ADF Foods Limited has announced a significant step towards sustainable operations by entering into a 25-year Power Purchase Agreement with Fourth Partner Energy Limited. The agreement will enable the company to procure 2 MW hybrid renewable power for its manufacturing facility at Nadiad, Gujarat.

Power Purchase Agreement Details

The comprehensive agreement encompasses several key aspects that will transform ADF's energy consumption profile:

Hybrid Renewable Energy Model

The hybrid model combining wind and solar generation will ensure a reliable and sustainable supply of renewable energy to the company's manufacturing operations. Under this agreement, ADF will source a significant portion of its overall power requirements from renewable energy once the project becomes operational.

Management Commentary

Chairman & Managing Director and CEO Bimal Thakkar highlighted the strategic importance of this partnership, stating that it underscores the company's strong commitment to sustainable growth by integrating hybrid renewable energy solutions into operations. He emphasized that the company is taking meaningful steps toward reducing its carbon footprint and enhancing long-term operational efficiency.

Thakkar noted that this initiative aligns with India's net-zero vision of 2070 and reinforces the company's responsibility as a global food company to operate in an environmentally responsible and future-ready manner. In addition to environmental benefits, the agreement is expected to deliver sustainable cost efficiencies in electricity consumption over the long term, strengthening resilience of operations.

ESG and Sustainability Impact

This initiative will further enhance ADF's overall ESG framework and CSR profile by demonstrating a proactive commitment to renewable energy adoption and responsible manufacturing practices. The move represents a strategic alignment with global sustainability trends and regulatory expectations for corporate environmental responsibility.

Company Profile

ADF Foods Limited is a consumer-focused company and leading manufacturer of prepared ethnic foods, offering frozen foods, ready-to-eat items, ready-to-cook items, sauces, pickles, pastes and dips under its 5 prominent brands. The company's products are available in 55+ countries through a strong distribution network across US, Canada, Europe, Australia, Asia and Middle East.

ADF Foods Limited delivered exceptional financial performance in Q3 FY26, achieving record-breaking consolidated revenues and demonstrating strong operational execution across its key markets. The company's results reflect successful brand investments and strategic market expansion initiatives.

Record Financial Performance in Q3 FY26

The company achieved remarkable consolidated performance with revenues reaching an all-time high of INR191 crores, marking a robust 29.5% increase year-on-year and 17.5% quarter-on-quarter growth. This exceptional performance was driven by continued traction from listings secured in recent quarters and strengthening brand penetration across all key markets.

*Excluding exceptional items

Strong Standalone Business Growth

On a standalone basis, the company demonstrated solid performance with revenues of INR137.2 crores, reflecting 13.3% year-on-year growth. The standalone EBITDA reached INR34.4 crores, representing a significant 35.1% increase year-on-year with impressive margins of 25.1%, up 400 basis points.

*Excluding exceptional items

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, consolidated revenues from operations reached INR486.5 crores, up 13% year-on-year. EBITDA grew substantially by 30.8% to INR96.4 crores with margins of 19.8%, representing an improvement of 270 basis points year-on-year.

Brand Performance and Market Expansion

The company's flagship brand Ashoka continues to strengthen its market presence through focused market engagement and deeper penetration. The mainstream brand Truly Indian has exceeded expectations with significant acceleration in its growth trajectory, benefiting from listings in prominent supermarket chains including:

• Whole Foods Market
• Costco
• Albertsons-Safeway
• H-E-B
• Stop & Shop
• Giant Tiger

Truly Indian is now available in more than 2,000 stores across the United States, demonstrating the company's successful mainstream market penetration strategy.

Capacity Expansion and Operational Updates

The company has successfully completed pilot runs at its upcoming Surat greenfield facility, with Phase 1 on track to become fully operational by Q4 FY26. The facility will introduce two new product lines, with one commencing production from March 2026 and the second starting in Q2 of the next financial year. These new frozen product lines will help address wider target consumer groups and support future growth initiatives.

Revenue Guidance and Future Outlook

Management expressed confidence in achieving revenues between INR925 crores to INR1,000 crores for FY27, with the potential to reach the higher end depending on domestic market strategy refinements. The company expects to maintain EBITDA margins in the high teens as it continues investing in brand building and market expansion initiatives.

Source: ADF Foods Limited Q3 & 9M FY26 Earnings Conference Call Transcript