Q2 25/26

Nov 14, 2025

Quarterly report

Summary

Q2 income rose 18% YoY and PAT reached INR 172 crore as lower Basmati costs lifted margins. H1 exports surged, while investment plans span paddy inventory, commercial transformation and selective real estate.

Ladies and gentlemen, good day, and welcome to the KRBL Limited Q2 FY 2026 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. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashish Jain, Chief Financial Officer of KRBL Limited. Thank you, and over to you, Mr. Ashish. Thank you. Thank you to all participants for joining us. Welcome to the Q2 FY 2026 Earnings Conference Call for analysts and investors of KRBL Limited. Today we have Mr. Anil Kumar Mittal, Chairperson and Managing Director, Mr. Anoop Kumar Gupta, Joint Managing Director, Mr. Ayush Gupta, Head of the India Business, as key speakers on the call. To begin the call, Mr. Mittal will share updates on the business industry and our overall strategy. Following that, Mr. Ayush Gupta will provide insights into the performance and outlook of our domestic business, while I will present the financial overview of the company for the second quarter and half year ended September 2025. Once the management has concluded their opening remarks, we will open the floor for interactive questions. Please note that some of the statements made during the call may contain forward-looking information, and actual results may differ from these statements. You can refer to KRBL's investor presentation available on the stock exchange website and our company's website, www.krblrice.com. Now, I would like to invite Anil Ji to share his views. The floor is yours. Good afternoon, everyone. Thank you for joining us today for the Q2 FY 2026 Earning Call of KRBL Limited. I hope you and your families are doing well. It is my pleasure to share with you our performance for the quarter, provide an update on the global and domestic rice markets, and outline the opportunities that lie ahead for the company. Let me begin with the global rice outlook. According to the USDA's latest rice outlook report, global rice production for 2025/26 marketing year is forecast at 542 million metric tons, broadly unchanged from last year's record level. Global consumption is projected to rise to 541 million metric tons, up from 534 million metric tons in the preceding year, primarily driven by stronger domestic demand in India, which alone accounts for nearly a 4.5 million ton increase in consumption. This near balance between supply and demand suggests a stable global market with firm trade volumes. India's competitive pricing and consistent quality continue to underpin its leadership in global rice trade. Turning to India, our country's rice production for 2025/2026 is estimated at around 151 million metric tons, compared to 149 million metric tons in 2024/2025, as per USDA. This marks the second consecutive year that India has surpassed China to remain the world's largest rice producer. The increase is being driven by higher acreage, attractive price realizations for farmers, government support schemes, and generally favorable monsoon rainfall. While overall crop conditions remain healthy, regional variations due to uneven monsoon distribution and localized flooding are visible, especially in parts of Punjab and Haryana. On Basmati, which is the core of KRBL's brand and margins, the 2025 crop is being harvested. It presents a mixed picture. The overall Basmati acreage has held firm in many producing states, and the adoption of new pest-resistant, better-performing varieties continues to support yields and grain quality. However, the heavy monsoon rains in late August and early September, coupled with flash floods in certain low-lying regions of Punjab and Haryana, caused localized waterlogging and higher moisture content in paddy in those belts. Reports from regional agriculture departments and trade bodies indicate some reduction in rice recovery and grading challenges for millers buying paddy from those districts. Fortunately, other growing regions, notably Rajasthan, Western Uttar Pradesh, and parts of Madhya Pradesh, experienced normal rainfall and good sunlight during grain-filling and harvest periods, resulting in strong yields and quality. On balance, India's Basmati production for crop 2025 is expected to be slightly higher than last year in volume terms. Quality segregation will be more critical this season. Overall, the availability of export-grade Basmati remains comfortable. Pakistan's Basmati picture is also important for global availability and price dynamics. In early reporting after the monsoon floods, there were widely circulated concerns about severe crop damage in Pakistan's Punjab. Some assessments reported localized significant losses in flood-hit districts, whereas certain official reports indicate that much of the Pakistan Basmati area remains resilient, and that damage to Basmati specifically may be less severe than initially feared. As a result, from a global trade perspective, we foresee a stable-to-firm Basmati export environment over the coming quarters. With Pakistan supply largely intact and India’s crop quality being mixed but ample, pricing is expected to remain range-bound in the near term, with premiums for higher grades and marginal softness for lower grades. In terms of pricing and procurement dynamics, APEDA and market dashboards show that Basmati price firmed in the immediate aftermath of heavy rains and flood reports, reflecting buyers’ caution around availability of export-grade paddy and rice. That said, the market is bifurcating, good quality, low-moisture lots are commanding a premium, while higher-moisture or damaged lots are being discounted. At KRBL, we have pursued a disciplined procurement strategy, focusing on low-moisture, high-quality paddy and