Bikaji Foods International Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Bikaji delivered a resilient performance in Q2 FY26, characterized by strong margin expansion and robust growth in sweets and exports, despite a temporary disruption in its core ethnic snacks category. The reduction in GST from 12% to 5% led to short-term trade destocking in September, but management expects this to drive high-teens growth in H2. With a completed capex cycle and a focus on distribution expansion, the company is well-positioned for volume-led growth.

Highlights

  • Revenue growth of 15.2% YoY, with volume growth at 10.8% YoY

  • EBITDA margin reached 15.4%, the highest level in the last 5 quarters

  • Gross Margin (excluding PLI) stood at 34%, a record high for the last 8-9 quarters

  • Export business delivered over ₹50 crores in revenue, growing 77.3% in H1 FY26

  • Packaged sweets segment grew by 32.3% YoY, aided by early Diwali demand

  • Ethnic snacks growth was muted at 4.6% YoY due to GST rate transition (12% to 5%) in September

  • Distribution reach expanded to 3.3 lakh outlets, on track for 3.5 lakh by year-end

  • Completed a ₹500 crore capex cycle in FY25; current capacity utilization is at 52%

Key financials

  1. Revenue Growth 15.2% +15.2%YoY
  2. Volume Growth 10.8% +10.8%YoY
  3. EBITDA Margin 15.4%
  4. Gross Margin 34%
  5. Export Revenue ₹50 Cr

What they filed

Q1 FY27: revenue up 8.7%, net profit up 3.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue713 676 585 624 796 +12%731 +8%667 +14%678 +9%
EBITDA109 56 79 99 130 +19%95 +70%91 +15%99 +0%
Net profit72 31 48 63 78 +8%65 +110%64 +33%65 +3%
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

SegmentRevenue GrowthH1 Growth
Ethnic Snacks4.6%7.7%
Packaged Sweets32.3%25%
Papad10%8%
Western Snacks-5.2%—

Guidance & targets

Volume

  • Ethnic Snacks Growth Volume · Q3 & Q4 FY26 · High confidence 15-19%
    we are expecting high-teens growth in the ethnic snacks category in quarter 3, as well as quarter 4.

    — Rishabh Jain, CFO

Market Share

  • Direct Distribution Reach Market Share · FY26 · High confidence 3.5 Lakh+
    is very well on track to deliver 3.5 Lakh plus outlets by the end of this financial year.

    — Manoj Verma, COO

  • Direct Distribution Reach Market Share · next 3 years · Medium confidence 5 Lakh
    we intend to reach to 5 Lakh outlets as our direct coverage. So if we break down by year, it is adding 50,000 outlets year-on year.

    — Manoj Verma, COO

Capacity

  • Capacity Utilization Capacity · next 3-4 years · Medium confidence 70-75%
    we invested in the capacity that we want to achieve 70%, 75%. And we have, like, we grow our volume by 10%, 12% year-on-year, these numbers will become 70%, 72% in the next 3, 4 years.

    — Rishabh Jain, CFO

Other

  • Retail Outlet Count Other · FY28 · Medium confidence 35-40
    what we see that next 2, 3 years is that retail outlets from 27, 28 can go up to 35, close to 40 in the next 2 years.

    — Rishabh Jain, CFO

  • NPD Revenue Contribution Other · Annual · High confidence 2-3%
    we look at about 2% to 3% should come from NPDs.

    — Manoj Verma, COO

Risks & concerns

  • GST Transition Disruption

    medium

    Trade channels held back purchases in September awaiting revised MRPs following the GST cut from 12% to 5%.

    Management acknowledged

  • Western Snacks Competition

    medium

    Intense regional competition and a general category slowdown led to a 5.2% revenue decline in Western snacks.

    Analyst acknowledged

  • Regional Instability (Assam/Northeast)

    low

    Market closures for 4-5 days in the Northeast due to local issues impacted short-term sales.

    Management acknowledged

Areas of evasion (1)

  • Exact number of direct distributors/depots was not provided immediately.

Q&A highlights

3 direct
Growth disparity between Focus States and Other States Direct
Other states... Maharashtra and Gujarat have done very well for us... on the back of a strong modern trade presence... in the quarters to come, you will see that the other states will slightly slowdown in this.

Explains why non-core markets are currently outgrowing core markets due to modern trade and gifting salience.

Asked by Abneesh Roy, Nuvama

Quantifying the impact of GST transition and Assam disruption Direct
it seems like it should be between 3% to 5% of the ethnic snacks business.

Provides a clear metric for the temporary revenue loss that management expects to recover in Q3.

Asked by Nitin, Emkay Global

Volume vs Price growth in Ethnic Snacks Direct
our ethnic snacks overall category has grown close to 4.6%, and we have taken a 3%- 3.5% price. So, this ethnic snack category is growing around 1%- 1.5% [in volume].

Reveals that core category volume growth was very low in Q2, highlighting the severity of the September disruption.

Asked by Shirish Pardeshi, Motilal Oswal

2 min read 5 chapters

Detailed narrative

GST Transition Impacts Core Category Growth

The core Ethnic Snacks category saw muted growth of 4.6% in Q2 FY26, primarily due to the GST rate reduction from 12% to 5% implemented on September 22. This caused a 20-day market disruption as trade channels deferred purchases to wait for new MRP stocks with higher grammage. Management estimated the impact at 3-5% of the ethnic snacks business but expects a strong recovery to high-teens growth in Q3 and Q4 as the industry becomes more organized.

Record Margins Driven by Product Mix and Benign Inputs

Bikaji achieved a 15.4% EBITDA margin and a 34% gross margin (excluding PLI), the highest in over two years. This expansion was fueled by a favorable product mix, with high-margin sweets growing at 32.3%, and stable commodity prices for edible oils and pulses. The company's hedging and fuel pricing policies also contributed to maintaining this upward margin trajectory despite category-specific volume pressures.

Aggressive Distribution and Retail Expansion

The company is on track to reach 3.5 lakh direct outlets by the end of FY26, with a long-term goal of 5 lakh outlets in three years by adding 50,000 outlets annually. In the retail segment, Bikaji currently operates 21 outlets (including THF) and plans to expand to 25 by year-end and 35-40 by FY28. Management emphasized that direct reach is growing faster than indirect reach, improving service quality and throughput.

Export Momentum and Ariba Foods Integration

Export revenue surpassed ₹50 crores in the quarter, reflecting a 77.3% growth in the first half of the year. This momentum is supported by consistent investment in market coverage and the acquisition of Ariba Foods, which provides frozen food capabilities. While Ariba is currently underutilized and not yet profitable, management expects it to reach profitability within the next 1.5 to 2 years as export volumes scale.

Innovation Pipeline and New Product Development

New Product Development (NPD) currently contributes 2% to 2.5% of overall revenue, with a target to maintain this at 2-3%. Recent successful launches include Paneer Bhujia and Falahari mixtures, which cater to fasting-related demand. The company also recently launched Millet Bhujia, a niche health-conscious product, and is entering a Joint Venture in Nepal to target a top-3 market position with high single-digit share in three years.

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