ADF Foods Limited — Investor Meet, 21-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** ADF Foods reported consolidated revenues of ₹147.5 crore, reflecting a year-on-year growth of 13.8%. Despite the top-line growth, EBITDA decreased by 2.2% year-on-year to ₹26.4 crore, resulting in an EBITDA margin of 17.9%. The PAT for the quarter stood at ₹18.8 crore, down 1.8% year-on-year. For the nine-month period, revenues reached ₹430.5 crore (up 17.4% YoY) with a PAT of ₹52.8 crore (up 8.3% YoY).

**Future Outlook and Growth Drivers:** Management is optimistic about future growth driven by brand investments, particularly in the ADF SOUL and Truly Indian brands. The operational commencement of a cold storage facility is expected to enhance supply chain efficiencies, while expansion plans for the Surat facility are projected to be operational by H2 FY26.

**Order Book and Operational Updates:** The expansion of the Surat greenfield facility to support frozen food lines is ongoing, with operations expected to start in FY26's second half. The operational capability of the newly established cold storage is anticipated to optimize resource management and improve order fulfillment.

**Analyst Q&A Insights:** Analysts inquired about margin recovery, especially concerning rising freight costs, to which management expressed confidence as freight rates appear to be decreasing. Discussions also centered on the capex strategy and the ongoing need for working capital in the U.S. market following distribution adjustments.

**Market or Regulatory Updates:** Management indicated ongoing working capital investments in ADF UK to adapt to increasing demand in U.S. markets, mitigating short-term supply chain issues.

**Strategic Focus Areas:** The consistent theme of growth through brand enhancement and supply chain optimization emerged, with management emphasizing sustained investment in brand equity and operational efficiency.

**Investor Insight:** The overall financial health and future growth trajectory appear promising, positioning the company for potential upsides, indicating a ‘buy’ position for interested investors.