INDF - Earnings above expectation; agribusiness continue shining

KBVS update
Tuesday, 7 April 2026

INDF – Double-digit earnings on one-time gain
(Maintain BUY; TP IDR9,150)

* INDF's FY25 top line came in line with our and consensus ‘25F revenue for INDF at 102.2%/100.2%. Despite higher raw material cost and pressure on CBP’s segment brought, gross profit remains arrive in line with our forecast.

* At bottom line level, one-time gain has made INDF’s earnings surpassing our ‘25F PATMI for INDF by 5.49%, although still below consensus expectation.

* Across segments, pressure on CBP segment continues. Yet, stabilized by the remaining business divisions. Agribusiness continue shines, with robust growth of 31.8% yoy supported by volume and stronger asp.

* We expect to witness Bogasari and Agribusiness to continue supporting INDF’s ‘26F earnings. Maintain BUY with higher SOTP-based TP of IDR 9,150 (7.1x ‘26F P/E), while currently trading at an attractive 5.1x ‘26F P/E, or below -1SD.

Regards,
Akhmad Nurcahyadi - KBVS Research team