ADF Foods Limited, a leading processed food company, has reported a strong financial performance for the second quarter of the fiscal year 2025-26. The company's net profit saw a significant increase, while its EBITDA margin expanded, indicating improved operational efficiency.

Financial Highlights

ADF Foods has demonstrated a robust financial performance in the second quarter, with a notable 34% year-on-year increase in net profit, reaching 264.00 million rupees. This significant growth in profitability comes despite flat revenue, which remained steady at 1600.00 million rupees compared to the same period last year.

Improved Operational Efficiency

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed substantial growth, rising to 358.00 million rupees from 277.00 million rupees in the corresponding quarter of the previous year. This 29.20% increase in EBITDA reflects ADF Foods' enhanced operational efficiency and cost management strategies.

Expanding Margins

One of the most notable aspects of ADF Foods' Q2 performance is the significant expansion of its EBITDA margin. The EBITDA margin improved from 17.15% in Q2 of the previous fiscal year to 21.99% in the current quarter, representing an increase of 484 basis points. This margin expansion suggests that the company has been successful in optimizing its operations and controlling costs effectively.

Stable Revenue

While the company's revenue remained flat year-on-year, the ability to maintain stable sales demonstrates the resilience of ADF Foods' business model and the continued demand for its products.

Dividend Announcement

The Board of Directors has declared an interim dividend of Rs. 0.60 per share (30%) on equity shares with a face value of Rs. 2 each for the Financial Year 2025-26. The record date for this dividend is set as Thursday, November 13, 2025.

Looking Ahead

ADF Foods' strong profitability growth and margin expansion in Q2 provide a solid foundation for the company's performance in the coming quarters. The management's focus on operational efficiency appears to be yielding positive results, as evidenced by the improved EBITDA and net profit figures.

As the company continues to navigate the market conditions, investors and stakeholders will be keen to see if ADF Foods can maintain this growth trajectory and potentially translate its operational improvements into revenue growth in future quarters.

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.