Chaman Lal Setia Exports Ltd (CLSEL), a leading Basmati rice exporter, is navigating through a challenging market environment marked by price fluctuations and changing customer behavior. Despite facing headwinds in the first half of FY26, the company remains optimistic about achieving its revenue target for the full fiscal year.

Revenue Decline and Market Dynamics

CLSEL experienced a significant export sales decline of approximately INR 150.00 crores in Q2/H1 FY26. This downturn was primarily attributed to a drop in rice prices, which fell from INR 71.00/kg to INR 60.00/kg. The price reduction led to customers delaying their purchases in anticipation of further price drops, impacting the company's sales volume.

Profitability and Future Outlook

Despite the volume decline, CLSEL has managed to maintain its profitability ratios. The company's Joint Managing Director and CFO, Mr. Rajeev Setia, expressed confidence in achieving a revenue target of INR 1,500.00 crore for FY26. This target is supported by several factors:

1. Low procurement prices: The current low rice prices are enabling the company to procure inventory at favorable rates.
2. Expanded capacity: New plants in Karnal and Gandhidham have increased the company's production capabilities.
3. Strong order pipeline: The company is receiving orders from new clients and seeing a revival in demand from existing markets.

Market Strategies and Challenges

CLSEL is employing several strategies to navigate the current market conditions:

1. Inventory management: The company is leveraging its financial strength to hold inventory when prices are unfavorable, waiting for better selling opportunities.
2. Diverse customer base: With a presence in 95 countries and around 400 customers worldwide, CLSEL can adapt to varying market conditions.
3. Focus on profitability: The company prioritizes maintaining profit margins over volume growth.

Global Market Dynamics

The global Basmati rice market is experiencing several shifts:

1. Expanding cultivation areas: Basmati rice cultivation is spreading to new regions beyond traditional areas like Punjab and Haryana.
2. Changing consumer preferences: There's growing acceptance of Basmati rice among non-ethnic consumers in export markets.
3. Geopolitical factors: Issues such as the recent US tariffs have temporarily impacted demand in some markets.

Challenges and Opportunities

While facing challenges such as price volatility and changing customer behavior, CLSEL sees opportunities in:

1. Low procurement prices: Current low prices allow for building inventory at favorable rates.
2. New markets: The company is making inroads into markets like Russia.
3. Potential for market share growth: As a major player in Basmati exports, CLSEL is well-positioned to benefit from any potential decline in competition from other exporting countries.

Conclusion

Chaman Lal Setia Exports Ltd is demonstrating resilience in a fluctuating market. While the company faces short-term challenges due to price volatility and changing customer behavior, its strong market position, expanded capacity, and strategic approach to inventory management position it well for potential growth. Investors and market watchers will be keenly observing how the company navigates these market dynamics in the coming quarters.

Chaman Lal Setia Exports Limited, a prominent rice miller and exporter, has announced its financial results for the second quarter of the fiscal year 2025-26. The company's performance reflects its continued presence in the rice manufacturing, trading, and marketing sector.

Financial Highlights

Chaman Lal Setia Exports reported a revenue from operations of Rs 272.95 crore for the quarter ended September 30, 2025, compared to Rs 369.43 crore in the same quarter of the previous year. The total income for Q2 FY26 stood at Rs 276.79 crore, which includes other income of Rs 3.84 crore.

The company's profit before tax for the quarter was Rs 25.12 crore, while the net profit came in at Rs 18.93 crore. This translates to an Earnings Per Share (EPS) of Rs 3.81 for the quarter, both on a basic and diluted basis.

Half-Yearly Performance

For the first half of FY26, Chaman Lal Setia Exports recorded a total income of Rs 586.29 crore, with a net profit of Rs 40.57 crore. The half-yearly EPS stands at Rs 8.16.

Board Meeting and Approval

The company's Board of Directors met on November 11, 2025, to consider and approve these standalone unaudited financial results. The meeting, which commenced at 3:00 p.m., concluded at 6:00 p.m.

Business Segment

Chaman Lal Setia Exports continues to operate within a single primary reportable business segment, focusing on the manufacturing, trading, and marketing of rice.

Accounting Standards

The financial results have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified under the Companies (Indian Accounting Standards) Rules, 2015, and as specified in Section 133 of the Companies Act, 2013.

Investors and stakeholders can find more detailed information about the company's financial performance on its official website at www.clsel.in .