Mrs. Bectors Food , a leading player in the Indian food industry, has reported its highest ever quarterly revenue of Rs. 551.4 crores for Q2, marking an 11.1% year-on-year growth. The company's performance was driven by strong showings in both its Biscuits and Bakery segments.

Segment-wise Performance

The Biscuits segment, which includes both domestic and export markets, registered a revenue of Rs. 350.00 crores, representing a 10% growth. The Bakery segment, encompassing retail and institutional sales, posted a revenue of Rs. 194.00 crores, showing a robust 16% growth.

Financial Highlights

Challenges and Outlook

Despite the strong top-line growth, the company faced temporary margin pressures due to GST transition disruptions and delays in export incentives. However, management remains optimistic, targeting a 14% EBITDA margin for FY27.

Expansion and Innovation

Mrs. Bectors Food is actively expanding its production capabilities and geographic reach:

• A new plant in Dhar, Madhya Pradesh, was commissioned in May
• A facility in Kolkata is set to be operational in the current quarter
• The Khopoli plant near Mumbai is expected to be fully operational by April

These expansions are part of a significant CAPEX plan, with the company investing approximately Rs. 400.00 crores.

Product Innovation

The company continues to focus on innovation:

• Launched new products like shortbread, mini crackers, and a new sub-brand called "non-stop"
• Introduced "Nature Baked," a clean-label brand in the bakery segment
• Piloting frozen ready-to-eat desserts in the NCR market

Distribution and Market Reach

Mrs. Bectors Food is working on expanding its distribution network:

• Direct reach for biscuits stands at about 5.5 lakh outlets
• Overall availability in over 7 lakh outlets according to AC Nielsen data
• Direct reach for bakery products is close to 40,000 outlets, growing by about 10% in recent quarters

The company aims to increase its weighted availability from the current 30% to about 50% in the next 3-4 years.

Future Strategy

Management is devising a comprehensive strategy for FY27-FY30, focusing on distribution expansion, product innovation, and margin improvement. The company also expects to benefit from the recent GST reduction on biscuits from 18% to 5%, which could fuel industry growth and shift consumers towards branded products.

As Mrs. Bectors Food continues its growth trajectory, investors and industry watchers will be keenly observing the company's ability to navigate market challenges and capitalize on its expansion plans in the coming quarters.

Mrs. Bectors Food , a leading player in the biscuits and bakery segments, has reported a mixed set of financial results for the second quarter of fiscal year 2026. The company saw robust revenue growth but experienced a decline in profitability.

Revenue Growth Across Segments

For Q2FY26, Mrs. Bector's reported revenue from operations of Rs. 551.40 crores, marking an 11.1% increase compared to the same quarter in the previous year. This growth was driven by strong performances in both the biscuit and bakery segments:

• The biscuit segment generated revenue of Rs. 350.00 crores, representing a 10% year-on-year growth.
• The bakery segment contributed Rs. 194.00 crores, showing an impressive 16% year-on-year growth.

Profitability Challenges

Despite the revenue growth, the company faced some challenges in maintaining its profitability:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined by 1.7% to Rs. 69.30 crores.
• Profit for the period decreased by 6.2% to Rs. 36.50 crores.

Half-Year Performance

For the first half of FY26, Mrs. Bector's reported:

• Revenue of Rs. 1,024.40 crores, a 9.5% increase from the previous year.
• EBITDA of Rs. 127.50 crores, representing a 5.2% decline.

Segment-wise Performance

Management Commentary

Mr. Anoop Bector, Managing Director, commented on the results: "The company delivered a resilient 11.1% growth YOY, driven by both business verticals. The bakery segment recorded a 16% year-on-year growth while the biscuits segment grew by 9.6% YOY growth."

He also noted the impact of recent GST reforms: "The domestic business stands to benefit immensely from the GST 2.0 reforms, owing to the tax rate cut from 18% to 5%. However, in the interim, there were challenges due to destocking from the trade in the month of September in anticipation of new MRP and Grammages."

Operational Highlights

• The company operates across domestic biscuits, bakery products, exports, and QSR B2B segments.
• It has manufacturing facilities in multiple states and an export presence in over 70 countries.

Future Outlook

While the company faces short-term challenges in profitability, the management remains optimistic about future growth prospects, particularly given the potential benefits from recent tax reforms. The company's diverse product portfolio and strong presence in both domestic and international markets position it well for future expansion.

Investors and analysts will be watching closely to see how Mrs. Bector's navigates the current market conditions and leverages its strengths to improve profitability in the coming quarters.