% of the company's share capital). The transaction was disclosed under SEBI takeover regulations and is reportedly for loan purposes.

Business Performance and Outlook

During the recent earnings call for Q2 FY '26, the company's management shared insights into various aspects of their business:

Volume Growth

Foods & Inns reported a robust 25.70% year-on-year volume growth in the quarter, with an internal target of 20% volume growth for both the current and next fiscal year.

Export Market

The company is experiencing a promising outlook in the export market, with strong demand from new customers. India's processed mango pulp has become price competitive against Mexico due to lower Totapuri prices.

Product Diversification

The company is expanding its product portfolio beyond mango pulp, with significant growth in tomato processing and frozen foods.

Tomato Business

A significant volume commitment for tomato paste has been secured from a large conglomerate, with expected revenue between INR 75.00-90.00 crores.

Frozen Foods

This segment has shown strong growth, with the company targeting revenue between INR 90.00-105.00 crores for FY '26, up from INR 68.00 crores in the previous year.

New Ventures

The company is exploring opportunities in health-related products, vegan options, and gluten-free segments, responding to changing consumer preferences globally.

Tetra Recart Packaging

While currently generating modest revenue (around INR 2.00 crores this year), the company sees potential for growth in this segment, with a capacity to reach INR 80.00-90.00 crores at full utilization.

Financial Outlook

While specific profitability targets were not disclosed, the management expressed confidence in improving absolute gross profit, EBITDA, and PAT through increased tonnage and efforts to enhance gross profit per kg on a product-wise basis.

The company's focus on diversification, capacity expansion, and exploring new markets positions it well for future growth, despite challenges in some segments like Kusum Spices.

As Foods & Inns navigates through changing market dynamics and consumer preferences, investors and industry observers will be keenly watching its performance in the coming quarters.

Foods & Inns Limited, a leading food processing company, has reported a robust 25.7% year-on-year volume growth in the second quarter of fiscal year 2026. However, the company faced a 2.1% decline in EBITDA, primarily due to forex losses and increased operational expenses.

Key Highlights

• Volume growth: 25.7% year-on-year in Q2 FY26
• EBITDA: 2.1% decline
• Forex losses: INR 5.00 crore
• Significant tomato paste orders secured: INR 75.00-90.00 crores

Financial Performance

Despite the strong volume growth, Foods & Inns experienced a slight setback in its EBITDA performance. The company attributed this decline to two main factors:

1. Forex losses amounting to INR 5.00 crore
2. Higher operational expenses resulting from increased in-house production capacity

Operational Developments

Tomato Paste Orders

Foods & Inns has secured significant tomato paste orders worth INR 75.00-90.00 crores. These orders are expected to be dispatched by June 2026, indicating a strong pipeline for the coming quarters.

Export Outlook

The company is optimistic about its export prospects, particularly in the mango pulp segment. Indian mango pulp has become price competitive against Mexican products, potentially opening up new market opportunities.

Growth Target

Foods & Inns has set a target of 20% annual volume growth, reflecting confidence in its market position and operational capabilities.

Segment Performance

Frozen Foods

The frozen foods category has shown promising growth, with Q2 FY26 volumes up by approximately 39% year-on-year.

Kusum Spices

While the Kusum Spices segment has maintained stable performance, the company plans to implement new digital marketing strategies to drive growth in this category.

Tetra Recart

The company is seeing slow but steady progress in its Tetra Recart segment, with new orders coming from various countries, particularly Russia. Foods & Inns is also expanding its presence in the Canadian and North American markets for this product line.

Future Outlook

Foods & Inns remains optimistic about its growth prospects, citing several factors:

1. Strong export demand, especially for mango pulp
2. Expansion into new geographical markets
3. Increasing demand in the frozen food category
4. Potential growth in the Tetra Recart segment

The company is also exploring options for capacity expansion, including the addition of a mid-sized spray drying plant with low capital expenditure.

As Foods & Inns continues to navigate challenges such as forex fluctuations and increased operational costs, its focus on volume growth and market expansion may position it well for future success in the competitive food processing industry.