KRBL Limited — Investor Meet, 14-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** KRBL Limited has reported a record quarterly revenue of INR 1,682 crores for Q3 FY2025, a 15% increase year-on-year, primarily driven by an impressive 104% growth in export revenue, which reached INR 567 crores. The company achieved an EBITDA of INR 203 crores and a profit after tax (PAT) of INR 133 crores, translating to a PAT margin of 7.9%. Gross margin stood at 24%, with a slight decline from 24.8% due to lower other income. However, core gross margins improved from 23.3% in Q3 FY2024 to 23.6%. Sequentially, the company showed a robust 32% increase in revenue from Q2.

**Future Outlook and Growth Drivers:** Management remains optimistic about accelerating growth in exports, specifically targeting the Saudi market. The company's diversification strategy includes launching a new health-focused brand, Uplife, to tap into the expanding health and wellness segment, and enhancing its overall product range with initiatives like ready-to-cook products.

**Order Book and Operational Updates:** KRBL aims to facilitate significant growth through strategic expansions, maintaining its leading position as the largest rice exporter. The 2025 rice export targets are projected between 20-21 million tons, bolstered by favorable domestic harvests.

**Analyst Q&A Insights:** Analysts expressed concerns regarding production and pricing pressures. Management assured that margins could improve, anticipating that lower paddy prices will positively impact profitability in FY2026. The substantial decrease in inventory debt further underscores the company's liquidity stability.

**Market or Regulatory Updates:** The removal of minimum export prices for basmati rice by the Indian government has enhanced competitiveness in international markets, although export realizations have faced pressure due to increased competition from Pakistan.

**Strategic Focus Areas:** KRBL is pursuing market share growth across various categories, with notable gains in e-commerce and modern trade channels, strengthening its long-term brand positioning via innovations and consumer engagement initiatives.

**Investor Insight:** The strong revenue growth and operational improvements indicate a reassuring trajectory for KRBL, suggesting a favorable potential for investors seeking growth, supporting a ‘buy’ stance given the market dynamics and management's strategic initiatives.