Manorama Industries Limited , a leading provider of specialty fats and butters, has reported robust financial results for the first half of FY26, demonstrating strong growth and operational efficiency. The company has also announced ambitious expansion plans and revised its annual guidance upward.

Financial Highlights

For H1 FY26, Manorama Industries reported:

The Q2 FY26 performance was equally impressive:

Revised Guidance and Operational Performance

Based on the strong performance, Manorama Industries has revised its annual guidance upward from INR 1,050 crores to INR 1,150 crores plus for FY26. The company reported that value-added products contributed 70%-75% to sales, with plant utilization at 80%-85% of its current 40,000 tons capacity.

Export sales accounted for 58% of revenue, while domestic sales contributed 42%. The company's working capital days have significantly improved from 151 to 97 days, with a target of reaching 75 days over the next two years.

Expansion Plans and Strategic Initiatives

Manorama Industries announced several key initiatives to drive future growth:

1. Capacity Expansion: The company plans to increase its capacity from 40,000 to 52,000 metric tons annually through plant upgradation in Q3.

2. Capital Expenditure: Management has announced INR 450 crores in capital expenditure for expansion projects, including:

   • Backward integration facilities in West Africa
   • Forward integration in Latin America

3. Global Footprint: The company has established subsidiaries in West Africa to streamline raw material procurement and signed an MoU with the government of Burkina Faso for setting up a processing facility.

4. Latin America Expansion: Manorama has entered into an agreement with DEKEL in Brazil to utilize their processing facilities for manufacturing specialty fats for the regional market.

5. Domestic Investment: The company has signed an MoU with the Government of Chhattisgarh for potential investment in future plant expansion projects.

Customer Base and Market Position

Manorama Industries' top customers include global giants such as Mondelez, Nestle, and Hershey's, with the top 10 customers contributing around 40% of revenue. The company maintains its position as a leading supplier of specialty fats and butters globally, particularly in Sal and Mango-based products.

Future Outlook

With its strategic expansion plans, focus on value-added products, and strong customer relationships, Manorama Industries is well-positioned for sustained growth. The company's emphasis on backward and forward integration is expected to improve operational efficiency and strengthen its market position in the specialty fats and butters industry.

As global demand for cocoa butter equivalents and specialty fats continues to grow, Manorama Industries' expansion initiatives and focus on innovation are likely to drive its future performance and market share.

Manorama Industries , a key player in the Indian market, has reported robust financial results for the second quarter, showcasing significant growth across key metrics.

Financial Highlights

The company's performance demonstrates substantial year-on-year improvements:

*pp: percentage points

Performance Analysis

Manorama Industries has delivered a stellar performance in the second quarter, with net profit more than doubling compared to the same period last year. The company's revenue saw a substantial increase of 65.6% year-on-year, reaching ₹3,230.00 crore.

Operational Efficiency

The company's operational efficiency has shown marked improvement:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 94%, from ₹452.00 crore to ₹877.00 crore.
• The EBITDA margin expanded by 3.99 percentage points, rising from 23.13% to 27.12%, indicating enhanced operational efficiency alongside revenue growth.

This impressive growth in EBITDA and improvement in EBITDA margin suggest that Manorama Industries has successfully managed its operational costs while expanding its business.

Conclusion

Manorama Industries' Q2 results reflect a period of strong growth and improved operational efficiency. The significant increases in revenue and net profit, coupled with an enhanced EBITDA margin, indicate that the company has effectively capitalized on market opportunities while managing its costs. These results demonstrate the company's robust financial performance during the quarter.