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Bikaji Foods International Limited — Q4 FY26 earnings call

Call held 22 May 2026

Management summary

Bikaji Foods delivered a strong Q4 FY26, with over 18% top-line growth and improved EBITDA margins, driven by robust core market performance, successful campaigns, and significant e-commerce expansion. Despite challenges from raw material inflation and temporary production disruptions, the company implemented price adjustments and is focused on operational efficiencies and strategic capacity expansion in sweets and retail to sustain growth.

Highlights

Q4 top line growth exceeded 18%, with core market growth upward of 15%.
Full-year EBITDA margin improved by 120 basis points to 13.7%.
E-commerce and quick-commerce now contribute 3% of overall business, growing over 100%.
Family pack segment showed strong growth of 20% in Q4, supported by successful marketing campaigns.
Export revenue crossed INR100 crores for the first time, demonstrating strong international performance.
THF (retail) revenue doubled this year, crossing INR100 crores, and is profitable.

Concerns

Temporary production loss of 4-4.5 days in Q1 FY27 due to the Chairman's passing and Bengal elections affecting labor availability.
Raw material inflation, particularly in edible oils (12-14%) and packaging materials (25-30%), though a 3% price hike has been implemented.
Western snacks portfolio growth was slower at 8.5% in Q4, with management acknowledging room for improvement.

Key financials

3 periods

Headline

Revenue
₹720 Cr
YoY +18%

Q4 FY26

Volume Growth
16%
Gross Margin
35.6%
EBITDA
₹88 Cr
PAT
₹56 Cr
PAT Margin
8%

FY26

Revenue
₹2,994 Cr
Volume Growth
9.5%
Gross Margin
35.1%
EBITDA Margin
13.7%
YoY +1.2%

What they filed

Q1 FY27: revenue up 8.7%, net profit up 3.2% 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	713	676	585	624	796 +12%	731 +8%	667 +14%	678 +9%
Expenses	604	621	506	525	665	636	577	579
EBITDA	109	56	79	99	130 +19%	95 +70%	91 +15%	99 +0%
Margin	15%	8%	13%	16%	16%	13%	14%	15%
Other income	8	7	7	8	0	10	14	11
Interest	2	3	3	3	4	3	2	3
Depreciation	17	18	18	18	18	18	19	19
Profit before tax	97	42	65	85	109 +12%	84 +100%	84 +29%	87 +2%
Tax rate	26%	26%	25%	26%	29%	23%	24%	26%
Net profit	72	31	48	63	78 +8%	65 +110%	64 +33%	65 +3%
EPS	2.88	1.23	1.93	2.52	3.10	2.58	2.54	2.58

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
16% Volume Growth (Q4 FY26)
Western Snacks
8.5% Growth (Q4 FY26)14% Impulse Growth (Q4 FY26)20% Family Pack Growth (Q4 FY26)8.5% Contribution (FY26)
Packaged Sweets
9% Growth (FY26)
THF (Retail)
₹100 Cr Revenue (FY26)1.3% Growth (FY26)
Exports
₹100 Cr Revenue (FY26)
E-commerce/Q-commerce
3% Contribution to Business (FY26)1% Growth (Q4 FY26)

Capital allocation

high confidence

Capex ₹100 Cr
- Sweet factory in Bikaner
- Big warehouse for supply chain
Rishabh Jain: So, capex largely what we'll be doing, there's 2 capex, the sweet factory, which is coming in Bikaner. And so, this year, we'll be doing close to INR100 crores of capex. That's the plan, less than or close to INR100 crores capex. That is big warehouse, which is came in. The capex has been done. It will came in install in, I think, in the next 15, 20 days. So that will suffice -- that will solve sort of supply chain problems.
M&A Ariba Foods Acquisition · Integrated

Works for frozen segment, solved export problem by providing manufacturing capability, export growth 50-60%.
Not EBITDA dilutive, low utilization (55-60% target) to solve EBITDA issue.

Rishabh Jain: We have Ariba Foods, which works for us for frozen segment. And of course, this THF. THF is going on very well. This year, they've grown at close to 130% to cross INR100 crores. So, retail business is going on very well. So, the difference between Ethnic snacks and overall is close to 2.2%, which is THF retail. Ariba is just a manufacturing capability, and they are just solving our export problem, which we had -- which was there before Ariba when they were dependent on other vendors. And during their peak time, they're not able to supply, there was always supply chain issue. And you will see that after Ariba, our export growth is growing at 50-60%. And this year also, this will be the same momentum what we see this year. So Ariba is largely manufacturing facility of course, concluding the focus because they cannot be an EBITDA dilutive to us, and that's what we are working on. Currently, they are at low utilization. This will be close to 55%, 60% utilization and that will solve this EBITDA issue also.
M&A THF (Retail) Acquisition · Integrated

Retail business, grew 130% to cross INR100 crores, profitable and not EBITDA dilutive.
Profitable, not EBITDA dilutive.

