While FMCG giants fight over chocolate shelf space, Manorama Industries quietly makes the fat that makes everyone’s profits look thinner. The Raipur-based specialty fats player delivered a quarter that would make even Cadbury blush — margins smoother than their cocoa butter equivalents.
Revenue shot up like Diwali rockets, and margins stayed solid at 27%. CEO Ashish Saraf didn’t brag — he just slid in a guidance upgrade like a well-tempered truffle.
They call it waste-to-wealth; we call it tribal-sourced capitalism with Swiss precision. Stick around — things get interesting when Africa, Brazil, and cocoa prices join the same party.
2. At a Glance
Revenue up 86% YoY – Chocolate dreams are paying in cash, not calories.
EBITDA ₹156.6 Cr (27.2% margin) – Fat by name, fat by profit.
PAT ₹105.5 Cr (17.2% margin) – Sweet margins, zero sugar rush.
ROCE 49.9%, ROE 36.9% – Even debt felt left out.
Net Debt-to-Equity 0.57x – Borrowed a bit, earned a lot.
Working Capital Days down to 97 (from 151) – CFO’s new cardio routine.
FY26 Guidance raised to ₹1,150+ Cr – “Guidance upgrade” is the new chocolate flavor.
3. Management’s Key Commentary
“H1FY26 reaffirmed our position as a global leader in specialty fats and butters.” (Translation: We make the butter that makes Nestlé’s balance sheet look glossy.)
“Revenue grew 86% YoY with EBITDA margins of 27%.” (Translation: We churn profits faster than Amul churns butter.)
“We revised annual guidance upwards from ₹1,050 Cr to ₹1,150 Cr.” (Translation: When in doubt, increase the target — investors love that stuff.)
“Our sourcing model empowers rural and tribal women.” (Translation: ESG with a side of EBITDA — sustainability now comes in profit-friendly packaging.)
“We’re expanding capacity from 40,000 MT to 52,000 MT.” (Translation: The plant’s getting a protein shake.)
“We’re setting up a processing facility in Burkina Faso and a tie-up in Brazil.” (Translation: Cocoa diplomacy is the new foreign policy.)
“ROCE of 49.9% and ROE of 36.9%.” (Translation: We found the fat margins FIIs dream about 😏)
“Shutdown in Q3 won’t affect revenues.” (Translation: We’ll make up for it by working overtime in Q4 — like every Indian company ever.)
4. Numbers Decoded
Metric
Q2FY26
YoY Change
Commentary
Revenue
₹323.3 Cr
+86.4%
Demand as hot as cocoa butter under the equator.
EBITDA
₹87.7 Cr
+~80%
Margins aged like Belgian chocolate.
EBITDA Margin
27.1%
Flat QoQ
Stability is the new luxury.
PAT
₹54.9 Cr
+~75%
Taxes paid with a smile.
ROCE
49.9%
+1100 bps
Return on Cocoa Emulsion.
ROE
36.9%
+900 bps
Richer than Ferrero’s hazelnuts.
Working Capital Days
97 days
↓ from 151
CFO on a strict liquidity diet.
Capacity Utilization
80–85%
up from 63%
Machines now sweat cocoa.
One-line Verdict: Margins that defy commodity logic, balance sheet leaner than a vegan chocolate bar, and growth that would make Hershey’s jealous.
5. Analyst Questions (and Sarcastic Translations)
Q: What’s the share of value-added products? A: 70–75% of sales; utilization 80–85%. (Translation: Bulk fats are passé; only designer butters now.)
Q: Revised guidance to ₹1,150 Cr — margins sustainable? A: Confident, efficient, and disciplined. (Translation: We’ll keep milking these margins till cows or cocoa run out.)
Q: Why West Africa and Latin America? A: Backward integration and local market access. (Translation: If you want cocoa done right, go to the source — then sell it back to Switzerland.)
Q: Capex ₹450 Cr — what’s the funding plan? A: Mix of internal accruals, debt, and equity. (Translation: We’ll find a way — investors love expansion stories.)
