Hoac Foods Q3 FY26 Earnings Analysis

- The company expects very good revenue growth next year, targeting a 75%-80% growth rate (Page 11). - They plan to expand their B2B presence, increasing store distribution from 1,400 to 5,000 stores in the coming year (Page 8). - Their new manufacturing plant in Vidisha (50,000 sq. ft.) will increase capacity, potentially generating around INR 100 crores turnover at full capacity (Page 7). - They aim to open 7-8 new retail outlets annually to maintain manageable and profitable growth (Page 7). - Export business is growing steadily with 10 containers shipped to the UK and deals in the US, expected to contribute more over time (Page 9-10). - The company is focusing on strengthening direct B2C sales through their own stores and app, which currently contributes about 54% of revenue (Page 13). - Overall growth will be fueled by product quality, expanded distribution, capacity enhancement, and strong export demand.

- The company delivered very good H1 FY26 results with revenues of INR21.84 crores, up 96.87%, and EBITDA of INR3.31 crores, up 105.13%. - EPS improved by 67.13% to 4.78 in H1 FY26 from 2.86 in H1 FY25. - Management expects to maintain a strong growth trajectory with a 75%-80% revenue growth anticipated for the next year. - Profit margins are expected to remain strong, focusing on quality products to sustain margins amidst expansion. - Expansion of B2B distribution (from 1,400 stores aiming for 5,000 stores next year) and export growth will drive revenue growth. - Operating leverage is limited currently due to ongoing capex and expansion costs; margin increase beyond 10% is unlikely immediately. - The company plans to open 7-8 new retail stores annually to fuel growth, with automated plants supporting scalable operations. - Management maintains commitment to delivering consistent, strong financial performance while strengthening customer and investor trust.

- Current capex utilization is around 80%-85%, with 15% capacity available. - New manufacturing plant in Vidisha, MP, covering 50,000 sq. ft., with initial operations starting in 20,000 sq. ft. - Factory setup at Vidisha expected to be completed in 2.5 to 3 months. - The new plant will boost atta (flour) segment production, contributing 45%-50% to revenue. - Planned capex aims to support demand and enable 2.5 to 3 times higher production capacity compared to current plants. - Long-term strategy is to add 10-11 retail outlets annually to ensure manageable and profitable growth. - No additional debt or equity fundraising is expected in the next 1.5 to 2 years to support expansion. - Overall capex supports scaling operations without compromising quality or working capital strength.

- HOAC Foods India Limited does not have any requirement for debt or equity fundraising for the next 1.5 to 2 years. - The company is focusing on utilizing existing resources for growth and expansion. - Capex is ongoing to support increased demand, but no external fundraising is planned at this time. - The management aims to maintain profitability and manage growth without additional capital infusion.

- HOAC Foods has secured a U.S. export deal with an initial order of one container worth around INR 60-70 lakhs. - Currently, 2-3 containers are in the pipeline for the U.S. market. - Overall, there are 5-6 containers pending in the export order pipeline. - The company has shipped 10 containers in the last six months but is still establishing and growing the export business. - Export division is handled by a team with 15-20 years of experience, indicating focus on scaling export orders.