Summary
Nurture Well Industries Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026, 4:00 PM
Event Participants
Executives 2 Sanidhya Garg (Executive Director), Vikas Tandon (Group CFO)
Analysts 7 Onkar Ghugardare (Shree Investments), Ramesh (Individual Investor), Rangan (Individual Investor), Ritik (Motilal Oswal), Rudraksh Raheja (ithought Financial), Shantanu Talukdar (Individual Investor), Shushant Kwatra (Individual Investor), Snehadeep Aich (Individual Investor), Sonia Keswani (Coheron Wealth), Sourav Khara (VT Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations (Q3) | ₹289.77 crores | +45.80% YoY; driven by expansion into high-demand categories and improved product mix. |
| Revenue from Operations (9M) | ₹826.48 crores | +57.28% YoY; already exceeded FY25 full-year revenue of ₹766 crores. |
| EBITDA (Q3) | ₹33.19 crores | +93.80% YoY; significant margin expansion due to better scale and product mix. |
| EBITDA Margin (Q3) | 11.45% | +280 bps YoY; improved from 8.65% in Q3 FY25. |
| Net Profit (Q3) | ₹34.60 crores | +95.04% YoY; profit growth outpaced revenue growth due to operational efficiencies. |
| Net Profit Margin (Q3) | 10.72% | Improved YoY; supported by tax-exempt status of overseas offshore income. |
| Diluted EPS (9M) | ₹3.15 | Represents strong earnings growth for the nine-month period. |
| Capacity Utilization | 65% - 70% | Based on Neemrana plant capacity of 3,600 metric tons per month. |
| Working Capital Cycle | 65 - 90 days | Regular business cycle; management noted no sticky receivables despite ₹216cr debtor level. |
Geographic & Segment Commentary
- Overseas Business: Currently contributes ~80% of total revenue. Operates via contract manufacturing in Malaysia catering to 12-13 African countries (77-80% of segment) and GCC (20-25%). Business model utilizes 18 super-stockists/consolidators to mitigate realization risks.
- Domestic Business: Contributes ~20% of revenue, primarily in Northern India (Punjab, Rajasthan, Haryana, UP, J&K). Management aims to increase this to 50-60% of total turnover in the next 2-3 years. Top three states currently contribute 40-45% of domestic sales.
- Fresh Bakery & New Segments: Recent entry into fresh bakery with kulcha, bread, and puffs. Added donuts, rusk, and khari biscuits to the portfolio to increase retail traction and repeat consumption.
Company-Specific & Strategic Commentary
- Manufacturing Expansion: Planning to add 2-3 production lines at the Neemrana facility in FY27 to boost domestic capacity. A new greenfield unit is planned with a capex of ₹400 crores (₹300cr capex, ₹100cr working capital) to target premium segments.
- Premiumization Strategy: Shifting focus from mass-market biscuits in Tier 2/3 cities to premium cookies and confectionery. This transition is expected to double domestic gross margins from ~12% to ~25-30%.
- Forward Integration & Sourcing: Plans to move toward direct imports of raw materials like palm oil to bypass domestic traders. This move is intended to drive cost savings and support the target 15% EBITDA margin.
- Product Diversification: Actively shortlisting and trialing confectionery, noodles, cornflakes, and chocolates. Official launches for several of these categories are expected within 1-2 months.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (FY26) | ~₹1,150 crores | Revised upward from ₹1,000 crores; implies ~50% YoY growth. |
| Revenue (FY29) | ₹2,500 crores | Long-term target following the operationalization of the second manufacturing unit. |
| Revenue Mix (FY29) | 50% Domestic / 50% Overseas | Strategic shift to reduce reliance on overseas trading and leverage Indian manufacturing. |
| EBITDA Margin | 15% (by FY29) | Expected expansion from current ~11% due to premium product mix and sourcing efficiencies. |
| ROE | 24% - 25% | Target range once the new capacity expansion is fully operational. |
Risks & Constraints
| Risk | Context |
|---|---|
| Concentration Risk | Historically, one customer/consolidator accounted for 75% of revenue. Management is diversifying, with the top 2-3 stockists now contributing 50-55%. |
| Execution Delay | The new manufacturing unit in Secunderabad faces building approval delays. Commercial production is now pushed to 18-24 months away (FY28-29). |
| Taxation Risk | Current low tax rates are due to tax-exempt offshore income. As the domestic manufacturing share increases, the effective tax rate will rise significantly. |
Q&A Highlights
Domestic Growth & Capacity
- Question: How will the company ramp up domestic sales to ₹1,000cr+ before the new plant is ready? (Rudraksh Raheja)
- Answer: The company will utilize 2-3 new lines at Neemrana and employ contract manufacturers in Western India to build a customer base under the Nurture Well brand until the new unit is operational (Vikas Tandon).
Financials & Receivables
- Question: Why are trade receivables high at ₹216 crores? (Ramesh)
- Answer: Receivables are regular and in line with credit periods of 65-90 days. ₹175 crores of the Q2 balance has already been realized; the balance remains consistent due to new sales in Jan/Feb (Vikas Tandon).
Capital Raising
- Question: How will the ₹400 crore capex be funded? (Rudraksh Raheja)
- Answer: Funding will come from internal accruals, promoter contributions, and a fresh equity issue planned for June/July 2026. Promoters intend to maintain their ~54% stake (Vikas Tandon).
Product Strategy
- Question: What is the roadmap for new categories like noodles and chocolates? (Sourav Khara)
- Answer: Samples have received successful market responses. Official launches are scheduled for the next 1-2 months as the company enters the wider confectionery and convenience food space (Sanidhya Garg).
Key Takeaway
Nurture Well Industries delivered a robust Q3 FY26, with revenue growing 45.8% YoY to ₹289.77 crores and EBITDA margins expanding to 11.45%. The company has revised its FY26 revenue guidance upward to ₹1,150 crores, representing a 50% YoY increase. Strategically, the firm is pivoting from an overseas-heavy trading model (~80% of current revenue) toward a balanced 50/50 mix with domestic manufacturing by FY29. This transition is centered on a ₹400 crore capex plan and a move into premium cookies and confectionery, which management expects will drive EBITDA margins toward 15%. While the new Secunderabad plant faces a lead time of 18-24 months, the company plans to bridge the gap via contract manufacturing and capacity additions at its Neemrana site. Investors should monitor the upcoming equity dilution in mid-2026 and the successful execution of the premium product rollout to sustain current momentum.
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