Mishtann Foods Ltd (539594)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Mishtann Foods' revenue was ₹18.3 Cr (-95.3% year on year, -40.7% on the previous quarter), and net profit ₹0.5 Cr (-99.4% year on year); the operating margin was 6.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹18.3 | -95.3% | -40.7% |
| Operating profit | ₹1.2 | -98.6% | +91.8% |
| Net profit | ₹0.5 | -99.4% | — |
| EPS (₹) | 0.00 | -100.0% | — |
| Operating margin | 6.4% | — | — |
📢 Recent Corporate Announcements
Mishtann Foods reported a sharp decline in standalone Q1 FY27 revenue to Rs 18.29 Cr, down from Rs 70.79 Cr in the prior year's quarter. The auditor has issued a qualified opinion, highlighting a SEBI show-cause notice alleging fictitious transactions between FY18 and FY24 and misutilization of Rs 149.90 Cr in rights issue proceeds. Additionally, the company faces a massive GST demand of Rs 206.84 Cr and disputed income tax demands of Rs 117.44 Cr. These factors, combined with trade receivables comprising 97% of total assets as of Sept 2024, led the auditor to express doubt over the company's ability to continue as a going concern.
- Standalone revenue for Q1 FY27 dropped significantly to Rs 18.29 Cr from Rs 70.79 Cr YoY.
- SEBI alleges misutilization of rights issue proceeds totaling Rs 149.90 Cr.
- GST Department has raised a demand of Rs 206.84 Cr, which is approximately 54% of the company's current market cap.
- Trade receivables of Rs 593.71 Cr remain outstanding with no provision for Expected Credit Loss (ECL).
- Disputed income tax demand of Rs 117.44 Cr is currently pending at the first appellate stage.
Mishtann Foods reported a severe 74% YoY decline in Q1 FY27 revenue to ₹18.29 cr. The statutory auditor has issued a qualified opinion, highlighting a SEBI show-cause notice alleging fictitious transactions between FY18 and FY24 and misutilization of ₹149.90 cr in rights issue proceeds. Additionally, the company faces a ₹206.84 cr GST demand and ₹117.44 cr in disputed income tax, leading the auditor to question the company's ability to continue as a 'going concern'.
- Revenue for Q1 FY27 plummeted to ₹18.29 cr from ₹70.79 cr in the same quarter last year.
- Auditor reported SEBI allegations that a substantial portion of sales and purchases from FY 2017-18 to FY 2023-24 were fictitious.
- Outstanding trade receivables stand at ₹593.71 cr with no provision for Expected Credit Loss (ECL) despite representing 97% of total assets as of Sept 2024.
- Total tax-related contingencies exceed ₹320 cr, including a ₹206.84 cr GST demand and ₹117.44 cr disputed income tax demand.
- Independent Director Ms. Rainy Ramesh Singhi, who chaired the Audit and NRC committees, resigned effective August 08, 2026.
Mishtann Foods reported a sharp decline in standalone revenue to ₹18.29 Cr for Q1 FY27, compared to ₹70.79 Cr in the same quarter last year. The auditors issued a heavily qualified report, highlighting a SEBI show cause notice alleging fictitious transactions from FY18 to FY24 and misutilisation of ₹149.90 Cr in rights issue proceeds. Additionally, the company faces a ₹206.84 Cr GST demand and a ₹117.44 Cr disputed income tax demand. Auditors have expressed material uncertainty regarding the company's ability to continue as a 'going concern' due to these combined regulatory and financial pressures.
- Standalone revenue from operations fell to ₹18.29 Cr in Q1 FY27 from ₹70.79 Cr in Q1 FY26.
- Auditors flagged SEBI allegations of fictitious sales and purchase transactions between FY18 and FY24.
- Outstanding GST demand of ₹206.84 Cr (including penalties) for the period July 2017 to July 2022.
- Trade receivables of ₹593.71 Cr reported without any provision for Expected Credit Loss (ECL).
- Alleged misutilisation of ₹149.90 Cr from rights issue proceeds cited in SEBI's interim order.
Mishtann Foods reported a sharp decline in Q1 FY27 revenue to ₹18.29 crore, down from ₹70.79 crore in the prior year's quarter. The auditor's report contains severe qualifications, including a SEBI show-cause notice alleging fictitious transactions from FY18 to FY24 and misutilization of ₹149.90 crore in rights issue proceeds. Additionally, the company faces a ₹206.84 crore GST demand and holds ₹593.71 crore in trade receivables without credit loss provisions. These factors led the auditor to issue a 'going concern' warning, questioning the company's ability to continue operations.
