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    Gopal Snacks

    GOPALMixed
    Fast Moving Consumer Goods·11 Nov 2025
    Management Summary

    Gopal Snacks reported a quarter of steady progress with strong sequential revenue growth and margin expansion, primarily driven by operational efficiencies and easing input costs. The company's Modasa plant commenced trial production, and efforts are underway to resolve supply chain disruptions and expand market presence, particularly in Gujarat and non-core states through third-party manufacturing. While previous full-year guidance is no longer achievable due to delays, management expects H2 revenue to exceed INR 700 crores.

    Highlights

    8
    • Revenue from operations stood at INR 375.7 crores, up 16.6% Q-o-Q.

    • EBITDA margin improved to 6.4%, with EBITDA at INR 24.1 crores.

    • Gross margin expanded to 26.4% (INR 99.2 crores) from 26% in the previous quarter.

    • PAT stood at INR 25.7 crores (6.8% margin), including INR 21.5 crores exceptional income from interim insurance.

    • H1 FY26 revenue was INR 697.8 crores, with EBITDA margin at 5.6%.

    • Modasa plant trial production started, expected to contribute partially in Q3 and fully in Q4.

    • Supply chain disruption expected to reduce by 90% after Modasa's full product basket integration.

    • Current capacity utilization is 41-45%, with a target to reach 70% in 2-2.5 years.

    Concerns

    3
    • Modasa Plant Commissioning Delays

    • Supply Chain Disruption

    • Inability to meet previous guidance

    What Changed3

    vs Q3 FY26

    Tone shiftGood → MixedGuidance items22 → 12 (-10)Risks discussed3 → 5 (+2)

    Key financials

    Single quarter

    14 metrics
    1. 01Revenue from Operations₹375.7 Cr+16.6%QoQ
    2. 02Gross Profit₹99.2 Cr
    3. 03Gross Margin26.4%
    4. 04EBITDA₹24.1 Cr
    5. 05EBITDA Margin6.4%

    Guidance & targets

    12
    CategoryTargetPriority
    Revenue
    H2 FY26 Revenue
    more than INR 700 crores
    Medium
    Revenue
    Gujarat Run Rate per month
    beyond INR 125 crores
    High
    Capacity
    Overall Capacity Utilization
    70%
    Medium
    Margin
    Gross Profit Margin
    25% to 26%
    Medium
    Insurance
    Additional Insurance Payment
    similar amount
    Medium
    Supply Chain
    Supply Chain Disruption Reduction
    90%
    High
    Customer Base
    Lost Customer Base Recovery
    recover our loss
    Medium
    Realization
    Overall Weighted Average GST Realization
    improve by 1%-1.5%
    High
    New Product
    Wafer Biscuits Run Rate (Pan-India)
    cross Rs. 1 crore
    High
    Product Mix
    Palm Oil Dependent Products Contribution
    reduce by 25%
    High
    Distribution
    Throughput per outlet jump (Gujarat)
    30-40%
    High
    Capex
    Modasa Plant Capex Pending
    INR 7 crores to INR 8 crores
    High

    Risks & concerns

    6
    RiskSeverity

    Modasa Plant Commissioning Delays

    Delays of 4-5 months impacted H1 revenue and led to a revision of full-year guidance.Management acknowledged

    high

    Supply Chain Disruption

    The fire incident and reliance on multiple plants for different products caused significant supply chain disruption, affecting sales and customer base.Management acknowledged

    high

    Raw Material Price Inflation (specifically potatoes)

    Potato prices went up 3.5x in Q4 last year, impacting margins. Management has stock till Dec 15 and expects prices to be 'in control' but acknowledges difficulty in predicting new crop rates.Management acknowledged

    medium

    Competition and Market Share Loss in Focus States

    Disproportionate focus on retaining Gujarat distributors after the fire led to lagging growth and market share challenges in focus states like Rajasthan, Western Maharashtra, and Western MP.Management acknowledged

    medium

    Inability to meet previous guidance

    Management explicitly stated that the previous full-year revenue guidance of INR 1,750 crores will not be met due to commissioning delays and supply chain issues.Management acknowledged

    high

    Areas of Evasion(1)

