Any current/future new fundraising through debt or equity?

Chatha Foods Limited is undertaking a fundraising around Rs. 14 crore for a new JV project with Allana Group to set up a value-added meat products plant. This new plant involves a Rs. 40 crore investment, with the company raising Rs. 14 crore for the project. The new facility is planned to be commissioned by March 2025 and operational by July 2025. No specific mention of additional fundraising through debt or equity beyond this Rs. 14 crore raise for the JV was noted. The proceeds from a recent SME IPO are being used to build a new vegetarian product facility near their existing plant. There a

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

New facility focused on vegetarian products with Rs. 42-44 crore CAPEX, commissioned by March 2025, production by July 2025. JV with Allana Group for value-added ready-to-eat meat and chicken products with investment around Rs. 40 crore; raising Rs. 14 crore for this project. New plant to produce 6,000 metric tons annually with revenue potential of Rs. 175-200 crore at full capacity. CAPEX for chicken capacity expansion minimal (~Rs. 50 lakh to below Rs. 1 crore), mainly space expansion after vegetarian plant shifts. Equipment for new plants mostly imported, with utilities sourced domestically

Future growth expectations in sales/revenue/volumes?

By 2028, Chatha Foods aims to triple its revenue from the current base. Existing chicken business is expected to grow at 12%-15% annually till 2028. New JV plant with Allana Group targets approximately Rs. 200 crore revenue at full capacity (6000 MT annually). The new vegetarian flatbread plant aims for Rs. 175-Rs. 200 crore turnover on product mix. Expansion of chicken facility to increase capacity by 6-7 tons per day (from ~16-17 to over 20 tons daily) with minimal CAPEX. Overall revenue growth for the current business expected between 10%-15% annually. PAT targeted to grow 5 to

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

Chatha Foods aims to triple its revenue by 2028, targeting approximately 3x growth from current levels. The existing chicken business is expected to grow at 10%-15% annually. With the new JV with Allana Group, the company plans significant expansion in value-added meat products, driving higher margins. Operating margins in the new flatbread capacity are anticipated to be better than existing business margins. The company targets a 5x-6x increase in PAT (profits) by 2028. Expansion includes a new facility producing flatbreads, sauces, and gravies, expected to generate Rs. 175-Rs. 200 crore in t

Current/ Expected Orderbook/ Pending Orders?

QSR orders are planned and updated on a quarterly basis; volumes and product mix can vary due to promotions and limited-time offers. Commitments from new JV customers will come only once the new plant is ready and after passing food safety audits. Existing customers like Domino's and Subway provide ongoing business; Chatha Foods is a key vendor with 50-60% share in Domino's chicken requirements. Discussions with QSR customers for new product supply in the JV are ongoing but no firm orders yet, pending plant commissioning. The company targets tripling revenue by 2028 with substantial order grow

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Chatha Foods LtdQ3 FY24Food Products

Chatha Foods Ltd Q3 FY24 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 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→By 2028, Chatha Foods aims to triple its revenue from the current base.
→Existing chicken business is expected to grow at 12%-15% annually till 2028.
→New JV plant with Allana Group targets approximately Rs. 200 crore revenue at full capacity (6000 MT annually).
→The new vegetarian flatbread plant aims for Rs. 175-Rs. 200 crore turnover on product mix.
→Expansion of chicken facility to increase capacity by 6-7 tons per day (from ~16-17 to over 20 tons daily) with minimal CAPEX.
→Overall revenue growth for the current business expected between 10%-15% annually.
→PAT targeted to grow 5 to 6 times by 2028 driven by capacity expansions and JV.
→The company is pursuing new product developments and strategic customer projects (e.g., KFC) to accelerate growth.

Margin guidance

Category 3

→Chatha Foods aims to triple its revenue by 2028, targeting approximately 3x growth from current levels.
→The existing chicken business is expected to grow at 10%-15% annually.
→With the new JV with Allana Group, the company plans significant expansion in value-added meat products, driving higher margins.
→Operating margins in the new flatbread capacity are anticipated to be better than existing business margins.
→The company targets a 5x-6x increase in PAT (profits) by 2028.
→Expansion includes a new facility producing flatbreads, sauces, and gravies, expected to generate Rs. 175-Rs. 200 crore in turnover at full capacity.
→Efforts to diversify product portfolio (e.g., patty lines for vegetarian products) and new client projects (including with KFC) may accelerate growth beyond base estimates.

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Fundraise plans

Yes

→Chatha Foods Limited is undertaking a fundraising around Rs. 14 crore for a new JV project with Allana Group to set up a value-added meat products plant.
→This new plant involves a Rs. 40 crore investment, with the company raising Rs. 14 crore for the project.
→The new facility is planned to be commissioned by March 2025 and operational by July 2025.
→No specific mention of additional fundraising through debt or equity beyond this Rs. 14 crore raise for the JV was noted.
→The proceeds from a recent SME IPO are being used to build a new vegetarian product facility near their existing plant.
→There appears to be no mention of separate or new debt fundraising at this time apart from the above equity raise.

Order book

→QSR orders are planned and updated on a quarterly basis; volumes and product mix can vary due to promotions and limited-time offers.
→Commitments from new JV customers will come only once the new plant is ready and after passing food safety audits.
→Existing customers like Domino's and Subway provide ongoing business; Chatha Foods is a key vendor with 50-60% share in Domino's chicken requirements.
→Discussions with QSR customers for new product supply in the JV are ongoing but no firm orders yet, pending plant commissioning.
→The company targets tripling revenue by 2028 with substantial order growth expected from new capacities and JV with Allana Group.
→Order visibility is high within existing client base but final volumes depend on quarterly projections and approvals.

Capex plans

Yes

→New facility focused on vegetarian products with Rs. 42-44 crore CAPEX, commissioned by March 2025, production by July 2025.
→JV with Allana Group for value-added ready-to-eat meat and chicken products with investment around Rs. 40 crore; raising Rs. 14 crore for this project.
→New plant to produce 6,000 metric tons annually with revenue potential of Rs. 175-200 crore at full capacity.
→CAPEX for chicken capacity expansion minimal (~Rs. 50 lakh to below Rs. 1 crore), mainly space expansion after vegetarian plant shifts.
→Equipment for new plants mostly imported, with utilities sourced domestically.
→Expansion targets 12%-15% growth in existing business and plans to triple revenue by 2028 through new capacities and JV.
→Focus on high-capacity line production for flatbreads, reducing manpower requirements.

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

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1Chatha Foods Ltd

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