Rishabh Jain: We have Ariba Foods, which works for us for frozen segment. And of course, this THF. THF is going on very well. This year, they've grown at close to 130% to cross INR100 crores. So, retail business is going on very well. So, the difference between Ethnic snacks and overall is close to 2.2%, which is THF retail. So, from retail lens largely, our major focus investment was on THF last year and THF is doing extremely well. So, they have close to 19, 20 stores. Intent is to open 8, 10 stores every year for next 3 years and to grow our business at 50%, 55% top line growth. That's the target. And the best part is that they are profitable. So that's not EBITDA dilutive.
M&A Bikaji USA Joint venture · Integrated

Core Ethnic snacks business, doing good.

Rishabh Jain: So, from consol to standalone, largely we have Bikaji USA, which is a core Ethnic snacks business, which is doing good.

Guidance & targets

Volume

Overall Volume Growth Volume · next year · Medium confidence 13% plus/minus

Previously 15% → 13% plus/minus

In fact, going forward, if one was to give some guidance for next year. So 15% growth would not be sustainable. What we look at it is that's about 13 plus/minus kind of growth we'll look at from core states and from focus states would be, of course, up 20%.

— Manoj Verma
Focus States Volume Growth Volume · next year · Medium confidence 20%

— Manoj Verma

Margin

Gross Margin Margin · this year · High confidence Maintain same

So, from that perspective, gross margin, the target of gross margin at consol should be same for us. We need to maintain the gross margin this year.

— Rishabh Jain

Profitability

EBITDA Profitability · this year · Medium confidence Improve

But yes, overall, our target is to be -- to maintain the same gross margin and that's -- and EBITDA lens largely so if we maintain the same gross margin, EBITDA will improve because there is a lot of fixed costs, which will be fixed and there is production from outside Bikaner, which is CMU will also increase so there a lot of operational efficiency which will come in this year.

— Rishabh Jain

Ad Spend

Ad Budget as % of Revenue Ad Spend · this year · High confidence 2%

So, from ad perspective, ad budget this year will be close to 2%, which is same from last year.

— Rishabh Jain

Retail (THF)

New Store Openings Retail (THF) · every year for next 3 years · High confidence 8-10 stores

Intent is to open 8, 10 stores every year for next 3 years and to grow our business at 50%, 55% top line growth.

— Rishabh Jain
Top Line Growth Retail (THF) · next 3 years · High confidence 50-55%

Intent is to open 8, 10 stores every year for next 3 years and to grow our business at 50%, 55% top line growth. That's the target.

— Rishabh Jain

Western Snacks

Contribution to Business Western Snacks · next 3 years · High confidence 11%

From 8.5% today

Western snacks contribution should move to about 11% in the next 3 years.

— Manoj Verma

Sweets

Growth Sweets · this year · High confidence 11-12%

From 9% today

And from sweet snacks largely our this year growth was close to 9% and our target is to be at 11% to 12%.

— Rishabh Jain

UP Market

Growth UP Market · Medium confidence Upwards of 20%

In UP, what kind of growth we're expecting 20%, 25% kind of growth or it's higher than that? Yes, upwards of 20% growth, yes.

— Manoj Verma

E-commerce/Q-commerce

Growth E-commerce/Q-commerce · next year · Medium confidence Huge continued growth

So. we see a huge growth -- continued growth in this channel for us next year as well.

— Manoj Verma

Hazelnut Factory

Revenue Growth Hazelnut Factory · next 2-3 years · High confidence 50-60%

They crossed INR100 crores revenue this year and target is to grow 50%, 60% year-on-year for next 2, 3 years.

— Manoj Verma

What to watch in Q1 FY27

Sweet factory commissioning in Bikaner

next quarter

Current Under construction, capex planned for this year

Target Progress towards commissioning

Why it matters

This factory is crucial for solving sweets production issues and achieving targeted growth in the segment.

Rishabh Jain: So, capex largely what we'll be doing, there's 2 capex, the sweet factory, which is coming in Bikaner. And so, this year, we'll be doing close to INR100 crores of capex.

