Sarveshwar Foods , a prominent player in the rice industry, has announced a significant rights issue to fuel its growth plans and strengthen its financial position. The company is set to raise up to ₹149.95 crore through the issuance of equity shares, marking a strategic move to capitalize on expanding market opportunities and enhance its operational capabilities.

Rights Issue Details

The company plans to issue up to 24,99,10,469 equity shares at ₹6 per share, comprising a face value of ₹1 and a premium of ₹5 per share. Existing shareholders will have the opportunity to subscribe to 12 rights equity shares for every 47 fully paid-up equity shares held as of the record date, August 22, 2025.

Funding Allocation and Growth Strategy

Anand Sharda, Chief Financial Officer of Sarveshwar Foods, shed light on the company's plans for utilizing the funds raised through the rights issue. He stated, "This ₹150 crore projection is based on our overall turnover projections for the coming years. The entire amount will be utilized for working capital needs."

Kamal Kant Sahoo, Chief Strategy Officer, further elaborated on the financial strategy behind the move. "We're anticipating around 30% plus growth from last year. Given our working capital cycle of around 170 to 180 days, this rights issue will help us de-leverage our balance sheet. Approximately ₹130 crores out of the ₹150 crores raised will be used for this purpose," Sahoo explained.

Expansion and Market Presence

Rohit Gupta, Chairman of Sarveshwar Foods, outlined the company's ambitious plans for market expansion, particularly in the export segment. "Currently, exports contribute about 15% to our total revenue. We're targeting to increase this to 25-30%, potentially even up to 50%," Gupta stated. He highlighted plans to establish depots in key markets like the US and Europe to strengthen the company's global presence and improve profitability.

Product Portfolio and Distribution Strategy

Sarveshwar Foods is focusing on both its traditional rice business and its organic food segment under the Nimbark brand. The company operates 15 stores, including six dedicated to organic products, with plans for further expansion. Gupta emphasized the company's strategy to strengthen its distribution network, particularly through general trade channels across India.

Financial Performance

The company reported strong financial results for Q1 FY2026, with total income reaching ₹301.00 crores, marking a 29% year-on-year growth. EBITDA stood at ₹17.13 crores, up 36% year-on-year, with an improved EBITDA margin of 5.56%. Net profit saw a significant jump of 120% year-on-year, reaching ₹7.02 crores.

Future Outlook

With a focus on deepening distribution in high-potential domestic markets, scaling up exports, and continuing investment in innovation, Sarveshwar Foods appears poised for sustained growth. The rights issue is expected to play a crucial role in supporting these initiatives and strengthening the company's market position in both domestic and international markets.

As Sarveshwar Foods moves forward with its expansion plans and rights issue, investors and market watchers will be keenly observing how these strategic moves translate into long-term growth and value creation for the company.

Sarveshwar Foods Limited , a leading player in the rice and organic food products sector, has reported strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Total income reached Rs. 301.00 crores, marking a 29% year-over-year growth
• EBITDA increased by 36% to Rs. 17.13 crores
• EBITDA margin improved to 5.56%, up from 5.28% in the previous year
• Net profit surged by 120% to Rs. 7.02 crores

Revenue Breakdown and Market Presence

Sarveshwar Foods derives approximately 85% of its revenue from domestic markets, with the remaining 15% coming from exports. The company's organic products, marketed under the Nimbark brand, contribute about 25% of the total revenue, amounting to Rs. 70.00 crores.

Retail Expansion and Product Portfolio

The company currently operates 15 retail stores across 10 Indian states, with plans for further expansion. Sarveshwar Foods offers a diverse range of products, including:

• Premium rice varieties
• Organic food products under the Nimbark brand
• Ready-to-cook and ready-to-eat offerings

Export Growth and Future Plans

Sarveshwar Foods is targeting significant growth in its export business:

• Aiming for 25-30% export growth, with potential to reach up to 50%
• Plans to increase exports from the current 15% to 25-50% of total revenue
• Focus on expanding the Nimbark brand globally

Working Capital and Rights Issue

To support its growth trajectory, Sarveshwar Foods is planning a Rs. 150.00 crore rights issue:

• Primarily aimed at addressing working capital needs
• Current working capital cycle operates on a 170-180 day cycle
• Approximately Rs. 130.00 crores from the rights issue will be used to de-leverage the balance sheet

Strategic Focus and Outlook

Rohit Gupta, Chairman of Sarveshwar Foods Limited, commented on the company's performance and future strategy:

"This performance truly reflects the strength of our strategic roadmap, the ingenuity of our operations, and our ability to adapt to evolving market dynamics."

The company is focusing on:

1. Deepening distribution in high-potential domestic markets
2. Scaling up exports
3. Continuing investment in innovation
4. Strengthening farmer partnerships to ensure a sustainable supply chain

With a strong start and positive demand trends, Sarveshwar Foods is poised for continued growth in the coming quarters, leveraging its operational strengths and strategic initiatives in both domestic and international markets.

Financial Performance Table

*bps: basis points

Sarveshwar Foods Limited continues to demonstrate resilience and growth in the competitive food industry, with a clear focus on organic products and export expansion driving its future prospects.