Nifty-50 at Record High: FMCG Stock-Krishival Foods Ltd Announces Rights Issue of Rs 10,000 lakh!

Krishival Foods Ltd informed that the Board of Directors of the Company, at its meeting held on November 26, 2025 (which commenced at 4:00 p.m. IST and concluded at 6:15 p.m. IST), approved a fund-raising proposal by way of a Rights Issue of partly paid-up equity shares of face value Rs 10 each for an amount not exceeding Rs 10,000 lakh to the eligible equity shareholders. This approval is subject to compliance with applicable laws, including the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and receipt of necessary regulatory approvals. The specific terms and conditions of the Rights Issue, such as the issue price, rights entitlement ratio, record date, and timing, will be determined subsequently by the Board of Directors or a designated Rights Issue Committee.

About the Company

Krishival Foods Ltd. is a rapidly growing Indian FMCG company committed to delivering high-quality, sustainable food products to both domestic and international markets. The company features a diversified portfolio spanning categories such as dry fruits, snacks and ice cream, positioning it strongly within the discretionary consumption segment. By leveraging a robust procurement model, Krishival Foods Ltd. is strategically aiming to emerge as a major player in the competitive food and beverage industry.

Krishival Foods Limited reported a robust performance in the second quarter of the fiscal year 2026 (Q2 FY'26), driven by its strategic focus on two high-potential categories: premium nuts and dry fruits (under the brand Krishival Nuts) and real milk ice cream (under the brand Melt N Mellow). The company’s revenue for Q2 FY'26 stood at Rs 66.67 crore, marking a 50 per cent year-on-year increase, a trajectory the management attributes to strong industry tailwinds, including the projected three-fold expansion of India's FMCG market and the quadrupling of the ice cream market by 2032. Krishival's dual-brand structure is designed to de-risk the business by catering to both the nutritional segment (nuts) and the indulgence segment (ice cream), leveraging shared infrastructure and positioning the company for scalable, sustainable growth through operational efficiencies and cross-promotions.

The company is strategically expanding its Krishival Nuts division, which sources raw nuts from nine countries and plans to quadruple its processing capacity from 10 to 40 metric tons per day within two years, while its Melt N Mellow ice cream division operates a state-of-the-art plant with a capacity of 1 lakh litres per day across over 140 SKUs. Distribution is extensive, covering over 10,000 retail outlets for nuts and 25,000 for ice cream, with a strong focus on underserved Tier-2, Tier-3, and Tier-4 cities identified as key growth drivers. Financially, the firm reported a 26 per cent rise in EBITDA and a 17 per cent increase in PAT in Q2FY26, driven primarily by the Krishival Nuts segment's Rs 53 crore revenue (up 20 per cent), complemented by Rs 13.62 crore from Melt N Mellow. Management forecasts the ice cream segment to reach full capacity by FY27-28 and significantly boost PAT from the next fiscal year, with the overall goal of achieving triple-digit revenue growth by FY27-28, aided by a recent GST reduction to 5 per cent which the company is passing on fully to consumers.

The company has a market cap of over Rs 1,000 crore with a PE of 65x, an ROE of 11 per cent and an ROCE of 15 per cent. The stock is up by 35 per cent from its 52-week low of Rs 355 per share. The promoter of the company, Aparna Arun Morale, holds the majority of the stake, i.e., 34.48 per cent stake.

Disclaimer: The article is for informational purposes only and not investment advice.