ADF Foods Limited, a leading Indian food company, has reported a strong start to the fiscal year, with consolidated revenue reaching INR 132.90 crores in the first quarter, marking a 10% year-on-year increase. The company has successfully navigated global economic uncertainties and seasonal fluctuations to achieve this growth.

Financial Highlights

The company maintained a healthy EBITDA margin of 17.70%, showcasing a 160 basis points improvement year-on-year, despite ongoing brand investments and rising input costs. This performance reflects ADF Foods' effective cost management and enhanced operational efficiencies.

Global Expansion and Brand Growth

ADF Foods has made significant strides in expanding its global presence:

• Secured new listings for the Ashoka brand with major retail chains:
  • Costco in Australia and the US
  • Additional listings with Tesco in the UK (up to 150 additional stores)
• The Truly Indian brand is now available in 1,600 stores across the USA
• Received new Costco listings for Truly Indian in one of their US divisions

The company completed a brand refresh for Truly Indian, with updated packaging set to roll out in Q3. This initiative is expected to drive further momentum and increase brand traction.

Operational Updates

• The Surat Greenfield facility expansion is progressing as planned
• Expected to commence operations in the second half of the fiscal year
• Capacity of 10,000 metric tons
• Over 90% of the INR 90.00 crore capex budget is fully committed, with 50% already spent

Financial Position

ADF Foods maintains a strong financial position with:

• A debt-free balance sheet
• Robust net cash balance of INR 95.00 crores

Management Outlook

Bimal Thakkar, Chairman and Managing Director, expressed cautious optimism about sustaining the growth trajectory in the current financial year, despite ongoing tariff uncertainties and global economic challenges. The company expects to achieve meaningful scale across all business segments.

Future Prospects

ADF Foods is poised for growth with its strategic initiatives:

• Reorganization of the US sales team and formation of a new team in Australia are yielding positive outcomes
• Expansion into quick commerce with listings from major players
• Continued focus on brand investments and market expansion

As ADF Foods continues to strengthen its global presence and product portfolio, the company remains well-positioned to capitalize on the growing demand for Indian food products in international markets.

ADF Foods Limited , a leading manufacturer of prepared ethnic foods, has reported a strong start to the fiscal year 2026, with consolidated revenue growing by 9.3% year-on-year to ₹132.90 crore in the first quarter. The company's performance comes amid its ambitious plan to achieve a revenue target of over ₹1,000 crore by FY27, as announced in its recent investor presentation.

Q1 FY26 Financial Highlights

• Consolidated revenue increased by 9.3% YoY to ₹132.90 crore
• EBITDA rose by 20% YoY to ₹23.50 crore, with margins improving to 17.7%
• Profit After Tax (PAT) grew by 5.9% YoY to ₹15.20 crore

The company's financial results demonstrate resilience in the face of global economic uncertainties, tariffs, and seasonal business fluctuations. ADF Foods managed to improve its EBITDA margin despite ongoing brand investments and rising input costs, which were effectively mitigated through disciplined cost management and enhanced operational efficiencies.

Segment Performance

ADF Foods operates in two primary business segments:

1. Processed and Preserved Foods: This segment generated revenue of ₹112.20 crore in Q1 FY26, with an EBITDA of ₹24.10 crore and an EBITDA margin of 21.5%.

2. Distribution Business: The segment reported revenue of ₹20.70 crore, with an EBITDA of ₹3.60 crore and a significantly improved EBITDA margin of 17.4%.

Strategic Initiatives and Outlook

Bimal Thakkar, Chairman & Managing Director of ADF Foods, highlighted several key developments:

1. Sales Team Reorganization: The strategic reorganization of the sales team in the USA and the formation of a new team in Australia have started to yield positive outcomes in terms of new listings.

2. Brand Refresh: The company successfully completed a brand refresh for 'Truly Indian' and showcased the updated identity at a prominent food exhibition, receiving encouraging feedback from trade and consumers. The refreshed packaging is set to roll out in Q3 FY26.

3. Expansion Plans: The Surat Greenfield facility expansion is progressing as planned and is on track to begin operations in the second half of FY26.

4. Future Outlook: Despite global economic uncertainties and tariffs, the company remains cautiously optimistic about sustaining its growth trajectory in the current financial year and expects to achieve meaningful scale across all business segments.

Path to ₹1,000+ Crore Revenue

ADF Foods has outlined its strategy to reach the ambitious revenue target of over ₹1,000 crore by FY27:

1. Brownfield & Debottlenecking: Expected to contribute ₹180-200 crore in incremental revenue.
2. Greenfield Expansion: Anticipated to add ₹250-275 crore to the top line.
3. Distribution Business & Outsourcing: Projected to bring in ₹100+ crore in additional revenue.
4. Brand Investments: Continuous and strategic investments in brands, particularly the flagship brand Ashoka, which is positioned for a 20-25% annual growth rate.

The company's multi-pronged approach, focusing on capacity expansion, brand strengthening, and market penetration, appears to be setting a solid foundation for achieving its revenue target.

As ADF Foods continues to navigate global challenges while pursuing its growth strategies, investors and industry observers will be keenly watching the company's progress towards its ambitious FY27 revenue goal.