Sundrop Brands has scheduled one-on-one meetings with analysts and investors on August 31, 2026. The management will engage with five asset management companies in Mumbai from 9:30 am to 5:30 pm.

Meeting details

The company filed an intimation under Regulation 30 of the SEBI Listing Regulations, 2015. The discussions will reference updates and presentations made during the post-earnings call for Q1 FY27. Management confirmed that no Unpublished Price Sensitive Information (UPSI) or forward-looking statements will be disclosed during these interactions.

Participating institutions

The following asset management companies are scheduled to attend the meetings:

• ICICI Prudential AMC
• Kotak AMC
• UTI MF
• Tata AMC
• 360 One MF

The schedule may change at the discretion of the management or the investors.

Sundrop Brands Limited delivered accelerated top-line growth in the first quarter of fiscal year 2027 (Q1FY27), with consolidated revenue rising 15% year-on-year. The company sustained its EBITDA margin at a healthy 7%, demonstrating resilience against significant commodity and packaging inflation through operational efficiencies and strategic pricing. This performance underscores the effectiveness of its capital-efficient growth strategy following the integration of the Del Monte Foods business in February 2025.

The earnings conference call, held on August 7, 2026, and hosted by Anand Rathi Shares and Stock Brokers Limited, provided detailed insights into segmental performance and strategic initiatives. Key executives, including Group Managing Director Nitish Bajaj, CEO Asheesh Kumar Sharma, and CFO KPN Srinivas, outlined how the company is leveraging scale benefits and optimizing its portfolio to drive profitable growth. The transcript of the call was subsequently disclosed to the Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (NSE) on August 10, 2026, in compliance with Regulation 30 of the SEBI Listing Regulations.

Segmental Performance and Growth Drivers

The company’s core portfolio, which now constitutes approximately 60% of total business, showed robust acceleration. The Sundrop business, contributing 56% of revenue, grew by 16% year-on-year, while the Del Monte business, accounting for 44-45% of revenue, accelerated to 14% growth from 9% in the previous quarter.

Popcorn remains a key growth driver, with overall category growth close to 18%, backed by 12% volume expansion. The Ready-to-Eat (RTE) format is particularly strong, growing at 39% year-on-year, driven by distribution penetration in general trade and premiumization in e-commerce. Conversely, the peanut butter segment continues to face headwinds, recording a 3% decline in value, though management notes signs of recovery due to new value-added product launches.

Margin Resilience and Cost Management

Despite an inflationary environment affecting commodities and packaging materials, Sundrop Brands improved its gross margins by 110 basis points compared to the previous year. This improvement was achieved through a 40-basis point gain in material efficiency and a 70-basis point reduction in other expenses. The company successfully passed on price increases in staple categories like edible oil, where value growth reached 16% against 7% volume growth, indicating effective price realization.

Advertising and promotion (A&P) spends were optimized, with real-term spending down approximately 5% year-on-year after adjusting for reclassification of trade spends. This shift towards ROI-centric marketing has allowed the company to maintain investment levels in core categories while improving overall profitability. The EBITDA margin of 7% is normalized net of Employee Stock Option Plan (ESOP) costs, which remain front-loaded for the next 18-21 months.

Strategic Initiatives and Future Outlook

Management emphasized a shift towards capital efficiency, leveraging third-party manufacturing platforms where appropriate to enhance asset utilization. The integration of Sundrop and Del Monte operations is ongoing, with e-commerce already consolidated under a single team. Further synergies are expected from the consolidation of Cash & Carry Fulfillment Centers (CFAs), with eight consolidations planned by year-end, potentially yielding 200 basis points in margin improvement over the next 18 months.

Innovation continues to be a central pillar, with nearly 100 new products launched in the last 24 months, contributing 6% of sales in Q1FY27. The company aims to fund 40% of its mid-teens growth ambition through such innovations. Looking ahead, Sundrop Brands targets reaching a 12% EBITDA margin within three years, driven by scale benefits, premiumization, and operational synergies.

What the Numbers Show

The divergence between revenue growth (15%) and the stability of EBITDA margins (7%) highlights the company’s successful navigation of input cost inflation. While many FMCG peers faced margin compression, Sundrop’s ability to improve gross margins by 110 basis points suggests strong pricing power and operational discipline. However, the continued decline in the peanut butter segment indicates that not all categories are benefiting equally from the current strategy, requiring focused intervention to arrest share loss in value-added variants.