Concall AI

Mrs Bectors — Q4 FY25 earnings call

Call held 2 Jun 2025

Management summary

Mrs Bectors Food Specialities reported a strong 15.4% YoY revenue growth for FY25, reaching INR 1,873.9 crores, driven by both Biscuit and Bakery segments. While Q4 FY25 saw 9.8% revenue growth, PAT growth was a modest 2%, reflecting margin pressures from rising input costs. The company is focused on innovation with new product launches and significant capacity expansion, including the new Indore facility, while navigating input cost challenges and aiming for margin normalization by H2 FY26.

Highlights

Consolidated revenue for FY25 increased by 15.4% YoY to INR 1,873.9 crores, demonstrating strong top-line growth.
The Bakery segment showed robust performance, growing 19% in Q4 FY25 and 40% over Q4 FY23, driven by both retail and institutional channels.
The new Indore manufacturing facility, with an annual capacity of 21,000 tonnes, commenced operations in May 2025 and is expected to reach 50-70% utilization within 50-60 days, enhancing production capabilities and market reach.
The company is aggressively pursuing product innovation, targeting close to 5% of revenue from new product development (NPD) in FY26, with recent successful launches like NaturBaked.
Distribution reach is expanding, with Cremica Preferred Outlets (CPO) growing to 7,000 in FY25 and planned for almost 30% growth in FY26, alongside strong performance in Quick Commerce channels.

Concerns

Q4 FY25 PAT grew only 2% YoY to INR 34.3 crores, and full-year FY25 PAT also saw a modest 2% increase to INR 143.2 crores, indicating margin pressures.
EBITDA margin for FY25 was 13.4%, a growth of only 3.7% YoY despite 15.4% revenue growth, reflecting the impact of rising input costs.
Margin normalization is expected to take 6-9 months, with full recovery not anticipated until Q3 FY26, a slight deferral from previous expectations of Q1 FY26 improvement.
The Red Sea issue continues to persist, marginally impacting export debtor days, although overall debtor days have improved by 10% over FY24 and FY25.

Key financials

2 periods

Q4 FY25

Consolidated Revenue
₹446.1 Cr
YoY +9.8%
Consolidated EBITDA
₹55.6 Cr
Consolidated EBITDA Margin
12.5%
Consolidated PAT
₹34.3 Cr
YoY +2%
Consolidated PAT Margin
7.7%

FY25

Consolidated Revenue
₹1,873.9 Cr
YoY +15.4%
Consolidated EBITDA
₹251.5 Cr
YoY +3.7%
Consolidated EBITDA Margin
13.4%
Consolidated PAT
₹143.2 Cr
YoY +2%
Consolidated PAT Margin
7.6%

What they filed

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

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	496	492	446	473	551 +11%	533 +8%	486 +9%	549 +16%
Expenses	426	431	391	415	482	465	424	477
EBITDA	70	61	56	58	69 −1%	68 +11%	62 +11%	72 +24%
Margin	14%	12%	12%	12%	13%	13%	13%	13%
Other income	6	7	11	7	7	7	10	9
Interest	4	3	2	3	3	2	3	3
Depreciation	19	19	20	21	24	23	22	26
Profit before tax	52	46	45	41	49 −6%	50 +9%	47 +4%	52 +27%
Tax rate	26%	26%	24%	25%	25%	25%	24%	25%
Net profit	39	35	34	31	37 −5%	38 +9%	35 +3%	39 +26%
EPS	1.27	1.13	1.12	1.01	1.19	1.24	1.15	1.26

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

₹436 Cr Total

Biscuit Segment (Q4 FY25) ₹257 Cr 58.9%
Bakery Segment (Q4 FY25) ₹179 Cr 41.1%

Capital allocation

high confidence

Capex Capex disclosed
- Indore facility commencement for differentiated products, exports, regional serviceability
- New bakery facilities in Calcutta and Maharashtra for pan-India presence and QSR service
In May 2025, we commenced operations at our Indore facility. This enhances our manufacturing capability, especially for differentiated products, and plays a pivotal role in our growth strategy. For exports, the location offers proximity to ports, enabling smoother outbound logistics. On the domestic front, it strengthens our supply chain by improving regional serviceability, enabling faster route to market, reducing logistic costs, all contributing to our ambition of building a strong pan-India presence. On the Bakery side, we are equally focused on expanding our footprint. We are progressing well with two key projects, the new bakery facilities in Calcutta and Maharashtra.
Dividend ₹3/share (final)

I am pleased to share that the Board has recommended a final dividend of INR3 per equity share subject to approval of the shareholders at the upcoming AGM of the company.

Guidance & targets

Revenue

B2C Biscuit and Bakery Revenue Growth Revenue · FY26 · Medium confidence low to mid-teens

On the B2C side, the business of Biscuit and Bakery together, we have a guidance that for this year, what it looks like B2C business, we will be growing kind of low to mid-teens kind of stuff.