    • Funding strategy for acquisitions

    Q&A highlights

    3

    “it will definitely not be possible to meet the guidance. Initially, we were saying that we will get the commissioning in July-August... Right now, the guidance is not being met. But we will not be able to tell you the final numbers for this year because when we get the full projected supply from Modasa, then we will be able to get the benefit as per our speed.”

    This question directly addresses a significant miss on previous guidance, highlighting the impact of Modasa plant delays and the company's revised, more cautious outlook for the second half of the fiscal year.

    asked by Resham Mehta

    3 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Financial Performance Overview

    Gopal Snacks reported a strong Q2 FY26 with revenue from operations reaching INR 375.7 crores, marking a 16.6% sequential growth. The company's profitability also saw an improvement, with EBITDA margin expanding to 6.4% (INR 24.1 crores) and gross margin at 26.4% (INR 99.2 crores). Profit after tax stood at INR 25.7 crores, representing a 6.8% margin, significantly boosted by an exceptional income of INR 21.5 crores from an interim insurance payment related to the Rajkot facility fire.

    02

    Impact of Modasa Plant Delays and Revised Guidance

    The commissioning of the Modasa plant was delayed by 4-5 months, significantly impacting the company's ability to meet its initial full-year revenue guidance of INR 1,750 crores. Management explicitly stated this guidance is no longer achievable. However, they anticipate H2 FY26 revenue to be "more than INR 700 crores" and expect supply chain disruption to reduce by 90% once the Modasa plant is fully operational with its complete product basket by the end of November.

    03

    Operational Efficiency and Capacity Expansion

    Current capacity utilization stands at 41-45%, with a revised target to reach 70% in the next 2 to 2.5 years, indicating a delay from the previously stated FY27 target. The company is strengthening its manufacturing footprint by adding third-party facilities in Hiriyur (Karnataka) and Kashipur (Uttarakhand), which together add over 10,000 metric tons per annum of capacity. The Modasa plant's trial production has begun, with INR 7-8 crores of capex still pending for Q3.

    04

    Market Strategy and Distribution Focus

    Gopal Snacks is focusing on increasing depth in Gujarat, aiming for a 30-40% jump in throughput per outlet over the next two years and a monthly run rate exceeding INR 125 crores in 2-3 years. In non-core states, the strategy involves strengthening the footprint around Nagpur within a 350 km radius and creating small clusters in Uttarakhand and Hiriyur using third-party manufacturing to reduce lead times and avoid capex. The company is not prioritizing acquisitions for distribution but rather for product categories that complement its existing portfolio, predominantly in Gujarat and outside Namkeen.

    05

    Product Portfolio and Realization Improvements

    The company is actively diversifying its product portfolio, with new launches like popcorn, wafer biscuits, and Jeera Papad showing promising run rates (e.g., wafer biscuits at INR 50 lakhs/month in Gujarat, targeted to cross INR 1 crore Pan-India). Management aims to reduce the contribution of palm oil-dependent products by 25% over the next 3-5 years. Realizations are expected to improve by 1-1.5% due to GST relief and a shift in product mix, despite a slight decrease in the contribution of INR 5 price point SKUs from 66% to 62% this quarter.

    06

    Raw Material and Margin Outlook

    Gross margin for the remaining year is expected to stay in the 25-26% range, with input costs anticipated to be stable, allowing for a 3-4% upward movement without significant impact. The company has potato stock until December 15th and expects prices to be "in control" during that period, acknowledging the volatility seen in Q4 last year when potato rates surged 3.5x to INR 35 per kg. The GST rate reduction led to a 0.5% increase in the company's channel margin retention, while benefits were passed to consumers in big packs.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.