Pakka Limited – Investor Presentation Summary

Key Operational Highlights

  • Volume grew from ~2,600 MT to ~3,100 MT — highest volume year yet
  • Net revenue grew from ₹55 Cr to ₹63 Cr — strong volume-led growth
  • Footprint expanded across 25+ new cities and retail touchpoints
  • B2C revenue grew from ₹2.5 Cr to ₹6.5 Cr — 2.5x growth through new channels and SKUs

Key drivers of operational performance: New product launches, geographic expansion to 25+ new cities, expansion of retail touchpoints and e-commerce platforms

Segment-wise Performance

India Business Performance:

  • Q4 FY26 Revenue: ₹87.61 Cr (vs ₹96.21 Cr in Q4 FY25, ₹99.64 Cr in Q3 FY26)
  • Q4 FY26 PBT: ₹12.42 Cr (vs ₹12.16 Cr in Q4 FY25, ₹12.75 Cr in Q3 FY26)

Food Services Business:

  • Q4 FY26 Revenue: ₹16.87 Cr (vs ₹16.84 Cr in Q3 FY26)
  • Q4 FY26 PBT: -₹2.68 Cr (vs -₹2.26 Cr in Q3 FY26)

Financial Highlights

Q4 FY26 Performance:

  • Revenue: ₹87.61 Cr (down 9% YoY from Q4 FY25 ₹96.21 Cr, up 6% QoQ from Q3 FY26 ₹82.80 Cr)
  • PBT: ₹12.42 Cr (up 2% YoY from Q4 FY25 ₹12.16 Cr, down 17% QoQ from Q3 FY26 ₹15.02 Cr)

Full Year FY26 Performance:

  • Revenue: ₹366.56 Cr (up 20% YoY from FY25 ₹423.17 Cr)
  • PBT: ₹71.74 Cr (down 16% YoY from FY25 ₹67.15 Cr)

Drivers of financial performance: Higher volume growth, expansion to new geographies and channels, but impacted by manufacturing transition costs and one-off items

Key Risks: Manufacturing/plant transition costs (₹3 Cr impact), one-off & non-cash items (₹3 Cr impact including clearance of old stock, inventory write-offs, project development costs)

Strategic & R&D Initiatives

Plan of Action:

  • Grow B2B: New cities & geographies (+25 key cities), more resellers & distributors (+50 new), win back key accounts
  • Scale B2C: More retail touchpoints, quick-commerce & e-commerce platforms, modern trade & big-box stores (15+ national level chains)
  • Asset-light COGS: Scale via outsourcing partners, add to P&L without capex, lower cost execution
  • Diversify & Export: New product categories, delivery range & cutlery, US market opportunity

Innovation Highlights:

  • NM flexibles pilot - July 2026
  • Delivery commercialization (Phase 1) - August 2026
  • Ayodhya lab & team strengthening - July 2026

Project Progress:

  • Effective commissioning of Project Jagriti
  • Build asset light model
  • Transformation of food service business
  • Build delivery range and flexC
  • Effective cost optimization

Funding Efficacy

Major Refinancing with Neo Group:

  • Neo group replaces existing banks
  • Revised Terms: 4-month moratorium, then 12% for next 20 months (was 10.5%), no principal repayment for 16 months, effective interest rate: 16.95%
  • Facility Drawn: NCD ₹500 Crores
  • Neo's equity: ₹30 Crores
  • Promoter equity: ₹85 Crores
  • Security: First charge on fixed assets; second charge on current assets; personal & corporate guarantees; pledge of shares

Management Commentary & Growth Outlook

Why Losses Are Elevated: Revenue grew but reported loss is larger due to well-understood drivers that are largely one-time or plant related, not core demand issues

Manufacturing/Plant (₹3 Cr impact): In-house production currently carries higher cost than market, plant-level operating losses during transition year, legacy lines being phased out for leaner model

One-off & Non-cash Items (₹3 Cr impact): Clearance of old/slow-moving stock at discount, inventory and packaging write-offs (one-time clean-up), project development costs