Prataap Snacks has granted 50,906 Employee Stock Appreciation Rights (ESARs) to eligible employees under its Prataap Employees Stock Appreciation Rights Plan 2018. The Nomination and Remuneration Committee approved the grant during its meeting on August 1, 2026, marking a continuation of the firm’s equity-based compensation strategy aimed at aligning employee interests with long-term shareholder value. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The grant falls within the framework of SEBI Circular No. HO/49/14/14(7)2025-CFDPOD2/I/3762/2026 dated January 30, 2026. Company Secretary Sanjay Chourey confirmed that the requisite details have been submitted to both the National Stock Exchange of India Limited and BSE Limited for record purposes. The scheme complies with the SEBI (Share Based Employee Benefits) Regulations, 2021.

Key Details of the ESAR Grant

The financial and structural parameters of the newly granted ESARs are outlined below:

Upon exercise, the number of shares allotted will be determined by the formula: (Appreciation per ESAR x Number of ESARs exercised) / Market Price with reference to the date of exercise. Grantees are required to pay the face value of the shares prevailing at the time of allotment.

Plan Status and Historical Adjustments

As of the grant date, the total number of ESARs vested under the plan stands at 4,40,701. Of these, 1,41,329 ESARs have been exercised, resulting in the allotment of 50,935 shares. The company realized proceeds of 2,54,675 from these exercises. Conversely, 3,17,725 ESARs have lapsed due to non-exercise within the stipulated timeframes.

The Nomination and Remuneration Committee has previously adjusted exercise periods to benefit grantees. In a meeting on August 2, 2023, the committee extended the exercise period by two years for 3,47,000 ESARs granted on August 9, 2019, covering vesting dates up to August 8, 2025, and August 8, 2026. Most recently, on August 1, 2026, the committee extended the exercise period by two years for 1,02,716 ESARs granted on August 19, 2022, pushing the first vesting deadline to August 18, 2028.

What the Numbers Show

The dilution impact of the plan remains contained, with diluted earnings per share calculated at Rs. 1.03 following the issue of equity shares upon exercise. The significant number of lapsed ESARs (3,17,725) suggests that a portion of the initial pool did not meet vesting conditions or was not exercised within the window, indicating strict adherence to performance or tenure-based criteria. The recent extensions granted by the committee reflect a flexible approach to retention, allowing employees additional time to realize the value of their awards amidst market volatility.

Prataap Snacks reported a record-breaking quarter for FY27, with income from operations reaching ₹490.43 crore (₹4,904.3 million), a 20% year-on-year increase from ₹408.94 crore in Q1FY26. The Indore-based snacks manufacturer posted a net profit (PAT) of ₹24.7 million (₹2.47 crore) for the quarter ended June 30, 2026, marking a sharp 258% surge compared to ₹6.9 million in the corresponding period last year. This performance underscores robust consumer demand across its Yellow Diamond and Avadh brands, even as the company navigated significant inflationary pressures on key inputs like palm oil and packaging laminates.

The Board of Directors approved the unaudited financial results at its meeting held on August 01, 2026. Statutory Auditor B S R & Co. LLP issued a limited review report with an unmodified opinion. The results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Management highlighted that the revenue figure represents the highest-ever quarterly number in the company’s history, reflecting the cumulative impact of recent strategic initiatives including deeper distribution expansion and traction in quick commerce channels.

Financial Highlights

Strategic Developments & Management Commentary

Amit Kumar, Managing Director of Prataap Snacks Limited, attributed the strong start to FY27 to broad-based growth driven by improving consumption trends and positive consumer response to new product launches. "Growth was broad-based, driven by improving consumption trends across our key markets... and growing traction across emerging channels, particularly quick commerce," Kumar stated. He noted that while input costs for palm oil and packaging rose by approximately 20% YoY due to global geopolitical tensions, the company mitigated these impacts through calibrated price interventions, grammage adjustments, and disciplined cost optimization.

In a significant strategic move, the Board approved the acquisition of 100% of the issued share capital of RLOP Food Processing Private Limited for a cash consideration of up to ₹16.50 crore. This acquisition secures leasehold rights over government-allotted land intended for Prataap Snacks’ proposed greenfield manufacturing project, expected to be completed by September 15, 2026. Additionally, the Board recommended the re-appointment of Amit Kumar as Managing Director and CEO for five years effective September 23, 2026, and Apoorva Kumar as Executive Director for five years effective November 2, 2026, subject to shareholder approval.

What the Numbers Show

The divergence between the 20% revenue growth and the 258% profit surge indicates substantial operating leverage. While total expenses rose 19%, the company successfully protected margins despite a 23% increase in material costs. The operating EBITDA grew modestly by 5.7% to ₹190.4 million, suggesting that cost-saving measures and price hikes effectively offset input inflation. Other income declined slightly to ₹16.34 lakh from ₹24.16 lakh in Q1FY26, confirming that the bottom-line expansion was primarily operationally driven rather than reliant on non-recurring gains. The effective tax rate remained manageable at ₹88.42 lakh, supporting the high net profit conversion.