Mrs Bectors — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Mrs. Bectors reported its highest ever quarterly revenue in Q2 FY26, driven by strong performance in both Biscuit and Bakery segments. The company benefited from GST reforms but faced temporary trade disruptions and export challenges due to tariffs and DGFT incentive holds. Management is focused on capacity expansion, distribution growth, and aims for 14%+ EBITDA margins by FY27.

Highlights

  • Revenue of ₹551.4 crores, up 11.1% YoY, marking the highest ever quarterly revenue.

  • Both Biscuits (10% YoY growth to ₹350 crores) and Bakery (16% YoY growth to ₹194 crores) segments delivered their highest ever quarterly numbers.

  • GST rate cut for domestic biscuits from 18% to 5% is a significant structural positive, expected to fuel industry growth.

  • English Oven brand continues high double-digit growth, driven by strong brand equity and distribution expansion.

  • Commissioning of Dhar Indore plant and upcoming Khopoli and Calcutta plants will boost capacity and distribution.

Concerns

  • Temporary disruption in trade due to GST transition as channel partners awaited revised MRPs, impacting Q2 revenues by ~1%.

  • Temporary hold on DGFT incentives impacting operating income, though management expects a resolution or alternative.

  • Impact of tariffs on export business, causing some slowdown in ordering as buyers await more rational levels.

  • QSR growth was single-digit in Q2 FY26, indicating a slowdown in that specific B2B segment.

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹551.4 Cr
    YoY +11.1%
  • EBITDA
    ₹69.3 Cr
  • EBITDA Margin
    12.6%
  • PAT
    ₹36.5 Cr
    QoQ +18.2%
  • PAT Margin
    6.6%

H1

  • FY26 Revenue
    ₹1,024.4 Cr
    YoY +9.5%
  • FY26 EBITDA
    ₹127.5 Cr
  • FY26 EBITDA Margin
    12.4%
  • FY26 PAT
    ₹67.4 Cr
  • FY26 PAT Margin
    6.6%

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 Q2 FY26 Revenue
₹544 Cr Total
  • Biscuits ₹350 Cr 64.3%
  • Bakery ₹194 Cr 35.7%

Capital allocation

high confidence
  • Capex ₹400 Cr
    • Dhar Indore plant commissioning
    • Calcutta plant commissioning
    • Khopoli Bombay plant commissioning
    • Bangalore plant upgrade and capacity increase
    So, in this current financial year, let me answer the form. The next financial year, the CAPEX should be approximately around Rs. 100 crores. And this year, our CAPEX should be touching close to Rs. 400 crores.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 14% or above
    So, definitely, our endeavor is to keep improving the EBITDA margin. But yes, for sure, FY '27 is one. We will definitely achieve that 14% or above EBITDA margin for the next financial year.

    — Manu Talwar

  • EBITDA Margin Profitability · Stabilize at this range · Medium confidence 14% to 15%
    Once we stabilize at that range, we will work towards taking it above 15% EBITDA. But then November, December last year is when we had a huge commodity price hike and which had to be kind of managed and tackled with, which took about few months to kind of, take and correct our pricing and other things to kind of manage that part of impact from the margin.

    — Manu Talwar

Volume

  • Export Growth Volume · FY26 · Medium confidence low teens
    For the export growth, yes, we will be again targeting the low teens kind of growth for the full financial year. And so, yes, we are still gunning for that.

    — Manu Talwar

Market Share

  • English Oven Pan-India Ranking Market Share · next two years to three years · Medium confidence top two, three brands
    So, definitely, over next two years to three years, we want to be Pan India in the top two, three brands, Bakery brands of India.

    — Manu Talwar

Distribution

  • Weighted Availability Distribution · 3-4 years · Medium confidence 50%-odd

    From 30%-odd today

    So, more details, I would request you wait. We will be working extensively on this strategy because this is a strategy to, take our distribution numbers, take our weighted availability numbers from currently about 30%-odd to in three years - four years, we definitely want to touch about 50%-odd, so we are working on that in a very extensive manner.

