Krishival Foods Reports Strong Q1 Performance as Ice Cream Revenue Jumps 230% YoY

Krishival Foods Reports Strong Q1 Performance as Ice Cream Revenue Jumps 230% YoY​

Krishival Foods Limited has reported its unaudited financial results for the quarter ended June 30, 2026, highlighting significant growth in its ice cream division and steady expansion in the Nuts & Dry Fruits segment. The company emphasized that its dual-business model provides resilience by balancing seasonally distinct consumer demands across both categories.

Ice Cream Business Achieves High Margin Growth​

The ice cream business demonstrated remarkable resilience and scalability during the quarter. The EBITDA margin for the ice cream unit rose to 10.05%, a marked improvement from 7.80% in the preceding quarter. This margin expansion was attributed to enhanced operational efficiencies, higher distribution reach, improved utilization of existing manufacturing capacity, and strong consumer acceptance across newly entered markets.

Despite external pressures such as oil price hikes, transport availability issues linked to geopolitical events, and an increase in milk prices, the company managed profitable scaling of its Melt N Mellow brand. The quarter marked a 230% year-on-year increase in ice cream revenue, driven by structural improvements including the launch of new premium products and expansion of the deep freezer network.

The total deep freezer network currently stands at approximately 17,280 units, with an addition of around 1,780 new freezers during Q1 FY27. Over 80% of these additions were concentrated in Andhra Pradesh, including areas such as Tirupati, Rayalaseema, Vijayawada, and Visakhapatnam, which the company views as having substantial long-term growth potential.

Krishival Foods introduced premium offerings like the Marvel range and new formats to bolster its premiumization strategy. The company anticipates that these products will comprise a materially larger share of ice cream revenue mix across FY27 through FY29, complementing their mass and mid-tier consumer base. The company's ice cream manufacturing facility, located in Chhatrapati Sambhaji Nagar, Maharashtra, has an installed capacity of 1.25 Lakh litres per day and is currently operating at a 40% utilization rate, with full utilization targeted for Q1 FY29.

Nuts and Dry Fruits Show Steady Growth and Capacity Ramp-Up​

The Nuts & Dry Fruits business recorded steady growth during Q1 FY27, achieving a revenue of ₹ 37.38 crore, representing a 10% year-on-year increase. The segment maintained strong profitability, with EBITDA margins at 18.24%, up from 12.91% in the previous quarter (Q4 FY26).

This performance reflects the inherent seasonality of the category, as Q1 is typically the weakest demand period for nuts and dry fruits.

The company introduced several new products designed to expand usage occasions and support premiumization, including ₹ 20 on-the-go value packs covering flavored nuts, trail mix, seed mix, and flavored makhana.

Regarding capacity, the expanded nuts facility, which doubled its installed capacity from 10 MT finished nuts per day to 20 MT finished nuts per day, became operational in May 2026. Krishival Foods plans a phased utilization ramp-up for this increased capacity, targeting approximately 25% utilization in FY27, with a longer-term roadmap aiming for expansion up to 30 MT/day and eventually 40 MT/day over the next two to three years.

Strategic Business Complementarity​

The company maintains a dual-business model as a deliberate strategic choice for creating an efficient and resilient structure. While the Ice Cream and Nuts & Dry Fruits businesses exhibit distinct seasonal demand—ice cream peaking during summer months, and nuts and dry fruits achieving stronger sales during festive and winter seasons—this natural diversification helps manage working capital and reduces the impact of seasonality on the company's overall profitability, supporting sustainable growth.

As of June 30, 2026, Krishival Foods operated a robust consumer platform, featuring over 196 Ice Cream SKUs and 73+ Nuts SKUs. The company maintained a network of more than 45,200 retail outlets supported by its 17,280+ deep freezer units across multiple states.

KRISHIVAL Stock Price Movement​

Krishival Foods Limited stock rallied on Tuesday, gaining 1.81% to settle at ₹402.15 as investors reacted positively to market activity. The equity traded amidst a tight session, finding support near the day’s low of ₹397.75 before reaching a high of ₹407.