utilizing our long-standing supplier network to ensure that we secure the right crop quality at the right time. This positions us well for export fulfillment through the remainder of FY 2026. Looking at exports, India rice shipments have been strong in H1 FY 2026. Basmati export rose around 17% year-on-year in the first half to reach approximately 3.2 million tonnes, and non-Basmati exports expanded sharply by about 51% to roughly 7 million tonnes during the same period, according to trade data and industry reports. This robust performance highlights India’s continued strength in both premium and mass-market segments. The removal of previous export curbs, combined with strong overseas demand from the Middle East, Europe, and Africa, has contributed to this growth. Going into the second half of the fiscal year, exporters remain optimistic. However, volumes and realizations will depend on how the new Basmati crop’s quality profile settles during post-harvest sorting and on shifting trade dynamics in key destinations. On the policy front, reciprocal tariffs imposed by the U.S. earlier this year have added temporary friction to India-U.S. trade. While these duties currently include a 50% levy on India rice exports, we expect that ongoing dialogue between the two governments will lead to a negotiated settlement. Historically, both sides have worked towards resolving such issues. However, should the 50% tariff remain in place for an extended period, it could impact India’s competitiveness in the U.S. Basmati market, as Pakistan exports currently enjoy a 19% tariff, which is a much lower level. That said, KRBL’s direct exposure to the U.S. remains limited, and therefore, the financial impact on our business will be minimal. Our exports revenue for Q2 FY 2026 stood at INR 438 crore, compared to INR 252 crore in Q2 FY 2025, registering a 70% year-on-year growth. Overall revenue for the quarter was INR 1,511 crore, led by a strong export performance. The company reported a strong EBITDA of 16.6% and profit after tax of 11.2%. This robust performance underscores our strong operating foundation, disciplined procurement, and continued traction for our branded portfolio in key international markets. In regard to Saudi Arabia, we would like to update that we have engaged a law firm to fulfill our requirement compliance and formalities from the government, such as incorporating a company and filing VAT registration, et cetera. Once this process is finalized, then we can start with working on-ground for operating our office, getting visas, and give the practical shape to the entire operation. Any specific question related to export market can be answered in the Q&A session. On the industrial front, I would like to update you on the Panipat land acquisition. KRBL was declared the successful bidder for approximately 125 acres of land spread across 71 parcels in Samalkha district, Panipat, Haryana, at a total bid value of about INR 403 crore. Built on our strong financial position and healthy internal accruals, KRBL is now set to enter the real estate sector as a strategic step towards long-term value creation. Our core agri-food business continues to generate robust cash flows with minimal future CapEx and working capital needs. This gives us the opportunity to deploy surplus funds more effectively moving away from low-yield treasury instruments and leveraging our idle to underutilized bank limit. We also hold significant land reserves, particularly in Ghaziabad, which offers substantial value-unlocking potential. The company plans to monetize this 110-acre parcel, currently valued at about INR 2,500 crore, by relocating our existing plant over the next 2, 3 years. Post-development, the Ghaziabad property value could rise to approximately INR 4,000 crore. In addition, KRBL will explore new real estate projects with a total planned outlay of around INR 1,000 crore over the next few years. We will focus on NCLT or court or municipal authority land auctions for acquiring land at attractive rates and then collaborate with reputed developers to develop the same. We will evaluate whether to pursue this business within the existing structure or through a separate entity. With our proven experience in land acquisition and management, we are well-positioned to identify and execute the right opportunities. Overall, entering the real estate space represents a natural progression of KRBL, broadening our growth avenues and delivering enhanced long-term value for our shareholders. Looking ahead, we look for FY 2026 remains optimistic. India's leadership in rice production, strong export momentum, and KRBL's well-diversified product and market base provide us with a solid foundation for growth. With disciplined procurement, premiumization of our product portfolio, expansion into high-potential geographies, and operational realization through our Panipat initiative, KRBL is well-positioned to strengthen its leadership in the global rice industry. Before I conclude, I would like to express my appreciation to our shareholders, business partners, and employees for their continued trust and commitment. Together, we are building a stronger and more resilient KRBL, one that continues to deliver excellence and value across its markets. I will now hand over to Ayush for domestic business update. We will be happy to address your questions thereafter. Thank you. Good afternoon, everyone. Let me take you through the India business updates. As always, I will keep the narrative balanced and focused on how our actions are shaping long-term strength. Over the last year, we've seen the packaged rice category in India continue on its long-term trajectory. A steady, broad-based shift towards trusted, hygienic, branded, and packaged products. Consumers are clearer today about what they want from a food brand: quality, consistency, and