Manorama Industries Ltd

Ladies and gentlemen, good day, and welcome to the Manorama Industrics Limited Q4 and FY 26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Shotid you need assistance duwring the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. I now hand the conference over to Mr. Hiral Keniya from EY. Thank you, and over to you, sir.

Before we proceed this call, I would like to draw your attention to the fact that today's discussion may contain forward-looking statements that are subject to various risks, uncertainties and other factors. which will be beyond management's control. We kindly request to bear in mind that there might be uncertaintics while interpreting such statements. Please note that this conference is being recorded.

We would now like to start the session with opening remarks from the management team.

Afterwards, we will open the floor for an interactive Q&A session. I would now hand over the conference call to Ashish Ji for his opening remarks, Thank you, and over to you, sir.

Thank you, Hiral Ji. Good aftemoon, friends. On behalf of the entire Manorama Industrics team, Textend a warm welcome to our Q4 and FY 2026 carnings conference call. We sincerely thank cach of our investors, stakeholders, analysts for your continued trust and participation.

Your deep confidence in our long-term vision is a source of great motivation for us, and we remain committed to delivering a sustained and quality value as we enter the next phase of our growth journey and as we have done in our last many years of performance.

Our solvent fractionation plant 2 increased installed capacity by 30% from 25,000 tons per annum to 32,500 tons per annum as part of an overall debottlenceking initiative. For Solvent Page 2 of 18

fractionation plant 1 of 15,000 metric tons, a similar debottlenceking initiative will be taken in this fiscal year.

Through strategic capital expenditure commitment of approximately INR 460 crores over the next two to three years, this investment program spans setting up of a new solvent fractionation manufacturing facility for Sal, Shea, Palm, Mango and other exotic seeds and ESOS. Establishment of a new facility for cocoa butter alternatives, expansion of our refining capabilities with additional 200 tons per day refinery, commissioning of raw material processing units in Burkina Faso, West Africa.

These initiatives reflect our focus in the long-term global opportunity and our commitment to deepening our competitiveness, seowing reliable long-term supply and reinforcing the foundation for sustained growth. Our financial remains healthy as of March 31, 2026. Working capital cyele improved to approximately 125 days in FY 26 compared to 151 days in FY 125.

Net cash flow from operating activities stood at INR 259 crores, ROCE of 33.6% and ROE of 40.3%. At Manorama Industrics, our aim is clear to strengthen every growth lever within our integrated value chain from procurement and processing to high-tech innovation with scientific global customer partnerships based on rescarch and deep tech development. With that, I will now hand over to our Chicf Financial Officer, Mr. Ashok Jain to walk you through the financial and operational highlights for the quarter and the full year. Thank you all.

Thank you, Ashish Sir, and good afternoon, everyone. I will take you through our financial performance for the Q4 and FY 2025-26.

Full financial year '25-26 financial highlights.

Manorama Industries delivered excellent financial performance in FY '25-26 with all key ‘metrics reflecting operational execution and business momentuny Stand-alone reveme INR 1,357 crores, up 76.1% year-on-year driven by volume growth and improved product mix.

EBITDA INR 367.7 crores with an EBITDA margin of 27.1%, reflecting focused product mix optimization and disciplined cost management.

Profit after tax INR 233.2 crores, translating to a PAT margin of 17.2%. Operating cash flow INR 259.4 crore.

Our performance of Q4, FY '25-26 is as follows: Stand-alone revenue INR 382.3 crore, EBITDA INR 1029 crores with a margin of 26.9%.

Profit after tax INR 59.5 crores, translating to a margin of 15.6%.

Forcign exchange position and mark-to-maket During the quarter, duc to adverse currency fluctuation, restlted in the company recognizing a mark-to-matket provision of INR 17.05 crores on a stand-alone basis on forward contract antered into accordance with the as per foreign exchange hedging policy. The cunmilative mark- to-market provision for the financial year stand at INR 23.3 crores. The company also recorded Page 3 0f 18

forcign exchange income INR 9.47 crores during the quarter. Consequently, the net forcign exchange loss for the quarter amounted to INR 7.58 crores on a stand-alone basis.

The company’s stand-alone balance sheet continues to reflect financial strength and discipline.

Net debt and equity ratio is 0.38:1 as of 31st March 2026.

Return on equity 40.3% as of 31st March 2026.

Return on capital employed, ROCE, 33.6% as on 31st March 2026.

The Working capital days also reduced to 125 days for FY 25-26 from 151 days in FY 24- 125, reflecting continued focus on working capital efficiency.

