FMCG Stock-Krishival Foods Ltd: Q2FY26 Performance and Dual-Brand Strategy

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.

This strategic positioning is supported by significant operational capacity and an omnichannel distribution approach. The company operates with a large nut processing facility with plans to quadruple its capacity from 10 metric tons to 40 metric tons per day over the next two years, sourcing raw nuts directly from nine countries to mitigate price volatility and ensure quality consistency. Similarly, the Melt N Mellow ice cream division utilises a state-of-the-art plant with a capacity of 1 lakh litres per day in Chhatrapati Sambhaji Nagar, producing over 140 different SKUs. Distribution is deep, with Krishival Nuts available in over 10,000 retail outlets and Melt N Mellow reaching 25,000 retail touch points across multiple states, focusing particularly on underserved Tier-2, Tier-3 and Tier-4 cities, which the company sees as the "real growth engine of India."

Financially, the firm demonstrated that its growth is both profitable and sustainable, with EBITDA improving by 26 per cent to Rs 9.65 crore and Profit After Tax (PAT) rising by 17 per cent to Rs 5.8 crore in Q2 FY'26. The Krishival Nuts segment remains the primary revenue driver, contributing Rs 53 crore (up 20 per cent YoY), while the Melt N Mellow division contributed Rs 13.62 crore. The management expects the ice cream segment to reach 100 per cent capacity utilisation by FY'27-'28 and begin significantly contributing to the PAT from the next financial year, with the overall goal of achieving triple-digit revenue growth by FY'27-'28. Furthermore, a recent GST rate reduction to 5 per cent on both product categories is expected to be a force multiplier, increasing organised play and expanding market growth, a benefit Krishival is passing on entirely to the consumer.

The company has a market cap of over Rs 990 crore with a PE of 65x, an ROE of 11 per cent and an ROCE of 15 per cent. The stock is up by 26 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.