transparency. For us, this reinforces a simple belief. Leadership is earned through trust and execution, not by chasing volume at any cost. This belief shapes every decision we make. When we compare this year's channel performance to last year, the evolution is intentional and supports a long-term strategy. In H1 FY 2026, our channel salience has shifted for the consumer pack business. General trade business contributes 63% of our consumer pack revenues versus 67% last year. Modern trade contributes 14% versus 13% last year, and e-commerce has shifted to contribute 23% versus 18% last year to our consumer pack business. What does this really mean? It means two things. General trade remains the backbone, but it is led by a strong bulk pack business. Bulk has been a consistent driver of general trade growth. It brings stability, long-term relationships, and predictable movements in key markets. It is this bulk pack momentum that keeps general trade steady even as consumer behavior shifts across channels. E-commerce is becoming a genuine engine of household penetration. The growth in e-commerce, especially quick commerce, is being powered by consumer packs. Younger households, urban families, and high-frequency buyers are turning to digital platforms for convenience and trust. Today, almost three-fourths of our e-commerce business comes from quick commerce, making it a strong contributor to trial and repeat. In simple terms, general trade gives us depth, e-commerce gives us new households. Both are growing for different reasons, and that balance is healthy. This year, we made a deliberate and structural intervention on the brand side, the refreshed communication campaign. We chose a tone of authenticity, trust, and clarity. The campaign strengthened two things that matter most for a brand like ours. Consumer confidence, reflected in significantly higher search for India Gate brand and stronger positivity in conversations around the brand. Secondly, usage and repeat. Both have grown meaningfully in the months following the campaign. When consumers trust a brand more, they buy it more often, they stick with it longer, and they remain price stable. This is the real business outcome this campaign has delivered. Going forward, I would like to introduce Project Akshat. Project Akshat is a structured 18-to-24-month commercial transformation program we are running internally. It is one of the most important capability investments KRBL Limited is making. The objective is straightforward: build a stronger, sharper and more productive commercial engine for the next decade. Akshat is focusing on four areas. Winning more share in general trade and e-commerce with a clear target of improving market share by 500 basis points over the next 18 to 24 months. Making every rupee work harder through 2%-3% efficiency in how we deploy trade and marketing spends. Thirdly, improving e-commerce economics with a 15%-20% improve in ROAS, return on advertising spends, driven by better planning and smarter execution. Lastly, strengthening capability and discipline on the ground so that availability, visibility and servicing becomes more predictable and repeatable. Akshat is not about short-term savings. It is about building capability, the kind that compounds in value. A brief update on Uplife, our health and wellness brand. Uplife continues to make steady progress. Its positioning is sharper, its consumer base is expanding, and it is resonating well in the modern trade channel. We have reached a market share of 5.5% in stores where the product is available. We are taking a slow but deliberate approach, learning consumption patterns, refining the portfolio, and scaling responsibly. Uplife is an important part of our long-term diversification story and early signals remain positive. To summarize the India business in quarter two, the category remains resilient and favorable for branded leaders. General trade is stable, supported by a strong bulk pack growth. E-commerce is growing strongly through consumer pack momentum. Our brand and packaging work is strengthening trust, intent and repeat. Project Akshat is going to lay the groundwork for consistent, profitable execution and Uplife is progressing thoughtfully as a future-facing wellness brand. Our approach remains to protect value, deepen penetration, strengthen repeat purchase, and build capability for long-term leadership. We are moving forward with confidence and a clear strategic compass. Thank you, and I look forward to your questions. I will now hand it over to Mr. Ashish Jain for his comments on the financials. Thank you, Ayush. I will now take you through the performance of the quarter ended September 30, 2025, and the H1 ended as on the same date. All figures mentioned by me would refer to the consolidated financials of KRBL Limited. Total income for the quarter stood at INR 1,541 crores, higher by 18% over the corresponding quarter last year. Export revenue grew by 74% on account of growth in both private label business and branded business, while domestic revenue, excluding power, grew by 6%. Our gross margin for the quarter stood at 29.2%, compared to 23.7% in Q2 FY 2025, increased due to lower average Basmati COGS. Average Basmati COGS is lower by 11% over the corresponding quarter last year. EBITDA margin for the quarter was 16.6% versus 12.1% in the same period last year due to higher gross margin, partially impacted by higher proportionate employee cost and other expenses. Finance cost for the quarter was higher at INR 1.1 crore, as against INR 0.8 crores due to higher lease liabilities. PAT for the quarter was at INR 172 crores or 11.2% in margin terms, as against INR 103 crores or 7.9% in the corresponding quarter last year. Let me now share a comparative analysis of Q2 FY 2026 versus the preceding quarter, which is Q1 