Chatha Foods Ltd (544151)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Chatha Foods' revenue was ₹82.0 Cr (-1.2% year on year, -2.4% on the previous half-year), and net profit ₹3.0 Cr (+0.0% year on year); the operating margin was 8.5%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹82.0 | -1.2% | -2.4% |
| Operating profit | ₹7.0 | +16.7% | +16.7% |
| Net profit | ₹3.0 | +0.0% | +0.0% |
| EPS (₹) | 1.45 | +22.9% | +16.9% |
| Operating margin | 8.5% | — | — |
📢 Recent Corporate Announcements
Chatha Foods Limited has obtained trading approval from BSE Limited for 16,000 equity shares of face value Rs 10 each, issued at a premium of Rs 117 per share. These shares were allotted to the Promoter Group pursuant to the conversion of warrants. The company confirmed that all 1,19,000 warrants previously issued on a preferential basis across December 2024 and February 2025 have now been completely converted into equity. Trading for these 16,000 shares is effective from October 12, 2026.
- Trading approval received from BSE for 16,000 equity shares effective October 12, 2026
- Shares issued at face value of Rs 10 each at a premium of Rs 117 per share
- Marks full conversion of entire 1,19,000 warrants allotted to Promoter & Promoter Group
Chatha Foods Limited has received listing approval from BSE Limited for 16,000 equity shares of face value Rs. 10 each. These shares were allotted to promoters pursuant to the conversion of 16,000 warrants issued on a preferential basis. The allotment is extremely small in scale, adding just Rs. 1.6 lakh to nominal capital relative to the company's Rs. 226 crore market capitalization. Consequently, the dilution impact on existing shareholders is negligible.
- BSE listing approval received for 16,000 equity shares of face value Rs. 10 each
- Shares allotted pursuant to the conversion of 16,000 warrants on a preferential basis
- Allotment made to the Promoters of the Company
- Document intimation filed on 29.09.2026 under SEBI Regulation 30
Chatha Foods has commenced commercial production at its new Unit II dedicated vegetarian manufacturing facility in Dera Bassi, Punjab. The fully automated 3.5-acre plant adds 16,000 metric tonnes (MT) of annual capacity across breads, cooking bases, and snacks/sides. This single expansion more than doubles the company's total manufacturing capacity to 30,800 MT annually across three units, backed by an estimated revenue potential of ₹200-210 Cr compared to TTM revenue of ₹323 Cr.
- Commercial production commenced at the 16,000 MT annual capacity dedicated vegetarian facility in Dera Bassi, Punjab.
- Total network manufacturing capacity expanded to 30,800 MT across three facilities (16,000 MT veg, 7,800 MT non-veg, and 7,000 MT JV).
- Facility spans 3.5 acres and supports production lines for cold-pressed breads, retort cooking, forming/coating, and IQF freezing.
- Positions the company to serve over 5,000 food outlets, QSR chains, HoReCa, and cloud kitchens under its Unifayre brand and private labels.
Chatha Foods Limited has issued an intimation regarding the dispatch of weblinks for its 29th Annual General Meeting (AGM) Notice and the Annual Report for FY 2025-26. The AGM is scheduled to take place on Monday, September 28, 2026, at 12:30 PM IST via Video Conferencing. The dispatch was carried out for shareholders whose email IDs are not registered, based on the cut-off date of August 28, 2026.
- 29th Annual General Meeting scheduled for Monday, September 28, 2026, at 12:30 PM IST via VC/OAVM
- Weblink intimation sent to shareholders without registered email addresses under SEBI Regulation 36(1)(b)
- Cut-off date for dispatch of the notice letter was Friday, August 28, 2026
- Shareholders reminded to complete mandatory KYC updates in compliance with SEBI master circular requirements
Chatha Foods announced its board meeting outcome, scheduling its 29th Annual General Meeting (AGM) for September 28, 2026. The board recommended shareholder approval for a material related-party transaction (RPT) limit of up to ₹40.00 crore with subsidiary Allana CF Foods Private Limited. This includes providing a corporate guarantee and security of ₹15.00 crore to Kotak Mahindra Bank to back credit facilities (a 60-month term loan and 12-month overdraft). The board also approved the regularization of Ms. Divya Babel as an Independent Director for 5 years.
