Krishival Foods targets 20%-25% nuts growth and 15%-16% EBITDA

Krishival Foods Limited expects its nuts business to grow 20% to 25% over the next two to three quarters, while management targets a 15% to 16% earnings before interest, tax, depreciation and amortisation (EBITDA) margin. The measured outlook follows the May 2026 doubling of finished-kernel capacity to 20 metric tons per day and management’s plan to ramp utilisation gradually.

Why is Krishival Foods guiding for only 20%-25% nuts growth?

Krishival Foods expects nuts revenue growth of 20% to 25% over the next two to three quarters, compared with growth of about 15% to 20% over the preceding three to four quarters. Management said it is expanding the business in stages while maintaining profitability rather than seeking an immediate 30% growth rate.

Krishival Foods added 10 metric tons per day of finished-kernel capacity in May 2026, taking total capacity from 10 metric tons per day to 20 metric tons per day. Management said in its May 2026 earnings call that it expected to use only 25% of this incremental capacity during FY27, or financial year 2027.

The company said capacity deployment will be staggered as it broadens Indian distribution and develops selected export markets. Its longer-term plan is to raise finished-kernel capacity to 40 metric tons per day by March 2028, meaning installed capacity is being built ahead of the near-term revenue ramp.

What drove Krishival Foods' nuts profit growth in Q2 FY27?

Krishival Foods reported nuts and dry-fruit revenue of Rs 63.16 crore in Quarter 2 (Q2) FY27, up 19% year on year, while EBITDA rose 33% to Rs 10.44 crore. The segment’s reported EBITDA margin was 17%, so profit increased faster than sales during the quarter.

Management attributed the difference principally to sourcing discipline, input-cost control and inventory management for raw materials and ingredients. It said inventory had been built up amid El Niño effects and inflationary pressure, although it did not quantify the inventory increase or assign a specific margin contribution to it.

An investor cited a roughly 55% business-to-business (B2B) and 45% business-to-consumer (B2C) sales mix. Management said its B2B activity is focused on mithai ingredient partners, including Prashant Corner, Meetha by Radisson, Haldiram Delhi and Home Sweet Gurgaon, rather than commodity-style resellers, enabling profitability comparable with B2C sales.

Is Krishival Foods' 17% nuts EBITDA margin its new target?

No. Krishival Foods said 15% to 16% is its ideal target EBITDA margin for the nuts segment, while EBITDA above 18% would be very challenging. Management therefore described the 17% margin in Q2 FY27 as above its planning range rather than as a revised target.

Management said the nuts business has broadly maintained EBITDA of about 14% to 16% over the past 1.5 to two years. The Q2 FY27 segment margin of 17% followed the 33% rise in EBITDA, against the 19% rise in revenue, but management said performance above its 15% to 16% target should be treated as a bonus.

The target range is also the margin management uses for the ice-cream division at optimum utilisation in FY29. Ice cream reported Q2 FY27 revenue of Rs 22.50 crore, up about 65% year on year, and EBITDA of Rs 3.53 crore, producing a 16% margin that management attributed to raw-material, packaging and distribution management.

How does Krishival Foods' nuts outlook compare with ice cream?

Krishival Foods expects ice-cream growth to be almost double the nuts segment’s projected 20% to 25% rate over the next two to three quarters. In Q2 FY27, ice-cream revenue growth of about 65% was materially above the 19% increase in nuts revenue, with management citing a lower base and industry dynamics.

The divisions are at different points in their capacity ramp. Krishival Foods expects to reach nearly 37% utilisation of its installed ice-cream capacity of 1 lakh litres per day in FY27 and targets full utilisation in Q1 FY29. The nuts division, by contrast, is expected to use only 25% of the 10 metric tons per day added in May 2026 during FY27.

At the consolidated level, Krishival Foods reported H1 FY27 revenue from operations of Rs 174.62 crore, up 50% from Rs 116.19 crore in H1 FY26. EBITDA rose almost 63% to Rs 24.56 crore, while profit after tax increased 22% to Rs 12.42 crore, supporting management’s stated FY27 target of approximately 50% growth in revenue and profitability.

What could lift Krishival Foods' nuts growth beyond 25%?

Krishival Foods said faster future nuts growth depends on capacity utilisation, broader distribution and export development. Its portfolio includes flavoured cashews, almonds, pistachios, makhana and other healthy-snacking products, as well as Rs 20 maximum retail price (MRP) packs of trail mixes, cereal mixes, salted nuts, roasted almonds and assorted mixes.

The company is expanding through general trade, modern trade, e-commerce and quick-commerce channels to address both affordable and premium consumption. Management said the proportion of B2C sales through e-commerce and modern trade rose from about 5% to 7% in the prior financial year to 20% in the first six months of FY27.

Exports are another part of the disclosed plan. Krishival Foods reported a Singapore shipment worth USD384,000 in Q2 FY27 and said it would continue to nurture that market, while the United States and Japan are under consideration. Management gave no export revenue target, volume target or launch date for either proposed market.

Conclusion

Krishival Foods is signalling that its nuts business will expand through controlled utilisation rather than an immediate surge in sales following the May 2026 capacity addition. Q2 FY27 showed EBITDA growth of 33% against 19% nuts revenue growth, but management’s operational benchmark remains a 15% to 16% margin, not the quarter’s reported 17%.

The next points to watch are utilisation of the 20 metric tons-per-day nuts facility, progress toward 40 metric tons per day by March 2028, and the expansion of distribution and exports. Management also targets nearly equal contributions from healthy snacks and ice cream by FY29, alongside consolidated revenue of Rs 1,500 crore for that year.