KRBL - KRBL Ltd. Share Price

During the Q3 FY26 earnings call, management provided a positive outlook for KRBL, emphasizing the strength of India's rice production and ongoing demand in both domestic and international markets. Anil Kumar Mittal, the Chairperson and Managing Director, highlighted that global rice production is estimated to remain stable at around 540 million metric tons, with India's 2025-2026 production peaking thanks to favorable conditions.

Key financial figures presented included:

• Export revenue for Q3 FY26: INR 357 crores, down from INR 563 crores in Q3 FY25, attributed to geopolitical tensions affecting bulk exports.
• Total consolidated revenue for Q3: INR 1,476 crores.
• EBITDA: INR 250 crores, and a PAT of INR 170 crores, resulting in a PAT margin of 11.3%, an increase from 7.8% in the previous year.

Management expressed confidence in further growth, projecting a minimum 15% increase in export volumes for the next financial year, driven by competitive pricing strategies and a resilient domestic demand environment. The company plans to continue targeting procurement of quality paddy to enhance margins and brand quality while expanding its presence in premium segments internationally.

Forward-looking points included:

• Sustained growth for KRBL's domestic business, with a 6% increase in domestic revenue over nine months, driven by quantity and premium positioning.
• The introduction of new products under the Uplife brand to tap into health-focused consumer segments.
• Plans to strengthen distribution networks and enhance scalability through operational efficiency, particularly in underpenetrated towns.

Overall, KRBL aims to leverage its strong market position while navigating challenges and capitalizing on emerging opportunities in both domestic and global markets.

Question 1: "In the export and the domestic market, what are the current realizations like compared to Q3 last year?"

Answer: Our Q3 realization for the domestic branded business was about INR 77,500 per ton, while for the export branded side, it was approximately INR 1,42,000 per ton.

Question 2: "How are the realizations currently in both markets? Did you witness any uptrend or down?"

Answer: In the last 15 days, we've seen prices rise by about 7-8%. For the domestic market, we expect these increased prices to reflect positively in Q1 next year.

Question 3: "Given the lower cost of rice inventory and these price hikes, will we witness further gross margin improvement for the coming financial year?"

Answer: Yes, we anticipate our fourth-quarter EBITDA to improve by 200-250 basis points, and we expect to maintain strong margins into the next financial year.

Question 4: "Can you update us on the distribution setup in the Saudi market?"

Answer: The Saudi business is progressing well, and we are seeing consistent volume demands. We are working directly with wholesalers for now while we evaluate a long-term distributor.

Question 5: "What about our exports to Iran, especially given the currency situation?"

Answer: Our revenue from Iran has shown growth, but due to ongoing geopolitical tensions, we are being cautious and limiting new orders.

Question 6: "What is our approach towards the packaged or branded regional rice market size for the varieties that we are selling?"

Answer: The total market size for the three main regional rice varieties we're focusing on could range between INR 3,000 to INR 4,000 crores.

Question 7: "Any updates on the monetization plan for the Ghaziabad land?"

Answer: We have postponed our plans for the Ghaziabad property because the costs of relocating the unit were higher than initially expected.

Question 8: "How do we look at the overall sales volume growth for the domestic and export market for next year?"

Answer: We expect exports to grow by at least 15% next financial year, with domestic growth potentially reaching mid-single-digit, driven by bulk pack demand and premiumization of our offerings.