Bikaji Foods International Limited — Q3 FY26 earnings call

Call held 28 Jan 2026

Management summary

Bikaji Foods delivered a resilient Q3 FY26 performance characterized by strong volume recovery and margin expansion. While the sweets business faced a high base due to the early Diwali shift, core categories like Ethnic and Western snacks showed double-digit growth. Management is aggressively expanding its retail footprint and distribution reach while maintaining a steady gross margin profile through strategic raw material procurement.

Highlights

  • Revenue from operations grew ~11% YoY, with 9-month revenue growth at ~14% excluding PLI.

  • EBITDA grew 77% YoY with Q3 EBITDA margin at 12.5% and 9-month EBITDA margin at 14.2%.

  • Volume growth for the quarter stood at 8.4%, supported by GST benefits passed to consumers.

  • Ethnic snacks grew 13.5% while Western snacks saw robust growth of 20% plus.

  • Retail business delivered ₹47 crore in revenue from 23 stores, growing at 86%.

  • Direct distribution reach expanded to 3.35 lakh outlets, with total reach at 1.4 million outlets.

  • Gross margins remained steady at ~35% despite an uptick in peanut prices.

  • Committed ₹131 crore investment in Hazelnut Factory (40% stake currently) and formed a JV for 'Bikaji Bakes'.

Key financials

  1. Revenue Growth 11% +11%YoY
  2. EBITDA Margin 12.5%
  3. Gross Margin 35%
  4. Volume Growth 8.4% +8.4%YoY
  5. Retail Revenue ₹47 Cr +86%YoY
  6. Ad Cost 4%

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

  • Ethnic Snacks
    13.5% Growth
  • Western Snacks
    20% Growth
  • Bhujia
    16.5% Growth
  • Retail Business
    86% Growth₹47 Cr Revenue

Guidance & targets

Margin

  • EBITDA Margin Improvement Margin · FY26 · Medium confidence 50 bps
    So largely, we see EBITDA margin should move up at least 50 basis points from this year.

    — Rishabh Jain, CFO

Revenue

  • Bikaji Bakes Top Line Revenue · next 3 years · Medium confidence ₹100 crores
    And as Rishabh said, that over 3 years, I mean, this has a potential to get us about INR100 crores in our top line number.

    — Manoj Verma, COO

Market Share

  • Organized Ethnic Snack Market Share Market Share · next 3 to 5 years · Medium confidence 11-11.5%
    So, we see a double-digit market share in next 3 to 5 years, maybe around 11%, 11.5% kind.

    — Manoj Verma, COO

Other

  • Ad & Promotion Spend Other · FY27 · High confidence 2-2.5%
    Okay. EBITDA should be, and A&P would be in the range of 2% and 2.5%, right, for next year as well? Rishabh Jain: Yes, yes.

    — Rishabh Jain, CFO

Volume

  • Focus State Growth Volume · FY27 · Medium confidence 15-17%
    It will not be less than 15%. 15%, 17% should be the bare minimum growth in that stuff.

    — Manoj Verma, COO

Risks & concerns

  • Raw Material Price Volatility (Peanuts)

    medium

    Management noted an uptick in peanut prices but stated it is not a large part of the overall portfolio and other materials are stable.

    Management acknowledged

  • Execution Risk in New JVs (Bikaji Bakes/Nepal)

    medium

    Analysts questioned the rationale for entering premium bakery; management views it as a futuristic investment with a separate professional team.

    Analyst bullish

  • Seasonality and Festival Shifts

    low

    Early Diwali led to negative growth in the sweets category in Q3, though YTD numbers remain positive.

    Management acknowledged

Areas of evasion (1)

  • Specific growth numbers for UP were given as a range (13-14%) rather than an exact figure when pressed by analysts.

Q&A highlights

2 direct
Strategy for Dry Fruits and Nuts Direct
So, we also do have some cashew nuts and these nut stuff, but that has not been our focus thus far. And in near future, this is not our priority because this is importantly on some few channels where the premium products could be sold.

Clarifies that Bikaji is prioritizing mass-market Namkeen and Bhujia over the premium/niche dry fruit segment despite competitor moves.

Asked by Abneesh Roy

Dual Brand Ambassador Strategy Direct
Amitabh Bachchan helps us do all category, right? Now getting one brand ambassador for specific stuff... Pankaj Tripathi, we roped him because this connects more closer to this geography to the masses and the TG what we are looking at.

Explains the hyper-local marketing strategy in UP to drive penetration in a key focus market.

Asked by Abneesh Roy

GST Benefit and Volume Growth Split Partial
So largely from increase in grammage in quarter 3, what we done due to GST... it has been improving volume growth of 1.5%, 2% in overall yes.

Quantifies the direct impact of passing GST benefits to consumers via grammage increases, which is a key volume driver.

Asked by Shirish

2 min read 5 chapters

Detailed narrative

Core vs. Focus Market Dynamics

Bikaji is seeing a divergence in performance between its core and focus markets. Core states are expected to deliver ~13% growth, while focus states like Uttar Pradesh are targeted for 15-17% growth. The company is using hyper-local marketing, such as the 'Kya Baat Hai Ji' campaign with Pankaj Tripathi, to accelerate penetration in UP, which is already seeing 14% growth.

Strategic Pivot into Premium Bakery

The formation of 'Bikaji Bakes' (BBPL) marks a strategic entry into premium breads, grocery, and cakes. This JV with T.K. Khaleel aims to reach a ₹100 crore top line within three years. The business will operate independently of the core Bikaji brand with a separate professional team, focusing on exports, B2B, and high-end domestic retail.

Margin Resilience and Raw Material Strategy

Despite inflationary pressure in peanuts, Bikaji maintained a 35% gross margin. The company is leveraging its 'peak crop season' to engage in long-term procurement (6-7 months) for key materials like potatoes. Management expects EBITDA margins to expand by at least 50 bps in FY26 through operational efficiencies and a favorable product mix favoring high-margin Bhujia.

Distribution and Retail Expansion

The company's retail business is a significant growth engine, surging 86% YoY to ₹47 crore. Bikaji plans to open at least 10 more stores next year. On the distribution front, direct reach has hit 3.35 lakh outlets, with a clear strategy to drive growth through both higher throughput per outlet in core states and inorganic store expansion in focus markets.

GST Benefit Pass-Through

Management highlighted that the GST rate cut benefits were passed to consumers through both MRP reductions and grammage increases. This move contributed approximately 1.5% to 2% to the overall volume growth in Q3. The company believes this makes their products more affordable and helps gain share from smaller, unorganized players.

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