- Revenue from operations collapsed to ₹18.29 crore in Q1 FY27 from ₹70.79 crore in Q1 FY26.
- SEBI alleges misutilization of rights issue proceeds totaling ₹14,990.00 lakhs (₹149.90 crore).
- Outstanding trade receivables of ₹59,370.57 lakhs (₹593.71 crore) lack Expected Credit Loss (ECL) provisions.
- GST department has raised a demand of ₹20,684.38 lakhs (₹206.84 crore), which is ~54% of the current market cap.
- Unpaid income tax provisions and liabilities as of March 2026 total approximately ₹5,358 lakhs.
Mishtann Foods has scheduled a board meeting for August 8, 2026, to consider and approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This meeting is particularly significant as it follows a sharp revenue contraction in the March 2026 quarter, where sales fell to Rs 30.84 Cr from over Rs 300 Cr in previous quarters. Investors will be looking for a recovery in the top line and updates on the 1000 KLPD ethanol plant, which was projected to become operational by mid-2026.
- Board meeting scheduled for August 8, 2026, to approve Q1 FY27 results.
- Financials to cover the three-month period ended June 30, 2026.
- Trading window remains closed until 48 hours after the results are declared.
- Company previously reported a TTM revenue of Rs 1140 Cr despite a weak Q4 FY26.
Mishtann Foods Ltd has appointed Namrata Girish Vyas as the Company Secretary and Compliance Officer, effective July 07, 2026. The new appointee brings over 9 years of experience in corporate compliance, secretarial practices, and auditing. Additionally, the Board approved shifting the company's registered office within Ahmedabad from Sola to Gota. These administrative updates were finalized in a board meeting lasting 30 minutes.
- Appointment of Namrata Girish Vyas as Company Secretary and Compliance Officer effective July 07, 2026
- New CS possesses over 9 years of experience in corporate compliance and ROC-related matters
- Registered office relocated to 403, Ganesh Glory, Gota, Ahmedabad - 382470
- Board meeting concluded within 30 minutes, starting at 10:30 A.M. and ending at 11:00 A.M.
Mishtann Foods Ltd has appointed CS Namrata Girish Vyas as the Company Secretary and Compliance Officer (Key Managerial Personnel) effective July 07, 2026. Ms. Vyas brings over 9 years of experience in corporate compliance, secretarial practices, and ROC-related matters. The Board also approved shifting the company's registered office within Ahmedabad to a new location at Ganesh Glory, Gota. These changes are administrative in nature and do not impact the company's financial performance.
- Appointment of CS Namrata Girish Vyas as Company Secretary and Compliance Officer effective July 07, 2026
- New appointee possesses over 9 years of experience in corporate compliance and secretarial practices
- Registered office shifted from Empire Business Hub to 403, Ganesh Glory, Gota, Ahmedabad - 382470
- Board meeting concluded within 30 minutes, starting at 10:30 A.M. and ending at 11:00 A.M.
Financial Performance
Revenue Growth by Segment
Overall revenue grew 41.98% in FY22 to INR 498.51 Cr. Q2 FY25 total income reached INR 341.89 Cr, representing a 17.38% increase YoY driven by robust demand for premium Basmati and salt varieties.
Geographic Revenue Split
Revenue is split between Domestic (India) and International (Middle East, Singapore). International operations in the UAE contribute significantly due to lower taxation (~1% effective rate) and higher margins on commodity trading.
Profitability Margins
PAT margins improved to 7.68% in FY23 from 6.32% in FY22. Q2 FY25 net profit stood at INR 106.57 Cr, reflecting a 21.89% YoY growth due to higher-margin rock salt sales and operational efficiency.
EBITDA Margin
EBITDA margin reached 31.70% in Q2 FY25 (INR 108.37 Cr), a significant increase from 12.69% in FY23 and 10.43% in FY22, driven by a shift toward premium products and cost management.
Capital Expenditure
The company has a planned outlay of INR 2,250 Cr for a 1000 KLPD ethanol facility in Gujarat, with Mishtann's direct contribution expected to be INR 100-125 Cr.
