DIAMONDYD - Prataap Snacks

📊 NSE: DIAMONDYD 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 11:12

💰 Financial Performance

Revenue Growth by Segment

Income from operations for Q2 FY26 was INR 429.79 Cr, representing a 2% YoY decline from INR 438.75 Cr in Q2 FY25. However, revenue grew 5% on a QoQ basis compared to INR 408.94 Cr in Q1 FY26. H1 FY26 revenue stood at INR 838.73 Cr, down 2% YoY from INR 857.87 Cr.

Geographic Revenue Split

The company has a brand presence in the majority of states and Union Territories (UT) across India. Specific regional percentage contributions are not disclosed in available documents.

Profitability Margins

Gross margin for Q2 FY26 improved to 29.8%, up 75 basis points from 29.1% in Q2 FY25. Net profit (PAT) for Q2 FY26 was INR 4.14 Cr (1.0% margin), compared to INR 6.2 Cr (1.4% margin) in Q2 FY25, though the prior year included a larger exceptional insurance claim. Adjusted PAT (excluding exceptional items) increased approximately 3x from INR 1.3 Cr to INR 3.6 Cr.

EBITDA Margin

Operating EBITDA margin improved to 5.3% in Q2 FY26, up 92 basis points from 4.4% in Q1 FY26 and up approximately 100 basis points from 4.3% in Q2 FY25. Absolute EBITDA for Q2 FY26 was INR 22.9 Cr, a 19.5% YoY increase.

Capital Expenditure

The company planned a capital expenditure of approximately INR 90-100 Cr for FY2024, including setting up new capacities in Jammu. Expansion is also aligned with recent PLI approval.

Credit Rating & Borrowing

The company maintains a comfortable capital structure with a gearing of 0.1 time and TOL/TNW of 0.4 time as of March 31, 2021. Interest coverage has historically ranged between 10.1x and 12.6x. Total debt as of September 30, 2025, was approximately INR 16 Cr.

⚙️ Operational Drivers

Raw Materials

Key raw materials include palm oil, laminates, potatoes, and corn. Raw material costs for Q2 FY26 were INR 303.1 Cr, representing 70.2% of total income.

Import Sources

Raw materials are sourced across India to support its 15 manufacturing facilities. Specific import countries for palm oil are not disclosed in available documents.

Capacity Expansion

The company operates 15 manufacturing facilities (7 owned and 8 contract-based). It is currently setting up new capacities in Jammu, partly debt-funded, to enhance production and reach.

Raw Material Costs

Raw material costs decreased 3% YoY in Q2 FY26 to INR 303.1 Cr. Despite inflationary pressures in palm oil, gross margins expanded due to cost-saving initiatives and structural margin enhancement steps.

Manufacturing Efficiency

The company utilizes an asset-light model with 8 contract manufacturing facilities to maintain low reliance on external debt and improve service rates closer to delivery schedules.

Logistics & Distribution

Strategically located manufacturing facilities enable lower logistics costs and improved service rates by placing products closer to target markets.

📈 Strategic Growth

Expected Growth Rate

Growth Strategy

Growth will be driven by the commencement of the Jammu facility, expansion under the PLI scheme, and multiple internal initiatives to enhance EBITDA margins on a structural basis. The company is focusing on cost rationalization and navigating the GST transition to accelerate topline growth in H2 FY26.

Products & Services

The company sells extruded snacks, potato chips, namkeen, pellets, and sweet snacks (cakes).

Brand Portfolio

Yellow Diamond, Avadh, and Rich Feast.

Market Expansion

Expansion is focused on the Jammu region and leveraging the PLI scheme to increase manufacturing footprint across India.

🌍 External Factors

Industry Trends

The snacks industry is seeing a shift toward organized players and volume growth (5% for PSL in FY25). Demand is driven by impulse buying behavior, particularly for small-sized packs, though health consciousness is a growing social consideration.

Competitive Landscape

Intense competition exists from large multinationals (e.g., PepsiCo) and various regional players in the organized snacks and namkeen segments.

Competitive Moat

The moat is built on strong brand equity (Yellow Diamond) and a decentralized manufacturing model (15 plants) that provides a structural cost advantage in logistics and distribution.

Macro Economic Sensitivity

The company is highly sensitive to agro-climatic conditions which affect the pricing and availability of potatoes and corn, and global inflation affecting edible oil prices.

Consumer Behavior

Demand is largely driven by impulse buying of small-sized packs. There is a noted trend toward recovery in consumption driven by cost rationalization and improved external environments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are influenced by the GST framework (transition impacted H1 FY26 revenue) and the Production Linked Incentive (PLI) scheme for the food processing industry.

Taxation Policy Impact

The company benefits from contained tax outflows due to the amortization of intangible assets related to the Avadh Snacks acquisition.

⚠️ Risk Analysis

Key Uncertainties

Key risks include volatility in palm oil and laminate prices (impacting OPM), agro-climatic risks affecting crop yields, and the ability to generate commensurate returns from the Jammu capex.