Risks & concerns

Chairman's passing and associated production loss
high

The passing of the Chairman led to a factory shutdown for 2.5-3 days, impacting Q1 FY27 production.

Management acknowledged
Labor availability issues due to Bengal elections
medium

Labour movement to Bengal for elections caused 4-4.5 days of production loss in Q1 FY27.

Management acknowledged
Raw material inflation (edible oils and packaging)
medium

Edible oils increased 12-14% and packaging materials 25-30%, necessitating a 3% price hike.

Management acknowledged
Sweets capacity utilization challenges due to seasonality
medium

Sweets business sees 80% sales in 4 festive months, leading to over-utilization then and poor utilization off-season.

Management acknowledged
Western snacks portfolio underperformance
low

Q4 growth for Western snacks was 8.5%, slower than desired, with management noting room for improvement.

Management acknowledged

Q&A highlights

6 direct

Q1 momentum and impact of production disruptions Direct

So, momentum, what we are seeing is it's a continued momentum. So, post November, the way of the trajectory we are on, this continues. This also is the outcome of the kind of investment in demand generation, what we have done thus far and is keeping us on the same trajectory. So, in spite of certain price being passed to the consumer, yet we haven't seen any slowdown in terms of the demand. ... Overall, if you look at this quarter will be well in line with what you said.

Analyst sought clarity on the continuation of Q4 momentum into Q1, especially given temporary production losses due to external events.

Asked by Avnish Roy

Raw material inflation and pricing strategy Direct

From packaging material inflation, we have seen that the average like packing material cost was close to INR190, INR200. It has gone up to INR260, INR270. But it has again came down to INR220, INR225. So, it's not a high side as of now, it's manageable. but yes, overall, what we have done, we have increased price in Family pack and we have reduced grammage Impulse. ... Overall, the price rise was close to 3%, which will be manageable, which can manage this increased RM PM price.

Analyst questioned the extent of inflation and how the company is managing it through price hikes or shrinkflation.

Asked by Avnish Roy

Seasonality of EBITDA margins and ad spend Direct

So largely our major ad cost, which comes in during festivity. So normally in every year, our major ad cost comes from August to December. But this year, we have continued campaign in the fourth quarter also. So fourth quarter ad cost was significantly higher compared to last year quarter. But overall, the ad cost was close to 2%, which was last year 1.6% on a yearly basis. ... And there was 50 basis points some provision for doubtful debt, which we have taken in last 2 quarters, last quarter, in fact, which was one time.

Analyst sought explanation for the observed lower EBITDA margins in the second half of the fiscal year.

Asked by Percy Panthaki

Discrepancy between consolidated and standalone growth rates Direct

So, from consol to standalone, largely we have Bikaji USA, which is a core Ethnic snacks business, which is doing good. We have Ariba Foods, which works for us for frozen segment. And of course, this THF. THF is going on very well. This year, they've grown at close to 130% to cross INR100 crores. So, retail business is going on very well. So, the difference between Ethnic snacks and overall is close to 2.2%, which is THF retail.

Analyst questioned the higher consolidated growth, leading to insights into the performance of key subsidiaries.

Asked by Percy Panthaki

Performance and future growth of the Western snacks portfolio Partial

Yes. So, generally if you look at I mean, so just Western snack holistically, if we look at quarter 4 has been a 16% volume growth, wherein the Ethnic snacks is in line with overall volume growth, which is 16.1% value growth. Packaged sweets did well. Western snacks, one, of course, the INR5 pack, as I spoke in my earlier statement as well, that the trajectory what moved was more on the family pack and the family pack is more on the Ethnic side. So perhaps that's what could have been better. ... Western snacks will grow 20% plus if you look at them. At an annualised level as well if we look at so the annualized level first half and second half was a key a major contrast in terms of growth across category. And even here, if we look at Ethnic snacks is at 11% in that stuff. And while Western snacks was better, but then because of this quarter 4, this has come down in this. But going forward, this will fall in place.

Analyst probed the relatively lower growth in Western snacks and management's strategy to improve it.

Asked by Darshit Vora

Impact of GST rationalization on unorganized players and Bikaji's market share Direct

So, I think very nice question, Shirish. And if you look at what we did, so the Family pack there, this is no impacted more in that stuff. So -- and as our numbers are, I'm sure other companies also would have done better. ... But certainly, this GST regime change would benefit the organized player or the larger players also. ... So I think the right time, maybe next quarter onwards, as the year will pass by, you will see those impacts coming in.

