Mrs Bectors — Q1 FY26 earnings call

Call held 14 Aug 2025

Management summary

Mrs Bectors reported a resilient Q1 FY26 with consolidated revenue up 7.6% to ₹473 crores, primarily driven by strong 19% growth in the Bakery segment. The EBITDA margin stood at 12.3%, with management confident of reaching 14% by Q2 FY26. While the biscuits segment saw muted 3% growth due to export challenges, domestic biscuits are showing sequential improvement. The company is expanding capacity with new plants and focusing on innovation and distribution, including a 1:5 stock split to boost liquidity.

Highlights

  • Consolidated revenue grew 7.6% YoY to ₹473 crores.

  • Bakery segment revenue grew 19% YoY to ₹183 crores, outperforming biscuits.

  • Domestic biscuit business showing sequential improvement, targeting double-digit growth in next two quarters.

  • Successful new product launches in health-first category (NatureBake, Zero Maida cookies) and kids' snacking (Teddy's crackers).

  • Significant advancements in operational backbone with digitization across 50% of plants and 60% of distributors.

Concerns

  • Biscuits segment revenue growth was muted at 3% YoY to ₹281 crores, impacted by export business volatility.

  • Export business continues to face challenges due to geopolitical tensions, tariffs, and supply chain bottlenecks, particularly impacting US business (20% of export revenue).

  • EBITDA margin at 12.3% was impacted by business mix and lower exports, though management expects improvement to 14% by Q2 FY26.

  • New plant stabilization costs are expected to keep other expenses and employee costs elevated until FY27/FY28 ramp-up.

Key financials

  1. Consolidated Revenue ₹473 Cr +7.6%YoY
  2. EBITDA ₹58.2 Cr
  3. EBITDA Margin 12.3%
  4. PAT ₹30.9 Cr
  5. PAT Margin 6.5%

What they filed

Q1 FY27: revenue up 16.1%, net profit up 25.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue496 492 446 473 551 +11%533 +8%486 +9%549 +16%
EBITDA70 61 56 58 69 −1%68 +11%62 +11%72 +24%
Net profit39 35 34 31 37 −5%38 +9%35 +3%39 +26%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹464 Cr Total
  • Biscuits Segment ₹281 Cr 60.6%
  • Bakery Segment ₹183 Cr 39.4%

Capital allocation

medium confidence
  • Capex Capex disclosed
    • New biscuit facility in Dhar (commenced operations in May, full-scale commercial production targeted for Q2 FY26)
    • New plant in Kolkata (commissioning in Q3 FY26)
    • New plant in Maharashtra (first phase commissioning in Q3 FY26, second phase towards end of Q4 FY26)
    Our new biscuit facility in Dhar, commenced operations in May and is currently in a phased ramp-up to ensure operational stability. Full-scale commercial production is targeted for Q2. ... Our plant in Kolkata is going to be commissioned in Q3, and the facility in Maharashtra is going to be commissioned towards the end of the financial year.
  • M&A Cremica brand Acquisition · Integrated

    Starting a journey with the acquired Cremica brand, with first step of using the brand to be executed in Q1 FY26 and built up from there.

    Yes. So yes, Cremica brand, which we had acquired and we will be starting a journey with, adopting the Cremica brand in this particular quarter, the quarter we are in. And then we will build up, right? So we obviously have the first step in terms of using a Cremica brand, which will be executed in this quarter and then build it up from there onwards.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · Q2 FY26 · High confidence 14%
    from Quarter 2 onwards, we will start getting back to our EBITDA margins of close to 14%. And we are working in that direction, we are confident of getting there.

    — Manu Talwar

Volume

  • Domestic Biscuit Growth Volume · next 2 quarters' time (Q2 & Q3 FY26) · High confidence double digit growth
    we are definitely targeting, right, that we should be able to build up in the next two quarters and get to a run rate of a double digit growth over the next 2 quarters' time. So, that's what we are gunning for or that's what we are heading for, targeting to keep improving this growth rate from a high single digit and take it to a double digit growth and build it up.

    — Manu Talwar

  • Domestic Biscuit Growth (Sustained) Volume · Q4 FY26 and next financial year · High confidence sustained double digit growth
    get to a sustained double digit growth going to the Quarter four of this year and then the next financial year.

    — Manu Talwar

Distribution

  • Quick Commerce Contribution (Domestic Biscuit) Distribution · next 4 to 6 quarters · High confidence 4% to 5%

    From 1% today

    over the next 4 to 6 quarters, we should be able to move quick commerce contribution, which was just about 1% to almost 4% to 5%, right, as a percentage of domestic business revenue, and it's moving in that direction.

