Bikaji Foods International (BIKAJI) Q1 25/26 earnings summary

Executive summary

• Achieved consolidated revenue growth of 15% year-over-year and 11% standalone, with robust demand recovery across rural and urban markets, especially in ethnic snacks and sweets.

• Entered a joint venture with Nepal's CG Group/C.G. Foods Nepal Ltd. to expand manufacturing and marketing in Nepal, targeting significant growth over the next 3-5 years.

• Board approved the incorporation of a Section 8 Company (Non-Profit Organization) for CSR initiatives.

• Board approved a loan agreement of INR 500 lakhs to Bikaji Bakes Private Limited for working capital needs.

• PAT stood at INR 585 million, up 1.3% YoY, with EPS at 2.39.

Financial highlights

• Consolidated revenue for Q1 FY26 was INR 6,370.57 million, up from INR 5,545.99 million in Q1 FY25; standalone revenue was INR 6,081.19 million, up from INR 5,475.69 million.

• EBITDA margin at 14.8% (consolidated, with PLI), and 13% without PLI; standalone EBITDA margin at 15.8% with PLI and 13.5% without PLI.

• Gross margin improved to 35% (consolidated, with PLI), and 33.7% standalone; sequential gross margin recovery of 225 bps, aided by price increases and lower raw material costs.

• Export revenue grew 60.3% year-over-year in the quarter.

• Standalone net profit for Q1 FY26 was INR 6,326.51 lakhs; consolidated net profit was INR 5,879.60 lakhs.

Outlook and guidance

• Expecting 9-10% volume growth for the rest of the year, with double-digit growth anticipated in the second half.

• Gross margin guidance maintained at 32%+ on a standalone basis (without PLI) for the full year.

• No major changes expected in raw material prices due to favorable crop and procurement conditions.

• Hazelnut Factory retail expansion to continue, targeting 19-20 stores by year-end and INR 100 crore ARR, with EBITDA margin expected to improve to 8-10% next year.

• A Section 8 Company will be established to enhance CSR initiatives and social development activities.