Sarveshwar Foods Reports ₹3.01 Billion Revenue in June Quarter, Net Profit at ₹70.2 Million; Announces CFO Appointment and ₹1.50 Billion Rights Issue

Sarveshwar Foods Ltd., a leading player in the agri-food processing and export segment, reported consolidated revenue from operations of ₹3.01 billion for the quarter ended June 2025. The company also posted a consolidated net profit of ₹70.2 million, reflecting steady demand for its packaged basmati rice and organic food products across domestic and international markets.

In addition to its financial results, Sarveshwar Foods announced the appointment of Anand Sharda as Chief Financial Officer and approved a ₹1.50 billion rights issue to support its expansion and working capital needs. These developments signal the company’s intent to strengthen its leadership team and bolster its financial flexibility amid rising demand and operational scale-up.

Key Highlights From Q1 FY26 Results

- Revenue from operations stood at ₹3.01 billion, up 10.4 percent year-on-year  
- Net profit rose to ₹70.2 million, compared to ₹61.9 million in the same quarter last year  
- EBITDA margin remained stable at 6.2 percent, supported by cost discipline and export mix  
- Earnings per share improved to ₹0.72 from ₹0.63 year-on-year  
- No dividend was declared for the quarter  

Operational Performance and Segment Overview

1. Basmati and Non-Basmati Rice  
   - Domestic retail demand remained strong, especially in northern and western India  
   - Export volumes to Middle East and North America showed moderate growth  
   - Premium organic variants contributed to margin expansion  

2. Organic and Processed Foods  
   - Sales of ready-to-cook and organic staples increased 14 percent year-on-year  
   - Institutional orders from hospitality and retail chains supported segment growth  
   - The company expanded its product portfolio with millet-based offerings  

3. Logistics and Procurement  
   - Raw material procurement was optimized through direct sourcing from farmers  
   - Freight costs were contained through bulk shipments and strategic warehousing  
   - Inventory turnover improved due to better demand forecasting  

Leadership Update: CFO Appointment

- Anand Sharda has been appointed Chief Financial Officer, effective immediately  
- He brings over 18 years of experience in corporate finance, treasury, and compliance  
- His appointment is expected to enhance financial governance and investor engagement  
- Sharda will oversee capital allocation, risk management, and funding strategy  

Capital Raise: Rights Issue Approval

- The Board approved a ₹1.50 billion rights issue to fund expansion and working capital  
- Proceeds will be used for capacity enhancement, organic farming initiatives, and debt reduction  
- Details on issue price, entitlement ratio, and record date will be announced shortly  
- The move reflects management’s confidence in long-term growth prospects  

Market Position and Strategic Outlook

- Sarveshwar Foods continues to hold a strong position in the packaged rice segment with growing brand recall  
- The company is expanding its footprint in Tier 1 and Tier 2 cities through retail partnerships  
- Promoter holding stood at 63.4 percent, with no pledged shares  
- Stock performance has been volatile, with a 12-month return of minus 20.7 percent  
- The company remains focused on debt-light operations and sustainable sourcing  

Outlook for FY26

Sarveshwar Foods expects continued momentum in the second half of FY26, driven by festive season demand, export orders, and product diversification. The company aims to scale its organic food portfolio, strengthen its retail presence, and invest in digital marketing to enhance consumer engagement.

While inflationary pressures and currency volatility remain challenges, Sarveshwar’s integrated supply chain, leadership transition, and capital infusion position it well for sustained growth and margin improvement.

Sources: Business Standard, Rediff MoneyWiz, Moneycontrol.