Foods & Inns Limited has released the transcript of their earnings discussion and conference call held on June 2, 2026. The call focused on the company's audited financial results for the quarter and fiscal year ended March 31, 2026. During the call, management discussed the challenging operating environment faced in FY26, which was impacted by lower realizations due to the pass-through of reduced raw material costs, disruptions in export markets, and lower tomato processing volumes. Despite these headwinds, the company continued to invest in its long-term growth platforms. Frozen foods demonstrated strong momentum, achieving a volume growth of approximately 28% in FY26, driven by increased demand for value-added products and growing interest from the U.S. market. Growth initiatives include expanding the spray drying line capacity by 120 metric tons per annum, building the Tetra Recart business with confirmed orders of approximately 400 metric tons valued at around ₹8 crores, and implementing AI-driven automation. The company also enhanced sustainability with additional solar installations at its Vankal and Gonde facilities. A significant milestone was the receipt of the FY25 PLI incentive of ₹33.86 crores. Looking ahead to FY27, the company anticipates an 18% volume growth, primarily from the frozen segment and the new Tetra Recart packaging solution. Management also addressed inventory management, stating that while inventory appears higher, it is offset by advances to vendors, with no significant change in the overall position. The company clarified that borrowings have decreased. Regarding the war's impact, it was noted that while direct exposure to GCC countries is minimal, disruptions in vessel availability affected dispatches to Europe and the U.S. for a short period. The company is also exploring diversification of export destinations for its spice segment. New developments include the commencement of commercial production for pectin, utilizing both wet and dry peels, with an estimated revenue potential of ₹7-8 crores at 50% utilization and high gross margins. The company is also exploring export markets for pectin. For the frozen food segment, a target of ₹300-400 crores is set for the next 3-4 years, with significant gross margins, though supply chain costs are a consideration. The Tetra Recart facility is seeing increasing order book positions, with an expected business of approximately ₹20 crores in FY27 and a total facility capacity valued at over ₹80 crores. The company is also working on a cluster development program for the frozen segment with government support, aiming for significant expansion.
