ADF Foods Limited , a leading manufacturer of prepared ethnic foods, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth and strategic advancements.

Financial Highlights

ADF Foods showcased impressive performance in Q2 FY26:

The company's standalone revenue increased by 11.5% year-on-year to ₹140.10 crore, despite ongoing uncertainties surrounding US tariffs. This growth was primarily driven by strong market penetration of the Ashoka and Truly Indian brands, along with new product listings in key retail outlets such as Costco.

Operational Highlights

ADF Foods has made significant strides in its operational and strategic initiatives:

1. Brand Refresh: The company unveiled vibrant brand refreshes for its flagship Ashoka brand and the Truly Indian brand, aimed at enhancing shelf presence and consumer appeal.

2. Expansion Progress: The Surat Greenfield facility expansion is nearing completion and is on schedule to commence operations in the second half of FY26, which is expected to boost production capacity.

3. Market Penetration: Continued traction for ADF Foods' brands led by increased store penetration and geographic expansion, particularly in the US market.

4. Product Mix and Efficiency: The company's profitability was supported by an improved product mix, prudent cost optimization, and foreign exchange gains.

Management Commentary

Bimal Thakkar, Chairman & Managing Director of ADF Foods, commented on the results: "Our continued focus on disciplined execution and operational excellence makes us confident of sustaining the current growth rate in the long term."

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹0.60 per share (30% of face value) for the financial year 2025-26.

Future Outlook

ADF Foods remains optimistic about its growth trajectory, citing:

• Ongoing expansion of manufacturing capabilities
• Strategic brand refreshes to enhance market presence
• Focus on penetrating new markets and deepening presence in existing ones
• Continued emphasis on product innovation and operational efficiency

As ADF Foods navigates the evolving market landscape, including potential impacts from US tariffs, the company's robust Q2 performance and strategic initiatives position it well for sustained growth in the ethnic foods segment.

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.