Our ongoing capacity, debottlenceking and expansion, along with strategic capex investment across India and Aftica. We are fully aligned with our long-term ambition to our global footprint and strengthen our position in the specialty fats and butter matket.

We will continue to allocate capital with discipline prioritizing investment that gencrate high return and strengthen our competitive moat globally. ‘That concludes our remarks. We will open the floor for question and answers. Thank you. Moderator Thank you very much, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their telephone. If you wish to remove your cell from question queue, you may press star and 2. Participants are requested to use handset while asking a question. Ladics and Genflemen, we will wait for a moment while the question queuc assembles. ‘The first question is from the line of Mr. Akash from Sahasrar Capital.

Hello, Congrats to the team Manorama on the fantastic result. The question that I had was regarding the processing plant capex that we are doing in Burkina Faso. Like, what is the capex? What will be the capacity and how will it help us in the margin expansion?

Hi. Thank you for the question. The Burkina Faso project, which is a backward integration, part of the project for the company's next capex plan. So, we arc envisaging these cxpenses or capex amount of around INR 120 odd crores towards our Burkina Faso project, which should be climinating our logistic costs, which we cumently buy on the seeds perspective. Going forward, it will be on the butter perspective, which is approximately 45%-60% of the raw ‘material.

Accordingly, we are going to save the logistic cost, freight cost on our seed import from West African countries. And also it is going to improve the efficicncy and the yicld format also on the butter content, So, we are very hopeful of making a sustainable margin, and it should reflect in our numbers going forward ‘The next question is from Akhil Parekh from 360 One Capital.

Thanks for the opportunity and congratulations on extremely good set of mumbers and one kind of standout in the result has been your working capital improvement and operating cash Page 4 of 18

flow generation, so given that we are going to go in capex mode again for next one, two years, how do we sce this whole operating cash flow and free cash flow gencration? And second is the working capital, i this working capital kind of sustainable for next few years or we might sce some pressure basically as we move ahead. Yes, that is my first question?

The company has delivered a very strong positive operating cash flow also of approximately around INR 260 crores during the year, which is actually a significant achicvement and an important milestone for the business. Yes, we arc going to spend the capex of around INR460 crores over the next two to three years, but that will be held in a phased manner. Our ongoing capacity, which is there are yet to be fully utilized, and we expect a better operational cfficicncy in the coming years.

We are not expecting any downward pressure on the margin from the current level. Anything adverse, which we'll be, you know, updating to our sharcholders accordingly on a quarter-to- quarter basis. We have generated a vary good operating cash flow also and the management consider this to be one of the key highlights in the performance, and we remain confident of maintaining this working capital days and inventory days which we have reported this quarter.

Sure. Is very good to hear. We maintained a margin guidance of 25%-27% and the cash conversion cycle which we clocked in FY 26, broadly should be in line for next one, two years basically.

Yes. The company aims to maintain, all the financial parameters going forward as well. Any headwinds, we will be updating you, on a quarter-to-quarter basis. As of now, we are likely aiming to maintain and sustain these levels.

Sccond, on the growth guidance, like, how should one look at it, top-line growth for next couple of years, given that the capacity additions which we are doing and margins you have already highlighted, if on top-line growth, if you can share some color?

Yes. Sce, the outlook for FY 27 remains strongly positive on the top-linc front as well. It is, you know, driven clearly by the structural growth levers already which are there in the motion.

So if we talk about the stuctwal levers, there is capacity cxpansion in terms of debottlenceking. So our existing capacity are in the mode of pre-debottlenecking, for which one plant we already have done the debottlenceking and the output has been increased to 30% on our 25,000 metric ton plant and we have been continuously increasing the value-added portion on our product mix as well. Overall, the financial year 2027 is expected to be a very g00d growth year for revemues for the company, with growth primarily volume-led driven and some price realization benefit also structurally driven by the capacity expansion.

Also we are diversifying globally also, getting into the global market, international market also with our increasing valuc-added product mix. We are very hopeful and confident of having a very good strong growth year for FY 127 as well.

Sure. Just to I mean, if you can give a broad range, like is it fair to assume 25% plus growth can continue given that we have grown at almost 60% CAGR for last 3 years and now our base s also high. Would 25%-30% will be a right metric in terms of growth rate? Page 50f 18

Sure. Just one last question, if I can squeeze in. Given that we are doing backward integration in Burkina Faso, right? We all know there arc cettain political currency and those kind of risk involved in Africa. Anything you can share, like what are your thoughts on it and how are we hedged against those kind of risks basically?