FY 2026. Revenue from operations declined by 5% quarter-on-quarter. Domestic revenue declined by 2%, while export revenue declined by 11% due to lower export bulk revenue. Branded export increased from the previous quarter. Gross profit is higher primarily due to higher Basmati realization in export and improved sales mix, which includes higher proportion of export branded sales. EBITDA followed the trend in gross profit, partially impacted by higher proportionate employee cost and other expenses. Coming to H1, total income for the period stood at INR 3,155 crores, marking a growth of 25% against the corresponding period last year. In H1 2026, domestic revenue increased by 10% as branded Basmati volume increased by 9%, while export revenue increased by 86% due to higher bulk sales. Branded rice export volume also grew by 6%. Gross profit of the company stood at 27.3%, while EBITDA and PAT stood at 15.3% and 10.2% respectively. Margin improved mainly due to lower input costs, as I mentioned earlier. Coming to the balance sheet, our total inventory as of September 30, 2025, stood at INR 2,279 crores. This includes INR 123 crores in paddy inventory, which was at INR 215 crores at the same period last year, and INR 1,995 crores in rice inventory as against INR 2,647 crores in September 30, 2024. On a volume basis, as of September 30, 2025, paddy and rice inventory stood at 33,000 MT and 304,000 MT respectively, compared to 60,000 MT and 376,000 MT in the corresponding period. Lower inventory is due to both lower per unit cost and lower quantity. Cash and bank balances, including treasury investments, were at INR 2,157 crores as of September 30, 2025, increased from INR 1,272 crores at the same period last year. With that, I come to the end of my prepared remarks. I will now like to hand over to the moderator for opening the Q&A session. I will just like to mention that as the ED matter is sub judice, we will not be in a position to respond to queries on this matter. So over to the operator now. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. We request you to kindly restrict the number of questions to a maximum of two questions at a time. In case you have any further questions, please rejoin the question queue. Our first question comes from the line of Amit Agarwal from Leeway Investments. Please go ahead. Good morning, everyone. My question is regarding Saudi Arabia market. Sir, we had a INR 1,000 crore export to that market five years back. Where do you stand right now? How much have we covered this year, and what are the future growth prospects there? Saudi market has started doing well. As you can see from the export data and the export earnings, you will find it is improving day by day. I hope it will take some time, but we have started doing quite good in Saudi Arabia, and we are in the process of opening the office also. In due course of time, you will hear good news on Saudi market. Can you throw some numbers, how much turnover this year we are expected to do in Saudi Arabia because that was a huge market, and that gives us some idea that the future prospects of the market. How much have we covered from there? It will not be proper to tell you any numbers because the number should be accurate. Prediction of any numbers will not be appropriate. I think the third quarter, the things would be further clear up. They will further clear up that how we are going to do in Saudi. Have we picked any distributor of ours right now, or we are supposed to market the product ourselves? No. We have kept three, four people, and we are booking the orders over there. There is no distributor as such been appointed. My second question and last question is regarding 2, 3 years back, we were planning to open three factories in south and Gujarat, Madhya Pradesh, and Karnataka. Gujarat has been already there. How much production is going in Gujarat, and what is the situation in Madhya Pradesh and Karnataka? Madhya Pradesh hasn't started. Gujarat, we have already started. It's more than one and a half year. We are doing a good job. It's practically a plant of 20 tons per hour, and we are doing exports as well as domestic from Kandla plant. Gangavati plant, because of the rains, it got delayed. I think it will be completed now by December. It is also a processing plant. We'll be doing about 30,000 to 40,000 tons per annum of branded non-Basmati rice from there. One plant we have put in Madhyal Guda which is in Andhra Pradesh, which is also a non-Basmati, branded non-Basmati, which will also give us around 10,000 to 15,000 tons of branded non-Basmati rice. Madhya Pradesh, it is in the pipeline. Still, we have not started. How much turnover should we expect from each and every plant of these, the plants that's coming in south? You see, non-Basmati, at present, we are doing around INR 200 crores, and we expect to do about INR 500 crores within next 2 to 3 years. And my last question regarding the oil. How much- Amit sir. -turnover should we expect in that 2 years? Amit sir, extremely sorry to interrupt. Can you please rejoin the question queue for that follow-up? Okay. Thank you. Thank you. Our next question comes from the line of Naitik from NV Alpha Fund. Please go ahead. Hi, sir. Thanks for taking my question, and congratulations on a very good set of numbers. My first question is, we have seen a very significant amount of liquidation in terms of inventory during the first half. Just wanted to understand what is the reason for the same, and two, have you started building in inventory again for the upcoming season? Yes. This year, the paddy prices are quite comfortable and we hope that the inventory level will be We will build up the inventory this year. Last year, we purchased about half a million ton of paddy. This year, I expect to purchase about 700,000 tons of paddy. You will see