— Manu Talwar
Domestic Biscuits Revenue Growth Revenue · FY26 · Medium confidence low teens

What I said in the full year basis, we can expect domestic biscuits to be low teens kind of growth, and export to be somewhere around mid-teens kind of growth on annualized basis.

— Manu Talwar
Export Revenue Growth Revenue · FY26 · Medium confidence mid-teens

But on an annualized basis, very confident that in exports, we should be able to grow mid-teens kind of growth in this financial year.

— Manu Talwar
Bakery Business Revenue Growth Revenue · FY26 · Medium confidence mid to high teens

So Bakery business for the current financial year '26, we expect it to grow somewhere mid to high teens.

— Manu Talwar

Profitability

EBITDA Margin Profitability · FY26 · Medium confidence 13-14%

Our endeavor is that. Absolutely, our endeavor is that, that we kind of achieve that on a full year basis.

— Manu Talwar

Product Development

NPD Contribution to Revenue Product Development · FY26 · High confidence close to 5%

Yes. So we are targeting to get close to 5% of our revenue. That's our target. So we want to get close to 5% of our revenue contribution coming out of NPD.

— Manu Talwar

Distribution

CPO Outlets Growth Distribution · FY26 · High confidence almost 30%

So a lot of focus is going on CPO and further driving them. Again, we have a plan of growing CPO outlets by almost 30% in this financial year.

— Manu Talwar

Capacity Utilization

Indore Facility Utilization Capacity Utilization · next 50-60 days · High confidence 50-70%

We will be hitting 50% to 70% range of utilization in just about next 50 to 60 days' time, not later than that.

— Manu Talwar

Market context

Volume Growth Volume · FY26 · Medium confidence double-digit

I'm talking in terms of growth, yes, we are aiming to grow double-digit volume growth in this financial year. So that's endeavor.

— Manu Talwar

What to watch in Q1 FY26

Indore facility utilization

next 50-60 days (Q1 FY26)

Current Commenced operations in May 2025

Target 50-70% utilization

Why it matters

Indicates successful ramp-up of new capacity and its contribution to overall volumes and operational efficiency.

We will be hitting 50% to 70% range of utilization in just about next 50 to 60 days' time, not later than that.

Risks & concerns

Continued urban slowdown and higher end prices impacting growth momentum
medium

Revenue for Q4 FY '25 grew by 9.8% over Q4 FY '24 amidst continued urban slowdown, further exaggerated by higher end prices to consumers due to sharp input costs being passed on has impacted the growth momentum.

Management acknowledged
Rising input material costs exerting pressure on margins
medium

Rising input material costs exerted significant pressure on margins. We remain confident that the calibrated price actions that were initiated in November 2024, which shall get over in Q1 '26, will enable us in mitigating the impact of inflation in this financial year.

Management acknowledged
Uncertainty in export environment due to potential tariff changes
low

However, towards the end of Q4, the announcement of potential tariff changes introduced a degree of uncertainty in the external environment.

Management acknowledged
Red Sea issue still persists, impacting debtor days
low

Red Sea issue still persists. It has not gone away. It still persists. So that challenge is still there with us. But yes, it has reduced a little bit, not much.

Analyst acknowledged

Q&A highlights

7 direct

Margin expansion and raw material outlook Direct

So considerably considering, we should be more positive than what we are today. And the margin expansion is not going to be that large that it enables the companies to start passing down discounts at the moment... I think we shall get into a more comfortable position.

Management indicates a positive outlook on margins due to palm oil duty cut and long-term wheat contracts, but tempers expectations for immediate price cuts or grammage increases, suggesting a focus on margin recovery.

Asked by Abneesh Roy

FY26 B2C revenue growth guidance and phasing Direct

On the B2C side, the business of Biscuit and Bakery together, we have a guidance that for this year, what it looks like B2C business, we will be growing kind of low to mid-teens kind of stuff. That's what is visible now on an annualized basis... No -- yes, it will be more back ended, yes. First half, it will be. Yes.

Provides specific growth target for the core B2C business and clarifies that growth will be back-ended, implying a slower H1 FY26.

Asked by Abneesh Roy

Innovation pipeline and its impact on growth Direct

So there is a fairly strong pipeline this year both for Biscuit and Bakery and also primarily on a differentiated product side... a lot of focus over the next 18 to 24 months to build a variety of new products, which are differentiated.

Highlights the company's strategic shift towards differentiated products and the significant investment in innovation, which is expected to drive future growth, though not necessarily huge revenues in FY26 itself.

Asked by Raj Patel

Indore facility contribution and utilization Direct

Indore facility, which we -- the plant got commissioned, has a capacity of annually of 21,000 tonnes... We will be hitting 50% to 70% range of utilization in just about next 50 to 60 days' time, not later than that.

