Prataap Snacks Limited – Investor Presentation Summary

Key Operational Highlights

  • Sold approximately 15 million packets every day
  • Presence across ~2.5 million retail outlets
  • 13 strategically located manufacturing facilities (6 owned and 7 third-party facilities)
  • Market leader in Rings category and leading player in Extruded Snacks
  • Top 5 player in Western Savoury Snacks

Key drivers of operational performance: Technology-led initiatives including Sales Force Automation, distribution network efficacy, product innovation, and channel diversification.

Segment-wise Performance

  • Rings category now represents ~10% of total revenue (down from ~40% in FY21)
  • Non-rings categories delivered double-digit growth
  • Pellets category expanded 2.5x in 5 years
  • Namkeen business grown 2x in last 5 years

Explanation of significant changes in segment performance: Decline in Rings category due to COVID-induced restrictions including discontinuation of students attending schools for nearly two years, loss of category momentum over last 5 years.

Financial Highlights

Revenue: Rs. 5,409.5 million (Q2 FY27)

EBITDA: Rs. 129.0 million (Q2 FY27)

PAT: Rs. (25.0) million loss (Q2 FY27)

EPS: Rs. (1.05) (Q2 FY27)

Margins: Gross Margin 25.5%, EBITDA Margin 2.4% (Q2 FY27)

YoY/QoQ comparison: Revenue up 26% YoY and 10% QoQ; EBITDA down 43.7% YoY

Drivers of financial performance: Higher revenue growth driven by momentum in Namkeen and Potato Chips, successful new product launches, improved distribution effectiveness, and growing contribution from quick commerce and modern trade. Margin pressure from sustained inflation in key inputs (palm oil, potato, packaging laminates), fuel and logistics costs.

Key Risks: Rising input costs, consumer affordability challenges, market competitiveness pressures.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not Specified

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets: Rs. 3,675.9 million

Current Liabilities: Rs. 2,215.7 million

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Closing cash and cash equivalents of Rs. 442.4 million (up 34.5% from March 2026), inventory of Rs. 1,513.7 million (up 16.7%), receivables of Rs. 329.2 million (up 42.8%).

Capex & Cash Flow Health

Capital Expenditure: Rs. 205.3 million (H1 FY27 actual)

Free Cash Flow: Rs. (322.0) million (H1 FY27)

Operating Cash Flow: Rs. 235.7 million (H1 FY27)

Net Debt Movement: Short term debt increased to Rs. 290.0 million from Rs. 40.0 million (March 2026)

Investment Rationale: Greenfield manufacturing facility near Indore for efficiency improvements, consolidation of manufacturing footprint, margin enhancement.

Strategic & R&D Initiatives

Investments in Innovation: Product portfolio expansion through new product development, regional specific products, flavor-led growth, premiumization, and channel-specific SKUs.

Expected impact on growth: Target to grow emerging channels (quick commerce, modern trade, exports) from less than 1% of revenue to more than 5% of revenue in three years.

Strategic Rationale: Multi-pronged approach to unlock value, scale efficiently, and future-proof operations through manufacturing consolidation, cost optimization, and channel diversification.

Industry Trends & Business Environment

Macro/Industry Trends: INR 508 billion market growing at 14% CAGR, sustained input-cost inflation particularly in palm oil and potatoes, rising fuel and logistics costs.

Impact on Company: Margin compression due to commodity inflation, necessitating calibrated grammage rationalization, selective adjustment to channel margins and trade schemes, and cost optimization across operations.

Management Commentary & Growth Outlook

Strategic Outlook: "We remain confident of delivering strong double-digit revenue growth in FY27, supported by sustained momentum in our core categories, distribution expansion, product innovation and growing participation across alternate channels."

FY Guidance: Strong double-digit revenue growth expected in FY27

Market Share Targets: Not Specified

Risks and Opportunities: Input cost environment remains challenging; focus on productivity, cost discipline and operational efficiencies to protect margins and deliver sustainable, profitable growth.

Additional Headings

Greenfield Manufacturing Facility
  • Acquisition of RLOP Foods completed (August 2026) securing access to 50-acre leasehold land
  • Site development activities commenced with groundwork begun
  • Targeted facility readiness within 15-18 months
  • Expected structural margin accretion of over 1.5%
  • Qualifies for state government incentives covering over 25% of eligible investment
Channel Diversification Strategy
  • Quick commerce launched on multiple platforms with dedicated team
  • Modern trade listed in leading chain with sales promoters and merchandisers
  • Exports regularly distributed in 7 countries with pipeline locations targeting Indian diaspora
  • Building channel-exclusive large pack Namkeens