# 1. Financial Performance ## A. Key Figures * **Revenue:** **₹400.8 Cr** Q3 FY26 (+6.7% QoQ) · **₹1,098.6 Cr** YTD FY26 · **~₹1,500 Cr** expected FY26 full-year * **Gross Profit:** **₹110.6 Cr** Q3 FY26 · **27.6%** gross margin (+120 bps QoQ) · **~27%** expected full-year FY26 * EBITDA: ₹30.4 Cr Q3 FY26 · 7.6% EBITDA margin * **PAT:** **₹15.5 Cr** Q3 FY26 · **3.9%** PAT margin (includes ₹10 Lacs exceptional income) · **₹14.5 Cr** PAT pre-exceptionals · **3.6%** margin ## B. Revenue Growth * **Strong Sequential Momentum:** Revenue growth accelerated in Q3 on robust demand for Snack Pellets and Gathiya, supported by expanded distribution in other states. * **Positive Operating Trends:** December revenue outperformed November, signaling early success from the Modasa facility ramp-up. * **Full-Year Trajectory:** YTD revenue at ₹1,100 Cr with Q4 expected to reverse prior declines, closing near ₹1,500 Cr. ## C. Gross Margin * **Significant Margin Expansion:** Gross margin improved 120 bps QoQ to 6%, driven by supply chain normalization and better manufacturing stability post-Modasa commissioning. * **Strategic Cost Optimization:** Margin gains also supported by **1% benefit from reduced trade discounts** and pruning of low-margin products. * **Sustained Outlook:** Full-year gross margin expected to stabilize near **27%**, with Q4 projected to maintain Q3 levels. ## D. EBITDA & PAT * **Operating Leverage in Action:** EBITDA margin held at 6% despite modest revenue growth, aided by controlled discretionary spending. * **Profitability with One-Time Boost:** PAT margin reached 9% in Q3, elevated by **exceptional scrap income of ₹10 Lacs**, with underlying profitability at 4%. * **Balancing Growth Investment:** Trade spend reduced by 2 percentage points, but higher advertising and sales promotion outlays expected to constrain near-term margin expansion. ## E. Balance Sheet * **Conservative Capital Structure:** Company remains **debt-free** with no term loans, relying solely on working capital facilities. --- # 2. Volume & Pricing Trends ## A. Key Figures * **Metric Tonnage Growth:** **4%** YoY overall · **6%** in Rs. 5 price point segment * **Price Point Mix:** **18%** MRP from >Rs. 10 · **63.3%** from Rs. 5 packs (down from 80% in FY22–FY23) * **Alternate Channel Revenue (YTD):** **₹15 Cr** from railway, modern trade, quick commerce, and exports * **Q3 Alternate Channel Revenue:** **₹1.91 Cr** quick commerce · **₹1.48 Cr** modern trade · **₹2.3 Cr** railway · **₹0** exports * **E-commerce Revenue Outlook:** **₹15–17 Cr** annualized expected next fiscal (<1% of total revenue) ## B. Volume & Pricing Dynamics * **Volume Growth via Grammage Expansion:** 4% metric tonnage growth achieved despite lower packet sales, driven by **larger pack sizes** and **increased grammage in price-point SKUs**. * **Pricing Discipline Maintained:** No broad price hikes post-GST; value growth in Gathiya driven by **higher grammage**, not inflation, with selective price cuts (e.g., 500g pack reduced to ₹84). * **Shift to Premium Mix:** Significant sales mix shift toward higher-priced items, with >Rs. 10 price points now dominant, reducing reliance on legacy Rs. 5 SKUs. ## C. Alternate Channel Performance * **Quick Commerce Emerges as Key Driver:** Quick commerce delivered **₹91 Cr in Q3 revenue**, far outpacing other alternate channels, signaling strong urban demand and distribution agility. * **Exports Collapse, Modern Trade Stabilizes:** Exports dropped to **₹0** in Q3 (vs. ₹8 Cr prior year), while modern trade contributed **₹59 Cr YTD**, indicating channel rebalancing. * **E-commerce as Strategic Brand Channel:** Despite low revenue contribution, e-commerce is prioritized for brand building, with revenue expected to scale to **₹15–17 Cr** next year. --- # 3. Channel & Distribution ## A. Key Figures * **Distributors:** **881** on SAP system · **110** in Uttar Pradesh (target: **>180** by year-end) * **Supply Chain Fill Rate:** **93%** for stipulated taps * **Delivery Time in UP:** Reduced to **2–3 days** ## B. Distributor Expansion * **Market Saturation in Core:** Gujarat now has 99% district-level coverage; no new distributors planned due to saturation. * **Strategic Expansion in UP:** Aggressive push to expand distributor network in Uttar Pradesh to over 180 by year-end, supported by improved supply chain responsiveness. ## C. Salesforce & Distribution Automation * **Enhanced Outlet Coverage:** Automation rollout paired with increased salesforce enables bi-weekly servicing of most outlets, up from weekly. * **Integrated Marketing Push:** Full-scale TV, digital, and print campaign launched three days prior, following Filmfare and festival sponsorships aimed at boosting brand recall. ## D. Micro Distribution & Supply Chain Efficiency * **Extended Reach via Micro Distributors:** 93 micro distributors added under SSD model, expanding footprint in untapped markets through third-party manufacturing. * **Near-Full Supply Chain Recovery:** More than 95% of prior supply chain issues resolved, enabling high fill rates and real-time inventory insights for distributors. --- # 4. Product & Segment Performance ## A. Key Figures * **Gathiya & Fryums Growth Target:** **20%** per category (FY outlook) * **Wafer Growth Target:** **30%** (FY outlook, from low base) * **Namkeen Category Growth Outlook:** **15–20%** (FY range) * **New Product Monthly Run Rates:** **₹50–55 Lakh** (popcorn) · **₹65–70 Lakh** (wafer biscuits) · **₹35–40 Lakh** (Kaju biscuits) * Other Snacking Segment Revenue Mix: 4% (up from 1.7% YoY) ## B. Gathiya & Fryums * **Category Recovery & Momentum:** Fryums and Gathiya both on track for **20% growth**, driven by product innovation and targeted marketing, including festive campaigns like Navratri. * **Revenue per Volume Uptick:** Gathiya revenue growth outpaced volume, signaling a shift toward **larger-pack or premium formats**, supported by 9% package weight growth. * **Regional Concentration & Diversification:** Gathiya remains dominant in pockets—**72% of Pradesh sales from two SKUs**, **Jharkhand’s ₹75 Cr from Gathiya alone**—but declining core-state contribution (down to 3%) suggests early-stage national expansion. * **Long-Term Brand Ambition:** Transitioning Gathiya from a **community-specific product** to a **pan-India hero brand** is feasible but will require sustained investment over 5–10 years. ## C. Wafer Category * **Recovery in Progress:** Wafer degrowth reversing as supply constraints ease and pricing strategy is recalibrated to narrow the gap with market leaders. * **Past Challenges Identified:** Prior decline attributed to **unfavorable retailer response to price hikes** and removal of distributor sales targets during supply disruptions. ## D. New Product Launches * **Early-Stage Success:** Three new launches—popcorn, wafer biscuits, and Kaju-shaped biscuits—generating **combined ~₹1.5 Cr monthly run rate** and contributing positively to margins. ## E. Portfolio Rationalization * **Strategic Mix Shift:** EBITDA margin expansion (target: **9% to 12%**) to be driven by **exiting low-margin SKUs** and introducing high-margin offerings. * **Byproduct Clarity:** Beauty soaps, ghee, and jaggery are **non-core byproducts** of oil processing, not strategic extensions. * **Regional Expansion Focus:** In Uttar Pradesh, growth will prioritize **optimized distribution and tailored product baskets** over broad portfolio rollout. --- # 5. Manufacturing & Capacity ## A. Key Figures * **Installed Capacity (Modasa):** **63,085 MT** for Gathiya and Namkeen production * **Revenue Growth (MoM):** **December revenues 7% higher than November** post-commercialization * **Capacity Utilization Outlook:** **50–60%** expected by Q4/March as ramp-up continues * **Third-Party SKUs (Kashipur):** **4 SKUs** now in production, contributing **>80% of UP’s top line** ## B. Modasa Plant Output * **Full Commercialization Achieved:** Modasa facility is fully operational from **December 1**, enabling supply chain stabilization and expanded regional reach across Gujarat, Rajasthan, MP, Mumbai, and Western Maharashtra. * **Growth Enabler:** Successful integration of Modasa supports sustained long-term growth, with in-house manufacturing now covering **100% of categories except 4 third-party products**. * **Operational Resilience:** Plant performing as expected post-commissioning, with no issues reported and clear momentum in monthly performance. ## C. Capacity Utilization * **No Near-Term Capex Needs:** Current capacities sufficient to support growth; no additional capex planned for scale or grammage increases. * **Capex Shift to Maintenance & Margins:** Post-fire recovery capex largely complete; future spending focused on **maintenance** and **profitability-enhancing initiatives**. * **Utilization Scaling Gradually:** Low current-quarter utilization expected to improve to **50–55% range** by March, reflecting phased ramp-up. ## D. Third-Party Manufacturing * **Kashipur Operations Live:** Third-party manufacturing commenced three months ago, quickly scaling to drive **over 80% of Uttar Pradesh’s revenue** with just 4 SKUs. ## E. Rajkot Facility Status * **Rajkot Recovery on Track:** Namkeen production shift to Modasa has resolved fire-related supply constraints, improving fulfillment and reducing trade discounts. * **Rajkot Restart Imminent:** Plant expected to be largely operational by **late March to mid-April**, with meaningful capacity impact visible in **Q1 of next fiscal**. --- # 6. Input Cost & Supply Risks ## A. Supply Chain Stability * **Headline:** Supply chain disruptions in key regions (Rajasthan, West Maharashtra, West Madhya Pradesh) now resolved, enabling recovery in focus markets. * **Headline:** GST rate reduction viewed as a positive catalyst for growth, complementing internal supply chain enhancements. ## B. Import Dependency * **Headline:** Strategic shift underway to reduce reliance on imported oil through portfolio rationalization and launch of higher-margin, scalable products. --- # 7. Guidance & Outlook ## A. Key Figures * **FY27 Revenue Target:** **₹1,800–1,900 Cr** (+₹300–350 Cr vs. current year) * EBITDA Margin: 7.6% current (~7% exit FY26) · 8–9% targeted for FY27 · ~10% exit rate expected * **Distributor Additions:** **250–300** targeted for the year (~1 per working day) ## B. Revenue & Growth Outlook * **Confident Scaling:** FY27 revenue guidance hinges on high distributor addition execution, with Gujarat and non-Gujarat markets expected to contribute **near-equal growth deltas**. * **New Distributor Leverage:** Over **₹70 Cr** of incremental revenue in non-Gujarat markets expected from new distributors, highlighting channel expansion as a core growth lever. * **Q4 Seasonality Defied:** January sales tracking in line with December, supporting confidence in reversing historical Q4 softness despite typical **4–10% seasonal decline**. ## C. Margin Expansion Roadmap * **Structural Margin Improvement:** Targeted **200–300 bps** EBITDA margin uplift from freight optimization, **bio coal adoption**, and **Rajkot basin plant** ramp-up, contributing **₹8–10 Cr** annual benefit. * **Trade Spend Discipline:** Planned **25% reduction in Q1** and sustained lower levels for 6 months to drive **500 bps annualized reduction** in trade spend, a key input to margin de-levering. * **Path to Double Digits:** Management reaffirms **double-digit EBITDA margin** as normalized by FY27, with a strategic view to reach **12% by FY28**.