Sce, for that, its a govemment-backed project also because we have signed an MoU, Memorandum of Understanding, with the government of Burkina Faso. Anything politically will be not affecting the project what we are going to put up there. It is going to, also, you know, put the money into the livelihood of the forest dwellers of West Africa.

Given the parlance metrics of the business, if the political uncertainty or insecurity, it does not really affect our operation in Affica. It is a government-backed project for which we have already signed the MoU with government of Butkina Faso. We are being very clear on it as well. We have done some meaningful upgrades and status we have done in that project as well. ‘The next question is from Mr. Bharat Sheth from Quest Investment Advisors Private Limited.

Congratulations, whole Manorama team for excellent performance. So just to get some sense that this working capital despite our inventory has gone up reasonably high. So I have some idea whether it finished goods or raw material? And how should we look despite we have gencrated good free cash flow. So how should we look at it in future and then going further?

So basically, sir, 45%-50% is the raw material cost in our business. And whatever inventory we report in the current fiscal year towards the end of this balance sheet year is the base to gencrate the revenue of the coming year. Currently, the company's total inventory stood at approximately INR 710 crores. The inventory is well aligned with the scale of operations, and it supports the integrated global supply chain and expanding business requirements. ‘The breakup of the inventory is, out of this INR710 crores of inventory, raw material inventory s around INR 420 crores. The finished goods inventories arc around INR 260 crores. The others co-products and WIPs, the work-in-progress products are around INR 30 crores. This is the breakup of our inventory levels.

Sorry, I missed your carlier remark. I joined little later. That, this capex that is around INR 400+ crores that we have announced, if you can give lttle broader color and how do we think that can, I mean, help us in improving a top line as well as EBITDA side, if you can give more color?

So sir, we have been making progress on this INR 460 crores. So if I can explain for this project, we already have spent around INR 52 crores out of which INR 16 crores is the work in progress towards capex investment. And we already have acquired the land also for Indian Page 6 of 18

plant. The project 1 is a forward integration process, which includes the CBA plant and the solvent fractionation 3 plant of 75,000 tons. This will convert our soft fractions olein into the bard fractions. This is the one project which will include the CBA plant, fractionation plant, and also the refinery plant of 90,000 metric tons per annum.

So this forward integration, if you can give. Sorry, you are saying - please continue. ..

Sir, because these projects are at different stage of implementation and rmp-up and the company is focused on maintaining the disciplined capital allocation also because we have given our earlier communication towards we are expecting more than 6x of asset turn on our forward integration project, which is around INR 330-340 Crores of the tofal capex amount.

And that - this forward integration is what you said something I missed i, sorry.

Its a CBA ESOS plant and the solvent fractionation 3 plant along with the refinery plant - it is there on our outcome also. If you want to have more details on it, you can go through the presentation uploaded with respect to the capex announced also.

And this forward integration is a more value aceretive or in EBITDA term or if you can, when i's very high, I mean, asset tunover. How do we think about it?

The idea and the intention and the aim, of course, is to create a better accretive numbers in terms of top lines and margins. We can comment you that it will be having the same kind of potential margins in the business which we arc reporting currently, or even it could be potentially better once we ramp up, get into a fully optimized product, get into a better product mix as well.

That we are going to communicate to you and update you quarter-to-quarter, because these projects are being set up in a phased manner. But these projects what we are setting up are going to be giving a good aceretive on terms of value margins and also top lines as well.

Okay, great. When do we expect that, to commission those, phase manner, I mean, project?

All our projects are targeted to be commissioned by the financial year 128, in that particular way. That is how we arc targeting it to spend. It is like two-three year window, we are targeting to complete it. Is it fair understanding. .2 Mr. Bharat Sheth Sir, if we can request you to come in back in the queue.

Tjust want to understand the cash flow part of it. I mean, funding part. Mr. Bharat Sir, please go ahcad, ma'am.

From a financial strength perspective, yes, we have a fice cash Fixed Deposit of around INR 130 crores. We already have spent INR 52 crores on the project, and we are providing, as of now, the internal funding support for the planned expansion program. Anything, if we are Page 7 of 18

targeting for any external financing, we will update you accordingly, but as of now, we have started funding our project through internal accruals... ‘The next question is from Kushal Shah from Nexus Equity Growth Fund.

