KRBL Limited reported consolidated revenue of INR1,476 crores for Q3 FY’26, with EBITDA reaching INR250 crores and PAT at INR170 crores. Management highlighted resilience amid geopolitical and supply chain dynamics, emphasizing the 21% YoY growth in 9-month export revenue (to INR1,276 crores). The strategy focuses on prioritizing high-recovery paddy procurement, expanding distribution in Tier 2/3 cities, and premiumizing the core brand portfolio.
KRBL Q3 FY’26 Earnings Review
KRBL Limited hosted its Earnings Conference Call on February 19, 2026, to discuss the Unaudited Financial Results for the Third Quarter (Q3) ended December 31, 2025. The management team, led by Chairperson & MD Mr. Anil Kumar Mittal, detailed operational performance across domestic and export segments.
Consolidated Financial Highlights (Q3 FY’26)
The consolidated results for the quarter demonstrated strong operational momentum:
- Consolidated Revenue: INR1,476 crores.
- EBITDA: INR250 crores.
- PAT: INR170 crores.
- Gross Margin: Improved to 30.2% compared to 24.0% in Q3 FY’25, driven by favorable basmati COGS and higher other income.
9-Month Performance Snapshot
For the 9-month period ended December 31, 2025, the company reported growth:
- Total Income: INR4,572 crores, reflecting a 10% increase year-on-year.
- Export Revenue: Increased by 21% to INR1,276 crores.
- Domestic Revenue: Grew by 6%, mainly driven by branded rice volume growth.
- Gross Margin: Stood at 28.3%.
- EBITDA Margin: 15.8%.
- PAT Margin: 10.6%.
Export Market Dynamics
Mr. Anil Kumar Mittal addressed the basmati harvest, noting the 2025 harvest was adequate in volume but uneven in quality due to localized flooding in parts of Punjab and Haryana. Pakistan’s basmati traded at a premium, reinforcing Indian competitiveness. Geopolitically, the recent U.S.-India trade understanding (setting an 18% import duty) provided clarity, though freight markets remain sensitive.
KRBL’s Q3 export revenue was INR357 crores (down from INR563 crores in Q3 FY’25) due to restrictions on the bulk export segment amid geopolitical tensions. However, management projected that exports should jump by a minimum of 15% in the next financial year, driven by strong pricing realization (expected at INR1,40,000 per MT).
Domestic Business & Strategic Focus
Mr. Ayush Gupta detailed the domestic segment, noting that Q3 performance was impacted by the postponement of bulk pack business into Q4. The company has consciously chosen to expand margins rather than sacrifice pricing for short-term volume gains.
Strategic pillars moving forward include:
- Prioritizing procurement of low-moisture, high-recovery paddy to protect margins and quality.
- Expanding the branded portfolio, including value-added rice under the Uplife brand (brown rice, low GI rice).
- Focusing distribution expansion in Tier 2 and Tier 3 cities where saturation in metro areas is observed.
Regarding regional rice, the estimated market size for the three key varieties (Gobindobhog, Wada Kolam, Sona Masoori) is between INR3,000 crores to INR4,000 crores. Management remains positive about maintaining mid-single-digit or early double-digit growth domestically.
Balance Sheet and Capital Management
Mr. Ashish Jain highlighted a strengthening balance sheet. As of December 31, 2025:
- Total Inventory: Stood at INR3,941 crores, with a decline in value attributed to lower per-unit costs.
- Net Bank Borrowings: Turned negative at INR388 crores (net of treasury investments), down from a net borrowing of INR102 crores the previous year, due to lower inventory and higher cash generation.
Real Estate Developments (Ghaziabad & Panipat)
Mr. Anil Kumar Mittal provided updates on real estate assets:
- Ghaziabad Land: Monetization planning for the 115 acres (currently valued around INR2,500 crores) has been postponed for 2 to 3 years due to the high estimated cost (over INR500-600 crores) required to shift the manufacturing unit.
- Panipat/Samalkha Land: Registry is underway for the 125-acre parcel near the Sonipat plant. The plan is to monetize approximately 50 to 60 acres while retaining 50 acres to develop warehouses and a pre-plant processing unit for capacity expansion. The expected outlay for development is around INR100 crores.
Employee Costs Clarification
In response to queries, CFO Ashish Jain clarified the sharp rise in employee costs. The increase was due to two main factors: a one-time gratuity provision of INR9.5 crores in Q3, and an increase in total on-roll headcount by about 160 people year-on-year, linked to increased production capacity at the Ghaziabad and Barota plants. Steady-state employee cost is projected to be around INR55-60 crores per quarter, excluding annual increments.
Source: BSE