quarter on quarter, if Mr. Ashish Jain has said that our inventory level were lesser by INR 700 crores. I think this year we will build up the inventory to that level. Got it. My second question is, if I heard you right, you are allocating close to INR 1,000 crore for getting into real estate. Just wanted to understand what is the reason for getting into real estate wherein your DNA has been Basmati rice since generations. What is the thought process? Just wanted to understand, and I wanted to confirm if INR 1,000 crore is what you mentioned we are going to earmark for real estate. The basic reason is we are investing this INR 2,000 crore. You see as on today, September 30. INR 2,100 crore has been deposited in the mutual funds at a rate of 6%-7%. We are getting just 6% return on the surplus funds. It is important to get an ROI. We thought of investing INR 1,000 crore in real estate and as Mr. Mittal has said, to go in NCLT and the courts where the return on the investment is very good. This INR 400 crore what we got from Samalkha, already the market is up by 10%-15%. We see a very upside and we see investor will definitely appreciate this move. All right. Got it. So for building inventory and maintaining our inventory, we won't require the INR 2,300 that we have. Only INR 1,000-INR 1,500 crore would be good enough to support our business. Is that what you mean? No, we have- Out of the 2,300. Right. No. Please repeat your question. So what I am trying to understand is we currently have roughly INR 2,300 crores of cash, give or take, in our balance sheet. And you are saying out of this 1,000, you are earmarking for real estate over the next 2, 3 years. So INR 1,500 crores would be good enough for building inventory and continuing our business. Is that what you mean? No. We have got a bank limit of INR 2,500 crore, which is unutilized, and the bank limit we can get at 7%. So to get a better ROI, it is always good to have a bank utilization, no? Got it, sir. That is helpful. My next question is what is our outlook for exports for the coming quarters and next 2 years? How do we expect our exports to do? Exports are definitely going to pick up. There are 2 very big markets. One is Saudi Arabia, which we are slowly picking it up, and we are doing well now in Saudi. Number 2 is Iran. Iran, we were not previously so much concentrating on that business, but now we have started concentration because we have got an official route via Dubai to handle that business. I think these are the 2 major areas where we can improve our top line as well as bottom line. Got it, sir. Got it. I will follow up with you. Thank you so much. Thank you. Our next question comes from the line, Mitesh Goel from Origin Capital. Please go ahead. Yeah. Thank you for taking my question, and congrats to your management for a good set of results. Sir, our business is doing very well. I just wanted to add a follow-up question on this real estate move. There are many real estate companies which investors can invest in, right? If you think that your funds are not being utilized and the yield is low, it is better to give dividends to investors and they can actually invest in real estate companies. Because after, we don't know, incrementally if you keep investing these funds into real estate, 30%-40% of capital employed will go into real estate. It will become a real estate company. Don't you think so? No, it will not become a real estate company. What we have observed in last 5, 6 years, there were so many opportunities like in NCLT especially, and in the Supreme Court auctions for the real estate, where the value of a real estate was just 30%-40% compared to prevailing in the market at that time. We are actually concentrating on those type of properties where there is a big opportunity for us to see a good income or a good progress. We don't want to enter, or we are not going there or closing our eyes and entering into the real estate. It's hard-earned money, and I think so each and every rupee of the investor which is going to be invested in real estate, we are quite cautious and quite vigilant at what we have to buy and how we have to buy. And sir, you also in the opening statement said that you may explore putting it in a different company if you want to pursue real estate as an event. That would be a much better move. Don't you think so? Keeping this KRBL as a premium Basmati rice company and using a different vehicle to pursue the real estate interests. We are already within the management, we are discussing about forming another company as a subsidiary of KRBL Limited only, and definitely the whole real estate business will be shifted into that subsidiary company. But sir, subsidiary also the funds will flow from KRBL Limited only, right? I mean, can we do a proper demerger? Hello? Yeah. Funds will flow from KRBL Limited, from the principal company. Yes. Okay. I'll just add to that. See, I think the rationale for real estate has been explained. Right now, in terms of which entity, subsidiary, et cetera, I think that is something that we will evaluate when it is a very early stage. I think that is a question for a little later right now, but your point is noted. Okay. Thank you. Thank you. Thank you. Our next question comes from the line of Anubhav Mukherjee from Prudent Capital. Please go ahead. Hello. Am I audible? Yeah, we can hear you. Yeah. Sir, will it be possible to break up both the export revenue growth and domestic growth into volume and realization growth? See, we generally don't share that data separately. I have given a trend in terms of what's happened between on a year-on-year and quarter-on-quarter basis. Okay, sir. What is the current trend of Basmati realization in both domestic and export market? Because some of your competitors were mentioning that in export market there was pressure