Imean, congratulations for the wonderful sct of numbers once again. There are two questions. ‘The first one is on the growth part, Basically, ma'am, you just mentioned, you know, that we do have a capex program which is spread across next two, three years. Of course, FY 27 growth will be taken care of with the current debottlenecking capacity with which we have increased.

What about, ma'am, FY '28? As I can understand, this entire capex will be commissioned together. I mean, the growth for the business beyond FY "27. From where we can expect the growth to come for FY '28? Because capex will commission FY 28, you will witness in FY' 20 and 30, but for FY 28, just wanted to understand, how do you plan to grow?

First of all, you need to understand company from a long-term perspective, not a quarter-to- quarter thing. I¥'s not a thing that there will be there. Of course, the company is very poised and fuclled for the growth, given the capacity we have. Existing capacity are on a utilization level of 85% of 40,000 tons. We have said that we have debottlenecking capacity on 40,000 tons, which will take our capacity to 52,000 tons per annum.

This is the input capacity. We are upgrading our value-added product mix also. Currently, we sce the current fiscal year and the coming fiscal year are very good for the growth, given our utilization is still yet to be there on an optimized level, and we expect a price realization growth also of 5%-10%.

If you caleulate all the metrics, there is a clear output which is visible of a 30% volume accretive growth and 5%-10% could be our price realization benefit also. On top of that, we are yet to utilize our 15% capacity of existing plant as well. So, this math is clearly visible, for you to calculate how the turnover will be looking in the next two years as well, along with our further capex plans.

Ithink, you know, we do have significant portion in export. On the recent West Asia war, do we face any impact, you know, because on the side of shipments, logistics, et cetera? What is the situation over there? ‘This is you're talking, from the war standpoint of view? Yes, ma'am... From the war standpoiat.

Okay. The ongoing geopolitical tension including Iran, U.S., Russia, Ukraine or some, you know, the tariff, are expected to have anear-term indirect impact, not only on our industry, but a broader industry environment as a whole. Tt will be primarily through higher energy prices or maybe clevated freight costs and curency volatility. But however, from a business fundamental perspective on Manorama Industrics, the company remains largely insulated from any direct substantial impact. Page 8 0f 18

Its key raw materials which we arc importing or having indigenous like Sal, Mango, or Shea are not sourced from the affected regions. The company also has a very minimal revenue exposure to these geographics. That's what, like, for example, there may be some short-term macro pressure, such as some input cost inflation on freight costs or anything, but that does not materially impact the company’s core business model or the long-term growth trajectory.

But there could be some minor impact maybe here and there, but we are, despite all the headwinds which is there on a geopolitical tension of Russia-Ukraine war or U.S -Iran conflict, the company has reported a sustainable margin despite all the headwinds, and we arc going to aim to maintain and sustain this level also.

Yes, ma'am. T mean, wonderful to hear that. Ma'am, on the, I mean, on the capex side, I mean, just referring to your previous participant's conversation. As you just mentioned that, you Inow, the capex plan and the funding mix. You have, I mean, you have internal accruals roughly around INR 100 to INR 120 crores every year. Along with that, you have debt available also. What about the QIP, which you have taken the approval of up to INR 500 crores? I mean, how exactly do you plan to fund the entire capex?

Sce, sir, basically the funding of the capex is one thing, the QIP resolution is another thing. I's not, it will give you a very true thing to, you know, combine both these things. capex is one thing, which we already have started doing it through our internal aceruals. We have good internal cash flows as well. In terms of QIP, this is an approved cnabling resolution. In relation, it could be a potential fundraise, maybe through a permissible modes and instruments and we arc currently evaluating various options, and we can, you know, make appropriate disclosure in accordance with the applicable law. As and when any specific transaction related parameters, which including structure, size or timings or other terms are finalized. We will keep updating you on QIP as well.

Okay, perfect. Just last question from my side. ir, Kushal Shah, please back into the queue, Ladics and gentlemen, in order to ensure that the management is able to address questions from all participants, please limit your questions to two per participant. Should you have a follow-up question, we would request you to re-join the queue.

We have the next question from Mr. Harshil Solanki from Equitree Capital. Please go ahead.

Hi, team. Good afternoon. I had three questions. First, if you can help me with what was the percentage of raw material we purchased from Manorama Africa for FY 26 and FY 272 For FY 127 we would have already bought our raw materials.

