HOAC Foods India Reports Strong Financial Growth for FY26, Highlights Capacity Expansion and Multi-Channel Strategy

HOAC Foods India Reports Strong Financial Growth for FY26, Highlights Capacity Expansion and Multi-Channel Strategy​

HOAC Foods India Limited, formerly known as HOAC Foods India Private Limited, reported robust financial results during its Earnings Conference Call held on May 15, 2026. The company highlighted significant year-on-year growth across its core food business operations, attributing its strong performance to expanding market presence and operational efficiencies.

During the call, management detailed the audited financial results for the Half Year and Year ended March 31, 2026, covering performance across its various verticals, including B2B, B2C, and exports.

Financial Performance Review​

The company reported substantial growth in both half-year and full-year metrics.

In the Half Year (H2 FY26) ending March 31, 2026, total income stood at INR2,865 lakhs, marking a growth of nearly 84% year-on-year. EBITDA increased by over 52% to INR400 Lakhs, while profit after tax (PAT) grew by approximately 66% to INR246 lakhs. The H2 FY26 profitability metrics were an EBITDA margin of 13.95% and a PAT margin of 8.57%.

For the full year FY26, the financial figures showed even stronger performance:

• Total income increased by over 90% to INR5,049 lakhs.
• EBITDA grew by nearly 72% to INR731 lakhs.
• PAT grew by around 77% to INR441 lakhs.

The annual margins for FY26 stood at 14.48% EBITDA margin and 8.73% PAT margin.

Operational Expansion and Growth Drivers​

Management noted that the company's focus remains on strengthening its product portfolio, expanding its distribution reach, and building a scalable food business. The company is increasing its operational efficiency and evaluating product diversification into newer markets.

The financial contribution of various segments was detailed:

• B2B sales (supplying products to GT stores) contribute 52.34%.
• Company-owned outlets contribute 21.83%.
• Franchise-owned outlets contribute 18.65%.
• Export revenue currently constitutes 7.18%.

The company is actively expanding its physical retail footprint. Following recent openings in Noida and Bhopal, HOAC Foods India Limited plans to open 9 to 10 new stores this year. Management stated that new stores in high-end, posh areas may become profitable and reach break-even in five to six months, while the maximum typical maturity period is nine to ten months.

Manufacturing Capacity and New Verticals​

Regarding manufacturing assets, the company is advancing its Vidisha plant, originally planned for 50,000 MT. The facility is currently 75% built, with production scheduled to begin in approximately 1.5 months.

The company also announced capacity enhancements in its processing units. The existing factory operates at 95% utilization. The new factory is projected to increase the capacity for Atta alone to 45 to 50 tons per day.

In terms of product diversification, management emphasized the strategy of introducing marginal products, such as badi, pickles, papadum, and ready-to-eat items. These products are expected to contribute between 9% to 10% of the total revenue, as they are daily consumption items. Yellow and black mustard oil, and peanut oil, are identified as areas of particular focus for high growth.

Market Presence and Online Strategy​

The company maintains a multi-channel approach, confirming that it does not operate in Modern Trade (MT) due to increased costs and focuses solely on General Trade (GT).

Online sales, which include on-call orders, contribute 50% of the online revenue, while dedicated online sales account for 10%. The company is growing its own proprietary online channels (website and mobile application) and plans to double the annual revenue contribution from this segment, which was previously between INR2.5 crores and INR3 crores.

For export operations, the company confirmed that its strategy involves working with established parties who provide advance payments. Management confirmed they conduct both white labeling and operate under the Hariom Atta brand name for its products abroad.

Going forward, management expressed confidence in sustainable and profitable growth, anticipating that future EBITDA margins will increase and stabilize at 15% to 16%.

HOACFOODS Stock Price Movement​

As of 12:48 PM, shares of Hoac Foods India Limited are shedding 0.12% in live trading, currently holding at ₹450. Trading sees a volume of 3,000 shares, dipping toward the day's low of ₹440.5.