Krishival Foods targets Rs 600 crore ice-cream revenue at capacity

Krishival Foods Limited said its Melt N Mellow ice-cream business could generate Rs 600 crore of revenue when its 1 lakh-litre-per-day facility reaches full utilisation in Q1 FY29. Management expects utilisation to be almost 37% in FY27, with the ramp dependent on more deep freezers, distributors, market expansion and product availability.

How will Krishival Foods reach Rs 600 crore of ice-cream revenue?

Krishival Foods plans to reach Rs 600 crore of ice-cream top line through full utilisation of its existing Sambhajinagar facility in Q1 FY29. The plant has installed ice-cream capacity of 1 lakh litres per day, and management did not disclose plans for a new ice-cream manufacturing facility as part of the stated revenue target.

The same Sambhajinagar site has capacity to produce 20 metric tonnes per day of milk products and 10 metric tonnes per day of bakery products. Management said these related capacities are being ramped up gradually, while the priority is to improve use of existing infrastructure and align manufacturing output with demand and distribution growth.

The Rs 600 crore figure is management's top-line estimate at full ice-cream capacity, rather than FY27 guidance. Management also targets consolidated revenue of Rs 1,500 crore in FY29 and expects the healthy-snacks and ice-cream divisions to contribute almost equally by then.

What is Krishival Foods' ice-cream capacity-utilisation timeline?

Krishival Foods expects almost 37% utilisation of its installed ice-cream capacity in FY27 and targets full utilisation in Q1 FY29. The company did not provide a quarterly utilisation figure for Q2 FY27 or an interim utilisation target for FY28.

The utilisation plan implies a substantial expansion from the current sales base. Ice-cream revenue was Rs 22.50 crore in Q2 FY27, while the Rs 600 crore target is linked specifically to full plant utilisation in Q1 FY29. Management has not disclosed the revenue expected at the almost 37% utilisation level in FY27.

The facility includes automated extrusion and stick lines, cone-filling equipment, a blast rotary tunnel, homogenisers and pasteurisers. Krishival Foods also cited end-to-end cold-chain infrastructure and an in-house research and development centre as operational support for its product and capacity ramp.

How is Krishival Foods expanding Melt N Mellow distribution?

Krishival Foods had 18,752 deep freezers at the end of Q2 FY27 and targets 27,000 units by the end of FY27. This planned addition of 8,248 units is the company’s stated retail-infrastructure expansion for the year and is intended to increase availability of Melt N Mellow products.

The distributor count rose by 85 in Q2 FY27 to 205, with distributor retention of approximately 95%. The network operated through 13 depots at quarter-end, and management attributed part of the segment's profitability to the depot system, distribution management and control of raw-material and packaging costs.

Melt N Mellow products were available at more than 35,000 retail touch points across Maharashtra, Goa, Karnataka, Telangana, Andhra Pradesh and Tamil Nadu at the end of Q2 FY27. During the quarter, Krishival Foods added locations in Tamil Nadu including Vellore, Hosur, Erode, Tiruvannamalai and Salem, while its Andhra Pradesh distribution covered Rayalaseema, Vijayawada and Visakhapatnam through carrying-and-forwarding locations.

How did Krishival Foods' ice-cream segment perform in Q2 FY27?

Krishival Foods reported ice-cream revenue of Rs 22.50 crore in Q2 FY27, up approximately 65% year on year, with earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 3.53 crore. Segment EBITDA rose 566% year on year and the EBITDA margin was 16%.

The ice-cream division grew faster than the nuts, dry fruits and healthy-snacks business during Q2 FY27. The nuts and snacks division generated revenue of Rs 63.16 crore, up 19% year on year, and EBITDA of Rs 10.44 crore, with a 17% EBITDA margin.

At the consolidated level, Krishival Foods recorded revenue from operations of Rs 85.66 crore in Q2 FY27, up 28% year on year. EBITDA rose 53% to Rs 13.87 crore and profit after tax increased 18% to Rs 6.82 crore; for H1 FY27, revenue rose 50% to Rs 174.62 crore and EBITDA increased almost 63% to Rs 24.56 crore.

What products and stores support the Melt N Mellow ramp?

Krishival Foods sells Melt N Mellow cones, kulfis, choco bars, tubs, family packs, novelties, ice-cream cakes, pastries and products from the Marvel extrusion line. Management also said it is adding zero-added-sugar options, as part of a portfolio designed for different price points and consumption occasions.

Krishival Foods is developing a premium retail format under the Mellow & Co. name. Its first outlet at Apte Road, Deccan, Shivaji Nagar, Pune, was under commissioning at the November 5, 2026 earnings call, and management plans to expand to 25 franchisee-owned, company-operated outlets in Pune and nearby areas after the first launch.

Management said product innovation, premium offerings, differentiated flavours and formats, and value-added products are opportunities for the ice-cream business. These are operating plans, while the Rs 600 crore revenue outcome remains conditional on full capacity utilisation and the execution of the distribution build-out.

Conclusion

Krishival Foods has linked a Rs 600 crore ice-cream revenue target to full use of its 1 lakh-litre-per-day Sambhajinagar facility in Q1 FY29. The Q2 FY27 ice-cream business remained smaller than the nuts and snacks division by revenue, at Rs 22.50 crore against Rs 63.16 crore, but grew faster at approximately 65% year on year versus 19%.

The next disclosed milestones are almost 37% ice-cream capacity utilisation in FY27, expansion of the freezer network to 27,000 units by FY27-end, and the planned opening of the first Mellow & Co. outlet in Pune. Progress on distributors, retail touch points and new markets will show whether the business is moving toward management's Q1 FY29 full-utilisation target.