INDF - Resilient core, softer margins; inline

KBVS update
Thursday, 21 May 2026

INDF – Resilient core, softer margins; inline
(Maintain BUY; TP IDR9,150)

* INDF delivered resilient 1Q26 results, meeting our ‘26F and market expectations at a run-rate of 26.1%/25.4%, with a revenue growth of +7.4% YoY. Earnings grew +8.6% YoY to IDR 2.95 tn, heavily rescued by significantly lower (-56.2% YoY) forex losses.

* Noodles led the charge, with revenue up by +7.6% YoY, contributing 58.0% to INDF’s total sales, an increase of 47bps YoY vs 57.5% in 1Q25. Bogasari saw healthy growth of +7.4% YoY and recorded the highest margin expansion to 9.2% (+127bps).

* On the flip of coin, the company saw rising input costs (+10.0% YoY) and operating expenses (+16.8% YoY) dragging EBIT down by -5.7% YoY to IDR6.53 tn. Additionally, Agribusiness segment growth moderated due to lower ASP of CPO (dropping from IDR 14,412/kg to IDR 14,202/kg).

* Maintain BUY with SOTP-based TP of IDR 9,150 (7.1x ‘26F P/E), while currently attractively trading at 5.2x ‘26F P/E, or below its -1SD of 5.8x ‘26F.

Regards,
Akhmad Nurcahyadi - KBVS Research team