Nurture Well Industries Ltd Q4 FY26 Earnings Analysis

- Company targets total revenue of approximately INR 2,500 crores by FY 2029, roughly doubling from around INR 1,200 crores expected in FY 2026. - Domestic business revenue is expected to grow from about INR 125-130 crores currently to around INR 1,000–1,200 crores in the next three years. - Capacity expansions include adding lines at the existing Neemrana plant (INR 15–20 crores) and commissioning a new manufacturing unit (INR ~400 crores capex). - Current capacity utilization is about 65-66%; target to ramp up to 80-85% before the new plant comes online. - The new unit will focus on premium biscuits and confectionery, expected to improve both revenue and margins. - Volume growth aligns with turnover growth, showing approximately 7-8% tonnage increase recently. - Contract manufacturing is used in interim to meet demand before new capacity becomes operational. - Overseas and domestic markets expected to contribute equally (~50% each) to revenue in three years.

- Revenue is expected to grow strongly, targeting approximately INR1,150 crores for FY '26, a 50% increase from the previous year. - The company aims to double revenues from around INR1,200 crores in FY '26 to INR2,500 crores by FY '29 with new capacity addition and expansion. - EBITDA margin is projected to grow from the current ~10% to approximately 15% over the next 2-3 years, driven by premium product mix in the new manufacturing unit. - Net profit has shown a 95% growth YoY in Q3 FY '26, with net profit margin improving to 10.72%. - Return on Equity (ROE) is expected to improve from the current 15-18% to around 24-25% post capacity expansion. - The new manufacturing capacity will start contributing revenues from FY '28 onwards, boosting overall earnings. - EPS is likely to improve in line with profit growth, given operating leverage and margin expansion.

- Existing Neemrana plant expansion: Adding 2-3 production lines with a capex of approx. INR 15-20 crores, planned for FY 2026-27. - New manufacturing unit (Secunderabad): Major capex of approx. INR 400 crores over next 2 years (around INR 300 crores for capex and INR 100 crores for working capital). - Timeline for new unit: Commercial production expected to start around FY 2028-29, with trial runs by end of FY 2027. - Funding: Capex to be financed through fresh equity issuance, promoters' contribution, and internal accruals; no long-term debt planned. - Strategic focus: New unit to enable entry into premium biscuit and confectionery segments, enhancing margins from 10% to approx. 15% EBITDA. - Domestic market contribution expected to increase to 50-60% of revenues within 2-3 years, supported by capacity expansions.

- Nurture Well Industries Limited plans a significant capital expenditure of approximately INR 400 crores over the next two years (around INR 300 crore for capex and INR 100 crore for working capital). - The funding for this capex will come from a combination of fresh equity issuance, promoters' contribution, and internal accruals. - The promoters intend to maintain their current shareholding of approximately 54%, so any dilution will be balanced. - The company does not plan to raise any debt for this expansion; it will be entirely funded through equity and promoters' funds. - Working capital limits from banks exist, but there is no long-term debt on the books currently. In summary, future fundraising will be through equity (fresh issue and promoters' contribution) with no plans to raise debt.

- The company has a sizeable and developing order book, helping to increase capacity utilization and translate into sales. - Orders are received primarily through super stockists and consolidators in Tier 2 and Tier 3 cities of Northern India. - These super stockists and consolidators provide long-term orders booking requirements for 3-4 months in advance based on market feedback. - For the next quarter, approximately 75%-80% of the revenue is already backed by confirmed orders. - The company is confident about turnover growth due to repeated and increasing orders from existing and new super stockists. - To cater to growing demand before the new plant comes online, contract manufacturers are engaged to produce under the company brand. - Overall, the robust order book supports expected capacity utilization growth and revenue expansion plans.