KRBL Limited (KRBL.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen. Good day, and welcome to the KRBL Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] 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, and thank you to all participants for joining us. Welcome to the Q2 FY '26 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 30. 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 to share his views. The floor is yours.

Good afternoon, everyone. Thank you for joining us today for the Q2 FY 2026 Earnings 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 provided an update on the global and domestic price markets and outline the opportunities that lie ahead for the company. Let me begin with the global rights outlook. According to the USDA [indiscernible] right outlook report global rice production for '25 '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 suggest a stable global market will [indiscernible] volumes. India competitive pricing and consistent quality continue to underpin a leadership in global rice trade. Turning to India. Our country rice production for 2026 is estimated at around 151 million metric tons compared to 149 million metric tons in '24, '25 as per USDA. This mark the second consecutive year that India has surpassed China to remain the world's largest price producer. The increase is being driven by higher attractive price realizations for farmers, government support team and generally favorable monsoon rainfall while overall crop conditions remain healthy, regional varieties due to uneven monsoon, distribution as localized [indiscernible] are visible, especially in parts of Punjab. On Basmati, which is the core of KRBL's brand and margins the 2025 crop is being harvested, how the presence of mixed picture. The overall Basmati acreage has held firm in many producing states and the adoption of new pest resistance better performing varieties continues to support years and grain quality. However, the heavy monsoon raise in late August and early September, coupled with flat log in central low-line regions of Punjab and Haryana caused localized water logging and higher merger frontage study in those belts. The ports from regional agriculture departments and trade volumes indicate some reduction in hydro recovery and grading challenges for [ Milas Bariri ] from those districts. Fortunately, other growing regions notably larger to estate partition parts of [indiscernible] experience normal rainfall and good side during grain filling and harvest periods, resulting in strong years and quality. On balance, India basmati production for cross 2025 is expected to be slightly higher than last year in volume terms through quality segregation, it will be more critical this season. Overall, the availability of export at Basmati remains comfortable. Market and Basmati picture is also important for global availability and price dynamics. In early reporting after the monsoon plus. There were widely circulated concerns about [indiscernible] damage in Pakistan Panja. Some adjustments reported localized significant losses in flood in districts where certain official reports indicate that much of the Pakistan Basmati area remained resilient and that damage to Basmati specifically may be less ever than [indiscernible] Field. As a result, from a global trade perspective, we foresee a stable to form Basmati export environment over the coming quarters with Pakistan supply largely in Test and India's crop policy quality being mixed, but sample pricing is expected to remain range [indiscernible] in the near term with premiums of higher grades and marginal softness for lower grades. In terms of pricing and procurement dynamics, [indiscernible] and market dashboards show that Basmati price form in the immediate aftermath of heavy rains and flood reports. Reflecting buyers caution around availability of export grid paddy [indiscernible] That said the market is bifurcating good quality, low merger, lots and commanding a premium while higher merger or damaging lots are being discounted. At KRBL, we have purchased we have pursued a disciplined procurement strategy, focusing on low merger, high-quality paddy 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 FY '26. Basmati export rose around 17% year-on-year in the first half to reach approximately 3.2 million tons, and non-basmati export expanded sharply by about 5% to roughly 7 million tons during the same period according to trade data and industry reports. This robust performance highlight India continued strength in both premium and mass side segments. The removal of previous export costs 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, as voters remain optimistic, however, volumes and realizations will deepen on how the new Basmati crops quality profile sectors during post harbor sorting and on shifting trade dynamics in key destinations. On the policy front, as proposed tariffs imposed by the United States earlier this year have added temporary friction to India. U.S. trade. While these duties currently include a 5% levy on enterprise exports, we expect that ongoing dialogue between the 2 governments will lead to a negotiated settlement. Historically, both sites have worked towards resolving substitutes. However, should the 50% tariff remain in place for an extended period will put impact India's competitiveness in the Basmati market, as Pakistan export currently enjoy a 19% tariff, which is a much lower level. That TRVL's direct exposure to the U.S. remained limited and therefore, the financial impact on our business will be minimal. Our exports revenue for Q2 FY '26 stood at INR 48 crores compared to INR 252 crores in Q2 FY 2025, registering a 70% year-on-year growth. Overall, revenue for the quarter was INR 1,511 crores led by a strong export performance, the company reported a strong EBITDA of 16.6%. 