Financial Performance Highlights

Quarter Ended September 2026 (Q2 FY27):

  • Revenue from operations: ₹461.5 crore, up 22.9% YoY and 9.3% sequentially
  • Gross profit: ₹125 crore, growth of 26.1% YoY
  • Gross margin: 27.1% vs 26.4% in Q2 FY26
  • EBITDA: ₹41.6 crore, up 72% YoY and 32% sequentially
  • EBITDA margin: 9.0% vs 6.4% in Q2 FY26 and 7.4% in Q1 FY27
  • Profit before tax (before exceptional items): ₹25.9 crore, up 93% YoY
  • Profit after tax: ₹45.9 crore (PAT margin 9.9%), includes net exceptional gain of ₹35.3 crore

Half-Year Ended September 2026 (H1 FY27):

  • Revenue from operations: ₹883.9 crore, up 26.7% YoY
  • Gross profit: ₹238.6 crore, growth of 30.5% YoY
  • Gross margin: 27.0% vs 26.2% in H1 FY26
  • EBITDA: ₹73.0 crore, up 85.7% YoY
  • EBITDA margin: 8.3% vs 5.6% in H1 FY26
  • Profit before tax (before exceptional items): ₹44.5 crore, up 138% YoY
  • Profit after tax: ₹58.7 crore vs ₹28.2 crore in H1 FY26 (PAT margin 6.6%)
  • Includes net exceptional gain of ₹35.3 crore vs ₹21.8 crore in H1 FY26

Product Category Performance (Q2 FY27)

  • Gathiya sales: grew 25.6% YoY
  • Wafers: grew 40% YoY
  • Snack Pellets and extruded snacks: grew 23% YoY
  • Namkeen segment: value growth of 18.3% in H1, volume growth of 8.6%

Operational Highlights

Distribution Network:

  • Total distributors: 1,057 as of September 2026 (vs 1,007 in June 2026, 953 at FY26 end)
  • Micro distributors under super stockist model: 150
  • Dual servicing outlets in Gujarat: 42% in September, increased to 43.5% by October end
  • Target: Reach 65%-70% outlets with dual services by FY27 end

Manufacturing & Expansion:

  • Besan manufacturing unit commenced in Nagpur in September 2026
  • Expected annual benefit: ~₹3 crore from reduced transportation costs
  • Capacity utilization: Currently at 37%-38% company level

Insurance Claim Settlement:

  • Received full and final insurance claim of ₹36.4 crore in October 2026 relating to fire incident
  • Aggregate recovery including interim payment, scrap sale proceeds, and final claim: ₹77.4 crore

Raw Material Cost Structure

  • Palm oil: 27% of raw material basket
  • Laminate (packing material): 22%-23%
  • Chana: 19% (till H1)
  • Overall inflation impact: 5.5% compared to last financial year average

Price Adjustment Strategy

In response to 2.3% inflationary impact from Q1 to Q2:

  • 1.1% passed through grammage correction
  • 0.4% through price increase
  • 0.4% through lowering trade discounts and product mix improvement

Channel Performance (H1 FY27)

  • Railways: ₹3.77 crore vs ₹2.34 crore YoY
  • Modern trade: ₹3.63 crore vs ₹2.1 crore YoY
  • Quick Commerce: ₹7.07 crore vs ₹3.48 crore YoY
  • Export: ~₹50-60 lakhs monthly before October, reached ~₹1 crore in October

Joint Venture Performance

  • Manendragarh: ₹3.5-4 crore per month (running out of capacity)
  • Kashipur: ₹1.25 crore per month
  • Hiriyur: ₹85 lakhs per month

Guidance & Outlook

  • Maintained revenue guidance: ₹1,800-1,900 crore for FY27
  • Maintained EBITDA margin guidance: 8.9%
  • Expect 20% minimum growth every year
  • Target for new channels (exports, quick commerce, modern trade): ₹30-35 crore in FY27, ₹75-90 crore next year
  • Non-palm oil based products contribution: 3.25% in H1, target 4.5% by FY27 end, 6.5% next year

Future Plans

  • Adding 25-30 distributors in Gujarat for Western snacks category (ready stock business model)
  • 15 distributors operational by 31 December 2026, 20 more between 15 January-31 March 2027
  • Healthier snack category launch by mid-December 2026, focused on Quick Commerce and modern trade
  • Total distributor addition target: ~220 for calendar year 2026 (revised from 250)

Management Commentary

The management emphasized focus on improving capacity utilization, expanding distribution, maintaining profitable product mix, passing on inflationary costs to consumers, and maintaining cost discipline. They noted challenging raw material environment but expressed confidence in achieving double-digit EBITDA margins once war scenario eases and normalized environment returns.