Concall Note / FMCG / MADHUSUDAN

Madhusudan Masala missed its FY26 revenue guidance by ₹49 cr and pushed its margin target to FY28

Management promised ₹325-340 cr revenue for FY26 but delivered ₹291 cr, and deferred 12% EBITDA margin to FY28 without explaining the miss

MADHUSUDAN ISIN INE0P6701019 27 May 2026 Analysis source: Tijori Concall Monitor

Management consistency flag

In the November 2024 call, management projected FY26 revenue at ₹325-340 cr and EBITDA margin at 12%. In the May 2026 call, FY26 closed at ₹291 cr revenue and 11.3% margin. Management called FY26 an 'excellent year' without explaining why the targets were missed.

What's new

FY26 revenue was ₹291 cr, a ₹49 cr miss on the ₹325-340 cr guidance from November 2024.
FY26 EBITDA margin was 11.3%, below the 12% target, and management now says 12-12.5% will come in FY28.
Management now guides for ₹400 cr revenue in FY27, claiming '100% certainty'.
Branded sales hit 70% of revenue, up from 66%, but the 80% target is delayed to H2 FY28.

Themes from the call

Guidance credibility

Management missed both its revenue and margin guidance for FY26 by a wide margin and offered no explanation for the shortfall.

Growth

Revenue grew 26% to ₹291 cr and branded sales rose 40% to ₹204 cr, so the underlying business is expanding, just below the promised pace.

Capacity

Jamnagar is at 99% utilization, and a new 6,000 MT Rajkot facility is due in September 2026, but total owned capacity will still lag FY26 volume.

Guidance watch

FY27 revenue target is ₹400 cr, with management stating '100% confidence'.
EBITDA margin target of 12-12.5% is now pushed to FY28, from the original FY26 target.
Branded sales mix target of 80% is delayed to H2 FY28, from the original FY25 target.

Risk flags

FY26 guidance was missed on both revenue and margin, but management called it an 'excellent year' without addressing the gap.
New Rajkot capacity will still leave owned production short of current volume, meaning outsourcing continues.
The ₹400 cr FY27 target requires 37% growth, on top of a year where guidance was missed.

Key quotes

"We are 100% sure that in FY27 we will cross Rs 400 crores in revenue."
— Madhusudan Masala management
"FY26 has been an excellent year. We closed with total sales of 291 crores, compared to 232 crores last year."
— Madhusudan Masala management

The brief

Madhusudan Masala missed its FY26 guidance by a wide margin and called the year a success. Revenue came in at ₹291 cr, well below the ₹325-340 cr management guided in November 2024. EBITDA margin landed at 11.3%, short of the 12% target. The response was to call FY26 'excellent' and push the margin goal to FY28. The credibility gap is now the headline.

Branded sales grew 40% to ₹204 cr and are 70% of revenue. Ground spices were a standout, growing 64% to ₹90 cr. The underlying business is clearly expanding. But management's track record on its own numbers is now two-for-two in the wrong direction. The new FY27 target is ₹400 cr, a 37% jump from a base that was already below target. Management says it is '100% certain', but that same certainty produced a ₹49 cr miss this year.

The branded mix target of 80% has been pushed from FY25 to H2 FY28. The margin target has been pushed from FY26 to FY28. The pattern is a slow walk backward while the verbal commitment stays forward. The new Rajkot plant will help, but it won't close the capacity gap. Madhusudan is still outsourcing a significant portion of its blended spices and groceries.

For now, the company is growing fast. But the guidance is becoming a moving target, and management's silence on why it missed is louder than the growth numbers.

The take

Madhusudan's growth is real, but its guidance is not. The growth numbers are credible. The targets are not.

Source Tijori Concall Monitor analysis This brief is derived from Tijori's call-monitor analysis, not the exchange transcript source of record. Verify material claims against the company's call materials where available.