Manorama Industries Bets on Africa amid Earnings Momentum

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Forward Integration, Burkina Faso Expansion Put Specialty Fats Maker in Spotlight

By S. JHA

Mumbai, February 10, 2026 — Manorama Industries Ltd is fast emerging as one of India’s most closely tracked mid-cap specialty manufacturing stories, combining robust earnings growth, capacity expansion, and a strategic push into Africa to secure raw material supply chains.

The specialty fats and cocoa butter equivalents (CBE) maker, with a market capitalisation of around ₹8,400 crore, has reinforced its global ambitions by incorporating a wholly owned subsidiary, TAANG KAAM INDUSTRIES SA, in Burkina Faso. The new entity, approved in January 2026, will focus on buying, processing, and selling shea nuts, shea butter, mango kernels, mango butter and other exotic raw materials, strengthening Manorama’s backward integration model.

The company plans to infuse up to CFA 1.6 billion in tranches, a move analysts see as strategically significant despite the subsidiary having no operational history yet. Africa remains central to Manorama’s sourcing strategy, and local processing is expected to improve margins and supply stability over the medium term.

On the financial front, Manorama continues to deliver. For Q3 and 9M FY26, the company reported revenues of ₹363 crore, prompting management to revise FY26 revenue guidance upward to ₹1,300 crore. Operating performance has been supported by strong demand from the chocolate, confectionery, and cosmetics sectors, alongside higher utilisation of its upgraded fractionation facilities.

The company has also approved a ₹460 crore capex plan over the next 2–3 years, including new solvent fractionation units, refinery capacity, and forward integration into cocoa butter alternatives—moves aimed at sustaining long-term growth.

Bull Case

Strong earnings visibility, high-margin value-added products, and deepening integration across the value chain support a medium-term target zone of ₹1,550–1,650, assuming execution remains on track as per analysts.

Bear Case

At elevated valuation multiples, delays in African operations, cost overruns, or demand slowdown could cap upside, with downside support seen around ₹1,200–1,250 as per analysts.

Bottom line: Manorama Industries remains a high-quality growth play—but the next leg will hinge on execution, not just expansion announcements, believe stock observers.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company.)