Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or upcoming fundraising through debt or equity in the provided transcript. The company has utilized INR 31 crores from the IPO proceeds as of March 31, 2025. The proceeds from the share capital issue via preference shares are currently invested in bank deposits. No specific plans or discussions regarding new debt or equity fundraising were disclosed during the call. The management did not indicate any immediate need for additional capital through raising debt or equity in the near term.

Any current/future capex/capital investment/strategic investment?

New vegetarian facility with 16,000 metric ton capacity geared to go live by September 2025; targeting 20%-25% capacity utilization initially. Joint Venture (JV) with Allana (Allana CF Foods Pvt Ltd) focused on exports, to go live by November 2025; targeting 15%-20% capacity utilization initially. Import of an automated cutting line to improve efficiency and reduce manpower costs, especially for artisan/hand-cut products. Existing chicken facility near full utilization but no immediate capacity expansion planned; trial for KFC marination process ongoing without need for capacity increase. The

Future growth expectations in sales/revenue/volumes?

Chatha Foods targets a 20%+ revenue growth for the next financial year (FY26) continuing from an 18% growth in FY25. The existing chicken facility expects a 20% volume and revenue increase, projecting INR180-185 crore revenue. The new vegetarian facility with 16,000 MT capacity aims to generate INR200-210 crore revenue by FY28. The Allana JV plant is expected to contribute INR180-190 crore in revenue by FY28. Overall, the company is targeting close to INR550 crore total revenue by FY28. Capacity utilization targets are 20-25% for the vegetarian unit and 15-20% for the JV in FY26, scaling up th

Future growth expectations in earnings/operating earnings/profits/EPS?

Management is targeting over 20% revenue growth for the next financial year, driven by expansion in chicken, vegetarian, and JV businesses. Gross margins expected to improve next year, aided by better product mix and operational efficiencies. Automation investments (e.g., imported cutting lines) to reduce manpower costs and improve operating margins. New vegetarian and Allana JV facilities expected to break even between 35%-45% capacity utilization, contributing to profitability. Overall company margins anticipated to be better with the addition of vegetarian and JV businesses alongside chicke

Current/ Expected Orderbook/ Pending Orders?

Chatha Foods has onboarded 6-7 new QSR customers in FY '25, contributing approximately INR 7-8 crore in revenue, although some clients started only in the second half of the year. The company maintains long-term agreements with QSR clients, typically spanning 3 to 5 years with annual pricing updates. Despite some clients like Jubilant and Domino's shifting to in-house sourcing, overall volumes have not been negatively impacted due to increased volume commitments and growth. Discussions and sample dispatches are underway for new product categories, including vegetarian facilities, with pr

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Chatha Foods LtdQ2 FY25Food Products

Chatha Foods Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹85.5P/E: 34.4Market Cap: ₹207 CrSector: Food Products

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 2

→Chatha Foods targets a 20%+ revenue growth for the next financial year (FY26) continuing from an 18% growth in FY25.
→The existing chicken facility expects a 20% volume and revenue increase, projecting INR180-185 crore revenue.
→The new vegetarian facility with 16,000 MT capacity aims to generate INR200-210 crore revenue by FY28.
→The Allana JV plant is expected to contribute INR180-190 crore in revenue by FY28.
→Overall, the company is targeting close to INR550 crore total revenue by FY28.
→Capacity utilization targets are 20-25% for the vegetarian unit and 15-20% for the JV in FY26, scaling up thereafter.
→QSR client volumes are growing; Jubilant sees 20% year-on-year volume increase despite some customers shifting to in-house production.
→New QSR clients onboarded recently contributed INR7-8 crore revenue in FY25 (not annualized).
→Long-term agreements with QSR clients typically range 3-5 years with annual pricing revisions.

Margin guidance

Category 1

→Management is targeting over 20% revenue growth for the next financial year, driven by expansion in chicken, vegetarian, and JV businesses.
→Gross margins expected to improve next year, aided by better product mix and operational efficiencies.
→Automation investments (e.g., imported cutting lines) to reduce manpower costs and improve operating margins.
→New vegetarian and Allana JV facilities expected to break even between 35%-45% capacity utilization, contributing to profitability.
→Overall company margins anticipated to be better with the addition of vegetarian and JV businesses alongside chicken operations.
→FY26 outlook positive for both top-line growth and operating margins; margins expected to improve as commodity price pass-through stabilizes.
→Management sees no major risks derailing growth plans; capacity utilization from new units to steadily increase, supporting volume and profit expansion.
→FY28-FY29 revenue expected to scale broadly across core chicken, vegetarian facility, and Allana JV units, implying multi-fold growth.

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Fundraise plans

Yes

→There is no explicit mention of any current or upcoming fundraising through debt or equity in the provided transcript.
→The company has utilized INR 31 crores from the IPO proceeds as of March 31, 2025.
→The proceeds from the share capital issue via preference shares are currently invested in bank deposits.
→No specific plans or discussions regarding new debt or equity fundraising were disclosed during the call.
→The management did not indicate any immediate need for additional capital through raising debt or equity in the near term.

Order book

Yes

→Chatha Foods has onboarded 6-7 new QSR customers in FY '25, contributing approximately INR 7-8 crore in revenue, although some clients started only in the second half of the year.
→The company maintains long-term agreements with QSR clients, typically spanning 3 to 5 years with annual pricing updates.
→Despite some clients like Jubilant and Domino's shifting to in-house sourcing, overall volumes have not been negatively impacted due to increased volume commitments and growth.
→Discussions and sample dispatches are underway for new product categories, including vegetarian facilities, with production aimed to start by FY '26 at 20-25% capacity utilization for veg products and 15-20% for the Allana JV by Q4.
→Chatha Foods is steadily building pipeline opportunities in exports and new product segments, with ongoing engagements for large client rollouts pending menu and store implementations.

Capex plans

Yes

→New vegetarian facility with 16,000 metric ton capacity geared to go live by September 2025; targeting 20%-25% capacity utilization initially.
→Joint Venture (JV) with Allana (Allana CF Foods Pvt Ltd) focused on exports, to go live by November 2025; targeting 15%-20% capacity utilization initially.
→Import of an automated cutting line to improve efficiency and reduce manpower costs, especially for artisan/hand-cut products.
→Existing chicken facility near full utilization but no immediate capacity expansion planned; trial for KFC marination process ongoing without need for capacity increase.
→The company aims for optimal utilization of its three facilities by FY28-29.
→Approximately INR31 crore utilized from IPO proceeds for capital investments; additional preference share capital invested in bank deposits.
→No current expansions or other strategic projects beyond the mentioned veg facility and JV with Allana as of now.

How does Chatha Foods Ltd rank vs peers in Food Products?

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