Foods & Inns Ltd. — Call Transcript 2025

Nov 21, 2025

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Date: 21[st] November, 2025

To, BSE Limited The General Manager, Department of Corporate Services, P.J. Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 507552	To, National Stock Exchange of India Limited Exchange Plaza, 5thFloor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051 Symbol: FOODSIN

Dear Sir/ Madam,

Sub.: Transcript of the earnings discussion/conference call dated 14th November, 2025 to discuss the unaudited financial results for the quarter ended September 30, 2025

In compliance with regulation 30 read with Schedule III to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, enclosing herewith the transcript of the conference call held on 14[th] November, 2025 to discuss the unaudited financial results of the Company for the quarter ended 30[th] September, 2025.

You are requested to take note of the same.

Thanking you,

Yours faithfully,

For FOODS AND INNS LIMITED

AMEYA TULSHIDAS Digitally signed by AMEYA TULSHIDAS MASURKAR MASURKAR Date: 2025.11.21 14:29:05 +05'30'

Ameya Masurkar Company Secretary & Compliance Officer

Foods & Inns Ltd.

Corporate Address: J. N. Heredia Marg, Hamilton House, 3[rd] floor, Ballard Estate, Mumbai - 400038 +91-22-22613102 | writetous@foodsandinns.com | www.foodsandinns.com | CIN No: L55200MH1967PLC013837 Registered Address: Udyog Bhavan, 2nd Floor, 29 Walchand Hirachand Marg, Ballard Estate, Mumbai 400038

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“Foods and Inns Limited

Q2 FY '26 Earnings Conference Call” November 14, 2025

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MANAGEMENT: MR. MILAN DALAL – MANAGING DIRECTOR – FOODS AND INNS LIMITED MR. MOLOY SAHA – CHIEF EXECUTIVE OFFICER – FOODS AND INNS LIMITED MR. ANAND KRISHNAN – CHIEF FINANCIAL OFFICER – FOODS AND INNS LIMITED

MODERATOR: MS. DEEPALI KUMARI – ARIHANT CAPITAL MARKETS LIMITED

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Moderator:

Ladies and Gentlemen, good day, and welcome to the Foods and Inns Limited Q2 FY '26 Earnings Conference Call hosted by Arihant Capital Markets Limited. As a reminder, all participant lines will be in a listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing 1 star, then 0 on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Deepali Kumari from Arihant Capital Markets Limited. Thank you, and over to you, ma'am.

Deepali Kumari:

Thank you. Hello, and good afternoon to everyone. On behalf of Arihant Capital Markets Limited, I thank you all for joining the Q2 FY '26 Earnings Conference Call of Foods and Inns Limited. Today from the management, we have Mr. Milan Dalal, sir, Managing Director; Mr. Moloy Saha, Chief Executive Officer; and Mr. Anand Krishnan, Chief Financial Officer.

So without any further delay, I would like to hand over the call to the management for their opening remarks. Thank you, and over to you, sir.

Anand Krishnan:

Anand Krishnan:

Hello, good afternoon. This is Anand Krishnan from Foods and Inn. We have with us our CEO and MD.

The export market outlook is highly promising with demand from new customers. India's processed mango pulp has become price competitive against Mexico this year due to lower Totapuri prices. And early indications for us from contracted customers suggest strong call-offs that we can actually expect beginning December of 2025 and continuing through June of 2026.

With respect to tomato, we have secured a significant volume commitment for tomato paste from a large conglomerate with dispatches scheduled to be completed by June of 2026. With respect to spray dried powders, we are planning to expand our capacity in the same existing plant by adding a midsized plant with very low capex, and we can expect this plant to be up and running in the next 18 months.

Frozen food category, global demand remains very encouraging and Q2 FY '26 volumes were up by around 39%-odd on a Y-o-Y basis. With respect to Kusum Spices, we haven't grown. But yes, we have had a very stable performance this quarter. Our intent is to grow and the marketing campaigns with respect to digital is being planned. And hopefully, we should be able to do and report better performance going ahead.

With respect to Tetra Recart, we have had slow offshoots with respect to repeat orders as well as new orders from different countries around the world. And Russia being the main market in this wherein we have actually been able to add new clients as well as add newer geographies within Russia and newer retailers as well is looking very promising for us.

