Foods & Inns Ltd Management Discussions

Indias Economic Overview

Global macroeconomic shifts and trade realignments have tested most economies over the past year, and the Indian economy has held its structure through them. Steady domestic consumption, an expanding public infrastructure programme and firm industrial activity have kept India among the fastest-growing major economies in the world.

Provisional Estimates from the National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), place real GDP growth at 7.70% in FY 2025-26, up from 7.1% in FY 2024-25.

Buoyant capital markets, record export performance and a steadily improving investment climate all point in the same direction: macroeconomic strength. Total exports, merchandise and services together, held their momentum on the back of expanding digital trade and bilateral trade agreements. Global headwinds persist, geopolitical tension and supply chain dislocation among them, but strong fundamentals, sectoral depth and prudent policymaking keep India a dependable engine of global growth.

Real GDP growth for FY 2026-27 is projected at 6.60%, carried by firm domestic demand and sound macroeconomic fundamentals, and this holds despite continuing uncertainty in the external environment.

Government programs such as Make in India and the PLI schemes continue to sharpen manufacturing competitiveness and draw strategic investment into high-growth sectors, among them electronics, semiconductors, food processing and renewables. With policy support behind it, urban and transport infrastructure widening, and innovation carrying its own momentum, India is well placed to realize its long-term growth potential and to keep development inclusive and sustainable.

Industry Overview

Food Processing Industry

Global Overview

The global food processing industry continues to expand steadily. It was valued at US$ 190.10 Billion in CY 2024 and is estimated to reach US$ 204.50 Billion in CY 2025. At a CAGR of 7.60%, the market is projected to reach US$ 395.50 Billion by CY 2034. Accelerating urbanization, longer working hours, and growing consumer demand for clean-label, shelf-stable, and ready- to-eat products are carrying that growth. Advanced thermal processing, Internet of Things (IoT) integration, and aseptic technologies allow global manufacturers to meet stringent international food safety standards while preserving the natural nutritional profile of the product.

Indian Market Overview

FY 2025-26 reshaped India?s food processing sector, on the strength of sustained policy intervention, capital infusion, and farm-to-fork supply chain modernization. The Government of India allocated an updated Budget Estimate (BE) of 4,064.00 Crores to the Ministry of Food Processing Industries (MoFPI) for FY 2026-27, a 13.79% increase over the FY 2025-26 Revised Estimate (RE) of 3,571.57 Crores. The allocation restates the intent to maximize agricultural value addition and strengthens Indias standing as a global food processing and export hub.

Under the flagship Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), MoFPI has sanctioned 1,607 projects across the country, made up of 41 Mega Food Parks, 394 cold chain infrastructure projects, 75 Agro-Processing Clusters, and 536 food processing units. Cumulative grants- in-aid sanctioned under the scheme have reached 8,723.68 Crores, which has built modern capacity and cut postharvest waste. The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), with an outlay of 10,900.00 Crores, has drawn in private capital alongside it. Cumulative actual investment under the scheme has crossed 9,702.00 Crores, adding 35 Lakhs MTPA of processing capacity, and close to 3.40 Lakhs off-farm jobs.

(Source: https://www.pib.gov.in/PressReleasePage. aspxRs.PRID=22540! 5&reg=3&lang=2

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https://www.pib.gov.in/PressReleasePage. aspxRs.PRID=22271 53&lang=l &reg=3

https://www.pmindia.gov.in/en/news_updates/cabinet-approves-production-linked-incentive-scheme-for-food-processing-industry/

https://www.pib.gov.in/PressReleasePage.aspxRs.PRID=2224672&lang=1&reg=3)

Higher MoFPI budget outlays, PLISFPI incentives, and PMKSY grants driving capital deployment and large-scale processing capacity creation.

Rapid build-out of integrated cold chains, reefer transport, and agro-processing clusters sharply reducing post-harvest crop losses.

Rising urban working populations are accelerating adoption of packaged, ready-to-cook, and processed foods.

Broadening distribution networks across modern trade, e-commerce, and quick-commerce channels widening product accessibility nationwide.

Outlook

India?s food processing industry is well-positioned for durable multi-year expansion, with policy backing behind it, supply chains modernizing, and demand rising at home and in export markets. Automation, sustainable packaging, and export incentives are converging, and together they will continue to lift India?s standing as a dependable global agri-food supply hub.

