Gopal Snacks reported a strong Q3 FY26, reversing previous declines with a 6.7% sequential revenue growth, primarily driven by core categories and the operationalization of its Modasa facility. Margin expansion was noted due to improved operational efficiencies and reduced trade discounts. The company outlined ambitious growth plans for FY27, focusing on distribution expansion, targeted marketing campaigns, and product mix optimization to achieve higher revenue and EBITDA margins.
vs Q4 FY26
Notable Quotes from the Call
Most Confident Moment
We are confident that Gopal Snacks through its strategic initiative backed by strong financial foundation will continue to deliver long-term value for all its stakeholders. ... we are confident that our run rate will certainly improve.
Least Confident Moment
So probably, we had not matured in that category to that extent, that steep hike was not taken generously by the retailer fraternity.
| Metric | Value | YoY |
|---|---|---|
| Revenue | ₹400.8 Cr | — |
| Gross Profit | ₹110.6 Cr | — |
| Gross Margin | 27.6% | — |
| EBITDA | ₹30.4 Cr | — |
| EBITDA Margin | 7.6% | — |
| PBT | ₹19 Cr | — |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Revenue from Operations(crores) | 409.6 | |
| Gross Profit(crores) | 113 | |
| Gross Profit Margin | 27.7% | |
| EBITDA(crores) | 31.5 | |
| EBITDA Margin | 7.7% | |
| PAT(crores) | 29.9 |
| Category | Target | Priority |
|---|---|---|
| Revenue | FY26 Revenue→₹1,500 crores | Medium |
| Revenue | FY27 Revenue→₹1,800-1,900 crores | High |
| Revenue | Revenue Delta from New Distributors→₹70-75 crores | High |
| Revenue | Revenue Delta from Alternate Trade Channels→₹25 crores | High |
| Revenue | E-commerce Revenue→₹15-17 crores | Medium |
| Profitability | FY27 EBITDA Margin→8-9% (exit rate near double digit) | Medium |
| Profitability | FY26 EBITDA Margin→7% | Medium |
| Profitability | FY26 Gross Margin→27% | Medium |
| Profitability | Q4 FY26 Gross Margin→similar to Q3 | Medium |
| Distribution | New Distributors→250-300 | High |
| Distribution | Focus Market Growth (existing network)→15% | Medium |
| Marketing | Q4 Marketing Budget→₹8 crore | High |
| Volume | Gathiya Growth→20% | High |
| Volume | Fryums Growth→20% | High |
| Volume | Wafer Growth→come back to original run rate | Medium |
| Volume | Namkeen Growth→15-20% | High |
| Volume | Overall Growth Rate→20% plus | Medium |
| Capacity | Modasa Capacity Utilization→50-55% | Medium |
| Capacity | Rajkot Plant Operationalization→last week of March or mid-April | High |
| Margin | Operational Efficiency Improvement (Gondal to Rajkot shift)→0.5-0.6% margin | High |
| Margin | Bio Coal Usage Impact on EBITDA Margin→0.2-0.3% margin | High |
| Margin | Freight Cost Reduction Impact on Margin→0.5-0.6% margin (₹8-10 crores) | High |
| Severity | Risk |
|---|---|
medium | Historical Q4 weakness compared to Q3 Historically, Q4 has been 4-10% lower than Q3 in 4 out of the last 5 years, but management is confident of reversing this trend in FY26. Management |
low | Supply chain disruption post-fire incident at Rajkot facility Largely resolved with the commissioning of the Modasa facility, with fill rates now at 93% and over 95% of supply chain issues resolved. Management |
low | Potential for lower margins due to increased advertising and sales promotion schemes Management is aggressively moving into the market with increased ad spend, but expects operational efficiencies and product mix improvement to offset this. Management |
Gopal Snacks reported a robust Q3 FY26, with revenue from operations reaching ₹400.8 crores, a 6.7% sequential increase from Q2 FY26. This growth was supported by strong performance in core segments, with Snack Pellets growing 20.8% and Gathiya 10.6% QoQ. Gross Profit stood at ₹110.6 crores, translating to a gross margin of 27.6%, up from 26.4% in the prior quarter. EBITDA for the quarter was ₹30.4 crores, achieving a 7.6% margin, while PAT was ₹15.5 crores (3.9% margin), marking a 41.5% sequential increase in PBT.
A key highlight was the full operationalization of the Modasa facility from December 1, 2025, which added 63,085 metric tons of installed capacity. This has significantly stabilized the supply chain, with management reporting over 95% of issues resolved and fill rates at 93%. The Modasa plant initially prioritized single-line products like Gathiya, and with stabilization, namkeen production (mixtures) is also expected to contribute to growth. The Rajkot plant is anticipated to be operational by late March or mid-April 2026.
The company is aggressively expanding its distribution network, aiming to add 250-300 new distributors in the current calendar year, particularly in focus markets. This initiative is expected to contribute ₹70-75 crores to FY27 revenue. In Gujarat, 200 new salesmen have been added, and the company is working towards double coverage for 80-90% of dealers within a year. Growth in other states saw a 28.7% YoY increase, demonstrating successful regional footprint expansion.
Gopal Snacks is strategically optimizing its product basket by cutting low-margin products and introducing high-margin ones like popcorn (₹50-55 lakhs/month run rate), wafer biscuits (₹65-70 lakhs/month), and Kaju biscuits (₹35-40 lakhs/month). Gross margin expansion in Q3 was aided by a 1% benefit from reduced trade discounts, 0.3% from stable raw material prices, and 0.5% from reduced dealer margins post-GST. Future margin improvements are expected from shifting production to the Rajkot facility (0.5-0.6% margin benefit) and using bio-coal (0.2-0.3% EBITDA margin benefit).
The company has intensified its marketing efforts, becoming the official snack partner for the Filmfare Awards 2025 and launching a full-blown 360-degree marketing campaign (TV, digital, radio, OOH, print) on January 25, 2026. Marketing spend in Q3 FY26 was close to 2% of revenue, and a budget of ₹8 crores has been allocated for Q4 FY26. These initiatives aim to enhance brand visibility, engage a broader consumer base, and drive growth, particularly in core markets.
Management provided an optimistic outlook, guiding for FY27 revenue in the range of ₹1,800-1,900 crores, representing a delta of ₹300-350 crores from FY26. FY27 EBITDA margin is targeted at 8-9%, with an exit rate near double digits. Category-wise, Gathiya and Fryums are expected to grow by 20%, while Namkeen is projected to grow 15-20%, and Wafers are targeted to return to their original run rate. The company aims for an overall growth rate of 20% plus, driven by stabilized supply chain, distribution expansion, and strategic marketing.