Apart from which we have also opened doors for Tetra Recart in the Canadian as well as North American market. Hopefully, this is one segment that should start contributing really well in FY '27 is what we think.

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In this particular year, we are expecting around INR5-odd crores of revenue in Tetra Recart, which might not be great, but we expect this to actually accelerate as days progress. And this is as far as what the visibility is concerned as of today. We expect that this should actually increase -- the momentum going forward. In this particular quarter, we had an MTM forex loss of around INR5.5 crores because of currency fluctuations on outstanding exposures. This is just an accounting mark-to-market impact and is not a realized cash loss.

That's it from our end. I hand over the call back to the moderator for further question and answers.

Moderator: Thank you very much. We will now begin the question and answer session. The first question is from the line of Param Vora from Trinetra Asset Managers.

Param Vora: So sir, as you are already incurring capex to increase the capacity, so is there any plan to expand the product portfolio as well, like adding new products?

Anand Krishnan: So with respect to newer products in the last 3, 4 years with the same plant, with minor modifications, we have actually added actually garlic, tomato, papaya, banana and all those products. Last year, in November, December 2025, we added capacity for tomato pulping, which -- I mean, the same plant can be used for a banana pulping as well.

So the product portfolio definitely is increasing as well as the offerings of our different plants are also increasing. So we might be able to see better traction apart from mango in the other products that we have actually increased capacity.

Param Vora: Okay. And sir, regarding revenue concentration, your revenue comes from top 10 customers around 60%. So is there any plans to diversify customer base?

Anand Krishnan: That's always the plan wherein we look out for new customers. And as we have already communicated in our investor note as well as in the conference call opening remarks, we've actually got a lot of fresh inquiries coming through from different countries and newer customers this year, especially because the prices of mango has actually gone down. So we have become very cost competitive as compared to what Mexico was. So it's very promising signs as of now.

Milan Dalal: This is Milan Dalal, MD and Promoter. As you would see, the history of this company is that we are in this business for the last 50 years. And while we have a client base, which is minimum a decade old or maybe more, that doesn't stop us from doing new businesses. So we keep adding customers. But currently, most of our clients are kind of Fortune 500 companies in India and abroad. And we will continue to increase our hold over the other areas.

Moderator: The next question is from the line of Arnav Sakhuja from Ambit Capital.

Arnav Sakhuja: So my first question is with regards to the gross profit per ton. So correct me if I'm wrong, but the gross profit per ton fell by around 6% year-on-year this quarter. So if you could just give some sort of guidance as to why that happened, like how come it fell?

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Management:

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So with respect to the numbers that we have actually published, so if you actually see the tonnage numbers that have been given, based on that, if I were to actually calculate the gross profit per kg, it's actually grown on a Y-o-Y basis, wherein it's around INR38.1 per kg as compared to INR37.2 per kg.

But what you also need to understand, which we have repeatedly told over various calls is that this number is a blended number of volume that we are giving, whether it is frozen food, whether it is tomato, whether it is mango, all the other products that we actually do.

So it might not give you a direct correlation with respect to what has grown or not grown. It's a function of the product mix. But having said that, since you actually brought up this topic on a Y-o-Y basis in the quarter, the profit per kg has actually grown.

Arnav Sakhuja: Okay. And so what is the total amount of capex that we're expecting to do for FY '26?

Moloy Saha: As of today, there is no major -- sorry, this is Moloy Saha. As of today, there is no major capex plan; however, we are exploring multiple options. And if as and when anything will crystallize, we'll come to you. But otherwise, there will be a normal capex for maintenance and some automation that is all in the plant.

Arnav Sakhuja: And a few quarters ago, we had spoken about a tentative target of reaching around INR1,800 crores of revenue by FY '27. So are we broadly on track to achieve this goal? Or is it looking a little difficult at this stage?

Management: Arnav, with respect to this INR1,700 crores- INR1,800 crores turnover, even in the previous conference call, we actually clarified on this point, wherein the INR1,700 crores, INR1,800 crores was taken based on the raw material prices, which were prevalent a couple of years ago, right? Our business is a function and a pass-through of the raw material price.

So the sales price or the sales value might differ from what INR1,700 crores, INR1,800 crores is, but our intent and our efforts are to actually ensure that the number of tons that we actually sell increases.