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 a [indiscernible] a law to fulfill our requirements, compliance and formalities from the government such as incorporating a company and filing that we stated, et cetera. Once this process is finalized, then we can start with working on ground for operating our office [indiscernible] give the practical share 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 a successful bidder for exports at [indiscernible] 25 acres of land spread across 71 parcels in Sumac district Panipa Taryana at a total bid value of about INR 403 crores built on our strong financial position and healthy internal accruals. KRBL is now set to enter the real estate sector at 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 on more effectively, moving away from low yield treasury improvement and [indiscernible] our either to underutilized bank limit. We also hold significant land reserves, particularly in [indiscernible] which offer substantial value unlocking potential. The company plans to monetize this undertaken [indiscernible] currently valued at about INR 2,500 crores by relocating our existing plant over the next 2, 3 years. post development, the Garawa property value for rice to approximately INR 4,000 crores. In addition KRBL will export new real estate projects with a total cloud outlay of around INR 1,000 crores over the next few years. We will focus on NCIT or court or multiple authority land options for acquiring land at attractive rates and then collaborate well reputed developers to develop the sale. We will evaluate whether to pursue this business within the abated structure of 2 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 reported in 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, [indiscernible] 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 light industry. Before I rode, 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 decent KRBL. One of 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 balance that focus on how our actions are shipping long-term strength. Over the last year, we've seen the package drive category in India continue on its long-term. 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 the sales channel performance to last year, the evolution is intentional and supports our long-term strategy. In H1 financial year 2016 are channel [indiscernible] has shifted for the consumer pack business. General Trade business contributed 63% of our consumer PAT revenues was 67% last year. Modern trade contributed 14% versus 15% last year, and e-commerce has shifted to contribute 23% versus 18% over last year to a consumer that. So what does this really mean? It means 2 things. General trade remains the backbone, but it is led by a strong bulk pack business. Bulk has been a consistent driver of generate rate growth. It brings stability, long-term relationships and predictable movements in key markets. It is this bulk pack momentum that keeps generative studies even as consumers behaviors 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 higher frequency buyers are turning to digital platforms for convenience and trust. Today, almost 3/4 of our e-commerce business plans from recommerce, making it a strong contributor to trial and repeat. In simple terms, generate business debt e-commerce gets a 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 fresh communication. We chose the tone of authenticity, trust and clarity. The campaign strengthened 2 things that matter most for a brand like us, consumer confidence, reflected in significantly higher search for India Gate brand and stronger productivity in conversations around the brand. And secondly, usage and repeat. Both have grown meaningfully in the months following the campaign. When consumers trust the brand more, they buy it more often, they stick with it longer, and we remain price stable. This is a real business outcome this campaign has delivered. Going forward, I would like to introduce project [indiscernible] Project [indiscernible] is a structured 18 to 24-month commercial transformation program we are running internally. It is one of the most important capability investments casting. The objective is straightforward, build a stronger, sharper and more productive commercial engine for the next decade. [ Akufis ] focusing on 4 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% to 3% efficiency in how we deploy trade and marketing spends. Thirdly, improving e-commerce economics with a 15% to 20% improve in ROIs return on advertising expense, driven by better planning and smarter execution and lastly, strengthening capability and discipline on the ground. So that availability, visibility and servicing becomes more predictable and reputable. Action is not about short-term savings. It is about building capability, the kind that compounds in value. A brief update on [indiscernible] 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 that remain positive. To summarize the India business in Q2. The category remains resilient and favorable for branded leaders. General Trade is stable, supported by a strong ballpark growth. E-commerce is growing strongly through consumer path momentum. Our brand and packaging work is strengthening trust, intent and repeat. Project upset is going to lay the groundwork for consistent profitable execution and applied is progressing thoughtfully as a future-facing wellness brand. Our approach remains to protect value, deepen [indiscernible] penetration, strength in repeat purchase and bill 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 Ashish for his comments on the financials.