The Foods & Inns Edge in the Food Processing Industry

Foods & Inns commands a distinct competitive edge through its multi-location processing footprint, direct farm-sourcing networks, and advanced aseptic, spraydrying, and IQF capabilities. Backed by PLISFPI approval, stringent international food safety certifications (USFDA, BRCGS), and deep long-term partnerships with leading Fortune 500 beverage and food brands, the company is placed to capitalize on growing global and domestic demand for premium processed food ingredients.

Fruit and Vegetable Pulp Market

Global Overview

The global fruit and vegetable pulp market was valued at US$ 3.7 Billion in CY 2026 and is projected to reach US$ 4.70 Billion by CY 2030, expanding at a CAGR of 6.40%. The market covers diverse product formats including aseptic, frozen, and canned purees, pulps, and concentrates, supplying critical ingredient inputs across beverages, confectionery, bakery, dairy, nutraceuticals, and personal care formulations worldwide.

Indian Market Overview

India is a major production and processing base within the global agri-value chain, with its domestic fruit pulp market reaching a valuation of US$ 405.20 Million in FY 2024-25. The domestic market is expanding at an 8.80% CAGR and is projected to reach US$ 618.80 Million by CY 2030. Key product lines cover tropical fruit purees, primarily Alphonso, Kesar, and Totapuri mango, guava, papaya, and tomato, serving both domestic industrial end-users and international export markets.

Rising global and domestic consumer shift toward clean-label, preservative-free, and nutrient- dense natural fruit ingredients broadening the addressable base.

Rapid expansion of quick-commerce delivery, modern retail, and organized beverage chains broadening consumer touchpoints.

Adoption of institutionalized aseptic processing, thermal preservation, and AI-driven quality automation extending product shelf life without synthetic additives.

Focused Government scheme outlays under PLISFPI and PMKSY strengthening farm-gate processing clusters and cold-chain connectivity.

The global and Indian fruit pulp markets are positioned for sustained multi-year expansion, driven by accelerating global demand for natural beverage bases and clean- label formulations. As processing infrastructure modernizes and export linkages broaden, India will continue to win higher market share across international food ingredient value chains.

The Foods & Inns Edge in Fruit and Vegetable Pulp

Foods & Inns processes mango, guava, papaya, and tomato across seven USFDA and BRCGS-compliant facilities, each supported by an NABL-approved R&D laboratory, giving the Company one of the broadest puree and pulp portfolios in the market. Farm procurement networks established over successive generations, a circular process that converts processing waste into commercial pectin, and long-standing supply partnerships with Fortune 500 FMCG companies together create a position that competitors would find difficult to replicate.

Spray Drying Food Market

Global Overview

The global spray-dried food market is expected to grow from USD 74.42 billion in 2025 to USD 79.06 billion in 2026 and reach USD 107.01 billion by 2031, registering a CAGR of 6.24% during 2026-2031. The growth trajectory reflects increasing demand for convenient, shelf-stable food ingredients across diverse application sectors, supported by urbanisation and evolving consumer preferences for faster preparation without compromising nutritional value. The market continues to benefit from the ability of spray drying to preserve bioactive compounds while extending product shelf life, making it a preferred processing method for functional food manufacturers and supporting the growing adoption of clean-label products.

Indian Market Overview

The Indian spray-dried foods market was valued at US$ 62.53 Billion in CY 2025 and is projected to reach US$ 90.89 Billion by CY 2034, expanding at a 3.88% CAGR during 2026-2034. Demand originates largely in large-scale business-to-business (B2B) procurement by dairy, bakery, beverage, and instant-mix manufacturers. India is scaling industrial spray-drying capacity at pace to meet this requirement, and to service international export demand alongside domestic processing.

Market Size

Expanding consumer demand for shelf-stable, convenient, and ready- to-eat packaged foods and instant beverage premixes.

Increasing adoption of microencapsulation, agglomeration, and instantization to enhance powder solubility, flavor retention, and shelf life.

Rising B2B ingredient sourcing across the bakery, confectionery, infant nutrition, and functional nutraceutical industries.

Deepening Government support through PMFME credit-linked subsidies of 35% and PLI infrastructure grants for food processing clusters.

The spray-drying segment is positioned for steady multiyear expansion, supported by increasing demand for natural fruit and vegetable powders, dairy whiteners, and soluble beverage bases. Continuing advances in encapsulation and energy-efficient drying are expected to broaden commercial applications further across both global and domestic markets.