So with respect to that, with respect to tonnage, we are on track. And as I've also explained time and time again over the various calls, the gross profit per kg on a product-wise basis is something that we try to improve on a year-on-year basis.

So tonnage plus gross profit per kg might help us with better absolute gross profit, better absolute EBITDA and better absolute PAT. So that's with that. But the top line is something that you should not take it as sacrosanct.

Moderator:

Next question is from the line of Kaushal Sharma from Equinox Capital Venture Private Limited.

Kaushal Sharma: So my question is on your absolute margin on EBITDA side, we have grown our...

Anand Krishnan:

Your voice is not clear. It is breaking it seems.

Kaushal Sharma:

Now, is it clear?

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Anand Krishnan:

Better.

Kaushal Sharma:

So my question is on your absolute number of EBITDA. Our turnover grew -- volume grew around 25.7% year-on-year in this quarter, but our EBITDA in absolute term degrowth of 2.1%. So what was the key reason of such a degrowth on a year-on-year basis? Since I have counted your INR5 crores of forex loss and adjusted the EBITDA, it comes around INR23.10 crores visa-vis INR23.59 crores in last quarter. So what was the key reason of that?

Anand Krishnan: O ne is the MTM forex loss that you have yourself explained. Second is basically our other expenses have actually increased on absolute basis, if you see. But what has also happened is that our in-house capacities have actually grown over the last couple of years because of the capex that we did under the PLI and apart from the PLI as well.

So because of that, the in-house production has gone up this year. And that in-house production has actually other elements of the fruit ripening charges which has actually pushed up the other expenses. But if you actually see it on a basis of production cost per kg, the production cost per kg has actually come down.

So what will actually happen is that once the sales actually happens, basically, the inventory cost would be lower and the profitability would be higher. So that's one of the reasons that's actually contributed to the lower EBITDA this quarter.

Kaushal Sharma: So what kind of the expenses in the other expense that has gone up?

Anand Krishnan: I mentioned, right? So in-house production related, whatever direct expenses are there, that has actually gone up because of the capacity which has increased in-house.

Moloy Saha: As well as MTM losses...

Moloy Saha: And also the freight -- export freight and warehousing charges in overseas market has increased in absolute terms due to the higher export sales volume because volume has increased. So absolute terms, it has increased. But if you consider the per metric ton basis, it is decreased by around 6%, 7%.

Kaushal Sharma: Sir, in your results you have mentioned that you have secured certain orders in tomato. So what kind of amount and can you clarify on that?

Moloy Saha: It will be around INR75 crores to INR90 crores in between because price yet to finalize because in our industry, what -- which Anand has already clarified many times that we work on the costplus model where the fruit price to be finalized once the season is over. So tomato production has started. So volume, we are able to ensure, but the pricing to be fixed in the month of sometime in December or January once we have more visibility on the pricing. It will be between INR75 crores to INR90 crores.

Kaushal Sharma: And sir, our initial target for this financial year '26 is around INR130 crores to INR140 crores for tomato business. So are we aligned with this?

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Moloy Saha:

Yes. We'll be -- I think this year looks like that we will be slightly higher than that. Not this financial year, I'm trying to say tomato crop starts in the month of October. So if we see October to October, yes, it will be higher than what we targeted.

Kaushal Sharma:

So what is our guidance for financial '26 this year for tomato?

Moloy Saha: Let us come back to you with the numbers because, I mean, what we have computed is basically based on the orders that we have, but the call-offs are not exactly placed honestly. So we are targeting somewhere between INR80 crores to INR90-odd crores. I mean, earlier, we had mentioned about INR120 crores, I know, but maybe this year shipment might be only around INR80 crores, INR90 crores.

Kaushal Sharma: And sir, can you please give me the breakup of the revenue in our segment and H1 financial '26 because currently, we don't have the presentation, so we cannot see that.

Anand Krishnan: So we generally don't give this breakup. It's only in the annual reports that we provide this number. Kaushal Sharma: And what amount of capex are we planning we have mentioned that in the next 18 months, we'll do some capex in spray drying? Anand Krishnan: So capex with respect to spray drying is very low, maybe around less than INR5 crores is what we would be spending for the third plant that we are talking about. But with respect to other capex, again, nothing is concrete as of now. Once we materialize on anything, we'll definitely keep you in the loop.