It like, you are asking from the West Africa how much shea nuts we have sourced or how the breakup is requested by you. If you can clear your question, please. Harshil Solankiz Yes. The promoter entity which is there, Manorama Africa Limited, what is the percentage of total RM we have bought? Because last year it was 60%. For '26 and '27, I want to understand. Page 9 of 18

Around 20%-25%, we bought the raw material from Manorama Africa Limited this financial year 25-26. For 127, what would it be? Tt will be ~ depends on the - which will be same line of procurement will be continued.

Okay, understood. CFO sir, just one question to you as well. Our gross margins have fallen from 48% to 43% on a consol basis quarter-on-quarter. Whereas, on a standalone basis, they have remained the same on a QOQ basis. K you can highlight why this difference is arising.

There's a 5% difference on a consol basis.

If you sce the gross margin in consol basis, this all subsidiary companies just, we have newly incorporated, this financial year. We are going to streamline all this operation. The Company has expanded to global footprint with established nine subsidiarics across different countrics and marking important strategic step towards building a diversified international presence.

As this is the first year of operation for most of these cntities, initial sctup related cost, including employee cost, establishment expenses, and other operating overheads have been higher. This has temporarily impacted consolidated margin. Howerer, these costs arc largely one time or transitional in nature and are expected to normalize as operation is scale up. This investment phase was necessary to support long-term business expansion.

T get your point on the operating cost. But why are the gross margin impacted? Because the cmployee cost and operating cost would come below gross margin. ‘This is the primarily influcnced by the freight cost, and other related production cost, which we are for making the product. This is just started the operation to subsidiary companies. Going forward, we sce a good number in also subsidiarics. The chemical input cost and other products led to the increase in the cost of production. We are confident to maintain going forward all subsidiary companics also healthy financials as well.

Just to add to the point sir has made, anything between the 45%-50% level of gross margin is normal in the parlance of the business model. This we have repeated and cmphasized on the past as well. Anything between this range is considered to be a normal gross profit margin from a company’s point of view.

Got it, ma'am. Il take it offline. I have one more question. We had posted revised results. ‘What was the error, and why did we have to revise our results, if you can highlight?

This revised financial statement file has been uploaded inadvertently. I's been submitted to ausure accuracy and completeness of the reported information. The revision is purely corrective in nature. Inadvertently, because of the technical issus, the wrong file was uploaded carlicr. The company remains committed to maintaining high standards of transparency and timely disclosure that is why we have submitted the revised file, soon as once we have uploaded the technically wrong file in the stock exchange. Page 10 of 18

For any financial correctness of the matter, you can please consider the revised financials and those numbers for your further questions, please. ‘The next question is from the line of Ms. Shwetha from Ithought. Please go ahead.

My first question is regarding the total fractionation output for FY '26. In that, if you could share the steatin and olein split up, that would also help.

For the fractionation output, around 85% stands the utilization on a full year basis. Out of which we can just share you the volume for our products, main value-added product of stearin and CBE. Stearin volume was around 8,000 reported on a full year metric ton, and CBE volume has been reported around 7,500 metric ton for full year.

Ma'am, this 85% utilization inchudes the debottlencek capacity, right?

No, this doesn't include our debottlenccking facility.

Okay. Regarding the arrangement with Dekel in Brazil, I just want to understand what is the like commercial agreement. Is it like a royalty or revenue share model or some tolling fee? Could you just throw some light on that?

No, it's a cost model thing there. It's a processing cost which the company needs to pay them for processing of the per ton of our goods. There is no agreament in terms of profit sharing which is there with the Dekel agreement. I¢s just the processing facility which is there. Okay. Just the processing cost. Yes, just the processing cost.

Okay. In Q3, the contribution was minimal is what you had said. Maybe for FY '26, what is the actual volume in Dekel?

See, we have just started the Dekel operation. It has been the first quarter we can say, or the first year of operation in the present through our own processing facility. We are still sealing up. A better number guidance maybe we can give you going forward of this. If's just that we have just started with our Dekel operations currently.

Okay, ma'am. Tl follow up this next quarter or something. Thank you.

A reminder to all participants, please limit your questions to two per participant. Should you have a follow-up question, we would request you to rejoin the queue.

The next question is from Kumar Saumya from Ambit Capital. Pleasc go ahead. Kumar Saumya, the line is open.

Yes. Hi. Good afternoon, sir. My question is on the Dekel. Do we pay the entire year's processing cost upfront at the start of the year, or we pay it as we process it? Page 11 of 18

‘We pay as we process on per metric ton. For just, to give you an example, if we are processing 100 tons per month or per day, We are going to pay them accordingly post the processing.

There is no cost which is uploaded upfront on those Dekel amangement.

