Pakka (516030) Q3 25/26 earnings summary

Executive summary

• Profitability and revenue improved sequentially in Q3, rebounding from earlier challenges, with Q3 FY26 revenue at ₹99.64 Cr and PBT at ₹12.75 Cr, a 32x increase from Q2 FY26.

• Project Jagriti in India is the primary focus, with significant CapEx of INR 515 crore already spent and operations expected to stabilize by July 2026.

• Expansion activities in the U.S. and Guatemala (Project Cawoq) have been paused to concentrate resources and management bandwidth on India.

• Leadership development is being prioritized internally, with no immediate plans to hire an external CEO.

• Revised governance policies and merger of Pakka Impact Limited into the company were approved, pending regulatory clearance.

Financial highlights

• Q3 FY26 revenue was ₹99.64 Cr, down 11% YoY but up 27% sequentially; PBT was ₹12.75 Cr, down 27% YoY but up sharply from ₹0.40 Cr in Q2 FY26.

• Year-on-year revenue is down by INR 12 crore, mainly due to a INR 2 crore drop in other income, but operational efficiency narrowed the PBT gap despite a 4% price drop.

• Wrap & Carry segment revenue was ₹82.80 Cr, down 13% YoY, up 32% sequentially; Food Services segment revenue was ₹16.84 Cr, flat YoY, up 7% sequentially.

• B2C revenue grew 80% YoY for the first nine months, improving gross margins.

• Standalone Q3 net profit was ₹914.36 lakhs, up from ₹30.44 lakhs in Q2.

Outlook and guidance

• Expectation of further profitability improvement as new capacity and technology stabilize.

• Delivery range product launch is imminent, with strategic partnerships anticipated and additional retail channels to be added in Q4.

• Revenue is projected to increase to INR 300 crore per quarter post-expansion, with 100 tons per day output at INR 110–130 per kg.

• Targeting 8,000–9,000 tons per month output by year-end 2026, below earlier 10,000-ton guidance.

• The Board will reassess the growth roadmap for Pakka Inc. after key milestones in the Jagriti Project are achieved.