TBI Corn completes capacity expansion, sees muted profit upside from big customers
New Malkapur plant and Mumbai export unit are online. Volume growth hit 44%, but the 5-9% margin band with ITC and peers limits near-term profit gains.
What's new
- FY26 volume grew 44% year-on-year; capacity expanded to 390 tonnes per day after adding 40 TPD at Malkapur.
- Export revenue scaled 2.5x to ₹30 crore, with Mumbai SEZ unit delivering ₹11.89 crore in three months.
- Corn germ extraction yield reached 4.5%, targeting 5.5% in FY27 and 6-8% in the medium term.
- Direct farmer procurement share rose to 25% from 12%, adding an estimated 25-30 basis points to EBITDA.
Themes from the call
Capacity
Domestic capacity has more than doubled since IPO to 310 TPD, and the 120 TPD Mumbai export unit is operational, but H2 FY26 utilization was only 72% on the older base.
Margins
Near-term profit gains are constrained by fixed 5-9% gross bands with large customers like ITC, who track maize prices closely.
Export
Exports are the planned lever for higher profit contribution, targeting 20% of revenue by FY28 on premium non-GMO positioning for customers like Kellogg's and Nestlé.
Guidance watch
- FY28 target remains ₹1,000 crore revenue at a 35% CAGR, driven by exports and new capacity utilization.
- Export share goal is 20% of total revenue by FY27-FY28, up from about 10% currently.
- Germ extraction yield target of 5.5% in FY27, with a medium-term goal of 6-8%.
Risk flags
- The 5-9% margin band with large domestic customers is structural and caps pricing power on 60-70% of revenue.
- Contract farming pilots carry execution risk, as farmers may breach agreements if spot prices spike.
- Consolidation of Mumbai unit via 1:1 share swap is pending regulatory approval and full occupancy certification.
Key quotes
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"We do not expect margins to increase much. Our large customers, like ITC, are very aware of maize price trends."
— TBI Corn management -
"Percentage margins generally stay in the range of 5% to 9%."
— TBI Corn management
The brief
TBI Corn's call was a clear-eyed account of where the new capacity goes next. The company completed a major expansion push, adding 40 TPD at Malkapur and bringing a 120 TPD Mumbai export unit online. Volume grew 44% in FY26, and operating cash flow turned positive at ₹33.41 crore. The export business scaled from ₹12 crore to ₹30 crore.
But the profit story remains flat. Management was candid that big customers like ITC operate on fixed 5-9% gross bands tied to raw material costs, leaving little room for near-term gains on 60-70% of revenue. This is the central constraint. The plan to work through it rests on two bets: premium export markets where non-GMO Indian corn commands a $25-40 per ton price advantage, and higher germ extraction yields from internal R&D. Germ yield has already moved from 1-2% to 4.5%, with a target of 5.5% in FY27.
The ₹1,000 crore revenue target by FY28 is still on the table. But it depends on filling new capacity and winning MNC export contracts, both of which are mid-term plays. In the near term, the business is what it is: a high-volume, low-margin processor with excellent procurement discipline. The open question is whether exports can break the structural profit ceiling before domestic volume growth plateaus.
TBI Corn built the capacity. The profit gains will have to come from exports and germ yield, not its biggest domestic customers.