BECTORFOOD - Mrs Bectors

📊 NSE: BECTORFOOD 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 10:03

💰 Financial Performance

Revenue Growth by Segment

The Biscuit segment grew 10% YoY to INR 350 Cr in Q2 FY26, while the Bakery segment (including retail and institutional) grew 16% YoY to INR 194 Cr. For FY24, the company reported a total revenue growth of 19% to INR 1,620 Cr.

Geographic Revenue Split

Approximately 80% of domestic biscuit revenue is concentrated in North and Northwest India. The Bakery segment is diversifying with healthy contributions from West and South India, supported by presence across 24 states and 6 union territories.

Profitability Margins

Operating margins improved to 15.1% in FY24 from 13.4% in FY23. However, margins moderated to over 12% in FY25 and Q1 FY26 due to raw material inflation and changes in the product mix.

EBITDA Margin

The company maintains a consistent EBITDA margin target of 14% or above. Q2 FY26 revenue growth of 11.1% was achieved while investing in growth to maintain these mid-term margin levels.

Capital Expenditure

The company is undertaking significant expansion with planned capex of INR 310-320 Cr in FY26 and INR 100-150 Cr in FY27. This follows a capex of approximately INR 300 Cr in FY25.

Credit Rating & Borrowing

CRISIL reaffirmed the long-term rating at 'CRISIL AA-' and revised the outlook to 'Positive' from 'Stable'. Short-term facilities are rated 'CRISIL A1+'. Interest coverage ratio stood strong at 19.5 times as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include wheat (flour), sugar, and edible oils, which are subject to price volatility. Raw material inflation was cited as a primary reason for the margin moderation to 12% in early FY26.

Import Sources

Not specifically disclosed in available documents, though the company monitors global trade discussions, particularly with the US, for export-related impacts.

Capacity Expansion

The company operates 8 manufacturing units across Punjab, Himachal Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh, Maharashtra, and Karnataka. Ongoing capex of INR 310-320 Cr in FY26 is focused on scaling these facilities to meet demand.

Raw Material Costs

Raw material costs are managed through a cost-plus margin clause in long-term institutional contracts. Despite inflation, the company passed on price rises to consumers with a lag to protect margins.

Manufacturing Efficiency

Growth in FY24 was largely driven by higher capacity utilization and volume growth. The company is shifting focus toward 'weighted outlet growth' through the Cremica Preferred Outlet program, which saw 30% growth in high-revenue outlets.

Logistics & Distribution

Distribution expansion is a key pillar of the Revenue Growth Management (RGM) strategy for 2026-2030, aiming to build on the doubling of direct reach outlets achieved between 2022 and 2025.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by a three-year detailed expansion plan (2026-2030) focusing on distribution reach, premiumization of the biscuit portfolio (cookies and crackers), and expanding the 'English Oven' bakery brand into South and West India. The company also leverages institutional relationships with QSRs like McDonald's.

Products & Services

Packaged biscuits (cookies, creams, crackers, glucose), bread, buns, and batter.

Brand Portfolio

Mrs. Bector’s Cremica and Mrs. Bector’s English Oven.

New Products/Services

Focusing on high-margin premium biscuits such as cookies and creams to reduce dependence on low-margin glucose biscuits.

Market Expansion

Targeting increased market share in North India where it is already a top 3 player, and scaling bakery operations in Mumbai and Bengaluru.

Market Share & Ranking

Ranked among the top three biscuit players in Punjab, Haryana, Himachal Pradesh, J&K, UP, Uttarakhand, and Delhi NCR.

Strategic Alliances

Maintains long-term institutional supply relationships with major QSR chains and private label biscuit manufacturing for export.

🌍 External Factors

Industry Trends

The packaged food industry is shifting toward branded, hygienic products due to rising consumer awareness. MBFSL is positioned in the premium segment to capture this shift, growing at 2x the industry average.

Competitive Landscape

Competes with major national biscuit and bakery brands; maintains edge through regional dominance in North India and specialized QSR supply chains.

Competitive Moat

Moat is built on strong brand recall (Cremica/English Oven), an extensive distribution network of 770,000+ outlets, and 30+ years of promoter experience. These are sustainable due to high entry barriers in cold-chain and fresh-bakery logistics.

Macro Economic Sensitivity

Sensitive to GST reforms and consumer spending power. The company noted a sequential improvement in growth to 11.1% in Q2 FY26 as macroeconomic conditions stabilized.

Consumer Behavior

Rising preference for premium, branded, and hygienic packaged foods is driving the 16% growth in the bakery segment.

Geopolitical Risks

Trade discussions between India and the US regarding tariffs are a critical factor for the export trajectory.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to food safety and manufacturing standards across its 8 units; compliance is managed by a strengthened senior leadership team.

Taxation Policy Impact

The company actively monitors and welcomes GST 2 reforms which are expected to streamline operations.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (wheat/sugar) and potential international trade barriers (US tariffs) are the primary uncertainties impacting the 14% EBITDA margin target.