Analyst questioned the real-world impact of regulatory changes on the competitive landscape and Bikaji's potential gains.

Asked by Shirish Pardeshi

Strategy for the sweets business given past slow growth and capacity constraints Direct

So, from sweet lens largely, of course, that's more of manual. So capacity was constrained. And sweet has different challenge. Like during festivity, we have capacity constraint during non-festivity, we have very surplus capacity because during festivity, we work in 100% dilation and so we are building one sweet factory in Bikaner, which will solve this sweets production issue. And also, we are trying to build all-season sweets, small pack, INR5, INR10 pack in sweets and soan papdi everything. So that can be all season that can improve overall growth of sweet category. And from sweet snacks largely our this year growth was close to 9% and our target is to be at 11% to 12%.

Analyst sought understanding of the sweets segment's underperformance and the company's plans to revitalize it.

Asked by Nitin Gupta

Strategy for the 'healthy snack' segment and future readiness Partial

See, frankly speaking, there's nothing called healthy snack. There could be less unhealthy snacking, right? And in our portfolio also, there's a long list of SKUs which fall in that space. So, in terms of future ready, we are, right? ... Today, the companies which are surviving is purely on the q-com platform, you will still see these -- the clean label products kind of a stuff. But when you speak on the masses, this is not true for now. We perhaps are 5, 6 years behind time and in the next as many years, you will see that these things will start picking up even faster. From our readiness standpoint, yes, we have the entire range with us.

Analyst inquired about the company's approach to the growing healthy snack trend and its portfolio positioning.

Asked by Mahima

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Detailed narrative

Robust Q4 & FY26 Performance

Bikaji Foods reported a strong Q4 FY26 with over 18% top-line growth and a full-year EBITDA margin expansion of 120 basis points to 13.7%. Full-year revenue from operations reached INR 2,994 crores, with volume growth of 9.5%. Q4 volume growth was particularly strong at over 16%, marking the highest in any quarter, contributing to a Q4 EBITDA of INR 88 crores and PAT of INR 56 crores.

Strategic Distribution & Marketing Initiatives

The company successfully expanded its distribution network, crossing 3.5 lakh outlets. Key marketing campaigns like 'Bhujia ho toh Bikaji' and 'Kya Baat Hai Ji' significantly boosted the Family pack segment, which grew 20% in Q4. These initiatives, combined with GST reduction, led to 'very significant and good growth' in the overall Namkeen snacks category, with ad spend maintained at approximately 2% of revenue.

Raw Material & Pricing Strategy

Bikaji faced significant raw material inflation, with edible oils rising 12-14% and packaging materials 25-30%. In response, the company implemented an overall price hike of approximately 3% in April 2026 and reduced grammage in Impulse packs. Management believes these actions are sufficient to manage current inflation and aims to maintain gross margins, which stood at 35.6% in Q4 and 35.1% for the full year.

Segmental Growth Drivers & Expansion

The Ethnic snacks segment showed strong Q4 volume growth of 16%. The Western snacks portfolio, though slower at 8.5% in Q4, is targeted for 20%+ growth to increase its contribution from 8.5% to 11% in the next three years. The THF retail business doubled its revenue to over INR100 crores this year, with ambitious plans for 50-55% annual growth and 8-10 new store openings annually. Exports also crossed INR100 crores for the first time, with Ariba Foods contributing to 50-60% export growth.

Capacity Expansion & Operational Efficiency

To address capacity constraints, particularly in sweets, Bikaji plans a capex of approximately INR100 crores for a new sweet factory in Bikaner, which will solve production issues. A new warehouse, with capex already completed, is expected to be fully operational by mid-June, enhancing supply chain efficiency and supporting seamless production. These investments, along with increased CMU production, are expected to drive operational efficiencies and improve EBITDA.

E-commerce & Quick Commerce Momentum

E-commerce and quick-commerce channels now account for 3% of overall business, up from 2% last year, demonstrating over 100% growth in Q4. Management sees 'huge continued growth' in this channel, driven by inorganic growth (expanding to Tier 2 cities) and increased SKUs. The company is exploring new categories and premium offerings to sustain this momentum, especially as growth in metro towns shows signs of stagnation.

Impact of External Events

The company experienced temporary disruptions in Q1 FY27 due to the unfortunate passing of its Chairman, leading to a 2.5-3 day factory shutdown. Additionally, the Bengal elections caused labor movement and a 4-4.5 day production loss. Despite these, management expects overall momentum to continue, with efforts underway to cover the lost production.

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

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