The Foods & Inns Edge in Spray Drying

Foods & Inns operates dedicated spray-drying infrastructure that produces high-purity fruit, vegetable, and specialty spice powders, an area in which the Company holds a clear advantage. Advanced microencapsulation secures superior solubility, flavor retention, and shelf stability, and does so without recourse to artificial additives. USFDA and BRCGS certifications, together with established B2B relationships with multinational beverage and FMCG companies, keep Foods & Inns at the forefront of value-added ingredient processing.

Frozen Food Market

Global Overview

The global frozen food market was valued at US$ 325.09 Billion in CY 2025. Expanding at a CAGR of 5.14%, the market is projected to reach US$ 340.34 Billion by CY 2026 and US$ 508.12 Billion by CY 2034. Product formats across the market are diverse, spanning IQF fruits and vegetables, ready-to-eat meals, frozen snacks, seafood, and meat products. These supply retail, quick-service restaurant (QSR), and food service sectors worldwide.

Indian Market Overview

India is among the fastest-growing frozen food markets worldwide, with a valuation of 216.59 Billion in CY 2025.

The domestic industry is expanding at a 12.86% CAGR, and is projected to reach 643.64 Billion by CY 2034. Frozen vegetable snacks account for 52% of the market, ahead of frozen fruits and vegetables at 28% and processed meat and seafood at 20%. These segments serve domestic modern retail, quick- commerce platforms, and institutional food service providers.

Accelerating urbanization and the rise of dual-income households, lifting demand for pre-portioned, convenient, and shelf-stable nutritional food items.

Widening deployment of advanced IQF and cryogenic freezing technologies that preserve natural cellular structure, texture, and nutritional profile.

Expanding networks of dark-store micro-fulfillment centers and quick- commerce delivery applications, securing last-mile cold chain integrity.

Strengthening Government policy support through PMKSY integrated cold-chain grants and PLI processing incentives drawing private investment into infrastructure.

Both the global and the domestic frozen food markets are positioned for multi-year expansion, supported by the modernization of cold-chain logistics, deeper modern trade penetration, and a growing preference for clean-label, preservative-free frozen alternatives. As last-mile refrigeration networks extend into Tier-II and Tier-III cities, India is expected to consolidate its standing both as a major consumer market and as a global export hub for processed frozen produce.

The Foods & Inns Edge in the Frozen Food Market

Foods & Inns operates advanced IQF processing infrastructure for fruits and vegetables, which gives the Company a distinct competitive edge in the frozen food segment. The freezing technology deployed retains farm-fresh flavor, color, and nutritional value without recourse to artificial preservatives. On that basis the Company serves leading global B2B food manufacturers, QSR chains, and export markets, in each case to USFDA and BRCGS food safety standards.

Spices and Masala Market

Global Overview

The global spices and seasonings market was valued at US$ 29.90 Billion in CY 2025 and is projected to reach US$ 45.10 Billion by CY 2034, expanding at a CAGR of 4.53%. The industry encompasses pure spices such as pepper, cardamom, cinnamon, clove, turmeric, chilli, alongside culinary herbs, and custom seasoning blends. These supply the food service, meat processing, bakery, snack manufacturing, and retail sectors worldwide.

Indian Market Overview

India is the world?s largest producer, consumer, and exporter of spices, with the domestic spices and seasonings market reaching US$ 4.10 Billion in 2025. The market is projected to expand at a CAGR of 7.42% during 2026-2034, reaching US$ 7.80 Billion by 2034. Evolving consumer preferences, rising demand for convenience foods and ready-to-eat products, and the widening availability of diverse spice and seasoning offerings are together supporting that growth.

Market Si2e

Global Spices and Seasonings Market (US$ in Billion)

Growth Drivers

Accelerating consumer shift from loose, unbranded spices to branded, tamper- evident packaged spices, as hygiene and safety awareness rises.

Expanding domestic quick-commerce and e-commerce platforms, driving impulse purchases and accelerating distribution reach across urban centers.

Growing consumer preference for convenience formats, including blended masalas, ready-to-cook gravies, and regional culinary spice mixes.

Deepening integration of cryogenic grinding, steam sterilization, and moisture-proof barrier packaging, preserving natural essential oils, color, and flavor profile.

Both the global and the Indian spice markets are positioned for strong multi-year growth, supported by a widening international preference for authentic Indian flavor profiles and by faster domestic adoption of branded and organic spice blends. As processing, steam sterilization, and quality-testing standards become institutionalized, India is expected to reinforce its standing as the leading global hub for value- added spice exports.

