GOPAL - Gopal Snacks

📊 NSE: GOPAL 🏢 Food - Processing - Indian 📅 Last Updated: 12/13/2025 22:32

💰 Financial Performance

Revenue Growth by Segment

In H1 FY26, the Wafers segment grew 6.6% in revenue and 12.8% in volume YoY, while the Gathiya segment grew 8.0% in revenue and 6.0% in volume YoY. Overall FY25 revenue reached INR 1,468.02 Cr, a 4.74% increase from INR 1,402.50 Cr in FY24.

Geographic Revenue Split

Focus markets (Gujarat, Rajasthan, Maharashtra, Madhya Pradesh) saw a 2.9% revenue increase and 0.4% volume growth in H1 FY26. Other states (UP, West Bengal, Andhra Pradesh) grew significantly with revenue up 31.8% and volume up 18.6% YoY.

Profitability Margins

Net Profit After Tax (PAT) for FY25 was INR 19.00 Cr, reflecting a sharp 80.92% decrease from INR 99.57 Cr in FY24. PAT margin declined from 7.10% to 1.26% YoY due to the Rajkot facility fire. However, Q2 FY26 gross margins expanded to 26.4% due to easing input costs.

EBITDA Margin

EBITDA margin for H1 FY26 stood at 5.6% (INR 39.4 Cr), down from 11.6% (INR 87.7 Cr) in H1 FY25, a 55.1% YoY decline. Sequentially, Q2 FY26 EBITDA margin improved to 6.4% from 4.7% in Q1 FY26 due to improved operational efficiency.

Capital Expenditure

The company is investing in the Modasa plant, which started trial production in Q2 FY26, and reinstatement work at the Rajkot-1 facility following a fire that impacted 59% of manufacturing capacity. Specific INR Cr for total planned capex is not disclosed.

Credit Rating & Borrowing

CRISIL Ratings maintains a healthy financial risk profile with a gearing of 0.17 times and an interest coverage ratio of 31.30 times as of March 31, 2025. The company has no major debt as of September 30, 2024.

⚙️ Operational Drivers

Raw Materials

Raw materials include inputs for Gathiya, Wafers, and Namkeen; specific names like palm oil or gram flour are not explicitly listed, but 'raw material price inflation' and 'duty impact' are cited as primary cost drivers.

Import Sources

Sourced primarily from domestic markets near headquarters in Rajkot, Gujarat; specific international import sources are not disclosed.

Capacity Expansion

Current total installed capacity is 308,479 MT across 6 facilities. Expansion includes the new Modasa plant (trial production started) and a new third-party manufacturing arrangement in Manendragarh, Chhattisgarh, announced in December 2025.

Raw Material Costs

Raw material price inflation and duty impacts negatively affected H1 FY26 margins. Gross profit for H1 FY26 was INR 182.9 Cr (26.2% margin), down 16.7% YoY from INR 219.4 Cr (29.0% margin).

Manufacturing Efficiency

Manufacturing efficiency is being enhanced through technology integration and vertical integration. Q2 FY26 saw a sequential EBITDA margin improvement to 6.4% from 4.7% in Q1 FY26.

Logistics & Distribution

Distribution is supported by nearly 300 owned logistics vehicles and a network of distributors. Logistics and transportation department employs 274 personnel.

📈 Strategic Growth

Expected Growth Rate

12.50%

Growth Strategy

Growth will be achieved by operationalizing the Modasa plant (full benefits in Q4 FY26), expanding into under-penetrated regions like UP and West Bengal, and utilizing third-party manufacturing in Chhattisgarh. The company is also shifting its daily revenue run rate from INR 4 Cr to INR 4.5 Cr.

Products & Services

Ready-to-eat packaged snacks including Gathiya, Wafers, Pellets, and various Namkeen products sold in 366 SKUs.

Brand Portfolio

Gopal

New Products/Services

Introduction of innovative flavors and expansion of the 'Other Product' segments which supported a 16.6% Q-o-Q revenue growth in Q2 FY26.

Market Expansion

Expansion beyond Saurashtra/Kutch into Maharashtra (MMR), Madhya Pradesh, Uttar Pradesh, and West Bengal. Export markets include Canada, UAE, UK, and USA.

Market Share & Ranking

Market leader in the Gathiya segment, which accounts for approximately 27% of its total revenue.

Strategic Alliances

Entered a third-party manufacturing arrangement for a new facility in Manendragarh, Chhattisgarh, in December 2025 to enhance regional supply.

🌍 External Factors

Industry Trends

The industry is shifting toward online sales channels and direct-to-consumer (D2C) approaches. Packaged snack demand is growing, and Gopal is positioning itself by expanding its manufacturing base and distribution reach.

Competitive Landscape

Faces competition from both organized and unorganized players in the snacking sector; competitive intensity is a recognized risk factor.

Competitive Moat

Moat is built on market leadership in Gathiya (27% revenue share) and a fully integrated manufacturing model. This is sustainable due to brand loyalty in the value-for-money segment and a large owned logistics fleet.

Macro Economic Sensitivity

Sensitive to e-commerce trends (market projected to grow at 18.7% CAGR through 2028) and quick commerce expansion (expected to reach INR 86,000 Cr by FY29).

Consumer Behavior

Evolving consumer preferences toward packaged foods and digital purchasing are driving the adoption of e-commerce and modern retail platforms.

Geopolitical Risks

Global demand and supply conditions affect the selling prices of raw materials and input availability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to changes in central and state government regulations, including food safety standards and tax laws.

Environmental Compliance

Committed to sustainability through renewable energy adoption and resource efficiency; specific compliance costs are not disclosed.

Taxation Policy Impact

FY25 current tax was INR 11.76 Cr. The company reported a total tax expense of INR 8.04 Cr for FY25 after accounting for deferred tax credits.

Legal Contingencies

No instances of fraud were reported by internal auditors. No specific pending court case values in INR are disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the prolonged impact of the Rajkot facility fire on production capacity (59% affected) and potential volatility in raw material prices due to duty changes.

Geographic Concentration Risk

High concentration in Gujarat, particularly the Saurashtra region, though the company is actively diversifying into other Indian states.

Third Party Dependencies

Increased dependency on third-party manufacturers (e.g., Chhattisgarh arrangement) to mitigate production losses from the Rajkot fire.

Technology Obsolescence Risk

Mitigated by investments in technology integration, automation (162 employees in Automation & Maintenance), and advanced Distribution Management Systems.