Summary
Gopal Snacks Limited - Q3 FY2026 Earnings Call Summary Wednesday, January 28, 2026, 03:00 PM IST
Event Participants
Executives 2 Naveen Gupta (Chief Business Officer), Rigan Raithatha (Chief Financial Officer)
Analysts 6 Amit Agicha (HG Hawa), Azharuddin Jariwala (Sameeksha Capital), Bhumin Shah (Equirus Securities), Dharmil Shah (Dalmus Capital Management), Nitin Gupta (Emkay Global Financial Services), Resha Mehta (GreenEdge Wealth), Shreya Chatterjee (Angel Capital), Soham Samanta (Motilal Oswal)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹400.8 crores | +6.7% QoQ; driven by recovery in Snack Pellets (+20.8%) and Gathiya (+10.6%) after Modasa plant commissioning. |
| Gross Profit | ₹110.6 crores | 27.6% margin (+120 bps QoQ); aided by lower trade discounts and removal of low-margin SKUs. |
| EBITDA | ₹30.4 crores | 7.6% margin; benefited from operating leverage and control over discretionary spending. |
| Profit After Tax (PAT) | ₹15.5 crores | 3.9% margin; includes ₹10 lakhs exceptional income from scrap sales post-fire incident. |
| 9M FY26 Revenue | ₹1,098.6 crores | Reflects supply chain disruptions earlier in the year; volume growth at 4% in metric tons. |
| FY26 Guidance (Revenue) | ~₹1,500 crores | Management confident in reversing historical Q4 weakness to match or exceed Q3 levels. |
| Sales Mix (Price Point) | 63.3% (₹5 packs) | Shift from ~80% in FY23 as the company pushes larger SKUs (>₹10 packs now 18%). |
Geographic & Segment Commentary
- Core Market (Gujarat): The segment is stabilizing with the Modasa plant resolving 95% of supply issues. Strategic focus is on “double coverage” (servicing retailers twice weekly), with 85 distributors already transitioned to this model.
- Focus States (Rajasthan, Maharashtra, MP): Rajasthan was the most impacted by the Rajkot fire but is now fully catered by the Modasa facility. Management targets adding 250-300 new distributors in these regions over the next calendar year.
- Other Snacking: This segment grew to 4% of revenue (up from 1.7% YoY) through high-margin launches like Popcorn (₹55L/month), Wafer Biscuits (₹70L/month), and Kaju Biscuits (₹40L/month).
- Alternate Channels: Combined YTD revenue of ₹15 crores from Railways, Modern Trade, Quick Commerce (₹5.3cr), and Exports (₹0.8cr).
Company-Specific & Strategic Commentary
- Modasa Facility Operations: The plant added 63,085 MT of capacity and reached 50-55% utilization in Q3; it is now the primary hub for Rajasthan and Western MP.
- Marketing & Brand Building: Launched a 360-degree Gathiya campaign (TV, Digital, Print) in late January 2026 with an ₹8 crore Q4 budget; served as official partner for Filmfare Awards 2025.
- Supply Chain Optimization: Reducing dependency on imported oil by promoting non-fried/bakery products and streamlining freight by ship-to-point logistics from Modasa.
- Digital Transformation: Implementing an improved Distribution Management System (DMS) to provide real-time inventory insights and reduce lead times.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue (FY27) | ₹1,800 - ₹1,900 crores | Expects ₹300-350cr incremental growth from new distributors (₹75cr) and core market gains. |
| EBITDA Margin (FY27) | 8.0% - 9.0% | Annualized target with an exit rate approaching double digits as marketing scales. |
| Capex (FY27) | Maintenance Only | No major capacity expansion needed; focus on completing Rajkot fire recovery by April 2026. |
| Export Revenue | ₹25 crores (Delta) | Significant push to recover from a weak FY26 (₹0.8cr YTD) to previous levels. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regional Concentration | Gujarat still dominates revenue; expansion into UP/Rajasthan depends on the success of the new “micro-distributor” SSD model. |
| Raw Material Volatility | While currently stable, margins are sensitive to palm oil and “imported oil” prices; management is trying to pivot to bakery to mitigate. |
| Competitive Pressure | Large players in the Wafer segment forced Gopal to roll back steep price hikes and increase grammage to remain competitive. |
Q&A Highlights
Supply Chain & Modasa
- Question: How has growth improved post-Modasa commissioning? (Nitin Gupta)
- Answer: December revenue was 7% higher than November as Rajasthan and MP orders stabilized. Fill rates are now at 93%. (Naveen Gupta)
Margins & Trade Spend
- Question: What drove the 120 bps QoQ gross margin expansion? (Nitin Gupta)
- Answer: Reduced trade discounts (1% benefit), exit of low-margin SKUs, and lower dealer margins post-GST (0.5% benefit). (Rigan Raithatha)
Category Strategy
- Question: Can Gathiya become a national “hero” product? (Dharmil Shah)
- Answer: Gathiya already contributes ~70% of revenue in non-core states like UP and Jharkhand. The new national TV campaign is designed specifically to scale this category. (Naveen Gupta)
Future Profitability
- Question: What leads the path from 9% to 12% EBITDA? (Soham Samanta)
- Answer: Shifting production from Gondal to Rajkot, using bio-coal for fuel efficiency, and the new in-house Besan plant (0.3% margin gain). (Rigan Raithatha)
Key Takeaway
Gopal Snacks demonstrated a recovery in Q3 FY26, reporting ₹400.8 crores in revenue as the Modasa facility reached 50-55% utilization, effectively resolving the supply disruptions caused by the Rajkot fire. While YTD volume growth remained modest at 4%, management achieved a 120 bps sequential margin expansion by pruning low-margin SKUs and reducing trade promotions. Strategically, the company is pivoting toward a 360-degree marketing approach, exemplified by its Filmfare partnership and a new ₹8 crore TV/Digital campaign for Gathiya, aimed at nationalizing its “hero” product. For FY27, the company guided for a significant top-line jump to ₹1,800-₹1,900 crores, supported by an aggressive plan to add one new distributor every working day. Despite historical Q4 seasonality, the company expects to maintain its current momentum, targeting an 8-9% EBITDA margin for the next fiscal year as operational efficiencies from the rebuilt Rajkot plant and the new Besan unit kick in.
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