DANGEE - Dangee Dums

📊 NSE: DANGEE 🏢 Food - Processing - Indian 📅 Last Updated: 12/13/2025 21:21

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single business segment (Bakery and Confectionery). Standalone revenue from operations for H1 FY26 was INR 1,314.16 Lakhs, representing a growth of 3.13% compared to INR 1,274.29 Lakhs in H1 FY25. Q2 FY26 revenue was INR 700.42 Lakhs, up 2.17% YoY from INR 685.53 Lakhs.

Geographic Revenue Split

Not specifically disclosed in available documents, though the registered office is in Ahmedabad, Gujarat, suggesting a primary concentration in the Western India region.

Profitability Margins

Profitability is currently negative and declining. Net loss margin for H1 FY26 was -4.28% (INR 56.30 Lakhs loss) compared to -3.97% (INR 50.63 Lakhs loss) in H1 FY25. The widening loss is driven by high fixed costs including finance costs and depreciation.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 242.90 Lakhs (18.48% margin), a significant decrease of 50.94% from INR 495.12 Lakhs (38.85% margin) in H1 FY25, indicating a sharp rise in operational overheads.

Capital Expenditure

In H1 FY26, the company invested INR 62.47 Lakhs in the purchase of Property, Plant, and Equipment (PPE), compared to INR 87.91 Lakhs in the previous year. Capital work-in-progress stood at INR 12.95 Lakhs as of September 30, 2025.

Credit Rating & Borrowing

Total borrowings as of September 30, 2025, include non-current borrowings of INR 75.57 Lakhs and current borrowings of INR 238.10 Lakhs. Finance costs for H1 FY26 were INR 93.72 Lakhs, representing 7.13% of revenue.

⚙️ Operational Drivers

Raw Materials

Specific raw material names are not listed, but 'Cost of materials consumed' (INR 329.39 Lakhs) and 'Purchase of stock-in-trade' (INR 155.30 Lakhs) collectively represent 36.88% of total revenue.

Capacity Expansion

Current installed capacity is not specified in units; however, the company maintains a significant retail footprint with Right-to-use Assets valued at INR 1,286.09 Lakhs as of September 30, 2025.

Raw Material Costs

Raw material costs (consumed + stock-in-trade) totaled INR 484.69 Lakhs in H1 FY26, up 9.36% from INR 443.21 Lakhs in H1 FY25, outpacing revenue growth and pressuring margins.

Logistics & Distribution

Not separately disclosed; however, the business model relies on a network of retail outlets as indicated by substantial lease liabilities.

📈 Strategic Growth

Expected Growth Rate

3.13%

Growth Strategy

The company is focusing on maintaining its retail presence through its 'Dangee Dums' brand. Growth is currently driven by a slight increase in revenue from operations (up 3.13% YoY in H1 FY26). The strategy involves managing a large portfolio of leased retail spaces (INR 1,544.77 Lakhs in total lease liabilities) to reach urban consumers.

Products & Services

Cakes, pastries, designer cakes, chocolates, and various bakery/confectionery products.

Brand Portfolio

Dangee Dums

🌍 External Factors

Industry Trends

The premium bakery and confectionery industry is growing but faces high competition and rising input costs. Dangee Dums is positioned as a branded retail player, but its high fixed-cost structure makes it vulnerable during periods of low demand growth.

Competitive Landscape

Competes with local artisanal bakeries and national confectionery chains in the premium segment.

Competitive Moat

The brand 'Dangee Dums' serves as a local moat in the Gujarat region; however, the lack of profitability suggests the brand strength is currently insufficient to offset high operational and financial leverage.

Macro Economic Sensitivity

Highly sensitive to consumer discretionary spending and urban inflation, which affects the cost of premium ingredients and retail rentals.

Consumer Behavior

Shift toward branded and hygienic confectionery products in urban centers supports the retail outlet model.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to food safety standards (FSSAI) and local municipal licensing for retail outlets.

Taxation Policy Impact

The company reported a deferred tax credit of INR 4.25 Lakhs for H1 FY26. It maintains a significant Deferred Tax Asset of INR 543.59 Lakhs as of September 30, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary risk is the inability to turn profitable despite revenue growth, with net losses widening by 11.2% YoY in H1 FY26. High financial leverage from leases (INR 1,544.77 Lakhs) poses a liquidity risk.