- Recommended material RPT limit of up to ₹40.00 crore with subsidiary Allana CF Foods Private Limited
- Approved ₹15.00 crore corporate guarantee to Kotak Mahindra Bank for subsidiary's 60-month term loan and 12-month OD facility
- 29th AGM scheduled for September 28, 2026, with remote e-voting from September 25 to September 27, 2026
- Approved 5-year regularization of Independent Director Ms. Divya Babel (effective March 11, 2026 to March 10, 2031)
Chatha Foods Limited has received trading approval from BSE Limited for 1,03,000 equity shares of face value Rs 10 each, issued at a premium of Rs 117 per share (issue price Rs 127). These shares were allotted to promoters on a preferential basis upon conversion of 1,03,000 warrants. The newly allotted shares, representing a total value of approximately Rs 1.31 crore (~0.47% of market cap), are effective for trading from August 24, 2026.
- BSE trading approval received for 1,03,000 equity shares of face value Rs 10 each
- Shares issued at a premium of Rs 117 per share (total issue price of Rs 127 per share)
- Allotment made to Promoters pursuant to conversion of 1,03,000 preferential warrants
- Trading effective from Monday, August 24, 2026 under distinctive numbers 24081880 to 24184879
Chatha Foods has been allotted 2,03,300 equity shares in its subsidiary, Allana CF Foods Private Limited, for a cash consideration of Rs 20.33 Lakhs. This transaction, completed via a rights issue, establishes a 51% controlling stake in the subsidiary. Allana CF Foods is a newly incorporated entity (April 2025) focused on the ready-to-eat and ready-to-cook segments. While this specific investment is small (0.06% of TTM revenue), it formalizes the corporate structure for a joint venture expected to target international markets.
- Allotment of 2,03,300 equity shares at a face value of Rs 10 each
- Total cash consideration for this specific allotment is Rs 20,33,000
- Post-allotment shareholding in the subsidiary stands at 51%
- Subsidiary's total paid-up share capital is reported at Rs 39.80 Cr
- Subsidiary turnover is currently Nil as it was incorporated on April 08, 2025
Chatha Foods Ltd has received formal listing approval from BSE for 1,03,000 equity shares of Rs 10 each. These shares were issued following the conversion of an equivalent number of warrants previously allotted to the company's promoters on a preferential basis. At the current market price of Rs 116.7, the market value of these new shares is approximately Rs 1.2 crore. This represents a marginal 0.43% addition to the company's total market capitalization of Rs 282 crore.
- Listing approval received for 1,03,000 equity shares of face value Rs 10 each
- Shares issued pursuant to the conversion of 1,03,000 warrants
- Warrants were originally issued on a preferential basis to the Promoters
- Market value of the newly listed shares is approximately Rs 1.2 crore at current prices
Chatha Foods Ltd has completed the allotment of 16,000 equity shares to promoter Mr. Iqbal Singh Chatha upon the conversion of the final batch of warrants. The shares were issued at an exercise price of Rs 95.25 per share, representing the remaining 75% of the total issue price of Rs 127. This transaction concludes the conversion process for all 1,19,000 warrants originally issued in February 2025. The total consideration received in this final tranche is Rs 15.24 lakhs, resulting in a minor increase in the promoter's individual stake from 3.48% to 3.55%.
- Allotment of 16,000 equity shares at a face value of Rs 10 each upon warrant conversion.
- Exercise price fixed at Rs 95.25 per share, totaling Rs 15,24,000 for this tranche.
- Completion of the conversion of all 1,19,000 warrants originally issued on a preferential basis.
- Promoter Iqbal Singh Chatha's individual holding increased to 8,58,838 shares (3.55% post-issue).
- The warrant issue price was originally set at Rs 127 per warrant in February 2025.
Chatha Foods Limited (CFL) has entered into a supplementary agreement with Frigorifico Allana Private Limited (FAPL) to formalize their Joint Venture (JV), Allana CF Foods Private Limited. FAPL will infuse approximately ₹11.6 crore (₹10.8 crore in equity and ₹0.795 crore in CCPS) to reach a 49% stake, while CFL retains 51%. The JV's authorized capital is being increased to ₹42 crore to support its growth. This JV is a key pillar of CFL's strategy to reach a 4X revenue target by FY28-29, with the JV alone expected to contribute ₹180-190 crore in revenue.
- Authorized share capital of the JV increased to ₹42 crore, comprising ₹41 crore equity and ₹1 crore CCPS
- FAPL to subscribe to equity shares worth ₹10.805 crore to reach a 49% stake
- FAPL to subscribe to Compulsorily Convertible Preference Shares (CCPS) worth ₹0.795 crore
- Board of the JV reconstituted to 4 directors, with equal representation (2 each) from CFL and FAPL
- JV targets a revenue potential of ₹180-190 crore, representing ~57% of CFL's current TTM revenue
Chatha Foods has commenced commercial production at its 16,000 MT annual capacity vegetarian facility in Punjab. This plant represents a massive scale-up compared to the existing 5,562.5 MT non-veg capacity and carries a revenue potential of Rs 200-210 Cr, which is approximately 65% of the current TTM revenue of Rs 323 Cr. The facility targets QSR, HoReCa, and export markets with products like frozen flatbreads and ready-to-eat rice. This is a critical step toward the company's goal of 4X revenue growth by FY28-29.
