Financial Performance Summary

Q2 FY2027 Consolidated Results (vs. Q2 FY2026)

  • Revenue from Operations: ₹630.5 crores (up 14.3% from ₹551.4 crores)
  • EBITDA: ₹82.5 crores (up 19.1%)
  • EBITDA Margin: 13.1% (expansion of 50 bps)
  • PAT: ₹45.7 crores (up 25.2%)
  • PAT Margin: 7.3% (vs. 6.6%)
  • Sequential Growth (Q2 over Q1): Revenue up 14.9%

H1 FY2027 Consolidated Results (vs. H1 FY2026)

  • Revenue from Operations: ₹1,179.3 crores (up 15.1% from ₹1,024.4 crores)
  • EBITDA: ₹154.6 crores (up 21.2%)
  • EBITDA Margin: 13.1% (expansion of 70 bps)
  • PAT: ₹84.5 crores (up 25.4%)
  • PAT Margin: 7.2% (vs. 6.6%)

Business Segment Performance

Biscuit Business:

  • Domestic and export biscuit business grew in low-teens (excluding agencies)
  • Domestic biscuit volume growth was mid-single digit (~4-5%) in Q2

Bakery Business:

  • Sustained strong momentum with high-teens growth
  • English Oven volume growth in mid-teens, value growth in high-teens
  • Institutional bakery volume and value growth in mid to high-teens

Export Business:

  • Continued growth despite challenges
  • West Asia conflict impacted vessel availability and freight rates
  • U.S. market sustained momentum
  • Full-year export growth outlook maintained at mid-teens

Operational and Strategic Updates

Distribution Expansion:

  • Biscuit distribution: Added ~30,000 outlets towards target of 40,000 outlets with ₹245+ monthly billing
  • Total biscuit outlets in defined geography: ~345,000
  • Added 10-15% additional distributors
  • English Oven added 12,000-13,000 outlets over past year (~20-22% increase)

Capacity Expansion:

  • New Kolkata and Khopoli bakery units scaling up well
  • Strengthening presence in East and West markets

Product Innovation:

  • English Oven: Entered pav segment in Mumbai with Zero Maida Pav; added peanut butter on-the-go brownie
  • NaturBaked: Launched pre-sliced whole wheat sourdough
  • Cremica: Launched coconut cream
  • Quick commerce: Success with shortbread (25% butter, no palm oil) and Zero Maida coconut biscuit
  • Planned launches: Three new innovative products and two seasonal collaborations for Christmas on quick commerce platforms

Brand Building:

  • Cremica: School Shuru Back to School campaign (TV and on-ground); "Crunch Khol, Sach Bol" campaign; Dal Lake activation in Kashmir
  • Festive campaigns: Rakhi campaign; Dahi Handi and Ganesh Chaturthi participation in Mumbai

Management Commentary on Operating Environment

Market Conditions:

  • Below-normal monsoon weighed on rural sentiment
  • Sharp food inflation squeezed household budgets
  • Headline consumer inflation rose from ~4.4% in June to 5.5% in September 2026 (highest in nearly two years)
  • Driven by edible oils, sugar, and cereals
  • Crude oil at multi-year high pushed up inflation, freight, and packaging costs

Margin Management:

  • Q2 price increases and cost savings under Project IMPACT offset most, but not all, inflationary impact
  • Gross margin dipped from Q1 level
  • Other expenses rose with higher freight and fuel costs
  • Pressures continued into Q3; margins expected to remain under pressure in near term
  • Calibrated pricing and cost actions to continue
  • Expect recovery to build progressively as price increases annualize and Project IMPACT interventions mature

Leadership and Organization Updates

Succession Planning:

  • Company stated it has not yet taken a call on succession planning
  • Current focus on building organization strength
  • CEO Manu Talwar will remain with company for support whenever transition occurs

Business Leadership Structure:

  • Ishaan Bector leads bakery business (English Oven and B2B)
  • Suvir Bector now mentors both export business and domestic biscuit business
  • Leadership further strengthened for both segments

Outlook and Guidance

Revenue Growth:

  • Full-year growth expected in mid-teens
  • H2 growth forecast: mid-to-high teens

Margin Outlook:

  • Target to maintain EBITDA margins in Q3 despite commodity pressures
  • Expect improvement in Q4, targeting closer to 13.5%-14%
  • Medium-term target: 14%-15% EBITDA margin

Pricing Actions:

  • Q2 price increase: ~3% over Q1
  • Full-year price increase expectation: ~5-6%
  • Additional price increases taken in October, partially in November

Volume Growth Targets:

  • Domestic biscuit volume growth target: increase from ~5% to high single-digit and eventually double-digit
  • Drivers: distribution expansion, premiumization, Cremica Preferred Outlet program (currently 13-14% contribution, target 20%)

Channel Performance

Quick Commerce:

  • Contribution to B2C businesses (bakery and biscuit): ~22%
  • Organized trade contribution in bakery segment: 43-44%
  • Margins better in quick commerce due to efficiency gains, better procurement planning, and lower freight costs
  • Key platform for premiumization and innovation

Geographic Focus:

  • North India remains dominant market (~75-80% contribution)
  • Expansion efforts in East (Kolkata) and West (Khopoli, Maharashtra)
  • New partner unit in Lucknow to serve north markets