Bikaji Foods reported a 14% growth in the snack category for Q3 FY26, driven by ethnic and Western snacks. The company saw a gross margin of 35% and EBITDA of 12.5%. Investments include an increased stake in Hazelnut Factory and a JV with T. K. Khaleel for Bikaji Bakes. Distribution reach expanded to 1.4 million outlets. The company anticipates continued export growth and targets double-digit market share in the organized ethnic snack space in the next 3-5 years.
Financial Performance
Bikaji Foods International reported its Q3 FY26 earnings, noting a story of two halves with sweet business experiencing negative growth due to Diwali preponement. However, core business areas showed strong performance:
- Ethnic snacks grew by 13.5%.
- Western snacks saw a growth of over 20%.
- Overall snack category grew by 14%.
The company experienced a gross margin of approximately 35%. Ad costs were around 4% for the quarter, resulting in an EBITDA close to 12.5%.
Strategic Initiatives and Investments
The company has been actively investing and expanding its operations:
- Committed approximately INR131 crore in Hazelnut Factory with an increased stake to nearly 48%.
- Formed a JV, Bikaji Bakes, with T. K. Khaleel, with Bikaji holding a 70% stake. The company envisions this becoming an INR100 crore business.
Marketing and Branding
Bikaji Foods launched key marketing campaigns during the quarter, including:
- ‘Bikaji, Bhujia Ho Toh Bikaji’ campaign to boost the Bhujia category, which grew by 16-17%.
- ‘Kya Baat Hai Ji’ campaign specific to Uttar Pradesh.
The company also relaunched its logo with a more vibrant and enticing design.
Distribution and Retail Expansion
Distribution reach continues to be a growth driver:
- Reached nearly 1.4 million outlets overall.
- Increased direct reach to approximately 3.35 lakh outlets.
- Retail business grew by 86%, delivering INR47 crore through 23 stores.
The company plans to open at least 10 more stores next year in THF and Bikaji.
Future Outlook
Looking ahead, Bikaji Foods expects to maintain stable growth, supported by GST benefits and demand uptick. The company is targeting a double-digit market share in the organized ethnic snack space in the next 3-5 years, aiming for around 11-11.5%.
Source: BSE