- Commenced commercial production at a 16,000 MT annual capacity vegetarian unit in Punjab
- New capacity is nearly 3x the existing non-vegetarian capacity of 5,562.5 MT
- Plant has a projected revenue potential of Rs 200-210 Cr at full utilization
- Targets a 4X revenue growth by FY28-29 through this and the Allana JV initiatives
Chatha Foods Limited (CFL) has unveiled 'Unifayre Foods' as its new customer-facing brand identity, marking a strategic shift from its poultry-centric roots to a diversified food processing partner. The company, which has operated for over 30 years, serves marquee QSR, CDR, and HoReCa brands both in India and internationally. This rebranding follows the recent commissioning of a vegetarian food processing facility and aims to unify its expanded capabilities under one label. While the brand identity changes, the legal entity remains Chatha Foods Limited, and the rollout will occur over the coming months.
- 3 decades of evolution from a poultry-focused business to a diversified food processing company
- Introduction of 'Unifayre Foods' as the new unified customer-facing brand identity
- Integration of a recently commissioned vegetarian food processing facility into the new brand umbrella
- Rollout of the new identity across touchpoints to be completed over the coming months
Chatha Foods has announced that its joint venture facility with Frigorifico Allana Private Limited, named Allana CF Foods Private Limited, has achieved full operational readiness. The facility has completed all technical milestones, including equipment commissioning, trial manufacturing, and process validation. Commercial operations are scheduled for a phased scale-up starting in July 2026. The JV is currently focused on customer audits and product onboarding to secure its market position.
- Manufacturing facility achieved operational readiness as of July 9, 2026
- Phased scale-up of commercial operations expected to commence in July 2026
- Successful completion of trial manufacturing and all regulatory requirements
- Continuation of strategic expansion first disclosed on November 18, 2025
Financial Performance
Revenue Growth by Segment
Total revenue grew 17.5% YoY to INR 15,716.59 lakhs in FY25. The Non-vegetarian segment remains the primary driver, contributing 96.3% of total revenue, while Vegetarian and Plant-based segments contributed 2.8% and 0.9% respectively. The company targets a 20% revenue increase for the existing non-vegetarian facility in FY26, aiming for INR 180-185 crores.
Geographic Revenue Split
Domestic sales account for 100.0% of revenue as of FY25. The company currently has no export revenue (0.0%), though it aims to expand to international markets in the near future through the Allana JV and new product lines.
Profitability Margins
Gross margins were impacted by a 30% shift in product mix toward hand-cut/artisan products, which grew from INR 10 crores to INR 46 crores in revenue but carried higher initial acquisition and production costs. Net profit before tax slightly decreased by 2.9% from INR 855.87 lakhs in FY24 to INR 830.95 lakhs in FY25 due to these higher acquisition costs and investments in manpower.
EBITDA Margin
Operating profit before capital changes stood at INR 1,132.27 lakhs (approximately 7.2% margin) in FY25, compared to INR 1,217.92 lakhs in FY24. The margin compression was driven by a INR 60 lakh cost for customer trials, R&D, and sampling for new artisan product lines.
Capital Expenditure
Planned CAPEX includes INR 45 crores (INR 4,500 lakhs) for the Allana JV facility in Aurangabad and approximately INR 24.11 crores for the new vegetarian manufacturing facility (Plant II). As of March 2025, INR 22.92 crores of IPO proceeds had been utilized for setting up manufacturing facilities.
Credit Rating & Borrowing
Long-term borrowings increased by 190% to INR 358.18 lakhs in FY25 from INR 123.51 lakhs in FY24. Finance costs rose 43% YoY to INR 122.70 lakhs, reflecting increased debt utilization for expansion projects.
Operational Drivers
Raw Materials
Chicken is the primary raw material (estimated >70% of RM cost), followed by edible oil and vegetables such as onions. Chicken and oil are managed through annual contracts and 4-5 month long-term tie-ups to stabilize costs.
Import Sources
Sourced domestically within India, primarily through annual contracts with suppliers to mitigate the volatility of agri-commodity prices.
Key Suppliers
Not specifically named in the documents, but the company utilizes long-term tie-ups for oil and annual contracts for chicken and other major ingredients.
