Mrs Bectors — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Mrs Bectors reported a revenue growth of 8.4% YoY to INR 533.3 crores in Q3 FY26, driven by a strong 13.2% growth in the bakery segment. EBITDA margins expanded by 44 bps to 12.9%. While the biscuits segment saw resilient 5.7% growth, it was impacted by GST 2.0 transition and punitive tariffs, with export growth being low single-digit. The company commissioned its Kolkata plant and expects improved performance from exports and new capacities in the coming quarters.

Highlights

  • Revenue from operations of INR 533.3 crores, up 8.4% YoY in Q3 FY26.

  • Bakery vertical grew 13.2% YoY to INR 198 crores, driven by English Oven.

  • EBITDA margin expanded 44 bps to 12.9% in Q3 FY26.

  • Kolkata plant commissioned in January, expanding presence in East India.

  • Interim dividend of INR 0.6 per equity share declared.

Concerns

  • Biscuits vertical growth of 5.7% YoY impacted by GST 2.0 transition and punitive tariffs.

  • PAT impacted by provisioning due to new Labour Code amendments.

  • Export growth was low single-digit in Q3 FY26 due to tariffs and suspension of export incentives.

Key financials

2 periods

Headline

  • Revenue from Operations
    ₹533.3 Cr
    YoY +8.4%
  • EBITDA
    ₹68.4 Cr
    YoY +11.4%
  • EBITDA Margin
    12.9%
  • PAT
    ₹38.1 Cr
    YoY +10.1%
  • PAT Margin
    7.1%

9M

  • FY26 Revenue
    ₹1,557.7 Cr
    YoY +9.1%
  • FY26 EBITDA
    ₹195.9 Cr
  • FY26 EBITDA Margin
    12.6%

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 Revenue
₹523 Cr Total
  • Biscuits ₹325 Cr 62.1%
  • Bakery ₹198 Cr 37.9%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Commissioning of Kolkata plant
    • Commissioning of Khopoli plant
    • Expansion into Hyderabad market for English Oven
    • Distribution coverage within 400-500 km range from Indore and Punjab plants
    • Expanded new plant in Bangalore
    On the bakery front, English Oven continues to be the key driver of performance, supported by sustained momentum from our QSR partnerships. English Oven's strong trajectory is underpinned by brand pull, health-first initiatives and distribution excellence. I'm happy to share with you that we successfully commissioned our Kolkata plant in January, making our foray into East. Further, we expanded the English Oven brand into Hyderabad market, marking a strategic entry into a key growth region. We are progressing towards commissioning of the Khopoli plant, targeted in the next few months, which will further enhance our capacity and operational flexibility. Together, these initiatives are expected to strengthen our presence across key markets, improve supply chain efficiencies and support sustained growth through deeper regional penetration.
  • Dividend ₹0.6/share (interim)
    Before we move to our financial performance for the quarter, I am pleased to share that we have declared an interim dividend of INR0.6 per equity share.

Guidance & targets

Volume

  • Khopoli Plant Breads Capacity Volume · post commissioning · High confidence 132,000 breads a day
    the plant capacity for breads would be around 132,000 breads a day.

    — Anoop Bector

  • Khopoli Plant Buns Capacity Volume · post commissioning · High confidence 1 million buns a day
    And in case of buns, we would be doing around a million buns a day.

    — Anoop Bector

Other

  • Khopoli Plant Asset Turn Other · in next 2 to 3 years' time · Medium confidence 2 to 2.5
    in next 2 to 3 years' time, we should start hitting an asset turn of 2, 2.5 for this plant

    — Manu Talwar

  • Export Incentive Recovery Other · Low confidence not probably be able to recover 100%
    I mean, I think we'll not probably be able to recover 100% of what we were getting

    — Anoop Bector

  • Quick-commerce contribution (English Oven) Other · current · High confidence 33%, 34%
    So quick-com in English Oven is now contributing almost 33%, 34% of our revenues, right?

    — Manu Talwar

Revenue

  • Export Growth Revenue · next financial year · Medium confidence mid-teens to high-teens kind of growth
    export to get back into a good growth engine for us to get into mid-teens to high-teens kind of growth.