Provides concrete details on new capacity, its strategic benefits, and an aggressive timeline for achieving significant utilization, indicating strong operational ramp-up.

Asked by Raj Patel

Margin normalization timeline Partial

So look, Amit, what I see, it may take almost H1 by the time the normalization of kind of margins happen for us, right? It will start getting better. But it will take about 6 to 9 months. It will be almost that kind of period as of now.

Clarifies that margin recovery will be a gradual process, taking 6-9 months, and not fully realized in Q1 FY26 as previously indicated, which is a slight deferral of expectations.

Asked by Amit Purohit

Inventory increase and debtor days Direct

So our debtor days have gone up marginally by 10%, again over last financial year. And it primarily happened on account of some additional FG inventory being built up was built up in the month of March, but that's being neutralized in the first quarter. So it should get back to the same level as FY '24 by June end.

Explains the reason for increased inventory and debtor days (FG build-up in March) and provides a timeline for its normalization, addressing a working capital concern.

Asked by Sonia Keswani

Overall capacity and potential revenue from new facilities Direct

All the capacities which we have added, including the Khopoli, which will get commissioned in this financial year, and the current Khopoli plant will move to some other place. We should expect, on a full usage -- full utilization basis, revenue on current prices can be close to INR3,400 crores.

Provides a significant long-term revenue potential figure from the combined new and relocated facilities, indicating the scale of future growth.

Asked by Akhil Parekh

Capex cycle completion Direct

So capex, because we have a lot of WIP in capex... our capex cycle will start coming down considerably from FY '27.

Gives a clear timeline for when the current heavy capex cycle will subside, which is important for future free cash flow generation.

Asked by Akhil Parekh

3 min read 7 chapters

Detailed narrative

Q4 & FY25 Financial Performance Overview

Mrs Bectors reported a consolidated revenue of INR 446.1 crores for Q4 FY25, marking a 9.8% year-on-year growth. For the full fiscal year FY25, revenue increased by 15.4% to INR 1,873.9 crores compared to FY24. Despite strong top-line growth, Q4 FY25 PAT grew only 2% to INR 34.3 crores, and the full-year PAT also saw a modest 2% increase to INR 143.2 crores, reflecting margin pressures.

Segmental Growth and Drivers

The Biscuit segment's revenue grew 7% in Q4 FY25 to INR 257 crores, and 26% compared to Q4 FY23. The Bakery segment demonstrated stronger growth, with revenue increasing 19% in Q4 FY25 to INR 179 crores, and a significant 40% growth over Q4 FY23. This growth was supported by both retail bakery and institutional segments, with the frozen business showing very high double-digit growth in FY25.

Input Cost Trends and Margin Outlook

Management noted a mixed trend in raw material prices, with some softening in palm oil due to a 10% duty cut from May 31st, but wheat prices increased by INR 150 and sugar costs saw some inflation. Calibrated price actions initiated in November 2024 are expected to conclude in Q1 FY26. The company anticipates margin normalization to take 6-9 months, with an endeavor to achieve 13-14% EBITDA margin for FY26.

Capacity Expansion and Strategic Footprint

The new Indore facility, with an annual capacity of 21,000 tonnes, commenced operations in May 2025 and is expected to reach 50-70% utilization within 50-60 days. This facility, along with upcoming plants in Calcutta (ready in 2-3 months) and Khopoli (half ready by September, balance by January), is projected to enable a combined revenue potential of INR 3,400 crores at full utilization. These expansions aim to improve regional serviceability, reduce logistics costs, and strengthen pan-India presence.

Innovation and Product Portfolio Expansion

Mrs Bectors is aggressively pursuing product innovation, focusing on differentiated and health-forward offerings. Recent launches include shortbread cookies with 25% butter, animal-shaped crackers (Teddies), ready-to-eat muffins/brownies (English Oven), Zero Maida Pav, and the clean-label NaturBaked range. The company targets new product development (NPD) to contribute close to 5% of its revenue in FY26, reinforcing its commitment to quality and consumer delight.

Distribution and Channel Strategy

The company is expanding its distribution footprint, particularly through Quick Commerce and Cremica Preferred Outlets (CPO). CPO outlets grew from 4,000-4,500 in FY24 to 7,000 in FY25, with plans to grow them by almost 30% in FY26. Quick Commerce already contributes over 25% to English Oven's sales, and aggressive plans are in place to grow Biscuit sales significantly through this channel, leveraging faster reach and delivery.

QSR and Export Business Performance

The B2B business on the Bakery side, which includes QSR, constitutes approximately 11-12% of total revenue. Management observed some signs of improvement in the QSR segment in early FY26, with partners committed to investing and opening new stores, expecting a return to double-digit growth. Exports continued to perform strongly, though potential tariff changes introduced some uncertainty towards the end of Q4 FY25, which the company is confident in navigating.

This is an AI-generated summary of a publicly available earnings call transcript.

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