Foods & Inns targets growth with frozen food exports, new products

Foods & Inns Limited reported a 39% year-on-year increase in frozen food volumes for Q2 FY '26, driven by encouraging global demand. The company is actively expanding its product portfolio, having added garlic, tomato, papaya, and banana pulping. It also plans to boost spray-dried powder capacity with a low-capex plant operational within 18 months. Despite flat performance in the Kusum Spices segment, digital marketing campaigns are planned to enhance future growth.

The company's export market outlook is highly promising due to increased demand from new customers, with India's processed mango pulp gaining price competitiveness. Strong call-offs are anticipated from December 2025 through June 2026. Significant volume commitments for tomato paste have been secured, with dispatches scheduled until June 2026, targeting INR75-INR90 crores in revenue for this segment in FY '26. The company is also exploring new geographical markets for Tetra Recart, including Canada and North America, with a projected revenue of INR5 crores in FY '26.

Foods & Inns recorded an MTM forex loss of approximately INR5.5 crores in the quarter due to currency fluctuations, which is an accounting impact rather than a realized cash loss. Despite a 2.1% degrowth in absolute EBITDA year-on-year, primarily due to increased in-house production expenses, the company aims for a 20% annual volume growth internally, expecting absolute profitability to increase with tonnage.