Manorama Industries Ltd Q1 FY27 Earnings Call: Guides Rs. 225-250 Cr Capex for FY27, Revenue Grows 39.5% YoY

Manorama Industries Ltd held its Q1 FY27 earnings call on August 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarterly Revenue and Profitability

• Revenue of Rs.404 Cr — grew 39.5% YoY in Q1 FY 2026-2027, driven by volume growth (80-85% of the increase) and a richer product mix from higher fractionation capacity.
• EBITDA of Rs.106 Cr — up 42.2% YoY, with margin expanding 49 bps to 26.3% on cost management and operating leverage.
• Profit after tax of Rs.79 Cr — increased 67.6% YoY; PAT margin widened 326 bps to 19.5% on product mix optimisation and capacity utilisation.
• Export-to-domestic mix of 60:40 — export share remained stable at 55-60% of revenue in both Q1 FY 2025-2026 and Q1 FY 2026-2027.
• CBE and stearin combined contributed 71.4% of total revenue (CBE ~30%, stearin ~41.4%); management noted "both are technically the same" product.

Rs.460 Cr Programme Through Q3 FY2027-2028

• CAPEX guidance of Rs.225-250 Cr for FY 2026-2027, part of a larger planned outlay of Rs.460 Cr; Burkina Faso facility accounts for Rs.120-130 Cr and the India facility for the balance.
• Total capex of Rs.460 Cr to be spent until Q3 FY2027-2028 — management confirmed gradual contributions to revenue will start from that point.
• Debottlenecking adding 4,500 tonnes fractionation capacity during FY 2026-2027, raising total capacity from 47,500 to 52,000 tonnes per annum; portion of 7,500 tonnes already operational, balance expected by Q3 FY 2026-2027.
• Capacity utilisation guided at 80-85% for full-year FY 2026-2027 on the de-bottlenecked capacity; Q1 FY 2026-2027 reported ~80% utilisation of value-added fractionation capacity.
• Q1 FY 2026-2027 capex spend of ~Rs.20 Cr — cumulative ~Rs.70 Cr spent to date; additional ~Rs.220 Cr planned for the remainder of FY 2026-2027 to complete the annual plan.
• Greenfield solvent fractionation and refinery targeting commissioning in Q3 FY 2027-2028; de-bottlenecking capex includes Rs.5-6 Cr for that workstream.

Volume-Led Growth with Premium Product Tailwinds

• Volume growth contributed 80-85% of the 39% YoY revenue increase in Q1 FY 2026-2027; pricing environment was "largely stable" for value-added, specification-based products.
• Export share stable at 55-60% — company supplies to over 30 countries, with revenue mix approximately 50-60% from imported seeds and butter and the balance from domestic sources (period unspecified).
• Contracts run 9-12 months with rolling renewals across the year, not concentrated in any single quarter (Q1 FY 2026-2027 commentary).
• New CBEA (ECBE) product — a cocoa butter alternative produced via enzymatic conversion of liquid fractions into solid fractions, enabling forward integration and use of existing and additional raw materials.
• Downstream initiatives include a CBA plant and interesterified technology to produce value-added products from co-products and by-products like olein.

Operating Leverage Path with Stable Cost Guardrails

• Gross margin normal range of 45-50% — management indicated EBITDA margin is a better standalone measure, influenced by freight cost timing and by-product (de-oiled cake) realisation; Q1 FY 2026-2027 gross margin declined within this context.
• Employee cost run-rate of Rs.14-15 Cr per quarter for FY 2026-2027, after a ~20% sequential decline in Q1 FY 2026-2027 driven by the removal of a one-off performance incentive provision from the prior quarter.
• Raw material cost expected at ~50% of sales for full FY 2026-2027, in line with historical average; typically 75-80% in H1 and lower in H2; shea nut procurement largely completed in Q1.
• Other income of Rs.16 Cr in Q1 FY 2026-2027 comprised Rs.13 Cr forex gain and Rs.3 Cr from FDR interest; management's historical hedging policy covers 50-60% of net forex exposure.
• Subsidiary PAT losses narrowed from Rs.8 Cr in Q4 FY 2025-2026 to Rs.3 Cr in Q1 FY 2026-2027, driven by removal of one-time costs and normalisation of operational costs; overseas entities are at different maturity stages.
• Management declined specific margin guidance for the next 2-3 years, citing the company's historical performance over the last 20-25 consistent quarters as a directional indicator; multiple levers should support an improving trajectory.

Deepening Africa Presence and Brazil Ramp-Up

• Chad subsidiary incorporated for sourcing shea nuts and butter from Africa, strengthening backward integration and the value chain; no specific margin or volume guidance provided.
• Burkina Faso: ~10 hectares of land acquired for shea and mango nut processing, with regulatory approvals pending; the ~Rs.120 Cr capex for this plant is expected to have a payback period of approximately 3 years once operational.
• Brazil trial production commenced in Q4 FY 2025-2026 — dispatch to the Brazilian entity is ongoing, with gradual ramp-up expected over the next 2-4 quarters; management indicated strong demand opportunity in that region.
• Company operates subsidiaries in 10 African regions — management stated the Nigeria shea nut export ban "does not materially impact operations" due to a diversified sourcing strategy across 22 African countries where shea is grown.
• Diversified supplier base across Africa, Malaysia, and Indonesia; management confirmed the company is not reliant on any single supplier and imports from multiple regions to mitigate geopolitical disruption risks to shipping routes.

Guidance, Funding & Macro Outlook

• Healthy top-line growth guided for FY 2026-2027 — management cited Q1 as a strong base run rate, supported by capacity ramp-up and de-bottlenecking; the earlier revenue guidance of Rs.1,600-1,800 Cr (mentioned at a prior conference) was not reaffirmed.
• Macroeconomic stabilisation expected in 2-3 quarters — management sees full benefit of expansions visible by end of FY 2026-2027 or early FY 2027-2028; geopolitical tensions have an indirect impact on freight and logistics but no direct impact on the company.
• QIP of Rs.500 Cr completed in Q1 FY 2026-2027 — supported by an FDR of Rs.150 Cr and existing sanctioned bank limits with State Bank of India as lead banker; no additional equity dilution is planned for the capex and working capital requirement.
• Additional working capital estimated at Rs.900-1,000 Cr (at 50% raw material cost, assuming 7x asset turn on the new investments) — management confirmed existing funding lines are sufficient.
• New Sheorinarayan plant expected to commission in Q1 FY 2025-2026 (as stated) — management indicated full ramp-up impact will be visible in FY 2028-2029.
• Management reaffirmed commitment to sustainable growth, strengthening the global footprint, and building an innovation-led business to deliver value to all stakeholders.