NFP Sampoorna Foods Ltd IPO

The company sources raw cashew nuts directly from selected farms in African countries and from registered domestic importers, while makhana is procured from farmers and aggregators in Bihar. It also claims to have established sourcing relationships in West African countries such as Benin, Ghana, Burkina Faso, and Togo, helping reduce dependence on intermediaries and maintain supply chain traceability.

The company claims to operate a processing unit at the RIICO Industrial Area, Rajasthan, equipped for cleaning, grading, boiling, cooling, sorting, and packaging of dry fruits. The facility reportedly has an installed capacity of 2,500 MT for cashew shell processing and 670 MT for finished cashew kernels, along with a 15 MT/day cashew processing facility at Neemrana, Rajasthan.

NFP Sampoorna Foods Limited operates across multiple sales channels, including B2B, B2C, institutional supply, and online marketplaces. The company also has a retail outlet at Khari Baoli, Delhi, which is known as one of India’s largest wholesale dry fruit markets, while also supplying hotels, restaurants, cafés, supermarkets, and sweet shops.

The company has expanded its product portfolio beyond cashew nuts by adding makhana, almonds, and walnuts over the last two years. It is also focusing on value-added healthy snack products such as roasted, flavoured, and vacuum-packed makhana targeted at the growing healthy snacking segment.

The company is ISO 9001:2015 certified for quality management systems and ISO 22000:2018 certified for food safety management systems. Its processing unit is also stated to be compliant with FSSAI regulations under the Food Safety and Standards Act, 2006.

The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 16.75 crore in FY23 to Rs 23.00 crore in FY24 and Rs 35.64 crore in FY25. PAT increased from Rs 0.41 crore in FY23 to Rs 1.02 crore in FY24 and Rs 2.67 crore in FY25.

The company’s business is heavily dependent on the procurement of raw cashew nuts (RCN), which are seasonal in nature and generally harvested between January and June. Any adverse climatic conditions, supply shortages, logistical disruptions, or fluctuations in domestic and international cashew prices could negatively impact raw material availability, procurement costs, and operating margins.

The company also has a high dependence on raw material costs as a percentage of revenue. Cost of materials consumed stood at Rs 13.31 crore (36.09% of revenue), Rs 14.64 crore (41.07%), Rs 5.85 crore (97.57%), Rs 12.52 crore (73.63%), and Rs 14.51 crore (86.67%) during the period ended November 30, 2025, FY25, the period ended March 31, 2024, the period from April 1, 2023 to December 20, 2023, and FY23, respectively. Any sharp increase in raw material prices without a corresponding increase in selling prices could adversely affect profitability.

A significant portion of the company’s raw materials is sourced through imports, particularly raw cashew nuts from African countries. Imported procurement contributed Rs 15.89 crore (53.82%) of total raw material procurement during the period ended November 30, 2025 and Rs 13.78 crore (50.94%) in FY25. Any disruptions in imports, foreign exchange fluctuations, geopolitical developments, or changes in import regulations could adversely affect the company’s supply chain and operations.

The company is substantially dependent on cashews and cashew products, which accounted for 97.82 percent of the company’s revenue for the period ended November 30, 2025; 97.49 percent in FY25; 99.99 percent for the period ended from December 21, 2023, to March 31, 2024; 96.22 percent for the period ended from April 1, 2023 to December 20, 2023, and 100 percent in FY23. This concentration exposes the business to fluctuations in demand, supply constraints, price volatility, adverse climatic conditions affecting cashew production, and changes in import/export regulations. Any adverse changes in market conditions, supply, or regulations relating to cashews may materially affect the company’s business, financial condition, cash flows, and reputation.

Delhi accounted for Rs 18.89 crore (51.23 percent) of the company’s total turnover for the period ended November 30, 2025; Rs 18.87 crore (52.96 percent) in FY25; Rs 16.20 crore (69.98 percent) in FY24, and Rs 10.28 crore (61.37 percent) in FY23. This dependence makes the business more vulnerable to region-specific disruptions such as regulatory changes, economic slowdowns, infrastructure issues, or other local disruptions affecting operations and demand in Delhi. Any loss of business from Delhi or adverse developments that impact sales in this region could negatively affect the company’s revenues and profitability.

The top supplier alone accounted for Rs 7.76 crore (26.29 percent) of the company’s total purchases for the period ended November 30, 2025; Rs 8.34 crore (30.83 percent) in FY25; Rs 2.10 crore (10.72 percent) in FY24, and Rs 3.52 crore (24.57 percent) in FY23. If this vendor reduces supply, changes terms, or stops supplying, the company may not be able to procure the required quantity or quality of material on comparable terms. Any disruption in supplies could adversely affect purchases, revenue, and results of operations.

The top customer accounted for Rs 2.80 crore (7.60 percent) of the company’s revenue for the period ended November 30, 2025; Rs 9.07 crore (25.46 percent) in FY25; Rs 10.48 crore (45.30 percent) in FY24, and Rs 9.47 crore (56.56 percent) in FY23. Any failure to retain this key client, expand the customer base, or loss of business from this customer can adversely affect the company’s business, results of operations, and financial condition.

The company had negative cash flows from operating activities amounting to Rs. 1.10 crore and Rs. 1.06 crore during the period from April 1, 2023 to December 20, 2023 and FY23, respectively. The company has reported negative cash flows from investing activities amounting to Rs. 0.50 crore, Rs. 3.15 crore, Rs. 0.24 crore, Rs. 0.15 crore, and Rs. 0.63 crore during the period ended November 30, 2025, FY25, and the period from December 21 to March 31, 2024, the period from April 1, 2023 to December 20, 2023, and FY23, respectively. It also recorded negative cash flows from financing activities amounting to Rs. 1.98 crore, Rs. 3.16 crore, and Rs. 1.02 crore during the period ended November 30, 2025, FY25, and the period from December 21 to March 31, 2024, respectively. If the company continues to experience negative cash flows or is unable to generate sufficient cash from operations, it may face liquidity constraints that could adversely affect its business operations and future expansion plans.

As of November 30, 2025, the company had outstanding financial indebtedness of Rs 14.10 crore. Failure to service or repay these loans could harm the company’s operations and financial position.

The company was incorporated on December 13, 2023, and therefore has a limited operating history as a corporate entity. This limited track record restricts the ability to evaluate its long-term performance, business sustainability, and response to changing market conditions based on historical data. Any inability to scale operations, manage costs, or navigate industry cycles as the business grows could adversely affect the company’s business and financial condition.