Thank you, Ayush. I will now take you through the performance of the quarter ended 30th September 25, and H1 ended as on the same date. All figures mentioned by me would refer to the consolidated financials of the 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 '25 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 costs 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 '26 versus the preceding quarter, which is Q1 FY '26. 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 due to higher -- is higher primarily due to higher base material realization and export and improved sales mix, which includes higher propulsion and export branded sales. EBITDA followed the trend in gross profit, partially impacted by higher proportionate employee costs 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 '26, domestic revenue increased by 10% as branded basmati volume increased by 9%, while export revenue increased by 86% due to high bulk sales. Branded right 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 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, '24. On a volume basis, as of September 30, 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, '25 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 would just like to mention that as the ED matter is subdued, we will not be in a position to respond to queries on this matter. So over to the operator now.

[Operator Instructions] Our first question comes from the line of Amit Agarwal from Liway Investments.

My question is regarding Saudi Arabia market. Sir, we had INR 1,000 crores export to that market, so reduced and right now? And how much have we covered this year and what is the future growth perspective player.

Saudi market has started doing well. And 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 are doing -- we have started doing quite good in Saudi Arabia, and we are in the process of opening the office also. And in due course of time, you will hear good news on Saudi market.

And sort of numbers, how much turnover the sale we expected to do in South Arabia because there was a huge market and that gives us some high day that the future perspective of the market. How much have we covered from there?

It will not be proper to tell you any numbers because from the number should be at the rate of prediction of any numbers will not be appropriate. And I think so the third quarter, the things would be further clear up. They will further clear up that what -- how we are going to do in Saudi.

Have we any distributor or right now? Or we are supposed to market the product ourselves.

No, we have capped 3, 4 people, and we are booking the orders over there. There is no distributor as has been appointed.

And my second question and last question is regarding 2, 3 years when we were starting to open to 3 factories in South and Gujarat [indiscernible] been already there. So what is the production. How much production is going in develop? And that is a situation in the position from at.

Gujarat, we have already started it more than 1.5 years. 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 Kandla plant. And Gangavati plant because of the rains that got delayed. And I think it will be completed now by December. It is also a processing plant and we'll be doing about 30,000 to 40,000 tons per annum of branded nonbasmateriaze from there. And 1 plant we have put in Merial Gora, which is in as which is also non-baseband non-basmati, which will also give us around 10,000 to 15,000 tons of branded non-bus material. Moderates, it is in the pipeline until we have not started.

So how much turnover should we expect to meet in every plant of the -- I mean the parents coming in south?

To 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.

Amit, sir, extremely sorry to interrupt. Can you please read the question for that follow-up. Our next question comes from the line of Nate from [indiscernible]

Congrats on very good set of numbers. So my first question is, we have seen a very significant amount of liquidation in terms of inventory during the first half -- so just wanted to understand what is the reason for the same? And two, have we started building in inventory again for the upcoming season?

Yes. This year, the PD 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 0.5 million ton of [indiscernible] This year, we -- I expect to purchase about 700,000 tonnes of ready. And you will see quarter-on-quarter Mr. Ashish Jain has said that our inventory level were lesser by INR 700 crores. So I think this year, we'll build up the inventory to that level.

Sir. And sir, my second question is, if I heard you right, you are allocating close to INR 1,000 crores for getting into real estate. So just wanted to understand what is the reason for getting into real estate where DNA has lean basmati rice since generation. So what is the thought process, I just wanted to understand, and I wanted to confirm this INR 1,000 crores is what you mentioned, we are going to [indiscernible]

The basic reason is we are investing this INR 1,000, INR 2,000 crores, you'll see as on today, 30th September, INR 2,100 crores has been deposited in the mutual points at a rate of 6% to 7%. We are getting just 6% return on the surplus points. So it is important to -- so we thought of investing INR 1,000 crores in the stand as Mr. Mittal has said, to go in NCLT and the codes where the return on the investment is very good. this INR 100 crores what we got from Smalka, already, the market is up by 10% to 15%. So we see a very upside, and we'll see investor will definitely appreciate this move.

