GANESHCP - Ganesh Consumer

📊 NSE: GANESHCP 🏢 Packaged Foods 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Core staples like Atta grew 35.4% YoY and Spices grew 68.5% YoY in H1 FY26. Sattu revenue exceeded INR 130 Cr in FY24 with gross margins over 30%. Overall revenue grew 7.1% YoY to INR 441.6 Cr in H1 FY26.

Geographic Revenue Split

Strong concentration in West Bengal with a distribution network of 25 C&F agents and 900+ distributors. Expanding into Bihar and Northeast markets via the new Agra facility. East India represents 18% of the Atta TAM and 28.2% of the Sattu TAM.

Profitability Margins

Gross margins expanded 350 bps to 26% in Q2 FY26. Net Profit Margin (NPM) was 4.7% in H1 FY26, down from 5.6% in H1 FY25 due to higher interest costs and promotional spends. Operating Profit Margin (OPM) historically ranges between 8-9%.

EBITDA Margin

EBITDA margin stood at 10.0% in Q2 FY26, a 140 bps improvement YoY. For H1 FY26, EBITDA margin was 10.2%, slightly down from 10.5% in H1 FY25 due to strategic promotional activities.

Capital Expenditure

Utilizing INR 130 Cr from IPO proceeds for optimizing production capacities, including the Agra manufacturing facility for Atta due to start in November 2025, and strengthening distribution reach.

Credit Rating & Borrowing

ICRA reports a conservative capital structure with gearing at 0.2x and TOL/TNW at 0.4x as of March 31, 2024. Interest coverage was strong at 9.7x in FY24. CARE rating is BB/Stable (Issuer Not Cooperating).

⚙️ Operational Drivers

Raw Materials

Wheat and Gram (Chana) are primary raw materials, representing the bulk of the cost of goods sold. Spices are an emerging high-margin raw material category.

Import Sources

Sourced domestically from farm-proximate regions in Uttar Pradesh (Varanasi, Agra) and West Bengal (Calcutta) to minimize logistics costs and ensure freshness.

Key Suppliers

Not disclosed in available documents; however, the company procures directly from farms/mandis and monitors government procurement levels (29-30 million tons of wheat/gram).

Capacity Expansion

Agra manufacturing facility for Atta is scheduled to commence operations in November 2025 to serve Bihar and Northeast markets. Existing plants are located in Varanasi and Calcutta.

Raw Material Costs

Raw material prices for wheat and gram increased 25% in the previous year. The company adopted a strategy to buy the bulk of annual requirements in H1 FY26 to hedge against inflation.

Manufacturing Efficiency

In-house manufacturing across all major categories helps capture 30% gross margins in value-added products like Sattu and improves bottom-line growth through captive production.

Logistics & Distribution

Strategic plant locations near farms in UP (Varanasi/Agra) reduce transit costs and allow direct supply to distributors, improving overall material margins.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Achieving CAGR through geographic expansion into Bihar and Northeast, launching the Agra facility, and scaling the high-margin Spices category (currently growing at 68.5%). The company uses 360-degree marketing and consumer schemes (e.g., 'Sugar-Free with 5kg Atta') to gain market share from unorganized players.

Products & Services

Atta (Wheat Flour), Sattu (Roasted Gram Flour), Besan, Spices, Maida, Sooji, and Instant Mixes.

Brand Portfolio

Ganesh Consumer Products, Ganesh Atta, Ganesh Sattu.

New Products/Services

Expansion of the Spices category and Instant Mixes. Spices revenue reached INR 16-17 Cr in H1 FY26 with expectations to reach peer-level margins as scale increases.

Market Expansion

Targeting Bihar and Northeast India starting November 2025. Aiming to increase penetration in the kitchen through sampling and 360-degree marketing.

Market Share & Ranking

Maintaining market share despite entry of large FMCG players like Emami. Sattu is a dominant category with INR 130 Cr+ annual revenue.

Strategic Alliances

Solar PPA with Roofsol Renewables for energy sustainability. Private equity investment from Motilal Oswal Financial Services (25.71% stake acquired in 2016).

🌍 External Factors

Industry Trends

Rapid shift from unorganized to branded packaged staples. The staples market is growing at a 12.9% CAGR, driven by urbanization and lifestyle shifts.

Competitive Landscape

Intense competition from large organized players (Adani Wilmar, Fortune, Patanjali, Emami) and local unorganized players in the B2C segment.

Competitive Moat

Moat built on a strong 900+ distributor network in East India and in-house manufacturing capabilities which provide a cost advantage over competitors relying on third-party units.

Macro Economic Sensitivity

Highly sensitive to food inflation and monsoon patterns. A 25% spike in wheat/gram prices in FY25 necessitated a major shift in inventory strategy.

Consumer Behavior

Increasing consumer trust in branded staples for quality and hygiene; seasonal consumption patterns for Sattu (lower in winter Q3/Q4).

Geopolitical Risks

Minimal direct exposure, but global commodity price trends influenced by geopolitics can affect domestic wheat and gram pricing.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Government of India regulations on agro-commodity procurement and stock limits. Government procurement of 30 million tons of wheat helps stabilize open market prices.

Environmental Compliance

Investing in renewable energy via Solar PPA to meet sustainability goals and reduce carbon footprint.

Taxation Policy Impact

Effective tax rate resulted in INR 7.1 Cr tax expense for H1 FY26 on PBT of INR 27.7 Cr (~25.6%).

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (25% fluctuation risk) and agro-climatic risks (monsoon dependency) are the primary uncertainties impacting margin stability.