Manorama Industries FY26: Scale-up year, margin expansion, and a bigger capex roadmap

Manorama Industries closed FY26 with a sharp step-up in scale. Standalone revenue rose to INR 1,358 crore, up 76.1% year-on-year. EBITDA grew to INR 367.7 crore, up 92.5%, and EBITDA margin expanded to 27.1% from 24.8% in FY25. PAT rose to INR 233.2 crore, up 108.1%, with PAT margin at 17.2% versus 14.5% last year.

The quarter also ended strong. Q4FY26 revenue was INR 382.3 crore, EBITDA INR 102.9 crore (26.9% margin), and PAT INR 59.5 crore (15.6% margin). Management attributed the year’s performance to a stronger product mix, higher utilization, and benefits from the upgraded fractionation capacity.

A key context point from the presentation is the revenue mix by geography. For FY26, the domestic to export mix stood at 43:57.

FY26 financial snapshot

Operating model and what changed in FY26

The company positions itself as a waste-to-wealth business focused on specialty fats and butters derived from exotic tree-borne oilseeds. The presentation describes raw material sourcing in India for sal, mango, kokum, and mowrah, and sourcing of shea nuts from West Africa. Processing is centered at the BirKoni plant, with outputs that include cocoa butter equivalents and specialty fats for food, chocolate, confectionery, and cosmetics customers. De-oiled cake is sold into the Indian cattle feed industry.

Capacity execution was a highlight. By the end of FY26, Manorama increased installed capacity of Solvent Fractionation Plant 2 by 30% from 25,000 TPA to 32,500 TPA through debottlenecking. Management also indicated a similar debottlenecking initiative is planned for Solvent Fractionation Plant 1, currently 15,000 TPA.

The company also discussed its integrated processing setup. In the presentation, integrated fractionation capacity is cited at 47,500 MTPA, with an extraction plant of 90,000 MTPA, refinery of 45,000 MTPA, seed milling of 90,000 MTPA, and packing of 30,000 MTPA.

Cash flows, working capital, and balance sheet markers

Manorama highlighted operating cash generation and working capital improvement as part of FY26 performance commentary. Management stated net cash flow from operating activities stood at about INR 259 crore as on 31 March 2026, and the working capital cycle improved to about 125 days in FY26.

Balance sheet data in the presentation indicates lower leverage, with net debt to equity at 0.38 in FY26 compared to 0.83 in FY25. Return metrics were also highlighted: ROE at 40.3% and ROCE at 33.6% for FY26.

A notable capital efficiency point in the presentation was that FY26 annual cash profit, defined as PAT plus depreciation, was INR 258.77 crore, exceeding gross block (land, building, plant and machinery) of INR 250.85 crore.

The board also announced a final dividend of INR 0.80 per equity share (40% of face value of INR 2) for FY26, subject to shareholder approval at the AGM.

Capex roadmap and global footprint expansion

Management outlined a phased capex program of about INR 460 crore over the next 2 to 3 years. The presentation frames it as expanding forward-integrated specialty fat capacities in India and strengthening backward integration in Africa.

The capex plan table includes:

• a manufacturing facility for cocoa butter alternative (CBA) in India (capacity shown as 75,000 MTPA)
• a new solvent fractionation facility for sal, shea, palm, mango and other exotic seeds and ESOS in India (75,000 MTPA)
• a new refinery manufacturing facility in India (90,000 MTPA)
• a new processing facility in Burkina Faso (90,000 MTPA)

Management indicated these projects are targeted to be commissioned by FY28.

The corporate announcement dated May 11, 2026 adds a specific funding framework for the Burkina Faso processing factory through the wholly owned subsidiary Taang Kaam Industries SA. The board approved potential support via equity investment up to INR 150 crore, unsecured loans up to INR 100 crore, and guarantees or SBLC up to INR 100 crore, to be extended in tranches.

On the call, management also discussed a strategic partnership with DEKEL Agroindustria in Brazil for CBE and specialty fats production, executed through Manorama Latin America LTDA. Management stated the arrangement is a processing cost model per ton, not a profit-sharing structure, and that the first commercial production batch was completed in Q3 FY26 with trial samples delivered.

Risks and near-term watchlist from FY26 commentary

Foreign exchange volatility showed up in reported numbers. In Q4FY26, adverse currency movement led to a mark-to-market provision of INR 17.05 crore on forward contracts, and INR 23.30 crore for the full year. Management also stated the company follows a structured FX risk management policy and that around 60% of net foreign exchange exposure is hedged through forward contracts.

Another near-term point is the impact of new subsidiaries on consolidated performance. Management noted that subsidiaries were newly established and in early-stage operations, with start-up and transitional costs affecting consolidated numbers.

Takeaways

FY26 was a high-growth year for Manorama Industries, with expansion in both scale and margins. The company is now pairing strong operating metrics with a larger investment cycle, anchored by a stated INR 460 crore phased capex plan and backward integration in Burkina Faso. The next checkpoints are execution timelines toward FY28 commissioning targets, stabilization of subsidiary economics, and management’s ability to sustain the guided EBITDA margin band of 25% to 27% while scaling capacity.