Moloy Saha: We have excess capacity on the utilities like the boiler and a lot of other things. So a very small machine will take care of 100% optimization of all the utilities and because the order book position is strong, we believe that the third unit of the spray drying would make sense. Kaushal Sharma: And sir, in the Kusum segment, we have mentioned that we'll grow around at least 30% to 40% but quarter-on-quarter or year-on-year seems to be flattish. So what kind of challenges we are facing in executing in this particular segment? Anand Krishnan: So I mean, we have not been able to immediately get traction basically because there are established brands in the market. But having said that, we continue to recalibrate our strategies. And the latest decision that we have taken is that we are going to do a lot of digital push because the older generation is accustomed to a few masalas, but the newer generations are happy to try newer brands.

We, as a company -- the only USP that we actually have is in certain blends as well as the quality that we actually give. Everybody can claim about quality, but then -- -we also claim basically because of the confidence that we have.

Having said that, digital related strategies are something that we have on our mind, and that's something that we are planning to execute soon. So hopefully, we should be able to see through some better numbers going forward.

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Kaushal Sharma: In current financial year, our target is at least 30% to 40%. So are we aligned to this? Anand Krishnan: Your voice is breaking. Kaushal Sharma: I'm saying that our current target is around at least 30% to 40% growth in this segment. So are we aligned to this? Anand Krishnan: So in this particular year, it's been flat is what we have actually seen until now. But this December quarter onwards, there is a particular order that we are actually executing with a large client. It's not a B2C part, but a B2B part, which is happening. That will help us increase volumes. Kaushal Sharma: Okay, sir. And can you please provide the overall guidance for financial '26 in terms of volume growth and overall absolute profitability growth in this year and the next year? Anand Krishnan: So the volume growth target is something that we have set internally at 20% and that's for this year as well as the next year. Next year, honestly, it's a guess that we are actually doing as of now, basically because all these numbers are dependent on the availability of raw materials and various other variables. But the target internally is 20% volume growth every year. Kaushal Sharma: But sir, the Totapuri prices have fallen significantly. So are we expecting significant profitability growth in the next financial year '27 as we liquidate the current inventory that we have procured in this year? Anand Krishnan: Our model is basically a pass-on model because most of our contracts are fixed in nature. So the pricing reduction in my raw material cost will not actually affect too much of profitability. It is only that the tonnage increase and the absolute gross profit might increase because of the tonnage. Kaushal Sharma: But sir, our -- the cost plus margin, the component of the margin would be fixed. So that's why I'm saying if your -- the growth would be there, so the profitability could see a significant growth? Anand Krishnan: No. So my margin per kg is fixed, right? So that is something that we try to improve on a yearon-year basis. But my processing cost is something that is based on the fruit price. Kaushal Sharma: So if there is a volume growth significantly in the upcoming year and our per kg price margin is fixed, so can we see the absolute terms, the profitability would grow? Anand Krishnan: Absolute terms is something that we will grow is something that I'm repeating time and again. Kaushal Sharma: So what is our target, sir, for this year and the next year in absolute terms? Anand Krishnan: So we don't want to be giving you any guidance on the pricing part of it. But as I told you, I mean, the absolute numbers will increase basically because of the 20% increase in tonnage that we are expecting. Kaushal Sharma: Similar kind of growth can we expect in this profitability?

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Anand Krishnan: We hope to. Moderator: The next question is from the line of Amish Kanani from Knowise Investment Managers. Amish Kanani: Sir, congrats on a very good operating quarter and the demand outlook... Moderator: I'm sorry to interrupt, sir, your voice is not clear. It's slightly breaking. Amish Kanani: Okay. I'll just quickly change the position. I'm saying this quarter, sir, was a quarter. Is it better now? Anand Krishnan: Yes, it is better. Amish Kanani: Yes. So sir, this quarter is a classic quarter where volume growth was very decent, but the pricing has kind of resulted in a relatively lower value growth. And because of that the other expenses have gone slightly higher, and we couldn't benefit from the operating level, so as to speak. The question, sir, is given that we have first quarter volume growth of 15%, and we are hoping that overall year should go into 20% growth and maybe third and fourth quarter is better for us in general and also PLI benefits kicking in. Sir, any sense that you can one, give us in terms of whether because of this, the operating leverage at least will help us and our profitability also will be -- I'm not looking for numbers here, but whether operating leverage will help us in terms of profit posting some recent PBT and EBITDA margins also, sir? Anand Krishnan: With respect to tonnage growing, the operating leverage definitely comes in, and we are hopeful that we will be able to better what we did the last year. Amish Kanani: Okay. So sir, is it fair to assume that 20% growth for full year means second half, the numbers can be better than 20-plus on a second half to second half basis, sir? Anand Krishnan: It's always like that, where in my Q4 and Q1 actually do the heavy lifting. So you can expect great numbers there for sure. Amish Kanani: Sure, sir. And sir, about the export outlook, if you can give us some sense of there were issues in U.S. And I remember we said 10% exports to U.S. So despite that, our export performance in volume terms is good. If you can give us some sense of outlook overall in terms of exports? And also, if you can also share a possibility of PLI benefit should we get it in the fourth quarter, which is what we regularly had which will help us model the second half better, sir?

