Peshwa Wheat Limited has 97% sales and all inputs in Madhya Pradesh

Peshwa Wheat Limited had 97.21% of revenue from operations in Madhya Pradesh in the financial year ended March 31, 2026 (FY2026), while it procured 100% of wheat, chana dal and maize kernel from the same state. Peshwa Wheat has not established alternative raw-material sourcing arrangements outside Madhya Pradesh.

Why are Peshwa Wheat’s sales and sourcing concentrated in Madhya Pradesh?

Peshwa Wheat’s geographic exposure is concentrated because Madhya Pradesh is both its principal sales market and its sole disclosed raw-material sourcing state. Revenue from Madhya Pradesh was Rs 209.9161 crore in FY2026, representing 97.21% of total revenue from operations of Rs 215.9352 crore. Maharashtra supplied the remaining Rs 6.0191 crore, or 2.79%, while Karnataka and Gujarat reported no FY2026 revenue in the state-wise table.

Peshwa Wheat states that it procures 100% of wheat, chana dal and maize kernel requirements from Madhya Pradesh. The company identifies wheat flour, besan, maize flour, semolina, bran and feed by-products among products affected by the quality and availability of those inputs. This structure means a state-specific disruption can affect both input availability and costs, as well as demand from the company’s principal sales geography.

How did Peshwa Wheat’s Madhya Pradesh sales concentration change?

Peshwa Wheat’s dependence on Madhya Pradesh for sales increased in each of the three reported financial years. The state’s share rose from 89.73% in FY2024 to 93.32% in FY2025 and 97.21% in FY2026, an increase of 7.48 percentage points across the period. Madhya Pradesh revenue increased by Rs 130.8415 crore between FY2024 and FY2026, while total revenue from operations increased by Rs 127.8054 crore.

The change reflected a reduced contribution from other states rather than a wider geographic mix. Maharashtra’s revenue share fell from 8.69% in FY2024 to 6.49% in FY2025 and 2.79% in FY2026. Karnataka contributed Rs 1.3590 crore in FY2024 and Rs 23.06 lakh in FY2025, while Gujarat contributed Rs 3.34 lakh in FY2024 and Rs 9.58 lakh in FY2025; neither state recorded FY2026 revenue in the table.

The FY2024 comparison uses full-year figures even though Peshwa Wheat operated as a partnership firm until December 25, 2023, after which it became a public limited company. The prospectus specifies that full FY2024 financial figures have been considered for comparability. The reported state data shows that growth through FY2026 became increasingly tied to Madhya Pradesh.

What could disrupt Peshwa Wheat’s supply of grain and pulses?

Peshwa Wheat identifies state-policy changes, local supply-chain disruptions, droughts, floods, crop failures, labour strikes and logistics bottlenecks as risks to procurement in Madhya Pradesh. Because the state supplies 100% of disclosed wheat, chana dal and maize kernel requirements, disruption in availability, quality or pricing could prevent timely and cost-effective purchasing. Peshwa Wheat says it currently has no established alternative sourcing arrangement outside Madhya Pradesh.

Local agricultural markets, known as mandis, and local traders expose Peshwa Wheat to commodity-price volatility. The company identifies seasonal fluctuations, supply-demand imbalances, government interventions and policy changes as factors that can affect local prices. It generally does not enter into long-term supply agreements and says a significant portion of requirements is sourced through the spot market, where commodities are bought for immediate delivery at prevailing prices.

Supplier concentration is a separate procurement dependency. Peshwa Wheat’s largest supplier accounted for 38.48% of purchases in FY2026, compared with 54.54% in FY2025, while its top five suppliers accounted for 51.62%, compared with 72.65%. The supplier-group percentages declined in FY2026, but the company’s 100% Madhya Pradesh raw-material sourcing remained unchanged.

How can a Madhya Pradesh disruption affect sales, costs and inventory?

A Madhya Pradesh-specific event could affect Peshwa Wheat through two linked channels: it could constrain grain procurement and weaken spending by customers in the state that accounted for 97.21% of FY2026 revenue. The company says volatile economic conditions, deteriorating financial-market conditions, changes in applicable laws or restrictive conditions in major sales states could cause customers to reduce or postpone spending. Maharashtra accounted for only 2.79% of FY2026 revenue, limiting the disclosed geographic offset.

The operational effects could extend beyond immediate grain availability. Peshwa Wheat maintains warehouses holding large volumes of raw materials and finished goods for extended periods, and identifies failures in ventilation, humidity controls, fumigation, pest management and temperature monitoring as risks to product integrity. Heat waves and unseasonal humidity can increase moisture absorption or mould growth in wheat, chana dal, maize kernel and flour, potentially causing rejected batches, returns, reprocessing, disposal costs or regulatory intervention.

Working-capital movements illustrate why procurement and inventory conditions matter. Peshwa Wheat reported positive operating cash flow of Rs 15.6445 crore in FY2026 after negative operating cash flow of Rs 13.1047 crore in FY2025. The company attributed the FY2025 negative operating cash flow partly to a Rs 5.0399 crore increase in inventories and a Rs 13.9011 crore increase in trade receivables.

What would need to change to reduce Peshwa Wheat’s concentration?

Peshwa Wheat says it is actively exploring procurement options from other states, considering raw-material quality, cost and logistics. It is also working to establish relationships with alternative suppliers and traders across regions to support supply continuity. These are disclosed initiatives rather than established arrangements, so the 100% Madhya Pradesh sourcing position remains applicable until alternative procurement is put in place.

Reducing sales concentration would require a material increase in revenue outside Madhya Pradesh. In FY2025, Maharashtra, Karnataka and Gujarat together generated Rs 11.4663 crore, equal to 6.68% of revenue from operations of Rs 171.5300 crore. In FY2026, Maharashtra generated Rs 6.0191 crore and Karnataka and Gujarat showed no revenue, leaving the reported revenue base narrower geographically.

Conclusion

Peshwa Wheat’s disclosed concentration is both a procurement and market risk. Madhya Pradesh represented 97.21% of FY2026 revenue and 100% of disclosed raw-material procurement, connecting state-specific developments to input supply, commodity costs, production scheduling and customer demand. Supplier concentration moderated in FY2026, with the largest supplier representing 38.48% of purchases, but that did not change the state-level dependency.

The next point to watch is whether Peshwa Wheat converts its stated exploration of other-state procurement into established sourcing arrangements and whether revenue outside Madhya Pradesh regains a larger share. The company has disclosed quality, cost and logistics as criteria for alternative sourcing, but it had not disclosed an operating alternative outside Madhya Pradesh in the prospectus material.