01 — At a Glance
The Fancy Rice Company That Trades Like a Biotech Startup
- 52-Week High / Low₹186 / ₹84
- FY25 Revenue (Full Year)₹1,348 Cr
- FY25 PAT (Full Year)₹61.2 Cr
- Full-Year EPS (FY25)₹3.37
- Q3 FY26 EPS₹1.04
- Book Value₹25.8
- Price to Book6.02x
- Dividend Yield0.00%
- Debt / Equity0.44x
- 1-Year Stock Return+63.4%
Quick Roast: GRM Overseas is selling rice in a market obsessed with profitability multiples designed for software companies. ₹1,348 Cr revenue. ₹3,211 Cr market cap. That’s a Price-to-Sales of 2.19x for a commodity business. In the same quarter, they issued a 2:1 bonus (diluting every shareholder to oblivion) and allotted convertible warrants worth ₹136 crores. If you bought this stock for “undervaluation,” congratulations — you’ve been redefining what undervaluation means while the promoters redefined shareholding.
02 — Introduction
The Journey from Panipat to “House of Brands” (In One Quarter)
GRM Overseas is a company founded by your friendly neighborhood rice merchant Hukam Chand Garg back in 1974 as “Garg Rice & General Mills.” They milled rice. They still mill rice. And they have absolutely no qualms reminding you that they’ve been doing it for 50 years.
But here’s the plot twist: in the last 12 months, they’ve decided they’re not just a rice company anymore. They’re now a “food FMCG platform.” They’ve launched 10X (rice, atta, oil, spices — yes, the works). They’ve acquired Rage Coffee (44% stake, backed by Virat Kohli and Twitter handles that get more engagement than their quarterly earnings). They’ve created something called “10X Ventures” to buy digital-first D2C brands. And they’ve dropped a Salman Khan endorsement for 10X Zarda King because apparently, nothing says “premium basmati” like a Bollywood legend.
The domestic business is now 41% of revenue (up from 13% in FY25). International is still 59%, but they’re aggressively chasing a vision of ₹2,000 Cr (India) + ₹1,500 Cr (International) by FY28. To put this in perspective, they did ₹1,348 Cr last year. So they want to 3x in three years. Bold. Audacious. Let’s see how audacious the numbers are.
CEO Memo (Implied): “We sell rice. But we want to be Unilever. Or Nestlé. Or at least Jio Mart’s secret best friend. P/E 43.8x? We’ll figure that out when the business actually compounds at that multiple. For now, let’s just do a 2:1 bonus and call it ‘wealth creation’.”
03 — Business Model: WTF Do They Even Do?
Export Rice, Rebrand It, Then Become Everything Else
The core business is straightforward. GRM Overseas has three manufacturing plants (Panipat, Naultha, Gandhidham) with a combined capacity of 440,800 MT per annum. They sort, process, and package basmati rice. 95% goes to international markets under private labels (think Walmart UK, Carrefour EU, ASDA, Tesco). The other 5% is sold under their own brands Himalaya River and Tanoush in 50+ countries.
That’s the legacy business. It’s steady. It’s boring. Revenue is ₹783 Cr annually from exports, and it’s not growing explosively because, well, global basmati demand is what it is.
So what did the management do? They said, “Let’s build a domestic empire.” In 2020, they launched 10X (the domestic brand). In 2024, it became ₹490 Cr of revenue (₹150 Cr from rice, ₹340 Cr from atta and oil). They tied up with Jio Mart, Walmart, BigBasket, Amazon. Then they bought Rage Coffee. Then they created 10X Ventures to roll up niche D2C brands.
Translation: We figured out that exporting rice is profitable but capped. Let’s become an FMCG house of brands in India. But we’ll do it with commodity margins and SaaS valuations.
Domestic Mix41%FY25: 13%
Export Mix59%FY25: 87%
OPM6.35%Industry: 8-12%
10X Revenue~₹490 Cr~36% of total
The Rage Coffee Play: GRM bought 44% of the parent company (Swamvahan Commerce Pvt Ltd) for a stake in Virat Kohli’s digital-first coffee brand. The upside? Rage sells cool coffee to urban millennials. The downside? Rage reported ₹150 Cr revenue but is burning cash to acquire customers in a crowded space. GRM paid ₹200 crores for 44% of it. Do the math. That’s a ₹454 Cr implied valuation for a coffee brand with sub-50% gross margins.
💬 Hot take: Is GRM Overseas a rice exporter that bought coffee, or a coffee company that’s cashing cow milk from basmati sales?
04 — Financials Overview
Q3 FY26: The Numbers Don’t Lie, But They Sure Make You Squint
Result type: Quarterly Results | Q3 FY26 EPS: ₹1.04 | Annualised EPS (Q3×4): ₹4.16 | Full-year FY25 EPS: ₹3.37
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 483 | 371 | 362 | +30.0% | +5.6% |
| EBITDA | 31.3 | 23.3 | 24.5 | +34.1% | +27.8% |
| EBITDA Margin % | 6.3% | 6.1% | 6.6% | +25 bps | -30 bps |
| PAT | 19.1 | 13.5 | 14.8 | +41.4% | +28.8% |
| EPS (₹) | 1.04 | 0.75 | 0.80 | +38.7% | +30% |
The Spin: Revenue is up 30% YoY. PAT is up 41%. Looks stellar, right? Now here’s the fine print: Q3 FY25 was a weak quarter (export market slowdown). The 9-month FY26 revenue of ₹1,199 Cr is up 11.3% YoY (not 30%). Domestic is booming (+57% in 9M), but export is sluggish (+16% in 9M). Also, remember those 2:1 bonus shares issued in Dec 2025? The EPS you’re looking at is calculated on the old share count. Post-bonus adjustment, the FY25 EPS of ₹3.37 becomes ₹1.69 per share. So the actual annualised run rate of ₹4.16 isn’t as fancy when you remember you now own half the fraction of the company.
05 — Valuation: Is This Fair or Just Frothy?
Three Ways to Justify (or Roast) the P/E of 43.8x
