Bikaji Foods International (BIKAJI) Q2 25/26 earnings summary

Executive summary

• Achieved robust Q2 FY26 revenue growth of 15.2% year-over-year to INR 8,303 mn, with volume growth at 10.8%.

• Gross margin improved to 35.0% and EBITDA margin to 15.4%, with EBITDA up 20.1% YoY and PAT up 13.5% YoY.

• Export revenue exceeded INR 50 crore, up 77.3% YoY, and retail revenue surged 279.5% YoY with store count at 24.

• Ethnic Snacks growth was muted at 4.6% due to GST transition and market disruptions, while sweets and exports delivered strong performance.

• Merger of Vindhyawasini Sales Private Limited completed, and investments expanded in PFPPL and Bikaji Foods International USA Corp.

Financial highlights

• Q2 FY26 EBITDA: INR 1,282 mn (15.4% margin), PAT: INR 777 mn (9.4% margin), Adjusted PAT: INR 808 mn.

• H1 FY26 consolidated revenue reached ₹145,196.40 lakhs, up from ₹125,800.83 lakhs YoY; consolidated net profit was ₹14,005.13 lakhs.

• Sweets category grew 32.3% in Q2, aided by early Diwali and stable GST rate.

• Papad grew 10.3%, Western Snacks were flat or down 5.2% in Q2, and Ethnic Snacks volume grew 1.5%.

• Working capital increased in Q2 due to peak Diwali inventory and receivables.

Outlook and guidance

• High-teen growth in Ethnic Snacks expected for Q3 and Q4 as GST impact normalizes.

• Double-digit overall volume growth anticipated for Q3, despite sweets seeing a seasonal dip.

• No major CapEx planned for next 2-2.5 years; current capacity sufficient for growth.

• Retail outlets targeted to reach 35-40 by FY28, with per-store throughput stable.

• Company expanding internationally and domestically through strategic investments and acquisitions.