ADF Foods posts 13.8% YoY revenue growth in Q3FY25, driven by market expansion

ADF Foods Limited, a prominent player in the ethnic food market, has reported a strong financial performance in the third quarter of fiscal year 2025 (Q3FY25) and the nine-month period ending December 31, 2024. The company recorded a 13.8% year-on-year (YoY) increase in consolidated revenue, reaching INR 147.5 crore, reflecting its sustained revenue growth momentum and resilience in a competitive market. Despite a slight decline of 1.8% in profit after tax (PAT), which stood at INR 18.8 crore, ADF Foods successfully navigated inflationary pressures through cost-control measures and supply chain efficiencies.

On a standalone basis, the company posted INR 121.1 crore in revenue from operations for Q3FY25, marking a 17.3% YoY increase. Earnings before interest, tax, depreciation, and amortization (EBITDA) reached INR 25.5 crore, with a 21.0% margin, while PAT was recorded at INR 20.2 crore with a profit margin expansion of 16.7%. For the nine-month period, ADF Foods’ standalone revenue surged 20.6% YoY to INR 343.8 crore, while consolidated revenue rose 17.4% YoY to INR 430.5 crore. The company’s PAT figures also saw an upward trend, with standalone PAT growing 8.0% to INR 58.7 crore and consolidated PAT increasing 8.3% to INR 52.8 crore.

What Factors Contributed to ADF Foods’ Growth?

Chairman and Managing Director Bimal Thakkar attributed the company’s growth to sustained consumer demand, strategic brand expansion, and targeted investments in supply chain efficiency. ADF Foods has strengthened its presence in both the domestic and international markets by diversifying its ethnic food offerings and enhancing its distribution capabilities.

A key driver of growth has been the company’s focus on its ADF SOUL brand, which is gaining traction among Indian consumers. ADF Foods has expanded its reach through quick commerce platforms, catering to the evolving shopping preferences of urban customers seeking convenience-driven food solutions. The company has also reinforced its modern retail partnerships, securing shelf space in major supermarket chains such as Nature’s Basket, Reliance Fresh Signature, Haiko Supermarket, Food Square, Dorabjee’s, and DMart in Mumbai and Pune.

Another critical development in Q3FY25 was the operational launch of ADF Foods’ cold storage facility in Nadiad. This facility enhances the company’s ability to manage inventory, order fulfillment, and finished goods storage, which is expected to improve supply chain efficiencies and support its revenue growth momentum. By optimizing storage and logistics, ADF Foods aims to mitigate costs and streamline distribution, ensuring product availability in key markets.

How Is ADF Foods Managing Profit Margin Expansion Amid Cost Pressures?

Despite recording steady revenue growth, profit margin expansion faced headwinds due to rising costs in raw materials and freight. ADF Foods addressed these challenges through a series of strategic initiatives focused on financial discipline and operational efficiencies. Cost-control measures were implemented to mitigate the impact of inflation, while process improvements contributed to overall productivity gains. Additionally, the company leveraged rupee depreciation to enhance price competitiveness in its export markets, helping to sustain EBITDA margins in the high teens.

Management remains confident that ADF Foods’ cost-efficiency strategies will continue to offset the impact of fluctuating expenses. The company’s ability to balance brand-building investments with fiscal prudence underscores its commitment to long-term revenue growth momentum and profitability.

What Is the Long-Term Strategy for ADF Foods?

Looking ahead, ADF Foods aims to further strengthen its brand portfolio and expand its distribution network to capture a larger share of the ethnic food market. The company is prioritizing premiumization, focusing on high-quality, convenience-driven food products that cater to evolving consumer preferences. Investments in the ADF SOUL and Truly Indian brands are expected to drive momentum over the medium to long term.

ADF Foods is also intensifying its global expansion strategy, leveraging its established presence in over 55 countries across the United States, Canada, Europe, Australia, and the Middle East. The company is actively working to scale operations and enhance its market positioning by integrating technology-driven supply chain solutions and expanding its retail partnerships.

Bimal Thakkar has emphasized that ADF Foods remains committed to delivering sustainable growth through a combination of product innovation, strategic expansion, and supply chain optimization. By continuously adapting to industry trends and consumer demands, the company aims to solidify its leadership position in the ethnic packaged food sector.

What Does This Mean for Investors and the Packaged Food Industry?

ADF Foods’ strong performance in Q3FY25 underscores its resilience in a dynamic and competitive packaged food industry. The company’s ability to sustain profit margin expansion while navigating rising costs highlights its robust financial management and operational agility. Investors are likely to view ADF Foods’ consistent revenue growth momentum and strategic brand investments as indicators of long-term value.

With the ethnic food market witnessing increasing demand worldwide, ADF Foods is well-positioned to capitalize on emerging trends. Its focus on premium-quality products, efficient supply chain operations, and modern retail partnerships suggests continued stability in the face of industry challenges. As the company scales its global footprint, it is expected to play a pivotal role in shaping the future of the ethnic packaged food market.

About ADF Foods

ADF Foods is a leading consumer-focused company specializing in prepared ethnic foods, offering a diverse range of frozen meals, ready-to-eat (RTE) items, ready-to-cook (RTC) products, sauces, pickles, and dips. With an extensive distribution network across 55+ countries, the company caters to the growing demand for authentic, high-quality packaged foods in both domestic and international markets.