News Summary

• Manorama Industries’ FY26 revenue grew 76%, ROE touched 40%, and EBITDA margin expanded to 27%.
• The stock now trades at 34x earnings.
• But after two years of negative operating cash flow before a sharp rebound in FY26, the key question is whether margins, capacity expansion, pricing power, and cash conversion can continue to hold together.
• Manorama Industries makes a type of fat most consumers have never heard of, for products almost everyone consumes.
• Its core product, Cocoa Butter Equivalent (CBE), is a vegetable fat that closely mimics cocoa butter and can replace up to 5% of it in chocolate.