on realization. Going forward, what's your view on that? See, there are two ways of doing business of Basmati. We are into aged rice, which is one year or two years aged rice, and we have a very high premium on our exports realization. As far as this low-value Basmati rice is concerned, it is out of the new crop because the prices of paddy are quite low, and people are offering at low prices in the international market. Those type of business, we have hardly any business. In exports, we are totally into aged rice. Number two, 90% business we engage in exports are pertaining to steamed rice. Whereas we might be the only company in India exporting white rice business, non-steamed rice. It is a raw white rice business which has a premium of minimum $300-$400 per ton compared to the new rice. That's the difference when you talk to other people. Get that. Sir, but given that you were also mentioning paddy prices are low and you will be building inventory, can you give a perspective on the next year or next one or two years? Will we see a further improvement in gross margin? Some view on that will be helpful. No. I think, see, difficult to predict for the next two years. What we had mentioned at the beginning of this year is that in FY 2026 we were expecting an improvement in gross margin for the last year. If you look at H1 performance, that is evident. Overall for the year also, we should definitely see an improvement in margins. Next year, probably, let's wait for a quarter once the season settles down, then we will have a view. Okay. That is it. Last question is, can you share the export revenue split between branded and bulk or white label in this quarter? How is it- I just mentioned that that will be difficult. Okay. See, I had given the trend overall, but we will not be able to share the split. Okay. Thanks a lot. I will get back. Thank you. Our next question comes from the line of Viraj from Simple. Please go ahead. Yeah, just two questions. First is on the export for Basmati for Saudi Arabia. Compared to the peak, where would we be indicatively? If I have to understand next one year, you think we will be able to reach similar kind of volumes or there is much more longer time period in terms of one should expect for the business to normalize? See, as far as peak is concerned, Saudi is the second largest market as far as India is concerned, importing around 1 million tons a year. At present, as far as quantums are concerned, we stand nowhere. But we expect that a time was there when we used to export about 15% of the total requirement of Saudi. That will take 2, 3 years to reach today to 150,000 tons. Today, if I take 15% of that 1 million tons, then it will take. Moreover, the premiumness what we are getting today on the export consignments, it cannot be that we reach 250,000 or 200,000 tons. The profit on margin and the prices are so high that we are into a very niche market and certain value-adding markets only. We expect that in 2, 3 years, we should reach to around 100,000 tons. What do we have that. I mean, we appointed distributors in HoReCa. We kind of set up our own office now, but just generally, if you can delve deeper, how are we looking to ramp up volumes on a sustainable basis? See, we have already created a team over there, not a distributor. Because finding a distributor, loyal distributor, is becoming difficult for us, and there are limited 10, 15 good distributors and all are big sharks, I would say. Therefore, we have created our own team, and they are doing fine. We are satisfied with their performance. We are getting orders. Okay. Second question is, see, apart from rice, a few years back, we had shared an aspiration that we want to also move to adjacent categories in FMCG branded space. We did try some initiatives, but were not that successful. Now with this kind of cash which we are realizing from the real estate, would it not be right to kind of deploy more in the business or the adjacencies which we have a knowledge on, where we have a core strength, rather than get into something which, you know, may give you an optically slightly higher ROI, but doesn't kind of space where we have less spend. So why not just double down on the spaces or adjacent spaces where we always had an aspiration to play up? We have already entered into three, four new products. We are into Quinoa, we are into health seed like Chia Seeds and all. Then we entered into oil for last almost one year it is happening. We are into edible oil under the name of Uplife. Then we have come out with the spices also. We have come out with biryani masala rice with three variants, Hyderabadi Biryani, Kolkata biryani, and Lucknow Lucknowi Biryani. Now we have come with special spices for Makhani Pulao, Makhani Tikka, chicken tikka, these type of things, another three or four variants. Slowly, slowly we want to develop. We do not want to come with five, six, seven items and do not succeed. In every item, according to our aspirations, we are doing fine. The domestic team is really doing fine. We are not into export up till now in these items, but as far as domestic sales are concerned, we are quite satisfied. No, I understand that. Where I was coming from is, if you look, the initiatives on new products, adjacencies we are taking, sustainably, we are not able to have a sizable, tangible impact yet. I understand it takes its own journey, but with the kind of cash you now have at your disposal, one would logically think that you can back it up with a much more sizable, maybe acquisitions, couple of acquisitions in the similar adjacencies where we want to make a tangible impact. So I think that you will have probably a better ROI than getting into a real estate where there is no core DNA of the company. That is my only feedback or suggestion, to probably think over. It has taken 40 years