Okay. Subsidiary, if you sce, this quarter we had INR 9 crores of revenue against which we bad INR 5 crores of loss. I was assuming that INR 14 crores delta is coming from Dekel We have just started the minimal volume in Latin America for our own facility. Largely those things are there. We ar stabilizing in terms of operational cost as well. Maybe the correct way will be to look on the consol level in terms of LATAM and other subsidiaries in the coming year.

Okay. In the subsequent quarter, things will start to cover up as the ramp up. Yes. Is that right? Yes, that is right.

Sccondly, Ekta, on our long-term goals, the plans that we have, say, more than INR3,500 crores of revenue by FY '30, with the upcoming capacity. Are those plans on track and are we confident in achicving those revenue numbers, whatever we are guiding for the long-term basis?

The internals, our target is very strong on these numbers, but as a guidance, whatever we have given in the past, we are still very confident on achieving that. The past records, we are very like confident to maintain and do that. Just to add, on one morc thing, that the company has done this year, like we are targeting a capex of INR 460 crores to be spent on two-three years.

But if you see today, the reported financials FY 126, we have achieved a significant financial milestone underscoring the strength and scalability of this business model, because the annual cash profit, which include our PAT and depreciations stood at INR 258.77 crores which has already exceeded our gross block of INR 250 crores. This indicates us, you know, capital cfficicncy, what the company can do going forward with the planned capex.

Working capital improvement was really commendable.

Thank you so much, sir. That has been the stress on working cashflow as well. And the company has done a meaningful improvement in that parlance as well.

Just one last question from my side. With the backward integration, as in the processing facility in Africa, does that improve the process yicld of those seeds because youll be immediately processing it rather than bringing it to India? Is that understanding ri Page 12 of 18

Yes. It should improve there. When we are crushing and processing the sceds immediately, it will definitely have a better yicld compared to what we currently process after 60 days.

Yes. The fat output would be better than what we have today.

Yes. Along with that, we arc also going to save on the logistic cost as well. That is a very good scenario to having a processing facility in Burkina Faso for the sceds.

Yes. Oil we'll have to bring it to India, right?

Of course, the butters we will be bringing to India for further value addition process here, like fractionation and everything. The first part of the seeds will be done there only. Our current facility here in India can also optimize our plant on the other Indian exotic seeds, which are Sal and Mango. It s a dual benefit if we are putting up Burkina Faso plant there. First, it will be a very helpful nature for shea nut once we do there.

Other, the cxisting processing facility which we have of 90,000 tons of solvent extraction facility here in India will be used and will be a better optimized for Indian exotic seeds like Sal and Mango kemnels and ofher.

From what I understand, you mean the freight cost as a percentage of raw material when it was seed, now it will be ol so that will be better now. Yes, along with the quality.

Thank you, sir. Participants, we request you to please limit your questions two per participant.

We have the next question from Mr. Jainam Doshi from Kriis PMS. Please go ahead.

Good afternoon. Just two things. One is by the end of FY 126, we have added 7,500 tons capacity to the solvent fractionation plant. By when are we expecting the balance 4,500 tons to be added? What is the utilization we are expecting for this incremental 12,000, both for this year as well as the next year, just to understand on that?

Yes, we are expecting that also to be streamlined in this financial year only. We will update you once that also has been done. Utilization, we are expecting of 52,000 tons of around 85%- 90% for this fiscal year as well. We will update you what utilization we have reached maybe end of this year of the total increased capacity of 52,000 metric ton.

Some data points, like just wanted to understand, in terms of value, what is the CBE contribution to the total revenues and what is the total valuc-added product mix to our total sales?

CBE has contributed around 30% to our top linc. Along with our value-added product stearin , it is around 70%-75% to it. If you see 30% today what we have done with CBE, it was 10% fwo years ago. The company has also done a very remarkable improvement on improving the product mix for our specialty fats and butters as well. Page 13 of 18

Great, Just the last thing, what has been the total volume growth for s, like, compared to last year?

Volume growth of this financial year '25, '26, around 80%-90% and 5%-10% is the price growth. Price growth. Okay. Approximately. ‘Thank you. The next question is from Shrenik Mehta from IndoAlps Wealth.

Hi. I have one comment and two questions. One comment about, why we are reporting only the standalone results when it comes to the newspaper release or the presentation. Why don't we give the consolidated picture? Is it because the consolidated mumiber is looking weaker than the standalone number?