Moloy Saha: I'll give the first answer on the export. Yes, you are correct, which we mentioned in our investor note also. We are looking at export market quite promising. And there was an initial hiccup when this tariff issue announced. But over a period of time, we have seen that it has been -- I think the cost -- increase in cost due to tariff must have been absorbed at the consumer level in the destination countries.

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But in fact, our U.S. sale, except one customer, which is still on hold, all other shipment is going in very fast pace, and we have got also additional order. So that's a positive part as far as U.S. is concerned.

Now in the Europe market, in the beginning of this financial year, that is in the first quarter, it was very depressed. But now last 45 days, we see a very good demand or inquiries on -- not only on the manges, on other products like in frozen category products or tomato or all these things is quite encouraging.

So we see a good opportunity from the Europe countries also. We're also exploring new -- geographical new places where earlier we have not had any business. So that's also giving some opportunity to us. And Russia is something we are seeing very promising now. For last 6 months, we see good demand on the food processing industry from India.

So I think already we have executed a few orders, a few orders are also in pipeline and business is likely to grow. So overall, quite bullish we are on this export market. Regarding the PLI, it is generally in the financial year, next financial year, yes, we are -- as per the schedule terms and everything, our application to submit in next, say, 2 to 3 weeks' time.

And then there will be some review at the authority level and then the disbursement take place.

So we won't be able to comment on the time line. But yes, we are quite hopeful that it should be in this financial year.

Anand Krishnan: So historically, I mean, in the first year, when we received our incentives, we received it on the 31st of March. The second year, it spilled over to the next year in the month of June. Hopefully, we should be able to receive it on time this time around.

Amish Kanani: Okay. And sir, last question, from a logistic perspective, this delayed rain, at least on the western part of India, is it affecting us in any way? Or we should assume that those things are manageable at this point in time, sir?

Moloy Saha: On the shipment or export, there is no effect. It's going. But yes, that has affected -- extended rain is definitely affected the Indian beverages industry. I'm not sure whether you're able to see or not about 15 days ago, Coca-Cola CEO, U.S.-based CEO, he has already given a statement that initially due to India, Pakistan war issue and then extended rain, their overall volume target, they are not able to achieve.

And since we are also the major -- I mean, sizable supply, we do to the coke, Pepsi both. So our pulp supply is also affected. So rain, some extent affected our domestic supply. But yes, for export, we have no issue as of now.

Moderator: The next question is from the line of Shivani from Goyal.

Shivani: Sir, my first question is related to your new product development that initiatives are underway. And how are you responding to the changes in consumer preferences globally?

Anand Krishnan:

Sorry, can you just repeat the question?

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Shivani:

Yes, sure. So my question is related to your new product development initiatives, which are underway. And how are you responding to the changes in consumer preferences globally, sir?

Moloy Saha:

Yes. Good point. I think we see -- we see a lot of trends on the health-related product. We see new, new products like vegan on the frozen sector, on the beverage segment, alternative to sugar, on the -- I mean less carbohydrate product. These are the new, new things are coming. And gluten-free, another segment is doing well.

So I think -- thanks for raising this question in the forum. So our NPD team is working, I think, for more than 9 months or maybe a year on developing -- joint development with the customers, a few products, 3, 4 products, I think we already launched in Canada market through a big supermarket called Loblaws. And now a couple of products under pipeline in U.S. with the Whole Foods, another big supermarket. So it is doing quite well.

