Mother Nutri Foods Ltd Management Discussions

Indian Economic Review

India continues to demonstrate strong economic momentum and it is expected to remain the fastest-growing major economy over the next two years, supported by resilient consumption, improving rural demand, expanding services and a growing share of high-value manufacturing in exports, with GDP growth reached 6.2% in FY2026 following 6.5% in FY2025.

Indian Economy - Inflation and Monetary Policy

In FY26, annual inflation declined to 1.7%, compared with 4.7% in the previous year. This moderation was supported by favourable weather conditions, stable commodity prices, improved supply chains and a sharp fall in vegetable prices.

Amid easing inflationary pressures, the Reserve Bank of India reduced the repo rate by 25 basis points to 6.25% in April, marking the first rate cut of 2025, followed by a further reduction to 5.50% in June. Alongside this, urban unemployment showed signs of improvement in FY2026, reflecting gradual strengthening in the labour market. Together, these factors are supporting consumption growth, driven by improved liquidity and rising disposable incomes.

These developments, combined with rising disposable incomes and increasing urbanisation, are supporting consumption-led growth. Changing consumption patterns particularly the shift toward branded, value-added and convenience-driven products are further strengthening demand across sectors, including FMCG and dairy.

Industry Dynamics

In FY2026, the agriculture sector experienced a growth of 3.5% in Q2, the industry sector expanded by 7% in H1 and the service sector is anticipated to grow by 9.1%. The core sector had grown by 2.6% from April to December in 2025. India Manufacturing Purchasing Managers Index (PMI) surged to 56.90 in February 2026. This marked a four-month high and signals a notable improvement in operating conditions. The net Goods and Services Tax (GST) collections rose by 7.1% to 19.34 lakh crores in the fiscal year 2026, reflecting an increase in economic activity despite global economic challenges.

Outlook of Indian Economy

In FY2027, the Indian economy is expected to witness stronger growth compared to the previous year, with real GDP projected to expand between 7% and 7.4%, supported by robust private consumption.

While global uncertainties such as economic slowdown and rising protectionist measures could pose risks to growth, Indias ongoing trade engagements are expected to provide a counterbalance. Trade agreements with key partners such as the United Kingdom, the United States and the European Union are likely to strengthen bilateral trade by improving market access for goods and services.

These agreements emphasise labour-intensive sectors, support the Make in India initiative, enhance export competitiveness and facilitate greater mobility for Indian professionals through simplified access for service providers, business visitors and independent professionals.

(Sources: PIB, IBEF, PRS India, Indie Briefing, Economics Times, Reuters, USembassy, weforum)

Global Peanut Butter Market

The global peanut butter industry continues to witness steady growth, driven by increasing consumer preference for nutritious, protein-rich, plant-based and convenient food products. Peanut butter has evolved from being a traditional spread into a functional food category, supported by rising health consciousness, fitness trends, demand for clean-label products and increasing adoption of high-protein diets.

According to industry estimates, the global peanut butter market was valued at approximately USD 4.6 billion in 2025 and is projected to reach around USD 6.5 billion by 2034, registering a CAGR of approximately 3.8% during the forecast period. Growth is expected to be supported by increasing demand for healthy breakfast options, expansion of organised retail and growth of online food channels.

North America continues to remain one of the largest markets for peanut butter due to established consumption patterns, while emerging markets in Asia-Pacific are witnessing increased adoption due to changing lifestyles, rising disposable incomes and growing awareness regarding nutritional benefits of peanut-based products.

Indian Peanut Butter Market

The Indian peanut butter market is at an early but rapidly expanding stage, supported by increasing health awareness, growing fitness culture, urbanisation and changing dietary preferences among consumers. The category has gained significant traction among millennials, fitness enthusiasts and consumers seeking affordable sources of plant-based protein.

The Indian peanut butter market was estimated at approximately USD 167 million in 2025 and is expected to grow to around USD 305 million by 2034, representing a CAGR of approximately 6.5%. The growth is expected to be driven by increasing penetration of modern retail, e-commerce platforms, premium food categories and demand for healthier alternatives to conventional spreads.

Operating Landscape in 2025

The global FMCG sector maintained steady growth, driven by population expansion and increasing demand for premium products. Within this environment, the dairy industry experienced stable demand in mature markets such as the EU and the U.S., alongside continued growth across Asia and Africa.

(Sources: 1 IMARC Group Peanut Butter Market Report: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034.

2 IMARC Group India Peanut Butter Market Report: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034.)

The European Union led the global dairy market with a 41% share, followed by Oceania at 25%, reflecting strong export positions. New Zealand, the EU and India remained key global exporters.

Off-trade channels accounted for 92.27% of total sales, supported by the expansion of organised retail and e-commerce across markets such as China, India and Japan.

Key Industry Trends

1. Rising Demand for Protein-Rich Foods

Consumers are increasingly seeking products that provide nutritional benefits along with convenience. Peanut butter, being naturally rich in protein, healthy fats and essential nutrients, has gained acceptance as a preferred food product among health-conscious consumers.

2. Premiumisation and Product Innovation

The industry is witnessing increased demand for differentiated products, including:

Organic peanut butter; No-added-sugar variants; High-protein formulations; Flavoured spreads; Crunchy and smooth variants; and

Products catering to specific dietary preferences.