for KRBL Limited to reach to such a big reserve and a good reserve, which is healthy for your company only. It shows the health of your company. As far as the acquisitions or anything that are required, anything can be happened. We do not want to rush up or to spend that money, tomorrow it becomes a big failure. I have seen in my rice industry, I can tell you 10 names, and you must have heard in the last 10 years that people have entered just to invest money and try to rush up for more FMCG products or more. It is not advisable. We are going slow and steady. We feel it is a better way of succeeding in a product. Plus all, you don't require cash for entering into a new product. Thank you, sir. Thank you. Our next question is from the line of Chirag Singhal from FirstWater Fund. Please go ahead. Yeah. Am I audible? Yes, sir. Yes, Chirag, we can hear you. Go ahead. Thanks for the opportunity. First, on the real estate front, you spoke about opportunities through NCLT. You mentioned that you want to invest INR 1,000 crore in the next few years. So are you planning to acquire land parcels via NCLT and then partner with developers under JDA, or you are also evaluating to become a full-scale developer? It depends upon the situation. We can partner with the developer, we can develop our own also. It depends upon the situation. It is not decided. It is a question, and if the land parcel is cheap, you can do anything you like. It is the question, if you get the land at 40%, you can do whatever you like. No, but I am specifically- Yes. Yeah, please go ahead. I am specifically asking about the INR 1,000 crore utilization, the INR 1,000 crore that you mentioned. Is that primarily going to go in acquiring land parcels via NCLT? Is that the primary goal? I mean, since you have come up with a number, you would have come up with some tentative plan as to what will be the key investment. Is it going to be full-fledged projects, like you are going to become a full-scale developer, or it is more going to be like a participation only in JDA via land parcels? See, with our past experience, we have seen that many projects which we could not entertain because we did have the mandate to build or to offer them, where the price is NCLT people have taken away the land at 25%, 30% value of the current value in the market. So where you get such an opportunity, where you get a land at 50%, 40%, 30%, whatever is the opportunity, then definitely first thing is holding of the land. Now, there are two opportunities. Sometime what happens, you buy a land and sell the land with 100% profit. That is also a profit. Certain time you have to develop, go to RERA, ask for the RERA, and develop the land. It is too premature. Neither we have taken the land, nor we have gone into. When these things will come, it will be presented to the board, we will evaluate ourself. And by the time in 2, 3 years, every year my- ROI. Not ROI. Generator. No. I am just speaking. Accruals. My accruals are also increasing by INR 500 crore, INR 600 crore every year. So it will be out of the accrual only that INR 1,000 crore, which I am going to spend. Got it. Right. I think, yeah, we'll wait for further clarity. Coming to the revenue growth. In domestic segment, I think we have grown close to 10% in H1. What is your full year growth outlook? Also on the export side, you mentioned that healthy growth from Iran via the Dubai route and even from Saudi markets, we're expecting good growth in these two markets. Currently we are doing INR 400 crores per quarter roughly on the export side. What level are you targeting over the next one to two years? On the domestic front, our run rate of H1, our plan is to continue that run rate, and we'd like to close the year at a 10% average growth rate. On the export front, Yash. Chirag, on the export side, as you know, the revenue comprises both branded as well as bulk. On bulk, both on both these businesses, the visibility that we have right now is around, let's say, INR 400 crores for quarter 3. Q4 we'll have to see depending upon the bulk pipeline. Okay. Got it. Just one last question on Uplife. I understand that you have guided for INR 200-300 crores in the edible oil segment over the next couple of years. But what I'm more interested in is how we are positioning this brand and in the broader health-focused segment, which all product categories are you planning to house under Uplife? What is the kind of opportunity size that we're looking at? Yeah. The 200-300 crores that we mentioned on Uplife was for the brand portfolio of Uplife, not just oil. Edible oil happened to be the first such category that we entered because of its sheer household penetration that it had. So healthy edible oil seemed to be a great opportunity for us to gain household penetration in the health and wellness space. We are looking at functional nutrition as our core differentiator when it comes to Uplife. We are evaluating both staples as well as lifestyle products. If you can do some value-added staples products, which is like a low sodium spice masalas or even value-added rice for that matter. Even in the atta category, if we can through research come out with claims which give functional nutrition as an advantage to the consumer. Those are some categories that we are looking at. We are also looking at some other lifestyle products which are away from the staples but core in the food category itself. That pipeline is still under the works in terms of what kind of categories and products we are looking at. Our space remains health and wellness with a focus on functional nutrition. Yeah, that was quite helpful. If you could please expand on the lifestyle category. In staples, you gave some examples. If you can give similar examples for lifestyle, like which products or something that gives better clarity. Hello? Management, I