Any current/future new fundraising through debt or equity?

The company plans to increase term loans by INR 12 crores to fund the vegetarian facility and related capex (Page 17). Recently raised INR 20 crores through preferential allotment, which has not yet been utilized and is earmarked purely for capex related to a joint venture with Allana (Page 9). Total debt exposure, including working capital, is expected to rise to around INR 29-30 crores due to these investments (Page 17). No mention of any equity fundraising plans beyond the preferential allotment noted.

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

INR 12 crores term loan planned to fund new vegetarian facility capex. Recent preferential funds of INR 20 crores raised but not yet utilized; planned for capex in joint venture with Allana Sons for value-added meat and chicken products in Aurangabad. Shift vegetarian equipment to new vegetarian plant (50,000 sq. ft. building), freeing existing space to add 120 metric tons/month chicken capacity without additional capex. Additional 30,000 sq. ft. land available near veg plant for future expansion if needed. The JV with Allana Sons is a 70-30 partnership, indicating strategic investment

Future growth expectations in sales/revenue/volumes?

The company aims for a 4x revenue growth by FY 2028-29 compared to the current year. Growth will be driven primarily by the vegetarian (veg) business expansion and exports. Expansion plans include growing the veg business aggressively alongside continued focus on non-veg (chicken). Capacity is currently sufficient to support this revenue growth without immediate need for major additions. The veg facility, becoming operational majorly from FY ’27, is expected to contribute progressively to revenue. The company plans to increase pan-India penetration across both veg and non-veg segments, focusin

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

The company aims for a 4x revenue growth by FY28-29 compared to FY25, driven by expansion in both veg and non-veg segments. Capacity expansion is planned but current capacities are sufficient to handle this growth without immediate need for major capex. Margins in the vegetarian segment are expected to be better due to lower input costs despite lower realizations compared to chicken. Export business, especially for vegetarian products, is targeted aggressively to increase footprint beyond India. Working capital cycles are managed prudently to support growth, with inventory at ~30 days,

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly mention the current or expected orderbook or pending orders in specific numbers. However, it is noted that the company is actively engaged in dialogues with various customers, particularly for the new vegetarian facility, though contracts will only be finalized after audits and approvals. The vegetarian facility is expected to start contributing 10% to 15% capacity in FY26 and more substantially from FY27 onwards. The company has onboarding processes with new clients, involving product development and store trials that typically take 3 to 6 months befor

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Chatha Foods LtdQ1 FY25Food Products

Chatha Foods Ltd Q1 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 1

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 1

→The company aims for a 4x revenue growth by FY 2028-29 compared to the current year.
→Growth will be driven primarily by the vegetarian (veg) business expansion and exports.
→Expansion plans include growing the veg business aggressively alongside continued focus on non-veg (chicken).
→Capacity is currently sufficient to support this revenue growth without immediate need for major additions.
→The veg facility, becoming operational majorly from FY ’27, is expected to contribute progressively to revenue.
→The company plans to increase pan-India penetration across both veg and non-veg segments, focusing on QSR and export markets.
→Intends to increase exports with partners like Alana for both veg and meat products.
→Incremental capacity expansions feasible within existing plants, including a 120 MT/month increase in chicken capacity without extra CAPEX.

Margin guidance

Category 3

→The company aims for a 4x revenue growth by FY28-29 compared to FY25, driven by expansion in both veg and non-veg segments.
→Capacity expansion is planned but current capacities are sufficient to handle this growth without immediate need for major capex.
→Margins in the vegetarian segment are expected to be better due to lower input costs despite lower realizations compared to chicken.
→Export business, especially for vegetarian products, is targeted aggressively to increase footprint beyond India.
→Working capital cycles are managed prudently to support growth, with inventory at ~30 days, debtor days ~40-45, and creditor days ~25.
→Debt is expected to increase by around INR12 crores for investments, supporting future expansion and capex.
→Capacity utilization for chicken can reach 100% at 500 MT/month; veg segment can easily run double or triple shifts for further expansion.
→Overall, the company is optimistic about strong earnings growth driven by product mix, capacity utilization, and expansion into new markets.

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Fundraise plans

Yes

→The company plans to increase term loans by INR 12 crores to fund the vegetarian facility and related capex (Page 17).
→Recently raised INR 20 crores through preferential allotment, which has not yet been utilized and is earmarked purely for capex related to a joint venture with Allana (Page 9).
→Total debt exposure, including working capital, is expected to rise to around INR 29-30 crores due to these investments (Page 17).
→No mention of any equity fundraising plans beyond the preferential allotment noted.

Order book

→The transcript does not explicitly mention the current or expected orderbook or pending orders in specific numbers.
→However, it is noted that the company is actively engaged in dialogues with various customers, particularly for the new vegetarian facility, though contracts will only be finalized after audits and approvals.
→The vegetarian facility is expected to start contributing 10% to 15% capacity in FY26 and more substantially from FY27 onwards.
→The company has onboarding processes with new clients, involving product development and store trials that typically take 3 to 6 months before commercial contracts are finalized.
→They continue to acquire new QSR clients and maintain multi-vendor policies, implying ongoing business development efforts but with no detailed orderbook data disclosed.

Capex plans

Yes

→INR 12 crores term loan planned to fund new vegetarian facility capex.
→Recent preferential funds of INR 20 crores raised but not yet utilized; planned for capex in joint venture with Allana Sons for value-added meat and chicken products in Aurangabad.
→Shift vegetarian equipment to new vegetarian plant (50,000 sq. ft. building), freeing existing space to add 120 metric tons/month chicken capacity without additional capex.
→Additional 30,000 sq. ft. land available near veg plant for future expansion if needed.
→The JV with Allana Sons is a 70-30 partnership, indicating strategic investment in expanding value-added meat production.
→No current plans for capacity expansion in other geographic regions; focus is on optimizing existing capacity and new veg facility.
→Equipment sourced mainly from European suppliers (Germany, Poland, Austria), which are expensive, indicating quality investment.

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

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1Chatha Foods Ltd

Rev 1Mar 3

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