Manorama Industries Limited Q3FY26 Concall Decoded: 73% Revenue Surge, 5x Asset Turn Dreams & ₹460 Cr Capex Cannon

1. Opening Hook

Just when cocoa prices decided to crash like crypto in 2022, Manorama Industries casually posted 73% revenue growth. Because why depend on cocoa beans when you can engineer your own destiny?

While global commodity players blamed volatility, Manorama blamed… capacity constraints. And promptly announced ₹460 crore capex to fix that “problem.”

Revenue guidance? Upgraded from ₹1,150 crore to ₹1,300 crore. Because modesty is clearly not in the recipe.

Management says they operate in a “structurally undersupplied niche.” Investors heard “pricing power” and stopped blinking.

But here’s the real masala — 75,000 tons of new CBA capacity, 75,000 tons more fractionation, refinery expansion, and Burkina Faso backward integration.

This isn’t expansion. It’s industrial-level ambition.

Read on. The fat story gets thicker.

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2. At a Glance

• Revenue ₹975 Cr (9M) – Up 73% YoY; volume did the heavy lifting.
• Q3 Revenue ₹363 Cr – Seasonal fluctuation? What fluctuation?
• EBITDA ₹265 Cr (27.2%) – Margins stayed stubbornly premium.
• PAT ₹174 Cr (17.8%) – Profit showed up with confidence.
• Value-Added Mix 75% – Soft fats quietly becoming hard cash.
• Working Capital 120 Days – From 150+ earlier; inventory drama cooling.
• Capex ₹460 Cr – Management chose aggression over caution.
• Asset Turn Target 5x+ – Spreadsheet optimism at peak levels.

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3. Management’s Key Commentary

“We have reported revenues of INR 363 crores, reflecting 73.3% year-on-year growth.”
(Translation: Volume machine switched to turbo mode 😏)

“We have revised FY26 revenue guidance from INR 1,150 crores to INR 1,300 crores.”
(Translation: When confidence meets capacity utilization.)

“Out of 73% growth, 90% is volume growth.”
(Translation: This isn’t price inflation magic; it’s actual dispatches.)

“We operate in a structurally undersupplied and high-growth niche market.”
(Translation: Competition exists. But not enough to hurt us — yet.)

“We are committing ₹460 crores over 2–3 years.”
(Translation: Cash accruals are strong, and ambition is stronger.)

“Asset turnover of more than 5x.”
(Translation: Every rupee of capex better sprint like Usain Bolt.)

“Working capital for new projects will be 1 to 2 months.”
(Translation: Inventory won’t sit around sunbathing anymore.)

“Current EBITDA margins of 25–27% are sustainable.”
(Translation: Don’t model margin collapse. Please.)

The tone? Calm. Confident. Slightly swagger-heavy.

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4. Numbers Decoded

Metric	Q3FY26	9MFY26	Insight
Revenue	₹363 Cr	₹975 Cr	73% YoY growth, volume-led
EBITDA	₹98 Cr	₹265 Cr	27% margin steady
PAT	₹68 Cr	₹174 Cr	18% margin zone
CBE Contribution	~30%	~30%	Core profit engine
Value-Added Mix	~75%	~75%	Targeting 90%+
Capacity Utilization	~85%	–	Still room to grow
Working Capital	120 days	Improved	Targeting 90–100 days

Volume growth ~90% of revenue growth.
This isn’t price-led illusion. Plants are running hot.

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5. Analyst Questions

Gross margin drop to 44% — problem?
Management: Range-bound 45–50%. Freight and by-product noise. EBITDA untouched.

Is cocoa price crash hurting you?
Answer: We’re formulation-driven, not commodity-driven. Cocoa volatility ≠ CBE volatility.

Will CBA margins dilute?
Management says no. Same sustainable margin zone, maybe better.

Working capital improvement?
New CBA line needs just 1–2 months vs 5–6 months earlier. Inventory stress easing.

Do you really have demand for 75,000 tons new capacity?
Management: Yes. “Huge demand-supply gap.”

Confidence level: High.

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6. Guidance & Outlook

FY26 revenue guidance: ₹1,300 crore.

FY27 growth expectation: 30%+ (management hinted).

Capex ₹460 crore across:

• 75,000 MTPA CBA
• 75,000 MTPA solvent fractionation