1. Opening Hook
While FMCG giants fight over chocolate shelf space,Manorama Industriesquietly makes thefatthat 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 itwaste-to-wealth; we call ittribal-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.)
Q:Any impact from falling cocoa prices?A:Not really, our CBE has different structural properties.(Translation: Cocoa falls, we still make money — the ultimate hedge.)
Q:Competitors in India?A:None at our scale.(Translation: Monopoly is a sweet flavor.)
Q:Price contracts for how long?A:9–12 months fixed.(Translation: We sign deals like marriage vows — no midyear divorces.)
6. Guidance & Outlook
- Revenue guidance revised upward to ₹1,150+ Cr for FY26.
- Capacity expansion:from 40,000 MT → 52,000