Sir, we just need to want to clarify that in the newspaper we give both standalone and consol figures. It just not that because it is a regulatory requirement which we need to follow for both standalone and consolidated numbers. There is o standalone number only, which is reported — which is related to the newspaper publication. For press release, there is no regulatory requirement which is there to put up a consolidated number. Because if you see in the past, the subsidiary has been recently formed from company’s point of view. ‘This has been in the first year of operation. So maybe coming forward we can, you know, start a practice of giving a consolidated mmbers in press release as well because this has been our past practices of giving a standalone number on press release because there's no regulatory requirement which is there to give consolidated number on press release, but in newspapers there is both reported numbers.

Sir, in the seven audited African subsidiaries, we posted INR 13.5 crores losses for FY 26, out of which almost INR6 crores came in Q4 itsclf. Is this implying a loss run rate that has doubled in the final quarter? You know, you've just announced INR 350 crores in Burkina Faso. Can you tell us for FY 126, the subsidiary loss is coming because of what? Is it the startup cost? Is it the Forex translation loss? Is it the operating losses in the trading P&L on these entities?

Sir, we have already tried to answer this question in our carlicr, which was raised, but we are going to repeat the answer for you as well. The company has expanded its subsidiaries in nine geography. We are running nin subsidiaries, which the current fiscal FY '26 has been the first year of our operation. It is very diversificd, not only restricted to West Aftican countries, but we have our operation in LATAM region as well and other geographics as well Because this year has been first year of our operation, there has been an initial setup related cost, operational costs, employee costs, establishment expenses, other operating overheads are also there. This when once you start the company, you have to take this operational cost which is there. Page 14 of 18

Going forward, once you sce these numbers will be stabilized, and this s kind of a nature of one time and transitional in nature. There is not something that has been going in terms of losses. This you need to understand, sir.

In the end, the consolidated EPS has grown by only 6% compared to ... almost more than 150% growth that we saw in the previous three quarters. ‘That is right. You have to sec on a consol level, also including a standalone. I you only talk about consolidated balance sheet, the consolidated EBITDA margin level is around 26% compared to 27% in standalone. The company s doing fairly well on terms of both, but if you sce, we have to bear the cxpenses and cost to set up our companies there. So that is the understanding we also expect our, you know, sharcholders to have once we are doing this.

Yes, as long as if's onstime expense and, you know, you believe that the margins will come back, it scems good. The other question that I had was about the INR 23.3 crores cunmulative monthto-month hit on the forwards in FY '26. You have a 57% export revenue. What is the hedge ratio policy, and has it been recalibrated after this year's experience?

Sir, because, sce, these arc the scenario which is there for a time. We cannot say that this will be sustained for a lifetime. But yes, we follow a prudent and structured forcign exchange risk management policy, which, minimize the impact of currency volatility on our camings and cash flow. Around a 60% of our company's net forcign exchange is currently hedged through forward contracts. It also provide carning visibility and protecting against any adverse currency movements.

But for the remaining unhedged 40% cxposure, the company retains the flexibility to benefit from any favorable movement, which can also be there in the currency rates going forward. ‘That is the practice which company docs, but it doesn't harm the company's core level of business in terms of that, but for anything which is there on currency level, we are having a very prudent risk management policy which covers both and protects us on any volatility. We can also get benefit out of our unhedged exposure which is there, because we have a natural hedge also in terms of import and export. ‘The next question is from Koushik M from Ashika Group.

Hi, Sir. I just wanted to understand couple of things. Most of my questions got answered. Yes, we did debottlenccking, right? Currently our capacity should be around almost around 52,000 ‘metric tons. In the presentation we mentioned it is 47,500 metric tons. Can I understand what's the reason?

Yes. To give you a better clarification of this, we have two solvent fractionation plants.

Solvent fractionation 1 plant is of 15,000 tons. Solvent fractionation 2 plant is of 25,000 tons. ‘The debottlenccking of 30% has been done on 25,000 solvent fractionation plant. That is how the resultis the total fractionation is 47,500, Got it. The new debottlenccking of addition, 52,000 tons will not be any cost. There is no any cost in it. Okay. Page 15 of 18

Not much. It costs under INR 8 crores-INR 10 crores for both the plants.

Now can I understand one more thing? Like, in the meanwhile of the conversation only, you ‘mentioned that we will be doing a volume growth of 20%-30% plus, and the price also will be hiked by another 5%. That means that, for the next year, when it comes to FY '27, this year current running year, the run rate should be very good, is what you are clearly mentioning. Can T understand on this, what kind of volumes will be done? Or like not volumes, or at least fractionation. How much utlization that you arc thinking in this financial year? Or getting something ...?

