FMCG stock jumps 6% after receiving ₹34 Cr under the Government’s PLI scheme

Synopsis: Shares of a fruit pulp manufacturer surged up to 6% after receiving ₹33.87 crore under the PLI Scheme for FY25. Trading near ₹61.68 with a ₹452 crore market cap, the incentive and two-year eligibility boost sentiment despite recent operating performance pressures.

The shares of this fruit pulp manufacturer gained up to 6 percent in today’s trading session from the intraday high after the company received Rs 33.87 crore under the Government’s PLI Scheme for FY25.

With a market capitalization of Rs 452.82 crore, the shares of Foods & Inns Ltd were trading at Rs 61.68 per share, increasing around 4.47 percent as compared to the previous closing price of Rs 59.04 apiece.

PLI Scheme

The shares of Foods & Inns Ltd have seen positive movement after receiving Rs 33.87 crore under the Production Linked Incentive (PLI) Scheme for FY25 from the Ministry of Food Processing Industries. The incentive reflects the company’s compliance with investment, sales, and operational milestones. Notably, it remains eligible for incentives for an additional two years, strengthening revenue visibility.

Furthermore, this approval highlights Foods & Inns Ltd’s strong execution capabilities and alignment with the government’s push to boost domestic manufacturing and value addition. The incentive support is expected to enhance manufacturing efficiency, improve cost competitiveness, and aid capacity expansion, thereby reinforcing long-term financial sustainability and growth prospects.

Management Commentary

The management stated that receiving incentives under the PLI Scheme underscores the company’s strong execution capabilities and commitment to developing globally competitive food processing operations in India. Moreover, the extended eligibility period enhances medium-term growth visibility. The company emphasized its continued focus on disciplined capital allocation, operational efficiency, and sustainable long-term value creation for stakeholders.

Financials

The company reported a weak quarterly performance, with revenue declining 21% to Rs 150.47 crore in Q3FY26 from Rs 189.43 crore a year ago. Moreover, net profit fell sharply by 46% to  Rs 0.43 crore, indicating pressure on margins and overall profitability during the quarter.

Between Dec 2024 and Dec 2025, Foods & Inns Ltd saw a decline in operating performance. Operating profit dropped from  Rs 18.56 crore in Dec 2024 to  Rs 16.87 crore in Dec 2025. However, operating margin improved from 9.80% to 11.21%, indicating relatively better cost control despite lower overall operating earnings during the year. 

Foods & Inns operates across 50+ countries with over 30 product varieties and seven processing units supported by two logistics centers. The company employs more than 600 people. In FY25, mango pulp contributed 79% to sales, followed by other verticals at 13%, tomato pulp at 5%, and guava pulp at 3%, highlighting product concentration.

Foods & Inns operates seven self-owned facilities across Maharashtra, Gujarat, and Andhra Pradesh, covering aseptic processing, canning, frozen products, spices, and concentrates. Capacities vary across product lines, with aseptic units reaching up to 18 MT/hr. Additionally, the company runs two logistics centers in Mumbai and Chennai and has installed solar panels to reduce power costs.

Foods & Inns Ltd is an Indian food processing company engaged in manufacturing and exporting fruit pulps, concentrates, frozen foods, and vegetable-based products. With multiple processing facilities across key states, the company caters to domestic and international markets. It focuses on value-added products, efficient operations, and expanding its presence in global food supply chains.

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