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 1,200 crores would be good enough to support our business? Is that what you mean?

No, repeat please repeat your question.

So what I'm trying to understand is we currently have roughly INR 2,300 crores of cash. And you're saying out of this INR 1,000, you are earmarking for real estate over the next 2, 3 years. So INR 1,000, INR 1,500 crores would be good enough for building inventory and continuing our business. Is that what you mean?

We have got a bank limits of INR 2,500 crores, which is unutilized in the bank limit, we can get at 7%. So to get a better ROI, it's always good to have a bank utilization.

Got it. Got it, sir. That's helpful. And sir, my next question is what's your outlook for exports for the coming quarters and next 2 years? How do we expect our exports to go?

No. 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 and 2 in Iran, and because 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. So I think these are the 2 major areas where we can improve our top line as well as bottom line.

Our next question comes from the line of Hitesh Goyal from Origin Capital.

Congrats on the management for a good set numbers. Sir, our business is doing very well. So I just wanted to have a follow-up question on this real estate -- there are many real estate companies which investors can invest in, right? So if you think that our 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 to keep investing these funds into real estate, 30%, 40% of capital employed will go into real estate. It will become a real estate company.

No, no, it will not become a real estate company. What we have observed in the 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 real estate was just 30%, 40% compared to prevailing in the market at that time. And so 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 to closely [indiscernible] and entering into the real estate. It's a hard earned money and age to eat 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 I have in that would be a much better move. Don't you think so keeping this premium basmati company and using a different vehicle to pursue the real estate interest.

So 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 only, right? I mean can we do a proper demerger.

Yes, funds from the principal company. Yes.

I'll just add to that. So 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'll evaluate when I mean it's a very early stage. I think that's a question for a little later right now, but your point is noted.

Our next question comes from the line of Anubhav Margi from Present Capital.

Sir, will it be possible to break up the -- both the export revenue growth and domestic growth into volume and realization?

See, we generally don't share that data separately. But I have given a trend in terms of what's happened between on a year-on-year and quarter-on-quarter basis.

Okay. And what is the current trend of mass materialization in both domestic and export market because some of your competitors were mentioning that in export market, there was pressure on realization. But going forward, like what's your -- view you on that?

See, there are 2 ways of doing business of Basmati. We are into a drive, which is 1 year or 2 years, 8, right? And we have a very high premium on our export realization. As far as this lower value Basmati rice is concerned, it is out of the new crop because the prices of ready are quite low, and people are offering at a low price in the international market. Those type of business, we have hardly any business in exports, we are totally into and [indiscernible] Number 2, 90% based on gate in exports are pertaining to steamed rice, whereas we might be the use company in India exporting white right business, non-steam rice. It is a raw white rice business. which has a premium of minimum $300, $400 per tonne compared to the new rights. So that's the difference when you talk to other people.

Yes. So given that like you were also mentioning paddy rices are low and you will be leading inventory. So can you give a perspective on like the next year or next 1 or 2 years Will we see a further potent in gross margin, some view on that as.

No, I think difficult to predict for the next 2 years, but what we had mentioned at the beginning of this year is that in FY '26, we were expecting an improvement in gross margin for the last year. I mean if you look at H1 performance, that is evident. And overall, for the year also, we should definitely see an improvement in margins. Now next year, probably, let's wait for the quarter once the season settles down, then we'll have a view. Okay. That's the last question is.

Can you share like the like export revenues pit between branded and bulk or white in this quarter?

I just mentioned that the -- I had given the trend overall, but we will not be able to share the split.

Our next question comes from the line of Viraj from Simple.

Just 2 questions. First is on the export for Basmati for all Arabia, compared to a peak, where will we be, I mean, indicatively? And if I have to understand next 1 year, you think we will be able to reach similar kind of volumes or there is much more longer time period in terms of 1 should expect for the business to normalize?