Initially, volume may not be very high because consumer acceptance and that will take a little time. But the brands for whom we are packing, they are very, very hopeful that this business can do -- it can do -- I mean, the scale of operation may increase very soon. So it's going quite well, ma'am.

Shivani:

Okay. All right. Great. And my next question is that there is -- just wanted to understand the reason for your focus on non-pulp value-added segment. And is there any impact on your profitability?

Moloy Saha: No. Our focus is not on non-pulp. We are into all these part of it, but instead of concentration on a single mango pulp, in pulp also, we have expanded in tomato where we have become competitive in India, and it's kind of -- used to be 4 or 5 years back, imports from China, and now we are very competitive from a perspective in India.

And the acceptance of frozen foods, the acceptance of multiple other products that we are into is definitely going to help. So as a strategy, it's just a kind of the product mix to be right to ensure that we grow quite healthy.

Shivani: Okay. Okay. And sir, my last question would be that I just wanted to understand if you could throw some light on your Pink Guava, and Kusum brand, also the procurement price currently for Tomato, Mango and Guava?

Anand Krishnan:

So the procurement price is something that we don't disclose basically because it's a data that is shared only with our customers. And a lot of the large customers have direct access because there are widely published reports like the transcript reports, which are actually available for each and every Mandi in India.

So only with respect to the southern market, which is a very public information this year wherein the Totapuri prices fell to around INR8 a kg. So that is something that is publicly available, and we might be at ease to actually share that with you.

Moderator:

The next question is from the line of Kapil Ahuja from Equinox Capital Ventures.

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Kapil Ahuja:

Satisfied with the tonnage growth that you have achieved around 25.7% year-on-year in mango. But regarding other segments like tomato or guava, earlier in September 2024 in Bharat conference, you had given the guidance...

Moloy Saha: Can you just improve your -- I don't know, are you on a mobile or it's slightly cracking. Kapil Ahuja: Yes. Now it's audible? Anand Krishnan: Yes, better. Kapil Ahuja: Yes. Regarding tomato and guava, so you had given a good guidance in -- for 2026 in September 2024 Bharat conference of Arihant. So you had given a guidance of around INR100 crores in guava. And seeing that there is not much volatility unlike Mango. So what guidance are you giving for guava and Tomato? Tomato, we have given around INR130 crores, INR140 crores. And regarding guava?

Anand Krishnan: Kapil, I think there is some confusion that you have. I think with respect to guava, we have never committed around INR100-odd crores. So what we had actually told you was with respect to tomato in and around that number. So maybe there is some confusion. Kapil Ahuja: Okay. So what are we expecting in guava this year? Moloy Saha: I'd like to highlight that last year due to crop failure, we had really suffered a lot. This year, very good crop and our production is already surpassed last year total production on guava and seaborne months, we will cater to the season. So this year, we are expecting that we will be -- approximately guava growth will be more than 100% compared to last year.

And in absolute figure, it's very difficult to say at this stage as we're repeatedly highlighting that crop price or final price to be determined once the season is over. But in the range of, I can say, around between INR35 crores to INR45 crores range approximately should be the total crop finished goods value likely to be, against the previous year, INR22 crores -- INR25 crores.

Kapil Ahuja: Okay. And spray dried, we have also been done technically well. But in frozen foods and Kusum Spices also we have done poorly because in FY '26 for guidance, you have told INR100 crores top line from Kusum Spices, but there is no growth in last 2, 3 years in Kusum Spices.

So can't we change the strategy for the sale of the spices in blends and more traction into the [inaudible 0:35:49] segment or maybe more marketing -- different strategies for marketing in Kusum Spices because we are lagging behind from the last 2, 3 years. Earlier from 2021 to 2023, you did very good. But from last 3 years, there is no progress in Kusum Spices sales numbers.

Management: Yes, you're right, Kapil, that we are struggling with Kusum, but I think you're not getting it right as far as frozen is concerned. We have grown in the frozen segment. And as Anand earlier in the call, he mentioned that we are now shifting our strategy to go into digital marketing because the old generation are quite stuck on to the brands that they're using, but the newer markets, the younger generation and all can be in the right way, influenced with products.