We are targeting and aiming to utilize around 85%- 90%, 85% of plant on our 52,000 tons full capacity. That is the kind of utilization we are targeting for this fiscal year. 52,000 tons, 80% s what you are mentioning. That means that is 41,600 we arc talking about.

Parfect. Just for a clarity purpose only. Still, I understand this closely by looking at from so long. Cocoa prices is no relation with our CBE prices. SilL in this recent quarter, we have a margin dip that [ understand that it is coming through the African companics and the setoffs. Is it going back to normalization situation? Can I understand it will go back to 27%, 28% or like 25% to 30%.

Sir, sce, we always have guided you on our sustainable margins range carlier, which was around 25%-27%. The company is well within that range even in the consol level, which we have reported 26% of EBITDA margin there also. There is no significant margin dip which we, the company, has reported, be it on consol level or be it on standalone number. There could be a minor range which you have to take into consideration of around 45%-50% on gross margin level and 25%-27% on EBITDA level.

This has been the management stance in ow various past track records for our guidance purpose. Anything well within this range should be considered normally from a business point of view. Of course, we are there working on many levers to improve the margins going forward, but then we will update you once we have the visibility of the same. Last question from my end. ‘Thank you, sir. Mr. Kaushik, we will request you to come in the queu, sir. The next question s from Mr. Sumant Kumar from Motilal Oswal.

Yes, hi. My question is, for FY 26, we have seen a 230 basis margin expansion. Is this all because of better product mix, valuc-added product mix, or cfficiency of the manufacturing plant? Mix of both.

Thank you for the question. To answer it, yes, it is a mix of both. We have, if you sce our value-added product mix in terms of CBE was around 10% one, two years back. It is now 30% today. So that also has resulted in the improved metrics on our financial, and also the higher Page 16 of 18

Sumant Kumat

Sumant Kumat Divyansh Thakus

Thank you. The next question is from Divyansh Thakur from Fintercst Capital Thank you for the opportunity, and congratulations on a great sct of numbers. So, most of my questions have already been answered, but I just wanted to get clarity on the margin side. You mentioned that 25%-27% is a sustainable margin going ahead. Is it a yearly guidance or is it a quarter-to-quarter?

Sir, we from business point of view, we will request all our sharcholders. Of course, we understand that you have a quarterly metrics to compare and do it. But from our side, we try to focus on owr yearly metrics that is there. We try to maintain on quarter-to-quarter basis, but whatever guidance we try to give, we will request our sharcholders to take on year-on-year basis.

Okay. Thank you, ma'am. Also, the remaining 4,500 metric ton debottlenceking is expected to be happening in this quarter or the coming quarters going ahead? ‘That is underway, sir. once we have implemented that, then we will, you know, share the disclosure of that. But that is underway of doing it. We will update you once it is done.

Okay. Just the last question, ma'am. What is our Middle East cxposure that you had ‘mentioned? I missed that in the call.

Middle East exposure only 2%-3% of total revenue.

Okay. Thank you so much, and all the best.

Thank you. Ladics and gentlemen, due to time constraint, this will be the last question for today. I now hand the conference over to management for closing comments. Over to you.

My dear friends and stakeholders, on behalf of the entire management team, T would like to sincerely thank all participants for joining Manorama Industries Q4 and FY 2026 Earnings Conference Call. As we all know, business is business and there is always a risk, but our last many years of performance is proven and is on your record Page 17 of 18

Expansion of manufacturing capacity to address growing demand for our specialty fat products and value-added, scientifically made, and jointly collaborated with customers, specialty fats.

Investment in rescarch and development, which is key to our success, to expand specialty fat formulations and application-specific products.

Centering our sourcing capabilitics in key raw material regions with robust supply chains.

Expanding global market prescnce through international subsidiaries and strategic partnerships. Optimization of operational cfficiency across the whole integrated value chain.

Our target is to make every human on this carth somewhere our customer. We remain committed to becoming the partner of choice for both international and domestic customers, delivering quality, reliability, sustainability and trust at every level of our operations.

We look forward to continued cngagement with our imvestor and analyst community, and remain available for follow-up discussions. I thank all our stakeholders, our supplicrs, our tribal familics, our Manorama team members, and every person associated with Manorama.

Thank you once again for your time, for your trust, and your continued support, Thank you.

Thank you. On behalf of EY, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you. Page 18 of 18