Mrs Bectors

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.

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.

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.

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.

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.

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.

Management believes raw material costs should not be a major concern going forward^⏳, with Q2 prices remaining in line with Q1. Despite some temporary setback^📎s 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.