Manorama Industries’ revenue soars 69% in FY25, sets bold Rs 1,050+ cr target for FY26

Manorama Industries Limited (BSE: 541974; NSE: MANORAMA) has announced its audited financial results for the fourth quarter and full financial year ended March 31, 2025, delivering record-breaking operational and financial performance. The company reported consolidated revenues of INR 2,328 million for Q4 FY25, reflecting an 80% year-on-year increase, while full-year revenues surged by 69% to INR 7,708 million. Profitability metrics saw a sharper improvement, driven by strong demand across global markets and enhanced capacity utilisation following the commissioning of a new fractionation facility.

Manorama Industries’ management confirmed that the company exceeded its financial guidance for FY25 and now projects revenues exceeding INR 10,500 million (INR 1,050+ crores) for FY26, signalling strong momentum ahead in the specialty fats and butters sector.

How Did Manorama Industries Perform in Q4 FY25?

During the January to March 2025 quarter, Manorama Industries Limited reported a revenue increase of 80% year-on-year, reaching INR 2,328 million compared to INR 1,293 million in Q4 FY24. EBITDA rose sharply by 208% to INR 639 million, lifting the EBITDA margin by 1,139 basis points to 27.5%.

Net profit (PAT) grew an impressive 238% year-on-year, touching INR 423 million, supported by both operational efficiency and improved product mix. The PAT margin expanded by 849 basis points to 18.2% in Q4 FY25, highlighting the company’s strong bottom-line control.

Sequentially, Manorama Industries Limited’s Q4 revenue grew 11% over Q3 FY25, while EBITDA improved by 16% quarter-on-quarter, demonstrating resilience in a seasonally stronger quarter for specialty fats and cocoa butter equivalent (CBE) demand.

What Drove Manorama Industries’ Full-Year FY25 Growth?

For the full financial year ended March 31, 2025, Manorama Industries Limited posted consolidated revenues of INR 7,708 million, a substantial 69% increase over FY24’s revenue base of INR 4,571 million.

EBITDA more than doubled, increasing 160% year-on-year to INR 1,911 million, with the EBITDA margin expanding by 870 basis points to 24.8%. Net profit for FY25 stood at INR 1,121 million, a 179% rise compared to INR 401 million in FY24. The PAT margin improved by 576 basis points to 14.5%, reflecting robust demand across product categories and stringent cost optimisation efforts.

Manorama Industries attributed this performance to higher domestic and export demand, operational leverage benefits from new capacities, and a focused approach on high-margin specialty products. The company’s domestic-to-export sales mix stood at 27:73 for FY25, reinforcing its strong global footprint.

What Is Driving Manorama Industries’ Growth Strategy?

Chairman and Managing Director Ashish Saraf conveyed that Manorama Industries Limited achieved its highest-ever quarterly and annual operational performance in FY25, driven by strong demand for its diversified portfolio of specialty fats, exotic butters, and cocoa butter equivalents.

Saraf noted that the commissioning of the new fractionation capacity played a pivotal role in expanding volumes, enhancing efficiency, and supporting profitability. He highlighted the company’s ongoing investments in research and development (R&D) and extraction technology advancements that have allowed Manorama Industries Limited to better address global food and personal care industry demands.

Strategic moves, including the establishment of subsidiaries in Africa, the United Arab Emirates, and Brazil, were cited as vital for strengthening Manorama Industries’ international presence and supply chain resilience.

Saraf further indicated that the company remains committed to ethical sourcing practices and sustainability, aligning operations with rigorous Environmental, Social, and Governance (ESG) standards, which continue to be a differentiator in global markets.

How Has Manorama Industries Evolved Over the Years?

Founded in 2005, Manorama Industries Limited has developed into a global leader in the production of specialty fats and butters, creating tailored solutions for chocolate, confectionery, and cosmetics giants, including Fortune 500 companies.

The company’s flagship innovations, including Sal CBE & Stearin, Shea CBE & Stearin, and Mango CBE & Stearin, are key ingredients used in premium food and cosmetic products worldwide. Manorama Industries’ strong R&D focus, supported by its MILCOA Research and Development Centre, has earned it over 50 national and international awards for innovation, community empowerment, and industry leadership.

Between FY21 and FY25, Manorama Industries Limited has delivered a compounded annual growth rate (CAGR) of 40% in revenue, 53% in EBITDA, and 66% in PAT, showcasing consistent financial expansion.

What Are the Future Expectations for Manorama Industries?

Looking ahead, Manorama Industries Limited has set an ambitious revenue guidance exceeding INR 10,500 million for FY26, underpinned by higher capacity utilisation at its newly commissioned facilities, ongoing efficiency improvements, and continued market penetration in emerging and developed markets.

The company has also proposed a final dividend of INR 0.60 per share (30% of the face value of INR 2 per share), rewarding shareholders for their trust and aligning with its broader capital return strategy.

Saraf underscored that a sharper focus on ESG goals, innovation through R&D, operational efficiencies, and expansion into new geographies will remain critical pillars for sustaining growth. The company also aims to leverage its enhanced manufacturing capabilities to address rising global demand for healthier, sustainable specialty fats and butters.

What Does the Latest Sentiment Analysis Reveal for Manorama Industries Stock?

Manorama Industries Limited’s stock has shown impressive strength leading up to and following the FY25 earnings announcement. On April 25, 2025, the stock closed at ₹1,210.70 on the NSE, up 2.79% from the previous day’s close. Over the past month, shares have rallied nearly 16%, and the stock currently trades close to its 52-week high of ₹1,256.00, significantly outperforming the broader food-processing sector.

Institutional flows have been supportive. As of March 31, 2025, Foreign Institutional Investors (FIIs) increased their holdings from 2.53% to 2.81%, while Domestic Institutional Investors (DIIs) grew their stake from 4.67% to 5.11%. This rise in institutional participation signals rising confidence in Manorama Industries’ growth trajectory and business model resilience.

Is Manorama Industries Stock a Buy, Hold, or Sell?

Analysing the valuation, Manorama Industries is trading at a Price-to-Earnings (P/E) ratio of 64.4 and a Price-to-Book (P/B) ratio of 19.0, suggesting a premium valuation relative to the industry average. While the elevated multiples indicate that the market is pricing in significant future growth, they are supported by the company’s consistent CAGR performance in revenue, EBITDA, and PAT over the last five years.

Given the positive earnings momentum, strong balance sheet, enhanced export footprint, and healthy institutional buying, long-term investors may consider Manorama Industries Limited as a buy or accumulate candidate, particularly for those seeking exposure to sustainable food ingredients and specialty fats markets.

Short-term investors, however, may wish to exercise caution due to the high valuation multiples, which could lead to intermittent profit booking. Overall market sentiment towards Manorama Industries remains firmly bullish, anchored by strategic execution and a promising FY26 outlook.