    — Manu Talwar

Capex

  • Total Capex Capex · FY26 · High confidence Rs. 400 crores
    And this year, our CAPEX should be touching close to Rs. 400 crores.

    — Manu Talwar

  • Total Capex Capex · FY27 · High confidence under Rs. 100 crores
    Okay, current year is Rs. 400 crores and next financial year, you said it will be under Rs. 100 crores. It will be a ballpark of Rs.100 crores.

    — Manu Talwar

What to watch in Q3 FY26

DGFT Incentive Resolution

Soon / Next quarter
Current Temporarily on hold
Target Resolution or shift to advanced licenses

Why it matters

Impacts operating income and margin, and the company's export strategy.

So, it is a temporary. Okay. Actually, I will take it. So, we have two options, actually, we in this Harit, that either we can take an advanced license and import because we are exporting our goods.

Risks & concerns

  • GST Transition Disruption

    medium

    Temporarily disrupted trade as channel partners awaited further price adjustments, impacting Q2 revenues by ~1%.

    Management acknowledged

  • Tariffs on Exports (US-India)

    medium

    Anticipated impact of tariffs led to slower ordering and affected H1 performance, though hopeful for resolution.

    Management acknowledged

  • DGFT Incentives on Hold

    medium

    Certain DGFT incentives were temporarily put on hold, impacting operating income, but management is pursuing resolution or alternative import routes.

    Management acknowledged

  • QSR Business Slowdown

    low

    The B2B business (QSR segment) experienced single-digit growth in Q2 FY26, but management expects recovery in Q3.

    Management acknowledged

Q&A highlights

7 direct
Impact of GST transition and Tariffs on Biscuit Growth Direct
Our impact on overall quarterly revenues on the part of GST should be close to 1%-odd which was there. And on account of tariffs, we definitely had an impact in the H1 on account of, tariffs, ambiguity tariffs going up.

Clarifies the specific headwinds impacting biscuit revenue growth in Q2 FY26.

Asked by Harit Kapoor

Reasons for Gross Margin Dip Q1 to Q2 Partial
Definitely one reason was that, what happens as per the accounting policy on an international export business, whatever freight we recover, that gets, clubbed along with the revenues. And freight which were higher in the same quarter last year, so, that clubbing of revenue has kind of made a difference there. Second is there is a somewhat of a business mix impact, which is there, which has impacted here. And a third item is that there are certain incentives by DGFT, which government has temporarily put on hold to kind of review the same and then release and basically, strengthen that whole process.

Explains the multiple factors contributing to the margin pressure despite easing raw material costs.

Asked by Harit Kapoor

DGFT Incentive Status (Temporary vs. Permanent) Direct
It is a temporary. Okay. Actually, I will take it. So, we have two options, actually, we in this Harit, that either we can take an advanced license and import because we are exporting our goods. So, we can either get a DFIA, where we get a license and we get a license and we are able to dispose of the license in the market. Or we have to create our own infrastructure to start importing things duty-free.

Provides clarity on the nature of the DGFT incentive issue and potential mitigation strategies.

Asked by Harit Kapoor

Bakery Segment Growth Breakdown (QSR vs. English Oven) Direct
So, no. QSR growth in this quarter was in single-digit. It was not in double-digit.

Clarifies that while English Oven is growing strongly, the QSR segment faced a slowdown.

Asked by Mrunmayee Jogalekar

Timeline for 14% EBITDA Margin Target Direct
So, definitely, our endeavor is to keep improving the EBITDA margin. But yes, for sure, FY '27 is one. We will definitely achieve that 14% or above EBITDA margin for the next financial year.

Sets a clear timeline for achieving the targeted EBITDA margin.

Asked by Mrunmayee Jogalekar

Raw Material Input Cost Trends Direct
So, on the RM side, it is what we had anticipated in our operating plan. So, it is very tough to look at on a quarterly-to-quarterly basis, I mean, because, there is certain times there is a hedging certain times markets can be. But at the moment, I think, RM should not be and not be a concern, going forward, not should not be any major concern on this.

Provides management's view on the stability of raw material costs, crucial for margin outlook.

