Pakka (516030) Q4 25/26 earnings summary

Executive summary

• Revenue grew 8% year-over-year in Q4 FY26 and 4% sequentially, but full-year revenue and profit declined due to a major planned shutdown, project delays, and one-time costs.

• Food Services segment achieved record annual volume of 3,100 MT, with net revenue rising from ₹55 Cr to ₹63 Cr and B2C revenue from ₹2.5 Cr to ₹6.5 Cr, but losses deepened due to plant issues and write-offs.

• Funding challenges and a faltering share price delayed project execution, but new financing was secured, including INR 500 crore in debentures and equity infusions from promoters and Neo Group.

• Strategic focus shifted to stabilizing Indian operations, building an asset-light model, and expanding B2C and B2B reach before international expansion.

• Standalone audited financial results for Q4 and FY26 were approved, with consolidated results pending due to audit delays at the US subsidiary.

Financial highlights

• Q4 FY26 revenue rose to ₹104.49 Cr, up 8% year-over-year and 4% sequentially; Q4 net profit was ₹384.47 lakhs, down from ₹1,257.21 lakhs in Q4 FY25.

• FY26 revenue was ₹366.78 Cr, down from ₹423.17 Cr in FY25; net profit fell to ₹1,814.88 lakhs from ₹5,669.79 lakhs.

• Food Services Q4 FY26 revenue grew 46% year-over-year to ₹16.87 Cr, but PBT loss widened to -₹6.91 Cr; annual revenue increased 12% to ₹63.23 Cr, with PBT loss at -₹10.84 Cr.

• Wrap & Carry FY26 revenue was ₹303.54 Cr, down from ₹366.56 Cr in FY25; PBT dropped to ₹36.05 Cr from ₹71.74 Cr.

• Basic and diluted EPS for FY26: ₹4.04, compared to ₹13.53 in FY25.

Outlook and guidance

• Major capacity expansion underway, with Project Jagriti commissioning a top priority; power and recovery boilers expected online in July and new paper machine by September.

• Plant shutdown from 16 June to 26 July 2025 for expansion under Project Jagriti.

• Targeting 60%+ production capacity by year-end and 75%+ next year for new facilities; EBITDA margins expected to recover to 22-25% as operations stabilize.

• Strategic priorities include scaling B2B and B2C, diversifying exports, leveraging outsourcing, and optimizing costs.

• Food Services aims to expand presence in all major retail channels and further outsource manufacturing to scale asset-light.