KRBL Q1FY26 Pumps Stock 10% Higher in India-UK FTA Shadow

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India’s leading basmati rice exporter posts strong margins, export revenue up 98% on private label sales

By S JHA

MUMBAI, August 8, 2025 — KRBL Ltd, India’s largest basmati rice exporter and owner of the India Gate brand, reported a strong set of numbers for Q1FY26, driven by surging export sales and steady domestic demand. Shares of KRBL were trading higher by over 10% on Friday in the morning session.

Revenue from operations rose 32% year-on-year to ₹1,584 crore, powered by a 98% jump in export revenue on the back of higher private label sales, while domestic revenue grew 15%. Total income for the quarter stood at ₹1,617 crore.

Gross profit increased 46% YoY to ₹415 crore, with margins improving to 25.7% from 23.2% a year earlier. Operating performance was robust, with EBITDA climbing 62% YoY to ₹225 crore, translating to a margin of 13.9%.

Net profit surged 74% YoY to ₹151 crore, compared with ₹87 crore in the same quarter last year, aided by strong sales growth and controlled finance costs. The company maintained minimal debt reliance and reported a healthy cash flow position.

According to market data, KRBL’s net sales for the last six months reached ₹3,026.6 crore, up 20.22% year-on-year, underscoring sustained demand for its products despite a slowing debtors turnover ratio.

KRBL continues to leverage its scale, operating the largest rice milling plant in Punjab and managing the biggest contact farming network in the industry. The India Gate brand is consumed in over 1.1 crore households in India.

On the export front, basmati rice shipments from India grew 16% in FY25, with the Middle East accounting for 75% of total volumes. KRBL’s global reach has been supported by awards for manufacturing excellence, social media campaigns, and leadership recognition.

Looking ahead, the company’s management remains optimistic about sustaining growth momentum, supported by favourable demand trends in both domestic and export markets.

Shares of KRBL were trading at ₹410, just behind its 52-week high. The market valuation of the company stands at ₹9400 crores. The face value of shares of KRBL is ₹1. The stock is trading at a PE multiple of 17.4.

Analysts claim that Basmati rice exporters stand to gain from the India-UK Free Trade Agreement. India last month signed the FTA with the UK after at least two years delay. Analysts argue that Basmati rice exporters can boot their reach in Europe after the FTA with the UK.

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