The Foods & Inns Edge in Spices and Masala Market

Foods & Inns operates modern processing facilities equipped with cryogenic grinding and advanced steam sterilization, which places the Company at an advantage in the spices and masala segment. Direct farm-gate procurement networks, rigorous quality testing to USFDA and BRCGS requirements, and specialized blending expertise allow the Company to supply high-purity, essential-oil-rich spices and custom formulations to leading global FMCG brands, QSR chains, and institutional buyers.

Business Overview

Foods & Inns Limited processes fruit and vegetable pulps, spray-dried powders, premium spices, frozen items, pectin, and value-added Ready-to-Eat (RTE) and Ready-to-Cook (RTC) formats, a portfolio that places the Company at the front of India?s agri-processing industry. Drawing on a legacy of more than five decades, the Company is building commercial scale in newer high-potential offerings such as Tetra Recart packaging and sustainable pectin extraction, through targeted capital allocation, facility upgrades, and joint ventures.

The Company?s international market penetration deepened during FY 2025-26, consolidating its presence across major global corridors including USA, Canada, UK, Continental Europe (notably Germany and Finland), Russia, Kazakhstan, and the Middle East. Alongside this, Foods & Inns built momentum behind its proprietary brands, Madhu in pulps and pastes, Greentop in frozen foods and RTE and RTC products, and Kusum in spices, strengthening brand equity and consumer connection across a range of market segments. The year also brought recognition and receipt of 33.86 Crores under the Central Government?s PLI Scheme, taking cumulative realizations to approximately 83.00 Crores against an approved cap of approximately 145.00 Crores.

Accredited agricultural practices, among them certifications under the SAI, Rainforest Alliance, and the Unilever Sustainable Agriculture Code, keep the Company a preferred partner for global FMCG companies that require strict ESG, CDR and BRSR compliance. External geopolitical headwinds and cost-passthrough movements in raw materials notwithstanding, Foods & Inns raised annual sales volume to 1,02,072 MT and commissioned new solar energy assets across key manufacturing sites, evidence of operational agility and of value being built for the longer term.

Foods & Inns offers a diverse and evolving portfolio of processed food solutions across multiple high-growth verticals. Each product line rests on quality, innovation, circular manufacturing, and versatility across end markets.

Business Verticals	What It Is	Key Applications and Recent Updates
Aseptic Products	Sterile, preservative-free fruit and vegetable purees, pulps, and concentrates with extended shelf life and high nutritional retention.	Beverages, dairy formulations, confectionery, baby food, and expanding HoReCa/institutional B2B demand.
Canned Products	Ready-to-eat fruits, pulps, and vegetables preserved in cans for ambient storage and global distribution.	Retail, exports, and institutional catering.
Frozen Products	IQF, plate-frozen, and blast-frozen fruits, vegetables, snacks, and flatbreads, includes specialized lines such as pastry sheets and puff pastry and expanded frozen snack lines.	Modern retail, HoReCa, quick-commerce, and growing international private label/B2B demand in North America and Europe.
Spray-Dried Powders	Low-moisture, dehydrated powders converted from liquid fruit, vegetable, dairy, and specialty formats, with the portfolio extended to value- added specialty items such as Honey Powder and Cheese Powder.	Bakery, confectionery, seasoning blends, nutraceuticals, and food innovation. Capacity expanding by 120 MTPA.
Spices	High-quality ground, blended, and whole spices (over 70+ SKUs under Kusum Spices) sourced from pesticide-compliant certified farmers.	Culinary preparations, blended masalas, health supplements, and export markets
Pectin	Plant-based gelling, thickening, and stabilizing agent extracted from upcycled fruit waste (mango peel/skins), now commercialized for both wet and dry peel processing.	Confectionery, jams/preserves, dairy, pharmaceutical formulations, personal care, and cosmetics Serves as a direct domestic import substitution for gelatine
Tetra Recart Products	Sustainable, shelf-stable carton packaging for RTE and RTC soups, curries, and fruit pulps without preservatives (up to two-year shelf life).	Convenience foods, e-commerce, ecoconscious retail, and expanding international B2C/export markets

Foods & Inns continues to extend its market presence through an evolving consumer-facing structure, supplying high-quality, authentic, and convenient food products across domestic and international markets alike. The branded strategy rests on three pillars, Greentop, Madhu, and Kusum, each shaped around a distinct set of consumer habits, packaging preferences, and culinary requirements.

