Quanto Agroworld IPO

Quanto Agroworld cultivates medicinal and aromatic plants, chiefly lemongrass, on leased farmland in Maharashtra and processes the harvest into two B2B product lines: chunks and tea-cut, which is farm produce cut to customer specification, and essential oil extracted by steam distillation. Buyers are industrial, spanning personal care, home care, fragrance, aromatherapy, nutraceutical and pharmaceutical manufacturers, plus herbal tea blenders. The company takes agricultural land on five- to ten-year leases, develops it, and runs the farming with local labour; lemongrass has a seven-year productive life and yields four to five commercial harvests a year, so raw material arrives year-round. Its processing plant is at Ravalgaon, Nashik, on about half an acre, with certified installed capacity near 11.25 tonnes of oil a year. It had 11 permanent employees at the prospectus date.

Revenue comes from selling cut biomass and distilled oil by the tonne, with no recurring contracts; the DRHP states most customers are not on long-term agreements. Total income was ₹40.35 crore in FY26 against ₹16.49 crore in FY25, with FY26 EBITDA of ₹11.92 crore and profit after tax of ₹8.38 crore. Cost sits upfront in land development, irrigation and lease commitments made before any harvest, though the company burns its own farm waste as distillation fuel rather than buying fuel. The structural constraints are customer concentration and throughput: the top five customers were 77.09% of FY24 revenue, and installed distillation capacity caps how much biomass becomes oil.