    — Manu Talwar

Capacity

  • Dhar Biscuit Facility Commercial Production Capacity · Q2 FY26 · High confidence Full-scale commercial production
    Our new biscuit facility in Dhar, commenced operations in May and is currently in a phased ramp-up to ensure operational stability. Full-scale commercial production is targeted for Q2.

    — Anoop Bector

  • Kolkata Plant Commissioning Capacity · Q3 FY26 · High confidence Commissioned
    Our plant in Kolkata is going to be commissioned in Q3, and the facility in Maharashtra is going to be commissioned towards the end of the financial year.

    — Anoop Bector

  • Maharashtra Plant Commissioning Capacity · Q4 FY26 · High confidence Commissioned

    — Anoop Bector

Market Entry

  • New Metropolitan City Entry Market Entry · this year (FY26) · Medium confidence at least one metropolitan city
    We are also going to be looking at adding at least one metropolitan city this year through a co-packing arrangement.

    — Ishaan Bector

What to watch in Q2 FY26

EBITDA Margin

Q2 FY26
Current 12.3%
Target 14%

Why it matters

Management has guided for a significant margin recovery in the next quarter, crucial for profitability.

from Quarter 2 onwards, we will start getting back to our EBITDA margins of close to 14%. And we are working in that direction, we are confident of getting there.

Risks & concerns

  • Export Business Volatility

    medium

    Uncertainty of tariffs, muted demand, supply chain bottlenecks, and geopolitical tensions continue to challenge the export business, particularly impacting US operations (20% of export revenue).

    Management acknowledged

  • New Plant Stabilization Costs

    medium

    Upfront costs associated with new plants (Dhar, Kolkata, Maharashtra) will keep other expenses and employee costs elevated until FY27/FY28 as they ramp up, potentially impacting margin expansion.

    Analyst acknowledged

  • High Competitive Intensity

    medium

    Competition remains high across the industry, requiring continuous focus on distribution, innovation, and brand building to maintain market position.

    Management acknowledged

Q&A highlights

6 direct
Domestic vs. Export Biscuit Growth and Margin Outlook Direct
So, in the domestic biscuit side, what we have seen that over the last 2 to 3 quarters, there has been improvement in the revenue growth quarter-on-quarter, right? Even this quarter, revenue growth was better than last quarter, right? And we are very hopeful that these trends will kind of buildup and especially when the festive season also kind of hit. So, we are definitely targeting, right, that we should be able to build up in the next two quarters and get to a run rate of a double digit growth over the next 2 quarters' time.

Analyst probed on the muted domestic biscuit growth and the impact of exports, seeking clarity on future growth trajectory and margin recovery. Management confirmed sequential improvement and a target of double-digit growth for domestic biscuits and 14% EBITDA margin from Q2.

Asked by Resham Mehta (Green Edge Wealth)

Bakery Segment Growth Drivers and E-commerce Contribution Direct
So, on the Bakery side, we have basically always been saying that our vision is to be a pan-India player. So, there's two parts to it. So we have extensively increased our distribution. We have also entered into the upper north geographies of Punjab. We are also seeing where as an early mover into the category, we have a very strong market share on the quick commerce, where we are aggressively working, we are gaining market share, our products have been well accepted.

Question clarified the drivers behind the strong 19% Bakery segment growth, highlighting distribution expansion, quick commerce market share, and focus on health-first products. Management also stated modern trade and e-commerce contribute about 30% to Bakery revenue.

Asked by Priti Agarwal (SK Associates)

Bakery Volume vs. Value Growth and NatureBake Pricing Direct
So, growth for us in Bakery this quarter has, I would say, 65% has been a volume led and the balance being value. A large factor of this is also focus more on premiumization, right? So, as the QCom mix has improved, our listings on QCom are of the premium category, which also helps increase our premiumization mix.

Analyst sought a breakdown of Bakery growth, revealing it was 65% volume-led, with premiumization also contributing. Management confirmed NatureBake and whole wheat categories are more expensive and have higher gross margins.

Asked by Shirish Pardeshi (Motilal Oswal)

Domestic Biscuit Market Share and Distribution Strategy Direct
So, Prajapati, first thing is, yes, we have been able to retain our market share over the last 1-1.5 year when it has been highly, intensely competitive. And our market share in North India, where we are primarily present is over 4%, right? It is through our distribution, through our execution in the marketplace and supported by marketing, we have been able to, we have been able to kind of retain our market share, right, in Northern India, in our domestic biscuit business, right?