Greentop carries the Company?s frozen foods, RTE, and RTC lines, and answers a modern demand for meals that are quick, wholesome, and free of preservatives. The range covers IQF fruits and vegetables, flatbreads, specialty snacks such as samosas, falafel tikkis, and rolls, and puff pastry sheets, alongside shelf-stable soups, curries, and rasam packed in Tetra Recart cartons. Volume in the frozen segment rose approximately 28% over the previous year in FY 2025-26, and on that base Greentop Greentop is building depth across quick- commerce platforms, modern trade, HoReCa establishments, and private- label partnerships in North America and Europe.

Madhu anchors the Company?s fruit pulp and vegetable paste offerings and stands for quality and consistency among retail households and global B2B clients alike. The range features premium mango varieties, among them Alphonso, Kesar, Totapuri, and packaged Aamras, alongside tomato purees and a spread of fruit concentrates. Products are offered in traditional canned formats that hold shelf stability for up to two years without added preservatives, which keeps Madhu central to the Foods & Inns processing footprint.

Kusum Masala carries a legacy of more than five decades and an extensive portfolio of over 70 ground, blended, and whole spice formulations, each made for authentic taste and rich aroma. Manufacturing takes place in USFDA- registered facilities, on ingredients sourced through pesticide-compliant certified farming networks. The brand holds an established presence across India and has extended its export footprint to 12 countries, among them the Middle East, the US, and the UK.

Standards and Quality Excellence

Quality assurance runs through the entire Foods & Inns supply chain, from farm-level sourcing through processing and packaging to final global distribution and stands as a core operational pillar. Manufacturing is carried out under rigorous safety protocols across seven self-owned processing units, each validated against globally recognized benchmarks in food safety, traceability, and sustainable manufacturing. Supporting that infrastructure are a NABL-accredited R&D and NPD laboratory and the integration of artificial intelligence to automate back-office workflows and sharpen production precision at plant level.

These standards are maintained under the direction of an executive team that brings more than 300 years of combined experience in agri-processing and food manufacturing. Their oversight drives a corporate culture centered on regulatory compliance, ethical stewardship, circular waste management, and continuous process optimization.

A sustained commitment to fully traceable, high-integrity food products allows Foods & Inns to deepen long-term partnerships with leading multinational clients and to consolidate its standing across global agri-food value chains.

Future Growth Opportunities for Foods & Inns

As consumer preferences shift structurally towards health, convenience, and sustainable nutrition, Foods & Inns continues to align its processing infrastructure with high-potential industry avenues. The matrix below sets out how these market shifts meet the Company?s manufacturing scale, technological capabilities, and strategic expansion plans.

Opportunity Segment	Market Outlook	The Companys Strategic Play
Baby Food and Infant Nutrition	The global baby food market is valued at US$ 123.16 Billion in CY 2026 and is projected to reach US$ 214.28 Billion by CY 2034, a CAGR of 7.17%. In India, the domestic baby food market is valued at US$ 5.95 Billion in CY 2024 and is estimated to reach US$ 8.40 Billion by CY 2030, a CAGR of 5.9%.	Foods & Inns is strengthening its position as a primary ingredient vendor for global and domestic pediatric food manufacturers by supplying high-purity spray-dried powders and sterile aseptic fruit pulps processed under strict USFDA and NABL-accredited quality controls.
Quick-Service Restaurants (QSR)	India?s QSR market is estimated at US$ 30.37 Billion ( 2.5 Lakhs Crores) in CY 2026 and is forecast to expand to US$ 87.95 Billion by CY 2032, a CAGR of 15% driven by digital ordering and cloud-kitchen expansion across Tier II and Tier III cities.	The Company is building a tailor-made portfolio of IQF vegetables, fruit smoothie bases, and portion-controlled frozen snacks, engineered for rapid back-of-house assembly and operational efficiency across expanding QSR chains and HoReCa outlets.
RTC Meals	The Indian RTC food sector is projected to grow at a CAGR of 16.41% through CY 2030, expanding from US$ 624 Million in CY 2024 to reach US$ 1.55 Billion ( 12,800 Crores) by CY 2030, driven by quick-commerce retail and dual-income urban households.	Under its Greentop brand, the Company is deploying eco-friendly Tetra Recart shelf-stable meals, instant curry bases, and quick-prep snacks to serve modern, busy urban consumers seeking authentic taste and convenience without synthetic preservatives.
Vegan and Plant-Based Foods	The global plant-based food and beverage industry is valued at US$ 80.10 Billion in CY 2025 and is projected to reach US$ 162.56 Billion by CY 2032, CAGR of 10.64%, while the broader packaged plant-protein market is forecast to touch US$ 124.36 Billion by CY 2030.	Foods & Inns is addressing plant-forward demand through its new frozen food formulations (including vegan tikkis, curries, and meal kits) and its commercialized pectin facility, which provides a 100% plant-based, circular-economy substitute for animal gelatin.
Strategic B2B and Institutional Channels	Multi-channel demand is expanding across FMCG conglomerates, airline catering, railways, quick- commerce platforms, and direct-to-consumer (D2C) food innovators.	The Company is drawing on its integrated processing infrastructure to supply high-value pectin for clean-label food and pharmaceutical brands, Tetra Recart meal kits for travel and institutional caterers, and customized fruit and vegetable powder blends for D2C food brands.