Credit Rating & Borrowing
Credit rating was IVR BBB/Stable (Long Term) and IVR A3+ (Short Term) as of July 2022; ratings were reaffirmed and withdrawn in August 2023 at the company's request. Total rated bank facilities were INR 70.00 Cr.
Operational Drivers
Raw Materials
Paddy (Basmati and emerging varieties) accounts for the bulk of production expenses. Other materials include common salt, crystal salt, and rock salt (sourced from imported materials).
Import Sources
Paddy is sourced from Haryana and Rajasthan. Rock salt is sourced from imported materials (countries not specified). Ethanol project is located in Gujarat.
Key Suppliers
The company maintains a tacit arrangement with approximately 15,000 contract farmers primarily in Haryana and Rajasthan for regular paddy supply.
Capacity Expansion
Current rice processing capacity is supported by a state-of-the-art facility in Gujarat. Planned expansion includes a 1000 KLPD ethanol facility expected to be operational by mid-2026.
Raw Material Costs
Paddy procurement is the primary cost; even slight price variations drastically impact profitability. The company uses forward booking and inventory management to mitigate price fluctuation risks.
Manufacturing Efficiency
Precision processing technology in Gujarat ensures quality. Average bank facility utilization was 72.09% (Dec 2020 - June 2022), indicating sufficient cushioning.
Logistics & Distribution
Distribution is outsourced to a third-party company to manage 125,000 retailers, reducing internal operating costs and day-to-day logistical requirements.
Strategic Growth
Expected Growth Rate
17-20%
Growth Strategy
Growth will be achieved through the mid-2026 operationalization of the 1000 KLPD ethanol plant, expanding the retailer base from 125,000 to 160,000, and penetrating high-margin markets in the USA and Singapore.
Products & Services
Premium Basmati rice, emerging rice varieties, wheat, edible common salt, crystal salt, rock salt, and black salt.
Brand Portfolio
Mishtann.
New Products/Services
Rock salt, black salt, and a planned 1000 KLPD ethanol production facility.
Market Expansion
Expansion into Eastern India, North Eastern India, USA, Singapore, and the UK. UAE operations are being scaled for global trading.
Strategic Alliances
Preliminary discussions for developing industrial parks and partnering with EV component manufacturers to diversify beyond FMCG.
External Factors
Industry Trends
Basmati shipments grew 20% in the first 10 months of FY24. The industry is shifting toward healthier, organic, and premium branded products.
Competitive Landscape
Highly competitive industry with global, pan-India, and regional players. MFL competes by leveraging price differentials in tier-2 and tier-3 towns.
Competitive Moat
Moat is built on a network of 15,000 contract farmers and a tax-efficient global structure (1% UAE tax), which provides a durable cost advantage over domestic-only competitors.
Macro Economic Sensitivity
Highly sensitive to monsoon patterns and agro-climatic conditions which dictate paddy yield and quality.
Consumer Behavior
Shift toward premiumization and innovative products like rock salt and organic varieties to meet healthier lifestyle demands.
Geopolitical Risks
Tensions in the Middle East (Iran/Iraq) may lead to shortages in other Gulf nations, potentially surging export orders and prices for Basmati rice.
Regulatory & Governance
Industry Regulations
Subject to close government oversight regarding food production, supply, and distribution laws in India and export destinations.
Environmental Compliance
The ethanol project requires clearances from the Central Ground Water Board and local environmental authorities, which are currently being processed.
Taxation Policy Impact
Effective tax rate is approximately 1% due to operations governed by UAE rules. Indian corporate taxes are paid as per pertinent local laws.
Legal Contingencies
Management notes potential tax interpretation matters regarding UAE operations but asserts the company has the financial strength to handle any far-fetched demands.
Risk Analysis
Key Uncertainties
High trade receivables of INR 824 Cr against a turnover of INR 724 Cr pose a significant liquidity and realization risk if not collected within the 3-6 month window.
Geographic Concentration Risk
Significant revenue concentration in the Middle East and South Indian salt markets.
Third Party Dependencies
100% dependency on a single third-party company for managing the entire 125,000-strong distributor and retailer network.
Technology Obsolescence Risk
Low risk due to use of advanced precision technology in rice processing; digital transformation is ongoing via talent management systems.
Credit & Counterparty Risk
Receivables are primarily from new Middle Eastern markets where the company has been aggressive to gain market share, increasing counterparty risk.