    — Manu Talwar

  • Bakery Growth (English Oven) Revenue · ongoing · High confidence high teens growth
    Yes. It's a high teens growth.

    — Manu Talwar

  • Domestic Biscuit Growth Revenue · next financial year · Medium confidence low teens kind of growth
    We do expect the next 2 quarters to march towards the low teens kind of growth, and that's what we are targeting to achieve in the next financial year.

    — Manu Talwar

  • Overall Growth Revenue · next financial year · Medium confidence mid-teens kind of growth
    we should be targeting to get for the next financial year, close to mid-teens kind of growth.

    — Manu Talwar

  • Bakery B2B Growth Revenue · next financial year · Medium confidence low teens kind of growth
    So bakery B2B business, yes, we will be targeting a low teens kind of growth in the coming financial year.

    — Manu Talwar

Margin

  • EBITDA Margin Margin · starting Q1 of next financial year / H1 of next financial year · High confidence 14% range
    for us, margin starting from quarter 1 of next financial year, as I said that we can look at in the H1 of next financial year, we should start getting to the 14% range.

    — Manu Talwar

What to watch in Q4 FY26

Khopoli Plant Commissioning & Capacity Ramp-up

Next quarter / within 3-6 months
Current targeted in the next few months
Target Commercial operations, hitting initial capacity targets (132k breads/day, 1M buns/day)

Why it matters

Key capacity expansion for bakery, crucial for growth in Bombay/Maharashtra and overall operational flexibility.

We are progressing towards commissioning of the Khopoli plant, targeted in the next few months, which will further enhance our capacity and operational flexibility.

Risks & concerns

  • Punitive tariffs and trade uncertainty

    high

    Impacted biscuits vertical growth and export performance, but new trade agreements are expected to mitigate.

    Management acknowledged

  • Suspension of export incentives

    high

    Impacted margins and overall revenue (almost 1%), company mitigating by importing duty-free raw materials.

    Management acknowledged

  • GST 2.0 transition

    medium

    Impacted biscuits vertical growth and caused comparison issues due to 'transitionary inventory impact'.

    Management acknowledged

  • High competition in domestic biscuits

    medium

    Contributed to sluggish growth in the domestic biscuit segment, described as 'very highly competitive and intense business'.

    Both acknowledged

  • Commodity price spikes

    medium

    Put 'adverse pressure on our domestic biscuit profitability and margin' especially from October-November '24.

    Management acknowledged

Q&A highlights

8 direct
Khopoli Plant Revenue Potential & Asset Turn Direct
the plant capacity for breads would be around 132,000 breads a day. And in case of buns, we would be doing around a million buns a day... in next 2 to 3 years' time, we should start hitting an asset turn of 2, 2.5 for this plant

Provides specific capacity and asset utilization targets for a major upcoming facility, crucial for future revenue generation.

Asked by Raghav Maheshwari

Export Growth & Trade Deal Impact Direct
this will relatively improve any manufacturer from India's ability to sell in the EU and America. And we are very, very hopeful of getting a big benefit out of this opening from a 50% punitive tariff to an 18% tariff... export to get back into a good growth engine for us to get into mid-teens to high-teens kind of growth.

Highlights the significant positive impact expected from new trade agreements, particularly the reduction in tariffs, which could boost export volumes and value.

Asked by Raghav Maheshwari

EBITDA Margin Outlook Direct
for us, margin starting from quarter 1 of next financial year... we should start getting to the 14% range.

Provides clear forward guidance on margin improvement, indicating a return to higher profitability levels.

Asked by Soham Samanta

Domestic Biscuit Competition & Growth Direct
We do expect the next 2 quarters to march towards the low teens kind of growth, and that's what we are targeting to achieve in the next financial year.

Addresses concerns about intense competition in the domestic biscuit market and sets a realistic growth expectation for the segment.

Asked by Ronak Shah

Export Incentive Suspension & Mitigation Direct
in the last 6 months, from August onwards, we have not been able to get those benefits... But what our company has now done is we are going to be utilizing that we start importing raw materials, which are duty-free because for our exports, we can import RM, raw materials against advance license.

Reveals a significant headwind (suspended incentives) and the company's strategy to mitigate its impact by leveraging duty-free raw material imports.

