Manorama Industries Ltd Q2 FY26 – ₹323 Cr Revenue, ₹53 Cr PAT, 107 % Profit Jump & Zero Pledges: The Butter Barons of Birkoni Go Global

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1. At a Glance

If Willy Wonka had a CA and a SEBI filing, he’d be working at Manorama Industries.
Q2 FY26 numbers: Revenue ₹323 Cr (+65 % YoY), PAT ₹53 Cr (+107 % YoY), OPM 26 %, and EPS ₹8.9.
Market cap ₹9,142 Cr at ₹1,531 per share.
P/E ≈ 54×, Book Value ₹77, P/B ≈ 20× — meaning investors now pay premium butter prices for every drop of fat.
Debt ₹482 Cr (D/E 1.05), yet no pledges, no drama.
H1 FY26 revenue ₹613 Cr, PAT ₹106 Cr, and guidance raised to ₹1,150 Cr for FY26.

The stock has already spread 63 % return in one year — and yes, it’s still unsalted.

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2. Introduction – The Jungle to Ferrero Supply Chain

Hidden in Raipur’s industrial heartland, Manorama is India’s weirdest yet most profitable FMCG supplier.
While urban India worries about cholesterol, this company turns forest fruits like sal and mango seeds into cocoa-butter equivalents for Ferrero Rocher, Mondelez, and L’Oréal.

Think of it as a marriage between tribal collection and Swiss R&D — a sustainable business with cash flow that melts perfectly at 34°C.

Every investor loves an “ESG play.” Manorama took that literally — Eco-friendly, Sexy Margins, Global Clients.

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3. Business Model – How They Turn Seeds into Cents

Two pillars hold this empire of edible alchemy:

1️ Specialty Fats & Butters (> 90 % of revenue)
Derived from sal, mango, and shea seeds, these are used in chocolates, ice-creams, and cosmetics. Basically, your favourite Ferrero moment has a bit of Chhattisgarh inside it.

2️ Forward Integration – Chocolate & CBE Alternatives
Now venturing into compound chocolates and palm mid-fraction production to serve industrial clients directly.

Export mix 73 %, Domestic 27 %.
Major buyers: Ferrero, Mondelez, Barry Callebaut, The Body Shop, Lush, L’Oréal.

In short: They don’t make brands — they make brands taste better.

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4. Financials Overview

Source table

Metric	Latest Qtr (Q2 FY26)	YoY Qtr (Q2 FY25)	Prev Qtr (Q1 FY26)	YoY %	QoQ %
Revenue (₹ Cr)	323	195	290	65.4	11.4
EBITDA (₹ Cr)	88	44	75	100	17.3
PAT (₹ Cr)	53	26	47	107	13.0
EPS (₹)	8.9	4.3	7.9	107	13.0

Margins fatter than their own butter supply. EBITDA > 26 % despite global shipping inflation — clearly a business that refuses to melt under pressure.

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5. Valuation – Educational Fair-Value Range

P/E method: EPS ₹ 28.6, sector avg P/E 21×. Premium range 35–45× → ₹ 1,000–₹ 1,290.
EV/EBITDA method: EV ₹ 9,526 Cr / EBITDA ₹ 278 Cr ≈ 34×; fair 25–30× → ₹ 1,150–₹ 1,380.
DCF method: FCF ~₹ 150 Cr, growth 12 %, discount 11 %, terminal