ADF Foods revenue rises 22% while quarterly profit slips 4%

ADF Foods Limited reported consolidated revenue from operations of Rs 200.91 crore for the quarter ended September 30, 2026, a 22% year-on-year increase, while consolidated profit after tax fell 4% to Rs 25.34 crore. Total expenses rose to Rs 164.47 crore, limiting profit conversion despite higher sales.

Why did ADF Foods’ quarterly profit decline despite revenue growth?

ADF Foods’ quarterly profit declined because expenses increased faster than total income in the quarter ended September 30, 2026. Consolidated total income rose to Rs 205.06 crore from Rs 168.38 crore a year earlier, while total expenses increased to Rs 164.47 crore from Rs 132.82 crore. Profit before tax was therefore broadly unchanged at Rs 35.58 crore, compared with Rs 35.63 crore.

A higher tax charge also reduced the final profit figure. Consolidated tax expense was Rs 10.24 crore in the September 2026 quarter, compared with Rs 9.24 crore in the corresponding quarter of 2025. Profit after tax consequently declined to Rs 25.34 crore from Rs 26.39 crore, even as other income increased to Rs 4.15 crore from Rs 1.10 crore.

ADF Foods added Rs 36.62 crore in revenue from operations year on year, but profit before tax was Rs 5 lakh lower. The results were unaudited, reviewed by the audit committee and approved by the board on November 5, 2026. The statutory auditors issued an unmodified review conclusion on the consolidated statement.

How did ADF Foods’ expenses change in the September quarter?

ADF Foods reported higher purchases, employee costs and other expenses during the September 2026 quarter. Purchases of stock-in-trade rose to Rs 34.60 crore from Rs 22.01 crore, employee benefits expense increased to Rs 18.80 crore from Rs 11.45 crore, and other expenses climbed to Rs 78.37 crore from Rs 56.00 crore. Together, those three categories increased by Rs 42.31 crore.

The company recorded an inventory-related credit of Rs 21.27 crore, compared with a Rs 9.11 crore credit in the prior-year quarter. Depreciation, amortisation and impairment rose to Rs 6.66 crore from Rs 5.19 crore, while finance costs increased to Rs 86.61 lakh from Rs 71.18 lakh. The larger inventory credit reduced reported costs but did not fully offset the increases in other expense lines.

Total expenses rose 23.8% from the year-earlier quarter, compared with a 21.8% increase in total income. This gap explains why ADF Foods did not translate the reported revenue growth into a higher quarterly profit. The tax charge increased by Rs 1 crore, adding to the difference between nearly flat pre-tax profit and the lower profit after tax.

What did ADF Foods report for the first half?

ADF Foods reported higher consolidated revenue and profit for the half year ended September 30, 2026. Revenue from operations increased to Rs 368.20 crore from Rs 295.49 crore in the corresponding six months of 2025, while profit after tax rose to Rs 42.63 crore from Rs 41.64 crore. Profit before tax increased to Rs 59.07 crore from Rs 56.73 crore.

Total income for the six-month period rose to Rs 373.44 crore from Rs 304.37 crore, while total expenses increased to Rs 314.37 crore from Rs 247.64 crore. The half-year tax charge was Rs 15.32 crore, compared with Rs 15.10 crore a year earlier. The contrast with the September quarter indicates that the first-quarter result supported the modest first-half increase in profit after tax.

ADF Foods identifies Processed and Preserved Foods Business and Distribution Business as its two consolidated business segments. The announcement says segment revenue, results, assets and liabilities are set out in a separate annexure, but the supplied material does not provide those figures. The quarterly profit movement therefore cannot be allocated between the two segments from this filing alone.

What balance-sheet and cash-flow changes did ADF Foods report?

ADF Foods’ consolidated total assets stood at Rs 803.27 crore on September 30, 2026, compared with Rs 754.51 crore on March 31, 2026. Inventories rose to Rs 140.17 crore from Rs 119.50 crore, while cash and cash equivalents increased to Rs 72.45 crore from Rs 65.62 crore. Consolidated total equity rose to Rs 608.37 crore from Rs 571.93 crore.

Borrowings increased over the six months ended September 30, 2026. Non-current borrowings were Rs 24.74 crore, compared with Rs 7.29 crore at March 31, while current borrowings were Rs 5.49 crore against Rs 1.46 crore. Consolidated operating cash flow was Rs 49.21 crore, up from Rs 31.93 crore in the prior-year half, and spending on property, plant and equipment was Rs 23.17 crore, below Rs 49.97 crore.

The auditors noted that three subsidiaries reviewed by other auditors recorded combined quarterly revenue of Rs 111.06 crore and profit after tax of Rs 3.35 crore. Three subsidiaries with management-prepared unaudited information had combined quarterly revenue of Rs 2.45 crore and a loss after tax of Rs 99.75 lakh; management said these entities were not material to the group.

What disclosed events should ADF Foods investors monitor?

ADF Foods said a US-based subsidiary entered a forbearance agreement dated October 9, 2026, related to a July 2026 court judgment. The subsidiary conditionally agreed to an alternate payment plan of Rs 16.77 crore plus applicable interest, of which Rs 4.31 crore had been received. The balance is receivable in subsequent periods, and ADF Foods said no impact was recognised in the September 2026 consolidated results.

The company also said its US-based subsidiaries received insurance proceeds after September 30, 2026, in relation to a fire involving certain assets and inventories. ADF Foods stated that the matter had been appropriately accounted for in the financial results as at September 30, 2026. Separately, the company fixed November 11, 2026, as the record date for its interim dividend.

Conclusion

ADF Foods delivered higher September-quarter revenue of Rs 200.91 crore, but expenses of Rs 164.47 crore rose faster than income. Higher purchases, employee costs and other expenses left profit before tax almost unchanged at Rs 35.58 crore, while the increased tax charge contributed to a 4% decline in profit after tax to Rs 25.34 crore.

The next disclosures to watch are the receipt of the outstanding balance under the Rs 16.77 crore alternate payment plan plus interest, and any financial effect from the US subsidiary matters. The November 11, 2026, interim-dividend record date is the scheduled event identified in the announcement.