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The quality has passed test at all levels. So that is not a concern. It's just reaching -- the message reaching to the ultimate consumer that here is Kusum, a 50-year-old brand. And we are -- in the offering, everything is there. It's just kind of the right conveyance and should target and you should soon get to see it in the social media as well.

Kapil Ahuja:

So what will be our guidance for '26 in frozen?

Moloy Saha: Frozen for '26 last year, it is INR68 crores per annum. This year, we are targeting around -- I think it should be in the between INR90 crores to INR105 crores somewhere it should be. Kapil Ahuja: In FY '24, you did INR46 crores, I think and then INR68 crores, now you are targeting... Moderator: The next question is from the line of Kaushal Sharma from Equinox Capital Ventures. Kaushal Sharma: Sir, I have one follow-up question. I have seen your cash flow wherein intercorporate deposits has risen around INR40 crores. So what was the reason of the deposits? Milan Dalal: So we have always explained to you that we do a part of our business through the contract manufacturing part as such. So there are 2 components to it. The newer capacities that we have actually tied up with, a few of them actually had working capital issues. I mean, we also had working capital issues because of the nature of the business as such.

But we had to give them security deposits, which is through an escrow account, which is interestbearing. And based on which they could actually secure working capital to finish the orders that we had actually given them. So that's with respect to the ICDs that you actually see there. Apart from which, we have also given them advance for the material that we have secured with them. So these are the 2 components to it.

Kaushal Sharma: And sir, what amount of margin money has been given to the bank regarding working capital... Moloy Saha: No, we have not given it to the bank. We have given it to the contract manufacturer to take advantage of these price advantage. Each company, this is a perishable commodity and the fruit came up quite -- it was like falling from the tree, unlike the previous years where we had a time frame of 7 to 8 days for it to ripen and process, these had to be processed kind of between 3 to 4 days as an average.

And in fact, we have been commended by the local authorities, the Andhra Pradesh government also for having participated in their program. So it was just getting in procurement of higher volumes. And we are also seeing currently, the sales are reflecting and we will become quite competitive in the export market as well. And it is not that we've given it to the banker. It is through the manufacturer as a security deposit for them to operate at higher levels.

Kaushal Sharma: And like you said, sir, it is interest-bearing. So what kind of interest are we charging on this?

Milan Dalal: 12%...

Kaushal Sharma: Sir, on your Tetra Recart, like, you said that we are expecting around 200 metric ton initial order. So what kind of amount are we expecting from this segment in this year?

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Foods and Inns Limited November 14, 2025

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Anand Krishnan:

So in FY '26, in the opening remarks, I mentioned that as of today, the visibility in Tetra Recart is only for INR5-odd crores as we speak today with respect to confirmed orders that we actually have in this year. But I mean, obviously, we are talking to a lot of guys and maybe something comes through very soon. But as of now, the visibility is only up to INR5 crores.

Kaushal Sharma: And how much revenue we have generated so far from this segment? Anand Krishnan: In this particular year? Kaushal Sharma: Yes. Anand Krishnan: Around INR2 crores. Moderator: The next question is from the line of Amit Gori, an Individual Investor. Amit Gori: Can you please guide some development on the packing side? Tetra Recart, as you said that the current turnover was INR2 crores. So what would be the maximum turnover in case the capacity utilizations are quite higher in future? Anand Krishnan: With respect to the Tetra Recart question first, then on a full-scale utilization basis, we have an infrastructure, which is built for more 3 machines that we can put in the same hall. But with the current machine and the current infrastructure that we have, we can get to around INR80 crores to INR90. And your question on Pectin, it was the first one, right? So with respect to Pectin, we have already submitted our formulations and the product to the customers. So it's not an overnight process wherein these large brands do not change their formulations immediately. The product is approved, the product is accepted, but they need to go through their formulation change post which they confirm orders. So we have given our samples that the audit is okay, So that's where we are. Amit Gori: Okay. Thank you. Anand Krishnan: If there are no further questions, we can actually close the call. Moderator: Okay, sir. So as there are no further questions from the participants, I would now hand the conference over to the management for the closing comments. Over to you, sir. Anand Krishnan: Thank you so much for all your queries. I mean we hope to give you better value in the coming quarters. It's an obligation that we have, and we are committed to giving you the best. Thank you. Moderator: Thank you. On behalf of Arihant Capital Markets Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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