Bikaji Foods Reports Strong Q2 FY26 Growth Despite GST Transition Challenges

Bikaji Foods International Limited , India's third-largest ethnic snacks manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of temporary market disruptions.

Financial Highlights

For Q2 FY26, Bikaji Foods posted a consolidated revenue from operations of ₹83,029.86 lakh, marking a 15.2% year-on-year growth. The company's EBITDA grew by 20.1% to ₹12,820.00 lakh, with the EBITDA margin improving to 15.4%, up 130 basis points year-on-year (excluding PLI income).

The company's profit after tax (PAT) increased by 13.5% to ₹7,770.00 lakh, while the adjusted PAT, which excludes exceptional items, grew by 18.1% to ₹8,080.00 lakh.

Performance Across Segments

Bikaji's performance across various product segments showed mixed results:

Segment	Growth (YoY)	% of Overall Revenue
Ethnic Snacks	4.6%	59.1%
Packaged Sweets	32.3%	19.7%
Western Snacks	-5.2%	7.0%
Papad	10.3%	4.0%

GST Transition Impact

The company faced temporary headwinds in September due to distributor destocking ahead of the GST rate revision. This led to a short-term impact in core states, despite strong performance in the first two months of the quarter. Excluding this one-time impact, the salty snacks business would have achieved high single-digit growth.

Deepak Agarwal, Managing Director of Bikaji Foods International Limited, commented on the results: "This quarter demonstrated strong and resilient growth, with revenue rising 15.2% YoY, driven by the outstanding performance of the Packaged Sweets segment, which grew by 32.3%. The Exports business continued its remarkable trajectory, delivering 77.3% growth, reflecting the increasing global acceptance of our products."

Expansion and Future Outlook

Bikaji Foods is actively expanding its market presence:

The company plans to acquire an additional 48.78% stake in Petunt Food Processors Private Limited (PFPPL), which will make PFPPL a wholly-owned subsidiary.
Bikaji is set to invest an additional $500,000 in Bikaji Foods International USA Corp, strengthening its international distribution network.
The retail segment showed promising growth, with revenue surging 279.5% and store count expanding from 5 to 21 stores.

Challenges and Opportunities

While the GST transition posed temporary challenges, the company reports that demand has normalized post-transition, with a healthy uptick in sales momentum observed. The management remains optimistic about future growth prospects, focusing on sustainable, long-term growth through continuous innovation, market expansion, and deepening consumer engagement.

Bikaji Foods' ability to maintain growth despite regulatory changes demonstrates its strong market position and adaptability. As the company continues to expand both domestically and internationally, investors will be watching closely to see how it capitalizes on the growing demand for ethnic snacks and navigates future market dynamics.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.99%	-0.10%	-1.60%	-0.69%	-4.82%	+127.31%

Bikaji Foods International Limited , a prominent player in the Indian snacks industry, has outlined an ambitious growth strategy targeting double-digit expansion through premiumization and product diversification. This strategic move comes alongside the company's recent approval of a ₹25 million loan for DADJI Snacks.

Growth Strategy

Bikaji Foods is focusing on several key areas to drive its growth:

Premiumization and Product Diversification
Expansion of Distribution Network
Acceleration of Exports
Capacity Enhancement
Brand Investments
Rural Market Penetration
Strategic Product Innovation

The company is expanding its distribution network beyond Tier-2 cities and accelerating exports to GCC, UK, and North America markets. To support this growth, Bikaji is commissioning new manufacturing lines for namkeen and frozen snacks, which will enhance capacity and improve the margin mix.

Loan to DADJI Snacks

In a recent regulatory filing, Bikaji Foods International disclosed the approval of a ₹25 million loan to DADJI Snacks. Specific terms of the loan agreement were not provided.

Strategic Implications

The loan to DADJI Snacks, coupled with Bikaji's broader growth strategy, could be seen as strategic steps to bolster its position in the competitive snacks market. These moves may help Bikaji to:

Strengthen its supply chain
Expand its product portfolio
Enhance its market presence
Achieve sustainable volume-led growth

Recent Financial Performance

In its latest financial results, Bikaji Foods International reported:

Metric	Amount (₹ in millions)	YoY Growth
Revenue from Operations	8,303.00	15.2%
EBITDA	1,282.00	20.1%
PAT	777.00	13.5%

The company's solid financial performance provides a foundation for its strategic investments, loans, and expansion plans.

Market Outlook

The Indian snacks market continues to show growth, driven by changing consumer preferences and increasing urbanization. Bikaji's focus on premiumization, product diversification, and geographic expansion aligns with these market trends.

As the snacks sector becomes increasingly competitive, Bikaji's multi-faceted growth strategy, including strategic partnerships and financial support to other players like DADJI Snacks, could potentially reshape the landscape of the Indian snacks market.

Investors and industry observers will likely be watching how Bikaji's growth strategy and its loan to DADJI Snacks impact both companies' operations and market standings in the future.