Synopsis: A market leader stock gained strong traction after delivering healthy Q2FY26 results marked by higher profitability, improved margins and steady demand trends across domestic and export markets, keeping investors focused on the company’s performance.
India’s market-leading basmati rice stock attracted investor interest after reporting stable sequential performance and robust annual growth, led by stronger profitability and margin expansion. The market reaction was supported by the company’s improving operating metrics, favourable cost environment and continued momentum in both branded and export businesses.
KRBL Ltd, with a market capitalization of Rs. 9,509.23 crore. opened at Rs. 399.70 against a previous close of Rs. 378.60 and touched an intraday high of Rs. 426.70, rising 12.71 percent from the previous close. The company has a 38.5 percent GT (General Trade) market share, 40.8 percent MT (Modern Trade) market share, and a reach of 11 million Indian households.
Financial Snapshot – Q2FY26
On a quarter-on-quarter basis, sales declined from Rs. 1,584 crore to Rs. 1,511 crore, falling 4.61 percent, while operating profit increased from Rs. 193 crore to Rs. 226 crore, rising 17.10 percent. Operating margin improved from 12 percent to 15 percent. Profit before tax grew from Rs. 202 crore to Rs. 233 crore, higher by 15.35 percent. Net profit increased from Rs. 151 crore to Rs. 172 crore, up 13.91 percent, and EPS rose from Rs. 6.58 to Rs. 7.52.
On a year-on-year basis, sales rose from Rs. 1,270 crore to Rs. 1,511 crore, growing 18.98 percent, and operating profit surged from Rs. 123 crore to Rs. 226 crore, up 83.74 percent. Operating margin improved sharply from 10 percent to 15 percent. Profit before tax increased from Rs. 138 crore to Rs. 233 crore, higher by 68.84 percent. Net profit rose from Rs. 103 crore to Rs. 172 crore, up 66.99 percent, and EPS improved from Rs. 4.49 to Rs. 7.52.
Operational Highlights
The company saw a strong export demand, with export revenue rising 74 percent, while domestic revenue grew 6 percent. Gross margins benefited from a decline in average basmati COGS, which fell by 11 percent, and this trend also supported EBITDA improvement. Total inventory as of 30 September 2025 stood at Rs. 2,279 crore, significantly lower than Rs. 3,013 crore a year earlier due to reduced volumes and lower per-unit carrying costs.
About the Company
Founded in 1993 by Mr. Anil K. Mittal, Mr. Anoop K. Gupta and Mr. Arun K. Gupta, KRBL Ltd is one of India’s largest integrated rice companies with a strong presence in both domestic and international markets. Its portfolio includes brown rice, white rice, steamed rice, parboiled rice, organic varieties, chia seeds and bran oil, with a primary focus on milling premium basmati rice. The company operates well-known brands such as India Gate, Doon and Nur Jahan in the premium segment, while also expanding its reach in the value basmati category under the Unity brand.
-Manan Gangwar
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