Summary
Bikaji Foods International Limited - Q3 FY 2026 Earnings Call Summary Wednesday, January 28, 2026 12:00 P.M. IST
Event Participants
Executives Rishabh Jain (Chief Financial Officer), Manoj Verma (Chief Operating Officer)
Analysts Abhishek (Systematix Group), Abneesh Roy (Nuvama Institutional Equities), Anchit (Goldman Sachs), Harpreet (Global Consilient Research), Janardhan (Individual Investor), Nitin (Emkay Global), Parshv (Mehta Equities), Rehan (Trinetra Asset Manager), Shirish (Motilal Oswal), Soham (Motilal Oswal)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹722 crores (Approx) | +11% YoY; Growth driven by 14%+ uptick in core snacks category despite weakness in sweets. |
| Volume Growth | 8.4% | +8.4% YoY; Supported by GST rate cuts and grammage increases (1.5-2.0% volume contribution from grammage). |
| Gross Margin | 35.0% | Included PLI; Remained stable due to focus on high-margin Bikaneri Bhujia despite input cost pressure in peanuts. |
| EBITDA | ₹90.3 crores (Approx) | +77% YoY; Margin at 12.5% reflecting operational efficiencies and higher traditional snack contribution. |
| Ad & Marketing Cost | 4.0% | % of Revenue; Higher spend due to festive season campaigns and roping in new brand ambassadors. |
| Ethnic Snacks Growth | 13.5% | YoY growth; Significant acceleration from H1 caused by GST benefits and “Bhujia Ho Toh Bikaji” campaign. |
| Western Snacks Growth | 20.0%+ | YoY growth; Significant recovery following a muted first half of the fiscal year. |
| Direct Reach | 3.35 lakh outlets | Part of 1.4 million total outlet reach; Focus states now account for 1.65 lakh direct outlets. |
Geographic & Segment Commentary
- Core States (Rajasthan, Bihar, Assam): Revenue grew at approximately 8% (13% excluding sweets). The “Bhujia Ho Toh Bikaji” campaign drove traditional snack outperformance in these markets.
- Focus States (UP, Punjab, Haryana, Delhi, Karnataka, Telangana): Reported 10.2% growth (YTD), which management deemed “weak” due to the high salience of sweets and gifting (25%+ of mix) which shifted to Q2. UP specifically grew at 14% following the “Kya Baat Hai Ji” campaign.
- Exports: Strong growth momentum driven by expansion into large accounts like Costco in the US and Canada. Management expects high growth to continue for 2-3 years, supported by the Ariba Foods frozen capacity.
Company-Specific & Strategic Commentary
- GST Benefit Pass-through: Management reduced MRPs and increased grammage following the GST rate cut to 5%. This narrowed the gap with unorganized players and improved volume growth in ethnic snacks to 12-13%.
- Hazelnut Factory Investment: Committed ₹131 crore total; ₹60 crore already invested for a 40% stake. An additional ₹40 crore is approved for the current year to increase the stake to 48%.
- Strategic JV (Bikaji Bakes): 70:30 JV with T.K. Khaleel to enter premium bakery (breads, cakes). Target is a ₹100 crore business in 3 years focusing on frozen exports, B2B, and premium domestic retail.
- Brand Refresh: Relaunched the Bikaji logo to be more “vibrant and enticing.” Roped in Pankaj Tripathi for regional UP campaigns while retaining Amitabh Bachchan as the national brand ambassador.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (Focus States) | 15% - 17% (FY27) | Expected to outpace core states through distribution expansion and regional marketing. |
| Revenue Growth (Core States) | 13% +/- (FY27) | Targeting double-digit growth via store throughput and product mix improvements. |
| EBITDA Margin | +50 bps expansion | Expected improvement from current levels via operational efficiency and stable RM costs. |
| Market Share | 11% - 11.5% (3-5 years) | Aiming for double-digit share in the organized ethnic snack space. |
| Capacity Utilization | 50% - 52% (Current) | Significant headroom available to support 14-16% growth in core categories without major capex. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Volatility | Peanut prices have seen an “uptick,” though management is mitigating this through long-term “parking” (procurement) during peak crop seasons. |
| Segment Mix Volatility | High dependence on the sweets/gifting segment (up to 30% in some states) creates quarterly revenue lopsidedness based on the festive calendar. |
| Competitive Intensity | Large FMCG players (e.g., Tata Consumer) entering the nuts/snacks space; Bikaji is currently avoiding the “niche” nuts category to focus on mass Namkeen. |
Q&A Highlights
Marketing Strategy
- Question: Why use two brand ambassadors (Amitabh Bachchan and Pankaj Tripathi) in the same geography? (Abneesh Roy)
- Answer: Amitabh Bachchan remains the national/international face for all categories. Pankaj Tripathi was roped in specifically for the UP-centric “Kya Baat Hai Ji” campaign to connect better with local masses (Manoj Verma).
Product Mix & Margins
- Question: Will the shift toward impulse packs in focus markets hurt margins? (Rehan)
- Answer: The gross margin gap between family and impulse packs is only ~200 bps. Higher volumes in the high-margin Bikaneri Bhujia category will offset the mix shift (Rishabh Jain).
GST and Demand
- Question: How has the GST rate cut impacted monthly trends? (Nitin)
- Answer: October and subsequent months saw a sharp uptick in ethnic snacks growth (13.3% vs 5-6% in H1). The benefit was passed on via grammage and MRP cuts, making the product more affordable (Rishabh Jain).
Bakery JV Rationale
- Question: What is the strategy for the Bikaji Bakes JV? (Shirish)
- Answer: It focuses on premium breads and cakes. The model is skewed toward frozen exports and B2B, leveraging T.K. Khaleel’s Middle East expertise. A new plant in Bangalore will commission by Q4 FY26 (Manoj Verma).
Key Takeaway
Bikaji Foods delivered a steady Q3 FY26, characterized by a significant recovery in core ethnic and western snacks, which grew at 13.5% and 20%+, respectively. While overall revenue growth of 11% was tempered by a festive-led shift in the sweets business, the company successfully utilized GST rate cuts to drive an 8.4% volume increase. Strategic moves include a major brand refresh and the formation of a 70% JV in the premium bakery segment (Bikaji Bakes) to target a ₹100 crore top-line within three years. Management remains focused on “Focus States” like UP, targeting 15-17% growth, and expects a 50-bps EBITDA margin expansion through stable raw material procurement and improved product mix. The long-term outlook remains positive as the company aims for an 11.5% organized market share while maintaining a healthy 35% gross margin.
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