Capacity Expansion
Current non-vegetarian capacity is 5,562.5 MT/year. Expansion includes a new 16,000 MT/year vegetarian facility (Plant II) targeted for commissioning by August 2025 and a 7,000 MT/year JV facility with Allana Group expected to be operational by Q3 FY26.
Raw Material Costs
Cost of materials consumed rose 21.4% to INR 11,630.43 lakhs in FY25, representing 74% of revenue. The company uses annual pricing contracts with both suppliers and QSR customers to pass through costs, though extreme chicken price spikes can temporarily squeeze margins.
Manufacturing Efficiency
The company is transitioning from handmade artisan products to automated lines (e.g., imported cutting lines) to rationalize manpower costs and improve margins as volumes stabilize.
Logistics & Distribution
Distribution network includes 31 distributors across 40 cities, serving 316 QSR locations. Logistics costs are part of the operational overhead supporting a 17.5% revenue growth.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth will be driven by a 4X revenue target by FY28-29 through three pillars: 1) 20% growth in core chicken QSR business, 2) Commissioning of the 16,000 MT vegetarian plant (INR 200-210 Cr potential), and 3) The Allana JV (INR 180-190 Cr potential) focusing on meat exports and domestic RTE products.
Products & Services
Frozen and ready-to-eat (RTE) processed foods including chicken nuggets, patties, deli slices, rice bowls, empanadas, handmade samosas, and plant-based snacks.
Brand Portfolio
Chatha Foods Limited (CFL).
New Products/Services
Recent launches include rice bowls, sweet empanadas for a large Chinese fast-food chain, and a premium snacking range for cinema chains (PVR). New vegetarian patties for a large burger chain are currently in trials.
Market Expansion
Expanding from B2B QSR focus to include the foodservice sector (hotels/cafes) and international markets via the Allana JV. Target regions include 40 domestic cities and future meat exports.
Market Share & Ranking
Not disclosed as a specific percentage, but identifies as a leading supplier to major domestic and international QSRs in India.
Strategic Alliances
Joint Venture with Frigorifico Allana Pvt Ltd (Allana Group) titled 'Allana CF Foods Pvt Ltd' (70% CFL ownership) to produce RTE/RTC meat products for domestic and export markets.
External Factors
Industry Trends
The QSR industry is shifting toward 'artisan' or handmade-style products. CFL is positioning itself by investing in handmade production that later transitions to automated efficiency as volumes scale.
Competitive Landscape
Key competitors include Darshan Foods (Gurgaon), Venky's, Sneha Farms, and Square Meal (Bangalore).
Competitive Moat
Moat is built on deep B2B integration with QSR giants (Dominos, Subway), involving long-term R&D cycles (6-12 months) and NDAs on customized SKUs, making it difficult for competitors to displace them.
Macro Economic Sensitivity
Sensitive to food inflation and agri-commodity cycles, particularly chicken and vegetable prices, which affect the cost of materials (74% of revenue).
Consumer Behavior
Increasing demand for 'frozen-to-fry' convenience and vegetarian/plant-based options in QSR menus, prompting CFL's massive capacity expansion in the vegetarian segment.
Geopolitical Risks
Potential trade barriers for meat exports which the Allana JV intends to navigate using Allana's existing global distribution network.
Regulatory & Governance
Industry Regulations
Subject to FSSAI standards and meat processing regulations; the Allana JV specifically targets international export standards for meat products.
Environmental Compliance
Operates state-of-the-art hygienically prepared food facilities; compliance costs are integrated into general manufacturing overheads.
Taxation Policy Impact
Effective tax rate reflected in the provision for deferred tax liabilities which decreased from INR 244.88 lakhs to INR 212.17 lakhs in FY25.
Legal Contingencies
No major pending litigation or court cases disclosed in the provided financial statements or transcripts.
Risk Analysis
Key Uncertainties
The primary uncertainty is the successful commissioning and ramp-up of the new vegetarian plant (16,000 MT) and the Allana JV, which represent a massive jump from current 5,562 MT capacity.
Geographic Concentration Risk
100% of current revenue is from the Indian domestic market, with a focus on urban centers served by major QSR chains.
Third Party Dependencies
High dependency on the Allana Group for the success of the export strategy and on Dominos/Subway for nearly 68% of total revenue.
Technology Obsolescence Risk
Risk of manual artisan processes becoming uncompetitive; mitigated by the planned transition to imported automated cutting and processing lines.
Credit & Counterparty Risk
Receivables nearly doubled in FY25 (from INR 1,515 lakhs to INR 2,940 lakhs); management is actively working to bring the cash conversion cycle down to 50-55 days.
