ADF Foods Q3 Results: Profit Surges 55.7% on Record Revenue

Introduction

ADF Foods Limited, a prominent player in the Indian consumer food sector, has reported a robust financial performance for the third quarter ended December 31, 2025. The company announced a significant 29.5% year-on-year increase in its consolidated revenue, which reached an all-time high of ₹191.0 crore. This strong top-line growth was complemented by an even more impressive surge in profitability, with net profit jumping 55.7% to ₹29.2 crore. The results reflect the company's successful strategy of expanding its brand presence and gaining traction from new product listings in key international markets.

A Detailed Look at Q3 Financials

ADF Foods delivered strong growth across all key financial metrics on both a consolidated and standalone basis. The performance underscores improved operational efficiency and a favorable product mix. The consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q3 FY26 stood at ₹37.1 crore, a 40.6% increase from the previous year, with the EBITDA margin expanding to 19.4%. The consolidated Profit After Tax (PAT) margin also saw a healthy improvement, reaching 15.3%.

The company's standalone operations, which primarily represent its manufacturing business, also posted solid numbers. Standalone revenue grew by 13.3% year-on-year to ₹137.2 crore. Standalone EBITDA rose by 35.1% to ₹34.4 crore, leading to a strong margin of 25.1%. This performance culminated in a 34.7% increase in standalone PAT, which came in at ₹27.2 crore.

Key Drivers of Growth

According to the company's management, the exceptional performance was driven by several strategic factors. A key contributor was the continued momentum from new product listings across major retail outlets, particularly in the United States. The company's flagship brands, 'Ashoka' and 'Truly Indian', have been strengthening their market penetration and gaining wider acceptance among consumers. This expansion has been crucial in driving volume growth and enhancing brand visibility. The progress in the U.S. business, despite ongoing tariff challenges, highlights the resilience of the company's distribution network and the strong demand for its products.

Strategic Expansion: The Surat Greenfield Facility

A significant development for ADF Foods is the progress of its new greenfield facility in Surat. The company confirmed that Phase 1 of the project is on track and expected to become operational by the fourth quarter of FY26. This new plant is set to significantly boost the company's manufacturing capacity, particularly for its high-margin frozen food products. The facility is a cornerstone of the company's long-term strategy to scale its operations and meet the growing demand from international markets. Management expects a gradual ramp-up in production over three to four quarters post-commissioning, with the plant having a peak revenue potential of around ₹250 crore.

Market Position and Valuation

As of February 5, 2026, ADF Foods has a market capitalization of approximately ₹2,502 crore. The stock's Trailing Twelve Month (TTM) Price-to-Earnings (PE) ratio stands at 31.11, which appears favorable when compared to the broader sector PE of 68.11, suggesting a relatively attractive valuation. The company's promoter holding remained stable at 36.13% as of the December 2025 quarter. The stock has traded between a 52-week high of ₹300.85 and a low of ₹168.20, indicating significant volatility but also potential for growth.

Management's Outlook

Mr. Bimal Thakkar, Chairman & Managing Director of ADF Foods, expressed cautious optimism regarding the company's future. He attributed the strong quarterly performance to disciplined execution and operational excellence. While acknowledging the dynamic nature of the global market, including tariff uncertainties in the U.S., the management is confident in maintaining its growth trajectory. The company is focused on its long-term goal of achieving ₹1,000 crore in consolidated revenue by FY27, supported by brand expansion, new product development, and the operationalization of the Surat facility.

Conclusion

ADF Foods' third-quarter results for FY26 demonstrate a company on a strong growth path. With record-breaking revenue and a significant jump in profits, the firm has showcased its ability to effectively navigate the competitive global food market. The strategic initiatives, particularly the upcoming Surat facility and strengthening brand presence in key markets like the U.S., position ADF Foods well for sustained long-term growth. Investors will be closely watching the company's ability to execute its expansion plans and continue its impressive performance in the coming quarters.