 

Particulars	FY 2025-26	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22
Revenue from Operations	85,001.37	97,291.93	99,731.33	98,117.29	61,648.56
Other Income	1,332.88	1,396.39	774.10	287.32	762.48
Manufacturing and Other Expenses	74,872.08	85,583.95	87,907.17	88,388.73	56,833.07
EBITDA	11,462.17	13,104.37	12,598.26	10,015.88	5,577.97
Interest	4,605.16	5,780.33	4,547.69	2,727.43	1,889.09
Depreciation	2,344.47	2,050.46	1,629.39	1,394.32	1,323.68
Profit/(Loss) Before Tax	4,512.54	5,273.58	6,421.18	6,426.45	2,365.20
Taxation	1,166.02	1,067.50	2,155.00	1,825.00	820.00
Deferred Tax	210.63	(266.59)	595.68	(122.27)	(56.67)
Profit/(Loss) After Tax	3,135.89	4,472.67	3,670.50	4,723.72	1,601.87

What the Company Owned

Particulars	FY 2025-26	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22
Net Fixed Assets	33,635.30	33,349.23	28,154.11	23,372.16	18,724.51
Investments	1,937.96	1,928.38	1,519.51	1,934.33	678.48
Current Assets, Loans and Advances	93,367.18	93,208.17	72,178.06	55,276.93	36,580.95
Deferred Tax	0.00	0.00	0.00	0.00	957.85
Total Assets	1,28,940.44	1,28,485.78	1,01,851.68	80,583.42	56,941.79

What the Company Owed

Particulars	FY 2025-26	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22
Long-Term Funds	5,276.41	6,543.09	7,920.70	5,517.25	4,331.52
Short-Term Funds	35,832.12	36,193.66	38,375.29	28,213.59	16,906.00
Current Liabilities and Provision	29,216.58	30,354.18	14,215.01	15,324.38	15,951.31
Deferred Tax	1,268.90	1,052.53	1,332.52	155.15	0.00
External Liabilities	71,594.01	74,143.46	61,843.52	49,210.37	37,188.83

 

Particulars	FY 2025-26	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22
Equity Share Capital	735.32	734.15	567.64	509.38	503.38
Amount for Preferential Warrants	0.00	0.00	0.00	6,145.10	0.00
Reserves and Surplus	56,611.11	53,608.17	39,440.52	24,718.57	19,249.58
Net Worth	57,346.43	54,342.32	40,008.16	31,373.05	19,752.96
Total Liabilities	1,28,940.44	1,28,485.78	1,01,851.68	80,583.42	56,941.79

 

FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17
35,657.27	38,429.62	33,738.43	33,534.79	34,686.26
1,200.81	462.66	285.18	735.95	1,439.16
33,694.01	35,419.68	31,373.42	30,946.31	31,675.58
3,164.07	3,472.60	2,650.19	3,324.43	4,449.84
1,443.42	1,140.69	1,338.69	1,805.56	1,818.22
1,243.82	1,240.39	1,150.76	1,044.92	940.15
476.83	1,091.52	11,841.91	473.94	982.95
71.00	310.46	2,800.00	270.00	275.00
16.96	(322.41)	(1,895.04)	(149.14)	156.09
388.87	1,103.47	10,936.95	353.08	551.86

 

FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17
14,396.95	13,587.36	12,039.76	10,815.57	9,809.97
503.86	266.91	7.70	2,212.97	2,053.15
26,780.75	27,086.48	23,232.42	22,373.18	21,771.25
896.39	919.51	814.17	0.00	0.00
42,577.95	41,860.26	36,094.05	35,401.72	33,634.38

 

FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17
1,228.86	1,198.54	853.07	548.90	384.88
15,070.41	11,806.95	8,941.63	24,923.79	23,495.96
8,016.65	10,900.00	9,289.33	1,048.65	2,036.28
0.00	0.00	0.00	1,082.14	1,105.79
24,315.92	23,905.49	19,084.03	27,603.48	27,022.90

 

FY 2020-21	FY 2019-20	FY 2018-19	FY 2017-18	FY 2016-17
503.38	503.38	167.79	164.19	160.59
0.00	0.00	0.00	78.30	143.10
17,758.65	17,451.39	16,842.24	7,555.75	6,307.79
18,262.03	17,954.77	17,010.03	7,798.24	6,611.48
42,577.95	41,860.26	36,094.06	35,401.72	33,634.38

 

Particulars	FY 2025-26	FY 2024-25	% Change	Reasons if the change has been more than 25%
Current Ratio	1.43	1.39	2.40%	-
Debt-Equity Ratio	0.72	0.79	(8.85%)	-
Debt Service Coverage Ratio	1.96	2.21	(11.45%)	-
Return on Equity (ROE) (in %)	5.62	9.48%	(40.77%)	The reduction in ROE reflects the temporary impact of capital deployed in assets for future growth, with earnings expected to catch up over time
Return on Capital Employed (ROCE) (in %)	9.14	11.26%	(18.83%)
Return on Investment (ROI) (in %)	0.09%	(2.03)	104.37%	The large percentage change reflects the turnaround from negative to positive return rather than a substantial increase in returns of investment income
Inventory Turnover Ratio	0.94	1.53	(38.62%)	Inventory increased because of higher production during non-mango season which forms part of closing inventory
Inventory Holding Period (Days)	389	239	62.92
Debtors Turnover Ratio	4.53	4.84	(6.33%)	-
Debtor Days	80.58	75.48	6.75%	-
Creditors Turnover Ratio	2.65	4.30	(38.40%)	Refer note below *
Creditor Days	138	85	62.53%
Net Working Capital Turnover Ratio	3.03	4.20	(27.98%)	Refer note below *
Net Working Capital Days	121	87	38.84%
Net Profit Ratio (in %)	3.69%	4.60%	(19.75%)	-

* The Companys operations are seasonal in nature and inventory as well as trade payables fluctuate significantly across crop seasons. Accordingly, ratios computed using average opening and closing balances, as prescribed under the ICAI Guidance Note on Schedule III, may not be fully comparable with the current year-end position. The movement in inventory turnover, creditor turnover and net working capital turnover is influenced by seasonal procurement cycles and changes in raw material prices.

SCOT Analysis

Strength	Description
Unrivalled Processing Scale and Sourcing Depth	Holds a dominant position in tropical fruit pulping, processing Alphonso, Kesar, and Totapuri among others, on more than five decades of operational experience, a direct farmer sourcing network, and long-standing contracts with global beverage leaders such as Coca-Cola and PepsiCo.
Broad and De-Risked Portfolio Architecture	Extends beyond core fruit pulps into high-margin spray-dried powders, with 120 MTPA of capacity expansion targeted for commercialization by December 2026, IQF frozen foods that grew volume approximately 28% over the previous year in FY 2025-26, more than 70 spice lines under Kusum, and commercialized circular-economy pectin processing.
Robust Quality Assurance and Smart Automation	Operates seven self-owned processing units, each equipped with a NABL-approved R&D and NPD laboratory, extensive global food safety certifications covering USFDA, BRCGS, and FSSC 22000, and newly integrated AI-driven technologies for plant-level efficiency.
Validated ESG and Sustainability Leadership	Maintains ethical sourcing credentials under the SAI, Rainforest Alliance, and Unilever Sustainable Agriculture Code platforms, alongside expanded solar installations at Vankal and Gonde and CDP and BRSR disclosures that attract ESG-conscious FMCG partners.
Integrated B2B and Retail Cross-Selling	Draws on an expanding product mix spanning aseptic pulps, custom powders, frozen snacks, and Tetra Recart meals to build share of wallet across domestic HoReCa, quick-commerce, and global private-label channels.

Challenges

Challenge	Description
Working Capital and Inventory Intensity	Procuring fruit seasonally from mid-April to August, combined with inventory held on behalf of large MNC buyers, creates long working capital cycles and debt-servicing demands.
Raw Material Cost Pass-Through Dynamics	Operating on a cost-plus pricing model means lower agricultural crop prices reduce gross top-line realizations directly, as seen in FY 2025-26, which places the strategic priority on volume expansion.
Retail Brand Scale-Up Investment	Transitioning from bulk B2B pulping toward branded consumer products under Greentop, and Kusum requires continuous investment in marketing, distribution expansion, and quick- commerce onboarding.
Capacity Utilization Balancing	Maximizing plant utilization through the mango off-season on alternative processing of tomatoes, guavas, spray drying, and pectin requires tight operational execution and logistics coordination.