As far as peak is concerned, Saudi in the second largest market as far as India is concerned, importing around 1 million ton a year. So at present, as far as quantums are concerned, we stand now where, but we expect that 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 1.5 life ton. Today, if I take 15% of that 1 done, then it will take Moreover, the premium is what we are getting today on the export consignments -- it cannot be that we reached 150,000 or 200,000 tons, the profit 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.

And what will drive that? I mean, we appointed distributors in area, we kind of set up our own office now. But just generally, if you can deal 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 they are finding our distributor route or loyal distributor is becoming difficult for us and there are limited 10, 15 good distributors and all our big big sharks, I would say, so 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 FMC branded space. We did try some initiatives, but we're not that successful. Now with this 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, we maybe have a core stent other than get into something which we gave you an optical slightly higher ROI, but doesn't space where we have strength. So why not this double down on the spaces or adjacencies where we always had an ask.

We have already entered into 3, 4 new products. We are into Quinoa. We are in to health seeds like chia seeds and oil that we entered into oil for last almost 1 year, it is happening. We have into edible oil under the name of Up life. Then we have come out with the spices also we have come out with Biryani, Masala is with 3 variants, [ HazrajiBiriani, Bemol, Biryani ] and now we have come with the special prices for [indiscernible] another 3 or 4 variants. So slowly, slowly, we want to develop. We do not want to come with 5, 6, 7 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 in to export up till now on 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, decencies were taking, sustainably, we're not able to have a sizably 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 a couple of acquisitions and the similar decencies where we want to make a tangible impact. So but I think that you will have probably a better ROI than getting into a real estate that there's no core DNA of the company. That's why only feedback or tradition to probably think of.

Has taken 4 years for KRBL [indiscernible] to such a big winter but a good reserve, which is really for your company only. It shows the health of your company. And as far as equities or anything that are required, everything can be happen. We do not want to Russia out to spend that money at tomorrow, it becomes a big failure I have seen in my right industry. I can tell you to name 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's not advisable. We are going slow in study. We feel it is a better way of succeeding in the product.

And plus all you don't require cash for entering into a new product.

Our next question is from the line of Chirag Singhal from First Water Fund.

. First, on the real estate front, you spoke about the opportunities through -- so you mentioned that you want to invest INR 1,000-odd crores in the next few years. So are you planning to acquire land person via NCLT and then partner with developers under JDA -- or we are also evaluating to become a full-scale developer.

So it depends upon the situation, we can partner with the apart. We can develop our own also. It depends upon the situation. It's not decided. It's a question on 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. Specifically. Yes. Yes, please go ahead.

I'm specifically asking about the INR 1,000 crore utilization, the INR 1,000 crores that you mentioned. Is that primarily going to go in acquiring land parcels for NCLT? Is that the primary goal? I mean, since I've come up with a number, you would have come up with some tentative plan to what will be the key investments. Is it going to be like full fledge projects like you are going to become a focal developer? Or it's more going to be like a participation only via in JDA violin persons.

See with our past experience, we have seen that many projects which we could not entertain because we did had the mandate to build or to offer them where the prices and MCIT people have taken away the lab 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%, 50% whatever is the opportunity. Then definitely first thing is holding of the land. Now there are 2 opportunities. Sometimes what happens, you buy a land and sell the land with 100% profit that is also a profit. So at this time, you have to develop [indiscernible] is too premature that we have taken the land, not we have gone into when these things will come, it will be presented to the Board, we will evaluate ourselves. And by the time in 2, 3 years, every year by my no other generators my approvals are also increasing by INR 500 crores, INR 600 crores every year. So it will be out of the approval of only that INR 1,000 crores, which I'm going to spend.

Got it. Right. So I think -- yes, so we'll wait for further clarity -- now coming to the revenue growth. So in domestic segment, I think we have grown close to 10% in H1. So what is your full year growth outlook? And 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 2 markets. So currently, we are doing INR 400 crores per quarter roughly on the export side. So what level are you targeting over the next 1, 2 years? So on the domestic front, our rate of H1 with our plan is to continue that run rate. And we like to close the year at a 10% average growth rate -- on the export front,.

