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KRBL Aims For Double-Digit Ebitda Margin In FY26
- KRBL Ltd. aims to achieve high Ebitda margin like in Q4 FY25, targeting 16.2% compared to 14.1% a year prior.
- The company expects better export numbers in FY26, especially in the branded rice segment.
- KRBL projects a 'neutral to positive' outlook for exports in FY26, focusing on both branded and bulk export business segments.
- Historically split between domestic and export sales, recent challenges have skewed KRBL's revenue mix towards the domestic market.
- The company aims to restore the 50-50 balance between domestic and export sales, focusing on strengthening distribution networks like in Saudi Arabia.
- KRBL leverages India's dominant position as a basmati producer to enhance its market presence.
- The company's inventory strategy involves using aged rice to offer a superior product with pricing flexibility.
- KRBL is diversifying into healthy edible oils, launching a range leveraging its India Gate brand and production capabilities.
- The edible oil business could contribute significantly to revenue within two to three years, with a positive market response.
- The CFO, Ashish Jain, highlighted the company's goal to achieve a double-digit Ebitda margin in FY26.
- Jain mentioned that the performance of branded rice exports has been strong in recent quarters and years.
- The geopolitical situation, including the Israel-Iran conflict, could impact bulk rice exports for KRBL.
- The company is addressing distribution issues in Saudi Arabia to enhance its market share.
- KRBL's inventory strategy capitalizes on the seasonality of rice production in India, focusing on aged rice as a premium product.
- The company's foray into edible oils is progressing well, with early signs indicating a positive market potential.
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