Bikaji Foods International reported a 15.2% increase in revenue for Q2 FY26, driven by a balanced product mix and strong export performance. Despite GST-related disruptions in September, the company achieved its highest EBITDA level in the last five quarters at 15.4%. The ethnic snacks category experienced temporary headwinds, while packaged sweets saw robust growth due to early Diwali sales. Export revenue exceeded INR50 Crores.
Financial Performance Highlights
Bikaji Foods International announced a 15.2% revenue growth for the second quarter of fiscal year 2026. Quarter-on-quarter growth was approximately 27%. EBITDA reached 15.4%, marking the highest level in the last 5 quarters. Gross margin, excluding PLI, stood at 34%, the strongest in the last 8 quarters. Export business continued to perform strongly, exceeding INR50 Crores in revenue.
Category Performance
The ethnic snacks category experienced muted performance due to GST-related changes, particularly in September. Packaged sweets grew by 32.3%, benefiting from early Diwali sales. Papad delivered a 10% growth. Western Snacks mirrored the performance of ethnic snacks. Volume growth for H1 stood at 9.4% and revenue at 14.8%. Ethnic snacks grew at 7.7%, sweets at over 25% and papad at around 8%. Exports achieved significant growth of 77.3%.
Strategic Initiatives and Outlook
The company continues its distribution expansion, aiming for 3.5 Lakh outlets by the end of the fiscal year. Capacity utilization was at approximately 52% during the quarter. The PLI scheme granted by the government amounts to INR 261 Crores, reducing the need for significant capex in the next 2-2.5 years.
Retail Expansion
Bikaji has expanded its retail presence, with a total of 21 retail outlets, primarily through the THF model, with plans to open 3-4 more outlets in the next 6 months. The company aims to reach approximately 25 NPA total retail outlets by year-end.
Key Discussion Points from Earnings Call
During the earnings call, management addressed the impact of GST transition and expressed confidence in achieving double-digit volume growth in Q3 FY26. The disruption due to destocking and events in Assam was estimated to be between 3% to 5% of the ethnic snacks business, with full recovery expected in Q3. The company aims for high-teens growth in the second half of the fiscal year, driven by restocking and increased grammage in low unit packs. The company targets a distribution reach of 5 Lakh outlets over the next 3 years.
Source: BSE