So Chirag, on the export side, as you know, the revenue comprises both branded as well as bulk. Now on bulk, the visibility both on both these businesses, 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. And just one last question on life. So I understand that you have guided for INR 20 crores, INR 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 focus segment, which all product categories are you planning to house under applies. What is the kind of opportunity size that we are looking at?

Yes. So the INR 200 crores, INR 300 crores that we mentioned on Uplife was for the brand portfolio of life, not just oil, edible oil happened to be the first such category that we entered because of it sure household penetration that it had. So healthy edible oil seems to be a great opportunity for us to gain household penetration in the health and wellness space. The kind of category -- so we are looking at functional nutrition as our core differentiator when it comes to Uplife price. And we are evaluating both staples as well as lifestyle products. So if you can do some value-added staples products, which is like a low-sodium spice marsalas or even value-added drive for that matter, and even in the AA 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. So that pipeline is still under the work in terms of what kind of categories and products we are looking at. But our space remains health and wellness with the focus on functional nutrition.

That was quite helpful. But if you could please expand on the lifestyle category in stable to give some examples. If you can give similar examples for Lifestyle, which products something that gives better clarity. Hello?

Management, I think your line is muted, in can mute and then speak. Please. Ladies and gentlemen, kindly wait for a moment while we reconnect the management. Connected. Sir, please go ahead.

Yes. Do you want me to repeat the question?

No, I think we got disconnected. Did you hear my answer or no?

No. No, I couldn't hear the answer

Okay. Okay. So on the applied 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. And even with edible oil, as you've seen, that we've come up with us a very differentiated positioning compared to the overall industry dynamics. And that's our primarily our primary view that how can we add value addition into regular food products, both in Staples and lifestyle products. And functional nutrition and forth becomes our core differentiator for the consumers. So even in, I would say, products like at rise, value-added prices. Those are some categories that you are looking at in terms of value addition in the staple space. But besides staples, we're 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. And as e-commerce is scaling up so rapidly, it gives us more positivity that we can focus and grow this segment into a 2 crore to INR 300 crore category in the next few years.

Got it. Sir, 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 your applied brand in the lifestyle category.

So I think it's very early in terms of our thought process, but India is kind of obsessed with protein right now. So Satu, which is an Indian product is a great space that we are evaluating. Makana is a category, again, full of nutrition, but again very last in terms of the way it is getting consumed in the urban households. So these are a few categories that we are looking at. And there are many more valuation with teams and consultants are all on how we can -- which ones are going to be feasible for the organization.

Our next question comes from the line of Balaji [indiscernible] from Napa Asset Managers.

So 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 Gagaba plant to the Merit plant and unlock value for the Rajabadland. And we are also mentioned that there's just going to be a developer involved and cable is not going to invest. So has this stance changed in the last quarter?

No, there is not. There is no change at all. Actually, [indiscernible] shifting of Ghaziabad unit will take 2, 3 years. It's not that easy because we have more than 1.5 million square feet of go down over there, a full 60, 70 tons per hour plant is rated. So it's 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 crores to INR 4,000 crores. So that is one issue to monetize the land. Another is during the time we generally see that the Investor Day talk about ROI and our ROI is weak because of the results we have. So we realized because there are so many opportunities we saw in the last 4, 5 years, that in CLT or in auctions you get to land. For example, we have purchased a land in Samarco for INR 402 crores. You know what is the land price we got it was INR 3.5 crores per acre. Today, [indiscernible] is INR 6 crores, INR 5.5 crores 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 Brotas unit to be expanded to transfer certain quantities to that plan. So we are -- we might convert that land into a further increase in production that for our Rota unit, we are getting too much problem in our Beruti because of the shortage of the godowns and shortage of the processing. So now in land, which is INR 6 crore in nature, we got at 3.5. 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'll 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? 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 we'll spend some time. There's not much -- I mean, spending 2, 3 hours in a day is sufficient. I don't think it as much. It is not disturbing to gas business at all.

So 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 kin to be very honest, sir.

This is just an investment thing. It is not -- it is -- we are into core business only. We are looking at our core business. And it is only a question of spending INR 1,000 crores only, nothing really. We are old family and to rights business only.

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.