Opportunities

Opportunity	Description
Expansion in Value-Added Packaging and RTE/RTC	Accelerating international and domestic adoption of sustainable Tetra Recart carton packaging as a substitute for traditional metal canning.
Import Substitution via Commercial Pectin	Commercializing production at the Chittoor pectin plant against India?s import dependency of approximately 95%, converting wet pectin and dry mango peel into high-margin products for pectin food, pharmaceutical, and cosmetic applications.
Surging Global Demand for Frozen Foods	Capturing export momentum in North America and Europe for IQF fruits, vegetables, flatbreads, and frozen snacks, supported by a multi-year strategy to scale the frozen vertical.
Domestic Sector Tailwinds and Beverage Penetration	Benefiting from rapid freezer expansion by beverage majors such as Reliance?s Campa Cola and Coca-Cola across rural markets, driving multi-year demand growth for fruit purees and concentrates.
PLI Incentive Accruals and De-leveraging	Deploying cumulative realizations of approximately 83.00 Crores under the Government of India?s PLI scheme to support efficiency capex and internal debt reduction.

Threats

Strength	Description
Agricultural Crop Volatility and Climate Impact	Extreme weather, unseasonal rains, and crop failures, such as the constrained tomato availability in FY 2025-26, reduce processing volumes and input quality.
Geopolitical Conflicts and Freight Disruptions	Regional conflicts, among them the West Asia and Middle East disruptions in late FY 2025-26, restrict export dispatches, vessel availability, and regional sales.
Input Supply Disruptions and Energy Costs	Disruptions in key operational inputs, such as the gas supply constraint that affected spraydrying operations in March-April 2026, impair unit yields.
Evolving International Regulatory and Pesticide Standards	Stringent and changing pesticide residue norms in export markets, particularly the US and the EU, require constant farmer training, contract farming oversight, and laboratory testing.

Accelerating Decarbonization and Resource Stewardship

During the year under review, Foods & Inns significantly advanced its ESG roadmap by formalizing science-based climate targets and scaling resource- efficiency measures across its operating footprint. On June 25, 2026, the Company received official validation from the SBTi for its near-term and net-zero greenhouse gas (GHG) reduction targets conforming to Criteria V1.3. Under this roadmap, Foods & Inns has committed to achieving net-zero emissions across its value chain by FY 2049-50, alongside near-term targets to reduce absolute Scope 1 and 2 emissions by 58.80% and Scope 3 emissions by 35.00% by FY 2033-34 against a FY 2022-23 baseline. These decarbonisation commitments are anchored in measurable on-ground actions, including the operationalization of 1,263 kWp of solar capacity at Vankal and 1,350 kWp at Gonde (taking combined Gonde solar capacity to 1,850 kWp), together abating over 3,000 MT CO₂e annually. The Company also commissioned a 600 cubic meter per day on-site biogas facility at Gonde (displacing 300 kg/day of LPG), initiated commercial pectin extraction from ~10,000 MT of mango peels at Chittoor, and repurposed over 12,000 MT of mango stones as boiler fuel in lieu of coal. At the farm level, the Company strengthened sustainable procurement by certifying over 1,850+ farmers across mango and guava belts under the FSA-SAI program (yielding 45,000+ MT in sustainably sourced volume) and executing multiyear regenerative agriculture pilots in collaboration with international partners.

Cautionary Statement

This Management Discussion and Analysis may contain forward-looking statements,? which can be identified by terminology such as plans,? expects,? anticipates,? believes,? intends,? projects,? estimates,? and similar expressions. These statements reflect the Company?s current expectations regarding future business performance, strategy, product development, market positioning, expenditure, and financial outcomes. Such forward-looking statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied. These include, but are not limited to, economic volatility, fluctuations in earnings, increased competition, regulatory changes, ability to attract and retain talent, currency and interest rate variations, geopolitical developments, and delays or cost overruns in operations. The Company undertakes no obligation to publicly revise or update any forward-looking statements, whether because of new information, future developments, or otherwise. Readers are advised not to place undue reliance on these statements, as past performance is not necessarily indicative of future results.