Key Highlights

• Total income increased by 14% year-on-year to Rs 195.00 crore
• Sales tonnage grew by 26% to 20,737 MT
• Export volumes surged by 39%
• Profit after tax declined by 94% to Rs 1.00 crore due to forex losses
• EBITDA margin compressed to 10.4% from 15.2% in the previous year

Strong Volume Growth

Foods & Inns demonstrated impressive volume growth in Q2 FY26, with total sales tonnage increasing by 26% to 20,737 MT compared to 16,494 MT in the same quarter last year. This growth was primarily driven by a substantial 39% surge in export volumes, which reached 8,551 MT. The domestic market also showed healthy expansion, with sales volumes growing by 17% to 12,186 MT.

Financial Performance

The company's total income for the quarter rose by 14% year-on-year to Rs 195.00 crore, reflecting the strong volume growth. However, profitability was significantly impacted by foreign exchange fluctuations. Foods & Inns reported a profit after tax of Rs 1.00 crore, a 94% decline from the previous year, primarily due to an Rs 85.46 crore mark-to-market forex loss arising from currency fluctuations.

The EBITDA margin also faced pressure, compressing to 10.4% from 15.2% in Q2 FY25. This margin contraction can be attributed to the forex losses and potentially higher input costs, although detailed cost breakdowns were not provided in the available data.

Forex Impact

The company's financial results were significantly affected by foreign exchange fluctuations. Foods & Inns reported an unrealized mark-to-market loss of Rs 4.67 crore on its forward contracts for the quarter ended September 30, 2025. This loss is part of the larger Rs 85.46 crore forex loss mentioned in the results.

It's important to note that these are unrealized losses, reflecting the accounting impact of currency movements on outstanding exposures rather than actual cash losses. However, they have had a material impact on the reported profitability for the quarter.

Half-Year Performance

For the first half of FY26, Foods & Inns reported a 16% increase in sales tonnage to 50,775 MT, compared to 43,647 MT in H1 FY25. Export volumes for the half-year grew by 24% to 12,968 MT, while domestic volumes increased by 14% to 37,807 MT.

Outlook

Despite the profitability challenges in Q2 FY26, Foods & Inns' strong volume growth provides a positive indicator for future performance. The company's ability to significantly increase its export volumes may position it well to benefit from growing international demand for its products.

However, the impact of forex fluctuations on the company's financials highlights the need for effective currency risk management strategies. As Foods & Inns continues to expand its sales volumes, particularly in the export market, managing costs and improving operational efficiency will be crucial to translating this growth into improved profitability. The company's performance in the coming quarters will be closely watched to see if it can maintain its strong volume growth while addressing the challenges that impacted its bottom line in Q2 FY26.

Foods & Inns Limited (FIL) has scheduled a conference call to discuss its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The call, facilitated by Arihant Capital Markets Ltd, is set to take place on Friday, November 14, 2025, at 3:30 P.M. IST.

Key Details

Company Representatives

The call will feature key executives from Foods & Inns Limited:

Dial-In Information

For those interested in participating, the company has provided multiple dial-in options:

Participants are advised to dial in 5-10 minutes prior to the scheduled start time to ensure timely connection to the call.

Express Join Option

For convenience, an express join option is available through DiamondPass™, allowing participants to join without wait time. Interested parties can access this option through a secure link provided by the company.

This earnings call presents an opportunity for analysts and investors to gain insights into Foods & Inns Limited's financial performance and future outlook. As the company shares its Q2 FY26 results, market participants will be keen to understand the factors influencing its performance in the current economic environment.

The scheduling of this call underscores Foods & Inns Limited's commitment to transparency and open communication with its stakeholders, adhering to the regulatory requirements set by SEBI (Securities and Exchange Board of India) under the Listing Obligations and Disclosure Requirements Regulations, 2015.