Manufacturers are continuously innovating to address evolving consumer preferences and create higher-value product offerings.

3. Growth of Private Label Manufacturing

Global retailers and emerging food brands are increasingly partnering with specialised manufacturers for private-label production. This trend provides significant opportunities for Indian manufacturers having modern processing facilities, quality certifications and export capabilities.

4. Expansion Through Digital Channels

The growth of e-commerce, quick commerce and direct-to-consumer platforms has improved accessibility of peanut butter products beyond traditional retail channels. Online platforms have enabled brands to reach wider consumer segments with lower distribution barriers.

Competitive Landscape

The peanut butter market comprises global FMCG companies, health-food brands and specialised manufacturers. Key players include established international brands as well as emerging Indian brands focusing on nutrition and wellness categories.

(Sources: 1 IMARC Group Peanut Butter Market Report: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034.

2 IMARC Group India Peanut Butter Market Report: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034.)

The competitive environment is characterized by:

Product quality and food safety standards; Brand recognition; Distribution network; Product innovation; Export capabilities; and Ability to provide customised/private-label solutions.

Our Products

We are a B2B peanut butter manufacturing Company offering 10 flavours and 12 ranges of peanut butter. We also offer the peanut butter under own brand Spread & Eat in countries like Libya and Dubai. Further, we have recently started selling the peanut butter in Japan under our own brand. We also engage in private labelling, manufacturing peanut butter for domestic and international customers, including hypermarkets, supermarkets, and retail chains. Our private label clients are based in countries such as the United Kingdom, Canada, South Africa, Mauritius, Russia, the British Virgin Islands, Spain, the United Arab Emirates, Saudi Arabia, Nepal, Bangladesh, the Philippines, Mexico, Kuwait, Israel, the United States, Oman, Kenya, Germany, and Portugal. Our private labelling services allows our customers to offer peanut butter under their own brand name, while we manage the production, supply and quality control Our Company offers peanut butter in flavours like chocolate, honey, coconut, cinnamon, pineapple, strawberry, etc of which Chocolate is the major contributor. Further our peanut butter offering range includes natural, creamy, crunchy, less fat, whole nut, high protein and no added sugar & salt.

Operational Review

During FY2026, the Company demonstrated strong performance across regions and product lines, achieving market share growth and enhanced operating margins compared to the previous year.

(Rs in Lakhs)

Financial Year	Revenue From Operation	EBITDA	PAT
2025-26	12,327.83	1418.43	1,163.88
2024-25	9,024.31	774.15	663.46
2023-24	8,091.59	598.64	462.87

Company Overview

Established in 2012 under the name Mother Nutri Foods and subsequently renamed as Mother Nutri Foods Limited, the Company is based in Mahuva, Gujarat, a city widely recognized as the Bowl of India. Since its inception, the Company has grown into a trusted manufacturer, exporter, and wholesale supplier of a diverse range of peanut-based products, including peanut butter, peanut spreads, and semi-processed peanuts. With a commitment to quality and customer satisfaction, Mother Nutri Foods Limited continues to strengthen its presence in domestic and international markets.

Our journey began with the commitment to deliver health and nutrition through delicious peanut butter, made with hand-picked peanuts (HPS) and lots of love. Mother Nutri Foods Limited is recognized globally for our strict quality and food safety policies. We are certified with all food safety compliance standards.

With a commitment to health and nutrition, we produce more than 30 types of peanut butter and spreads, catering to the specific needs of our customers. Additionally, we offer more than 50 brands for private labeling across the globe. Our products are currently available in the following countries: UK, USA, Canada, Australia, New Zealand, South Africa, Mauritius, Kenya, Russia, British Virgin Islands, Nigeria, Norway, Spain, Netherlands, Poland, U.A.E., Saudi Arabia, Iran, Iraq, Oman, India, Nepal, Bangladesh, Singapore, and Thailand.

Our dedication to excellence begins with sourcing the finest Indian peanuts, meticulously cultivated in the fertile soils of the Saurashtra region in Gujarat. This ensures our peanut butter maintains its purity, free from any microbial, chemical, or physical contaminants that might compromise its quality and shelf life. Not only do these peanuts guarantee exceptional taste, but they also impart a rich aroma, inviting you to savor every spoonful of our delectable peanut butter.

Operating from a cutting-edge facility equipped with state-of-the-art machinery imported from the USA, we meticulously control every aspect of production. From the color and consistency of our peanut butter to its nutritional integrity and safety, our focus remains firm on delivering products of the highest caliber.

Our unwavering commitment to food safety and quality is evident in every step of our process. Adhering to European standards, our dedicated quality team ensures that all regulations are carefully followed within our facility, providing our customers with peace of mind with every jar of Mother Nutri Foods Limited peanut butter.

Cautionary Statement: Statements in the Management Discussion and Analysis Report describing the companys objectives, projections, estimates, expectations or projections may be forward looking statements within the meaning of the applicable laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the companys operations include economic and political conditions in which the company operates, interest rate fluctuations, changes in Government/RBI regulations, tax laws, other statues and incidental factors.