Asked by Ronak Shah

Sluggishness in Domestic Biscuits Direct
the GST-related disturbance is something that even the industry leader has faced... we had a huge commodity spike in prices starting October, November of '24... And with the hyper competition is something which had put a very large adverse pressure on our domestic biscuit profitability and margin.

Explains the reasons behind the underperformance of the domestic biscuit segment, attributing it to GST 2.0 transition, commodity price spikes, and hyper-competition.

Asked by Resha Mehta

B2B Business Contribution Direct
Exports and B2B bakery put together should be closer to 45%, 46%, 47% around that, yes.

Provides insight into the significant contribution of B2B and export segments to the overall business, highlighting diversification.

Asked by Raghav Maheshwari

Quick Commerce Growth Direct
quick-com in English Oven is now contributing almost 33%, 34% of our revenues... this contribution has literally doubled over the last 12 months

Shows the rapid growth and increasing importance of the quick-commerce channel for the English Oven brand.

Asked by Darshit Vora

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

Mrs Bectors reported a consolidated revenue from operations of INR 533.3 crores in Q3 FY26, marking an 8.4% year-on-year growth. EBITDA stood at INR 68.4 crores, growing 11.4% YoY, with EBITDA margins improving by 44 bps to 12.9%. Net profit for the quarter was INR 38.1 crores, a 10.1% increase YoY, resulting in a PAT margin of 7.1%. For the nine months ending Q3 FY26, consolidated revenue reached INR 1,557.7 crores, a 9.1% growth, with an EBITDA margin of 12.6%.

Segmental Performance - Bakery & Biscuits

The bakery vertical demonstrated strong performance, growing 13.2% year-on-year to INR 198 crores in Q3 FY26, primarily driven by the English Oven brand. This segment has grown 36% over Q3 FY24. The biscuits vertical delivered a resilient 5.7% year-on-year growth, reaching INR 325 crores, but was impacted by the GST 2.0 transition and punitive tariffs. Despite challenges, the biscuits segment has grown 21% over Q3 FY24.

Capacity Expansion & New Market Entry

The company successfully commissioned its Kolkata plant in January, marking its entry into East India. Further expansion includes the English Oven brand's entry into the Hyderabad market. The Khopoli plant is targeted for commissioning in the next few months, which will significantly enhance capacity and operational flexibility, with planned capacities of 132,000 breads and 1 million buns per day. These initiatives are expected to strengthen presence across key markets and support sustained growth.

Impact of Trade Agreements & Export Incentives

The proposed trade agreement between India and the United States is expected to significantly benefit the company's exports, reducing punitive tariffs from 50% to 18%. Management anticipates export growth to return to mid-teens to high-teens. However, the suspension of export incentives since August 2025 impacted margins by nearly 1% of overall revenue. The company is mitigating this by importing duty-free raw materials against advance licenses, expecting to recover damages within six months.

Product Innovation & Distribution Strategy

Mrs Bectors is focusing on building a health-oriented portfolio with the full rollout of its Zero Maida range and NaturBaked products. The company is also expanding into ready-to-eat desserts under the frozen range. In biscuits, successful Diwali season saw gifting portfolio growth over 20%, with new introductions like Golden Bites and Pista Almond cookies. Distribution is being deepened within a 400-500 km radius from both Indore and Punjab plants.

Margin Outlook & Challenges

EBITDA margins for Q3 FY26 stood at 12.9%, an improvement of 44 bps YoY. Management expects margins to reach the 14% range starting from Q1 FY27, or at least in H1 FY27. The domestic biscuit segment's profitability and growth were adversely affected by the GST 2.0 transition, commodity price spikes (especially palm oil from Oct-Nov '24), and intense competition. The company is focused on correcting margins and driving growth in this segment.

Quick Commerce & B2B Business

Quick-commerce has emerged as a significant channel, with English Oven's contribution reaching 33-34% of its revenues, having doubled over the last 12 months. The B2B business, including exports and B2B bakery, contributes approximately 45-47% of total revenue. The frozen business, a part of B2B bakery, has grown to almost 20% of the B2B bakery segment and shows strong growth potential.

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