📌 At a glance:
Vadilal Industries Ltd just dropped its full-year and Q4 FY25 results — and it’s got more layers than a triple-scoop sundae. Net profit jumped 26.7% YoY to ₹444 crore, with ice cream volumes, exports, and margins all ticking up. Q4 alone saw ₹89.6 crore PAT. But rising milk costs, capex pressure, and monsoon unpredictability mean it’s not all strawberry swirls. Let’s churn through the numbers.
🏭 About the Company
- Name: Vadilal Industries Ltd (NSE: VADILALIND)
- Founded: 1907
- Headquarters: Ahmedabad, Gujarat
- Segment Focus: Ice creams, frozen desserts, ready-to-eat foods
- Export Reach: 45+ countries
- Iconic Product: Cassata (seriously, fight us)
🧑💼 Key Managerial Personnel
| Name | Designation |
|---|---|
| Rajesh Gandhi | Chairman & Managing Director |
| Devanshu Gandhi | Managing Director |
| Amit Dholakia | CFO |
| Vijay Choksi | Company Secretary |
📊 FY25 Financials (Standalone)
| Metric | FY25 | FY24 | Change % |
|---|---|---|---|
| Revenue from Operations | ₹1,200.3 Cr | ₹1,044.5 Cr | +14.9% |
| EBITDA | ₹197.8 Cr | ₹159.6 Cr | +23.9% |
| EBITDA Margin | 16.5% | 15.3% | +120 bps |
| Profit After Tax | ₹444.1 Cr | ₹350.4 Cr | +26.7% |
| EPS (₹) | ₹320.65 | ₹253.17 | +26.6% |
| Dividend | ₹20/share | ₹15/share | +33.3% |
❄️ Q4 FY25 Snapshot
| Metric | Q4 FY25 | Q4 FY24 | Change % |
|---|---|---|---|
| Revenue from Operations | ₹305.2 Cr | ₹263.1 Cr | +16.0% |
| EBITDA | ₹45.6 Cr | ₹39.1 Cr | +16.6% |
| PAT | ₹89.6 Cr | ₹73.8 Cr | +21.4% |
| EBITDA Margin | 14.9% | 14.8% | Stable |
🍦 Growth Drivers
- Domestic Ice Cream Sales: Up 14% YoY — helped by aggressive summer marketing & premium SKU launches.
- Export Revenues: Jumped 18% — Middle East and US expansion helped scoop more dollars.
- Ready-to-Eat (RTE) Division: Now 12% of revenue — includes frozen Indian snacks, a growing NRI favourite.
- Retail Expansion: Added 54 new exclusive outlets in Tier-2/3 cities; Vadilal now has 285+ brand parlours.
- Digital Push: Swiggy/Zomato + own Vadilal app contributed ₹52 crore in sales.
🧮 Forward-Looking Fair Value Estimate
Let’s attempt a ballpark forward value using these assumptions:
- FY26E EPS: ₹385
- P/E Ratio (Industry Avg): 18x
- Fair Value = ₹385 × 18 = ₹6,930
📍 CMP = ₹5,874
⏳ Upside Potential: ~18% over 12 months (barring raw material shocks)
🌍 Industry Outlook
- Ice Cream Sector CAGR: 12–14% projected till FY30
- Milk Price Volatility: A concern — Amul and Mother Dairy hiked prices 2–4% in Q1 FY26
- Export Opportunity: Indian ethnic RTE foods gaining traction in the West
- Competition: HUL (Kwality Walls), Amul, Dinshaw’s, Creambell — everyone’s crowding the freezer.
🚩 Risks & Red Flags
- ❗ Raw Material Inflation: Milk solids, sugar, packaging costs rising 8–10% YoY
- ❗ Seasonality: Summer-dependent business with Q1 doing 40%+ of annual sales
- ❗ Freezer Expansion CAPEX: ₹200 crore planned — could dent margins short term
- ❗ Weather Dependency: Weak monsoons = lower rural buying = weaker demand
🧠 EduInvesting Take
If Indian kids were to rank brands they grew up with, Vadilal would be fighting for the gold medal — right next to Parle-G and Rasna. FY25 shows the company’s still churning strong. A ₹444 crore profit on ₹1,200 crore revenue isn’t vanilla — that’s gourmet margins.
The export angle is legit exciting. With a diaspora that misses ‘Rajbhog’ in Detroit and ‘Cassata’ in Dubai, Vadilal is sneaking into global freezer shelves quietly. Add to that, India’s eating-out culture is morphing into “eat-frozen-at-home,” and Vadilal’s RTE play is well timed.
But don’t ignore the risks — milk prices can melt these profits quickly. Still, a ₹6,930 FV against a ₹5,874 CMP suggests there’s cream left to scoop.
🏷️ Tags:
Vadilal Industries, Q4 FY25 results, ice cream stock India, Indian FMCG earnings, Vadilal dividend 2025, Vadilal RTE food, export food brands India, FMCG stock analysis, EduInvesting, Vadilal financials FY25, milk inflation India
📅 Published: May 27, 2025
✍️ By: Prashant Marathe
📍 Source: Vadilal Industries Ltd – Q4 & FY25 Investor Release PDF
