💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 7% YoY to INR 17,952 Cr in FY25, driven by healthy growth in non-biscuit segments like rusk, cheese, and cakes. Q1 FY26 revenue grew 9% YoY to INR 4,622 Cr, while Q2 FY26 revenue reached INR 4,752 Cr, representing a 4.1% 12-month growth rate.

Geographic Revenue Split

The company operates in 80+ countries with a manufacturing footprint in Oman, UAE, Kenya, and Nepal. International business is primarily centered in the Middle East, Americas, Africa, and Asia Pacific regions.

Profitability Margins

Operating margin moderated to 17.8% in FY25 from 19% in FY24 due to raw material inflation. Standalone Profit After Tax (PAT) for FY25 was INR 2,130.72 Cr, a 2.3% increase from INR 2,082.05 Cr in FY24. Q2 FY26 PAT showed a 23.1% 12-month growth.

EBITDA Margin

Operating margin is expected to remain in the 17-19% range, supported by premiumisation, better distribution reach, and internal cost efficiency programs despite a 120 bps dip in FY25.

Capital Expenditure

Planned capital expenditure is estimated at INR 150-200 Cr annually over the medium term to fund capacity expansion and technology-led distribution.

Credit Rating & Borrowing

Maintains CRISIL AAA/Stable and A1+ ratings. Total debt was significantly reduced by 40% to INR 1,226 Cr as of March 31, 2025, from INR 2,044 Cr the previous year. Interest coverage ratio improved to 23 times in FY25 from 19 times in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include wheat, sugar, milk, and palm oil. Volatility in these commodities directly impacts the cost structure, as seen in the margin moderation during FY25.

Import Sources

Sourced domestically within India and through international supply networks in the Middle East (Oman, UAE), Africa (Kenya), and Asia (Nepal) to serve global markets.

Key Suppliers

Not specifically named; however, the company utilizes a 'judicious mix' of contract manufacturing and owned facilities, with a strategic shift toward increasing in-house manufacturing to reduce overheads.

Capacity Expansion

Increasing the proportion of in-house manufacturing to improve proximity to consumption markets, reduce transportation time, and enhance product shelf life.

Raw Material Costs

Raw material costs are a significant portion of revenue; inflation in wheat and sugar led to price hikes and grammage cuts in FY25 to protect margins.

Manufacturing Efficiency

Reported a strong Return on Capital Employed (ROCE) of over 50%. In-house manufacturing expansion has reduced overheads and improved product freshness.

Logistics & Distribution

Focusing on technology-led distribution and expanding rural reach to capitalize on the recovery in rural consumption.

📈 Strategic Growth

Expected Growth Rate

10-15%

Growth Strategy

Growth will be achieved through 'all-out' top-line efforts including premiumisation, rural distribution expansion, and scaling adjacency businesses like Dairy and Croissants. The company is strengthening e-commerce, quick-commerce, and modern trade channels to return to double-digit growth.

Products & Services

Biscuits, cakes, rusk, cheese, milkshakes, lassi, paneer, dahi, croissants, and coconut water.

Brand Portfolio

Good Day, Milk Bikis, Marie Gold, Bourbon, 50-50, NutriChoice, Tiger, Treat, and Come Alive.

New Products/Services

Recent launches include Choco Tarts, Bourbon Shake, Milk Bikis Wafer Roll, and the 'Come Alive' brand featuring coconut water, yoghurt, and paneer.

Market Expansion

Expanding international footprint in 80+ countries and deepening rural penetration in India, supported by favorable monsoon forecasts.

Market Share & Ranking

Market leader in the Indian biscuit industry with a value market share of over 33% (one-third).

Strategic Alliances

Acquired Strategic Foods International (UAE) and Al Sallan Food Industries (Oman) to establish a regional presence in the Middle East.

🌍 External Factors

Industry Trends

The packaged food industry is seeing a shift toward premiumisation and digital trade. Rural markets are showing signs of recovery after a period of subdued demand.

Competitive Landscape

Faces intense competition from both large national players and international FMCG companies, particularly in the premium biscuit and dairy segments.

Competitive Moat

Durable moat built on a 130-year legacy, strong brand equity (Good Day, etc.), and a massive distribution network that maintains a 'healthy gap' over national competitors.

Macro Economic Sensitivity

Highly sensitive to rural demand, which is influenced by agricultural income, monsoon patterns, and government interventions.

Consumer Behavior

Shifting toward 'premium indulgence' and 'healthy' snacking options, prompting the launch of the Come Alive brand.

Geopolitical Risks

Exposure to macroeconomic and political uncertainties across 80+ countries, particularly in the Middle East and Africa.

⚖️ Regulatory & Governance

Industry Regulations

Subject to food safety standards, manufacturing regulations, and statutory laws in India and 80+ international jurisdictions.

Environmental Compliance

Committed to ESG principles and UN Sustainable Development Goals; governance includes 55% independent directors.

Taxation Policy Impact

GST rate rationalization effective September 22, 2025, impacted approximately 85% of the company's business portfolio.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (wheat, sugar, milk) and the ability to maintain market share while passing on costs are primary risks.

Geographic Concentration Risk

While diversified across 80 countries, India remains the primary revenue driver; Middle East is the largest international hub.

Third Party Dependencies

Decreasing dependency on third-party contract manufacturers by increasing the proportion of in-house manufacturing.

Technology Obsolescence Risk

Mitigated by investments in technology-led distribution and digital trade platforms (e-commerce/quick-commerce).

Credit & Counterparty Risk

Superior liquidity with a cash surplus of ~INR 2,400 Cr as of June 2025; nil exposure to group companies like BBTCL and Bombay Dyeing as of March 2025.