BABAFP - Baba Food

📊 NSE: BABAFP 🏢 Food - Processing - Indian 📅 Last Updated: 12/13/2025 18:52

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew by 11.73% YoY to INR 205.81 Cr in FY25 from INR 184.20 Cr in FY24. The company achieved a 5-year revenue CAGR of 17.89% despite a -2.82% dip in FY24, driven by its leadership in the branded flour segment.

Geographic Revenue Split

Revenue is primarily concentrated in the Jharkhand region, with the main factory located in Ranchi. Specific percentage splits per region are not disclosed, but operations are centered around the Ranchi-Nagri industrial belt.

Profitability Margins

Net Profit Margin (PAT) declined to 2.09% in FY25 from 3.33% in FY24. PBT Margin also saw a reduction from 4.55% to 2.70% over the same period, reflecting increased operational costs or pricing pressures.

EBITDA Margin

EBITDA margin contracted to 4.20% in FY25 compared to 6.67% in FY24. Absolute EBITDA fell from INR 12.29 Cr to INR 8.64 Cr, representing a significant YoY decline in core operating profitability.

Capital Expenditure

The company fully utilized INR 32.88 Cr raised through its November 2023 Public Issue by September 30, 2025. Funds were deployed for plant expansion and general corporate purposes to drive future volume growth.

Credit Rating & Borrowing

Not disclosed in available documents; however, Networth increased to INR 63.27 Cr in FY25 from INR 58.96 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Wheat (agro-product) is the primary raw material. It is highly sensitive to government procurement, which accounts for approximately 30% of national production.

Import Sources

Sourced domestically within India, particularly through government schemes like the Open Market Sale Scheme (OMSS) for millers.

Key Suppliers

Not specifically named, but procurement is heavily influenced by government agencies and local traders subject to stock limits.

Capacity Expansion

Expansion is underway at the existing plant in Ranchi to add additional revenue and profit streams; specific MTPA capacity increases were not quantified in the report.

Raw Material Costs

Raw material costs are volatile due to government policies such as export bans and import duties. The company manages this by maintaining stock levels within regulatory limits to buffer against rate changes.

Manufacturing Efficiency

The company focuses on consistent supply and quality standards to maintain its position as a market leader in the branded flour segment.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

17.89%

Growth Strategy

Growth will be achieved through the expansion of the existing Ranchi plant, deeper penetration into the branded flour market, and leveraging the recovery in rural demand which CRISIL forecasts at 7-9% for FY25.

Products & Services

Branded flours (Atta), including various varieties of wheat-based products sold under the company's brand.

Brand Portfolio

Baba (implied by company name and branded segment focus).

New Products/Services

Expansion of existing plant facilities is expected to introduce additional revenue-generating flour varieties.

Market Expansion

Targeting the FMCG sector which is expected to grow at a CAGR of 27.9% through 2027, with a specific focus on rural market recovery.

Market Share & Ranking

Market leader in the branded segment of flours in its operating region.

🌍 External Factors

Industry Trends

Shift from unorganized to branded flours due to consumer preference for quality and convenience; FMCG market expected to reach USD 615.87 billion by 2027.

Competitive Landscape

Faces competition from major organized FMCG players and a large number of unorganized local millers who compete on cost.

Competitive Moat

Moat is built on regional brand loyalty, large-scale procurement efficiencies, and a robust internal control system for quality management.

Macro Economic Sensitivity

Highly sensitive to rural demand recovery and inflation-control measures taken by the government regarding essential food commodities.

Consumer Behavior

Increasing consumer preference for branded, packaged flours over loose flour due to hygiene and consistent quality.

Geopolitical Risks

Impacted by national trade policies such as wheat export bans which affect domestic supply-demand equilibrium.

⚖️ Regulatory & Governance

Industry Regulations

Subject to SEBI (LODR) Regulations, Essential Commodities Act (stock limits), and Food Safety and Standards Authority of India (FSSAI) norms.

Environmental Compliance

Not disclosed.

Taxation Policy Impact

Not disclosed; company follows standard Indian Accounting Standards (AS).

Legal Contingencies

The company reported no instances of significant fraud or material misstatements for the 2024-25 period.

⚠️ Risk Analysis

Key Uncertainties

Regulatory intervention in wheat pricing and procurement remains the highest uncertainty, with the potential to impact margins by over 200 basis points.