Asked by Amit Purohit

Freight Cost Savings from Dhar Plant Direct
So, definitely with Dhar plant, we have Dhar plant, we have put two lines. And we have as of now commissioned first line and we are commissioning the second line right there. So, in the next financial year, we should definitely see a positive impact on our logistic cost because of that. We will definitely see that and that is as per the plan.

Confirms a future positive impact on logistics costs and margins from new capacity.

Asked by Amit Purohit

New Product Development (NPD) Revenue Contribution Direct
So. our NPD sellers as of now for this financial year on our 12 month rolling numbers we take is about 2% to 3%.

Gives an indication of the current contribution from new product launches.

Asked by Resha Mehta

3 min read 7 chapters

Detailed narrative

Q2 & H1 FY26 Financial Performance Overview

Mrs. Bectors Food Specialities Limited achieved its highest ever quarterly revenue of ₹551.4 crores in Q2 FY26, reflecting an 11.1% year-on-year growth. For the first half of FY26, consolidated revenue stood at ₹1,024.4 crores, growing 9.5% over H1 FY25. The company reported a Q2 EBITDA of ₹69.3 crores, resulting in a 12.6% margin, and a PAT of ₹36.5 crores, with an 18.2% quarter-on-quarter growth and a 6.6% PAT margin.

Segmental Growth and Drivers

Both the Biscuits and Bakery verticals contributed significantly to the strong top-line performance, each delivering their highest ever quarterly numbers. The Biscuit segment's revenue grew 10% year-on-year to ₹350 crores, while the Bakery segment registered a 16% year-on-year growth, reaching ₹194 crores. The English Oven brand within the Bakery segment continues to show high double-digit growth, driven by strong brand equity, new product launches, and expanding distribution, with quick commerce emerging as a key growth catalyst.

Macroeconomic Environment and GST Impact

The company welcomed the Government of India's GST 2 reforms, particularly the reduction of GST on domestic biscuits from 18% to 5%, which is expected to fuel overall industry growth. This, combined with easing interest rates and mega taxation relief in Budget 2024, is showing early signs of broad-based consumption improvement. However, the GST transition temporarily disrupted trade as channel partners awaited revised MRPs, causing a minor ~1% impact on quarterly revenues.

Export Business Challenges and Outlook

Exports maintained a resilient growth trajectory amidst global uncertainties, but faced impacts from tariffs, particularly a 50% rate, which led to some slowdown in ordering during H1. Management remains optimistic about a favorable outcome from ongoing trade discussions between India and the US, which could accelerate export growth. The company is also exploring strategies like diversifying geographies and portfolios, and potentially utilizing advanced licenses for duty-free imports if DGFT incentives remain on hold.

Capital Expenditure and Capacity Expansion Plans

Mrs. Bectors has a planned CAPEX of approximately ₹400 crores for FY26, which will reduce to under ₹100 crores for FY27. Key capacity expansions include the commissioning of the Dhar Indore plant in May FY26, the Calcutta plant this quarter, and the Khopoli Bombay plant in Q4 FY26. These investments are crucial for boosting capacity, expanding distribution reach, and supporting the company's growth aspirations, particularly for the English Oven brand in new markets like Maharashtra, East India, and Southern India.

Distribution Strategy and Future Targets

The company's direct distribution reach for its Biscuit segment is approximately 5-5.5 lakh outlets, with an overall presence in over 7 lakh outlets. For the Bakery segment, direct reach is around 40,000 outlets. Management is focused on weighted outlet growth and aims to increase its weighted availability from the current ~30% to ~50% over the next 3-4 years. This aggressive distribution expansion is a key pillar of its revenue growth management strategy.

Raw Material and Margin Outlook

Management believes raw material costs should not be a major concern going forward, with Q2 prices remaining in line with Q1. Despite some temporary setbacks from higher freight costs (which are clubbed with revenues) and the temporary hold on DGFT incentives, the company is committed to improving profitability. The target is to achieve an EBITDA margin of 14% or above for FY27, with an aspiration to stabilize within the 14-15% range and then improve further.

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