Analyst inquired about market share retention and distribution strategy. Management confirmed retaining market share in North India (over 4%) and emphasized a focus on quick commerce and weighted outlets (Cremica preferred outlets) for consumer reach and premiumization.

Asked by Pratik Prajapati (Ambit Investment)

EBITDA Margin Improvement Drivers and New Plant Costs Direct
So, yes, it will be driven by both improvement in gross margin as well as the efficiencies in the cost below that. It would be both. And that's all will happen and also the scale, the revenue growth. So, three things. Revenue growth, bringing a scale, which will give a more better leverage of fixed cost, the improvement in value of gross margin. And third is bringing more efficiency in cost as a percentage.

Analyst questioned the drivers for the targeted 14% EBITDA margin and the impact of new plant stabilization costs. Management attributed margin improvement to gross margin, operational efficiencies, and scale, while acknowledging elevated costs from new plants until FY27/FY28.

Asked by Akhil Parekh (B&K Securities)

Competitive Intensity and Ad Spend Direct
Competition intensity continues to be high. It has not reduced for the last 18 months. Rather, if you would have heard the investor call just about 10 days back of the largest player in the industry there and we had clearly reflected on the high intensity, the regional intensity which is there. So intensity continues to be probably I would say at the same level.

Analyst asked about the competitive landscape and ad spend. Management confirmed high competitive intensity has persisted for 18 months but expressed confidence in their distribution, execution, e-commerce focus, and differentiated products. They also highlighted increased investment in brands (English Oven, Cremica) and digital marketing.

Asked by Ronak Shah (Equirius Securities)

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Mrs Bectors reported a consolidated revenue of ₹473 crores for Q1 FY26, marking a 7.6% year-on-year growth compared to ₹439.4 crores in Q1 FY25. The company achieved an EBITDA of ₹58.2 crores, resulting in an EBITDA margin of 12.3%. Profit After Tax (PAT) stood at ₹30.9 crores, with a PAT margin of 6.5%. Management indicated that the EBITDA margin was impacted by business mix and lower exports in Q1, but expects it to improve to 14% from Q2 FY26.

Segmental Performance: Bakery Outperforms Biscuits

The Bakery segment demonstrated robust growth, with revenue increasing by 19% year-on-year to ₹183 crores in Q1 FY26, up from ₹154 crores in Q1 FY25. This growth was largely volume-led (65%) and driven by the English Oven brand, distribution expansion, and strong performance in quick commerce. In contrast, the Biscuits segment recorded a more modest 3% year-on-year revenue growth, reaching ₹281 crores from ₹273 crores in Q1 FY25. The biscuit segment's growth was affected by challenges in the export market, though domestic biscuits showed sequential improvement.

Strategic Focus on Innovation and Product Portfolio

The company continues to prioritize innovation, focusing on healthier ingredients, convenient formats, and rich experience products. Recent launches include shortbreads with 25% butter, Teddy's animal-shaped crackers for kids, and ready-to-eat desserts like Choco Lava Cake and Muffins. A significant push towards health-first products includes 'Zero Maida' coconut cookies and the 'NatureBake' clean label bread range (no maida, no palm oil, no added colors, no preservatives), which has received encouraging early feedback.

Distribution and Technology Initiatives

Mrs Bectors is strengthening its operational backbone through digitization, with initiatives rolled out across 50% of its plants and deeper adoption of its distributor management system (DMS) across 60% of distributors. This has improved visibility, real-time tracking, and order fulfillment. The company is also aggressively expanding its distribution in new geographies like Punjab and focusing on quick commerce, aiming to increase its contribution to domestic biscuit revenue from ~1% to 4-5% over the next 4-6 quarters.

Capacity Expansion and New Market Entry

The new biscuit facility in Dhar commenced operations in May 2025 and is targeted for full-scale commercial production in Q2 FY26. Further capacity expansion includes the commissioning of a plant in Kolkata in Q3 FY26, marking the company's entry into the East, and a facility in Maharashtra (Bombay) with its first phase coming up in Q3 FY26 and the second phase towards the end of Q4 FY26. The company also plans to add at least one metropolitan city this year through a co-packing arrangement.

Capital Structure and Shareholder Value

The Board has approved a subdivision of equity shares, splitting each fully paid-up equity share of ₹10 face value into five fully paid-up equity shares of ₹2 each. This move, subject to shareholder and regulatory approvals, aims to enhance shareholder value and improve liquidity. The company also confirmed the ongoing integration of the acquired Cremica brand, with initial steps of adoption being executed in Q1 FY26.

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