think your line is muted. Kindly unmute and then speak, please. Management, kindly unmute your line and please answer the question. Ladies and gentlemen, kindly wait for a moment while we reconnect the management. Ladies and gentlemen, we have the line for the management reconnected. Please go ahead. Yeah. Do you want me to repeat the question? No, I think we got disconnected. Did you hear my answer or no? No. No, couldn't hear the answer. Okay. On the Uplife front, as I mentioned, edible oil happens to be only the first category that we enter into this brand. It's a health and wellness portfolio overall, and our vision is to enter with multi-category within this brand, with focus on health and wellness. Even with edible oil, as you've seen, that we've come up with a very differentiated positioning compared to the overall industry dynamics. That's our primary view, that how can we add value addition into regular food products, both in staples and lifestyle products. Functional nutrition henceforth becomes our core differentiator for the consumers. Even in, I would say, products like atta, rice, value-added rice, those are some categories that we are looking at in terms of value addition in the staple space. Besides staples, we are also evaluating other food products, where functional nutrition can be delivered. But at the same time, the channel and the GTM remains a very important decision-maker for us when we are deciding on these categories and products. As e-commerce is scaling up so rapidly, it gives us more positivity that we can focus and grow this segment into a INR 200 crore-INR 300 crore category in the next few years. Got it. So actually, I heard that part. My follow-up question was on the lifestyle products, that if you can give some examples which products align with the Uplife brand in the lifestyle category. I think it is very early in terms of our thought process, but India is kind of obsessed with protein right now. So sattu, which is an Indian product, is a great space that we are evaluating. Makhana is a category, again, full of nutrition, but again, very lifestyle in terms of the way it is getting consumed in the urban households. So these are few categories that we are looking at, and there are many more valuation with teams and consultants are on how we can which ones are going to be feasible for the organization. Got it. Thanks for the detailed answer. Thank you. Our next question comes from the line of Balaji Vaidyanath from NAFA Asset Managers. Please go ahead. Yeah. Good afternoon. Between the last conference call and this conference call, I feel that there is a change in stance as far as the real estate is concerned, because the last conference call, we had mentioned that the only intention was to move from the Ghaziabad plant to the Meerut plant and unlock value for the Ghaziabad land. We had also mentioned that there is just going to be a developer involved and KRBL Limited is not going to invest. Has that stance changed in the last quarter? No, there is no change at all. Actually, shifting of Ghaziabad unit will take 2, 3 years. It is not that easy, because we have more than 1.5 million square feet of godowns over there. The full 60, 70 tons per hour plant is created. So it is not a work for overnight. It might take 2 years or 3 years. In the meantime, 3 years by that time, maybe the land cost also increases from INR 2,500 crore to INR 4,000 crore. So that is one issue, to monetize the land. Another issue, during the time we generally see that the investor, they talk about ROI. Our ROI is weak because of the results we have. So we realized because there are so many opportunities we saw in last 4, 5 years that in NCLT or in auctions, you get a land. For example, I give you, we have purchased a land in Samalkha for INR 402 crore. You know what is the land price we got it was INR 3.5 crore per acre. Today, nearby the land cost is INR 6 crore, INR 5.5 crore, like this. So we got the land cheaper by minimum 30% in the auction, 40%. So what we are trying now to do, we were searching for the land for our Barota unit to be expanded to transfer certain quantities to that land. So we might convert that land into our further increase in production for our Barota unit. We are getting too much problem at our Barota unit because of the shortage of the godowns and shortage of the processing. So now a land which is INR 6 crore an acre, we got at INR 3.5 crore. So those opportunities we are looking. We are not sure whether we will invest INR 1,000 crores or not. If we don't get an opportunity, we will not invest. Sir, how much of management bandwidth will now move towards this real estate? Because as it is, as shareholders, we have to put up with the risky ups and downs of the rice business. So how much of management bandwidth will now move towards real estate? How much? I mean, how much of your time will now get allocated to real estate business rather than the rice business? No, actually, our new generation has come into the business, so it's not that big. We will spend some time. There's not much, I mean, spending 2-3 hours in a day is sufficient. I don't think it is much. It is not disturbing to our rice business at all. Sir, frankly, it's a little unfortunate because just when the core business was looking up and shaping up nicely, this foray has been a bit of a killjoy, to be very honest, sir. This is just an investment thing. We are into core business only. We are looking at our core business only. And it is only a question of spending INR 1,000 crore only, nothing else. We are whole family is into rice business only. Thank you so much. Wish you all the best. Thank you. We take that as our last question. Thank you very much, members of the management. Ladies and gentlemen, on behalf of KRBL Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.