Prataap Snacks Aims for 15% Revenue Growth, Focuses on Automation and Channel Expansion

2 min read     Updated on 04 Nov 2025, 09:42 PM
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Ashish ThakurScanX News Team
Overview

Prataap Snacks aims for 15% revenue growth and 2-3% EBITDA margin improvement through automation, cost optimization, and channel expansion. Q2 FY26 saw a 2% revenue decline but 20% EBITDA growth. Strategies include a new automated facility in Indore, focus on quick commerce and modern trade, and product portfolio segmentation. The company expects accelerated growth and enhanced profitability in the second half of the fiscal year.

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*this image is generated using AI for illustrative purposes only.

Prataap Snacks , a leading Indian snack food company, has outlined an ambitious growth strategy aimed at achieving 15% revenue growth and improving EBITDA margins by 2-3%. The company plans to leverage automation, cost optimization, and strategic channel expansion to drive this growth.

Financial Performance

For the quarter ended September 30, Prataap Snacks reported:

Metric Q2 FY26 Q2 FY25 YoY Change
Revenue ₹4,297.90 crore ₹4,387.50 crore -2.00%
EBITDA ₹229.00 crore ₹191.60 crore +20.00%
EBITDA Margin 5.33% 4.37% +96 bps
Net Profit ₹41.40 crore ₹61.50 crore -33.00%

Despite a slight dip in revenue, the company managed to improve its EBITDA and EBITDA margin significantly year-over-year.

Growth Strategies

Automation and Cost Optimization

Prataap Snacks plans to set up a new, state-of-the-art facility in Indore with a higher degree of automation. This move is expected to streamline production, reduce overheads, and optimize production costs, potentially leading to structural margin enhancements.

Channel Expansion

The company is focusing on diversifying its distribution channels:

  1. Quick Commerce: Showing strong traction among new platforms.
  2. Modern Trade: Experiencing positive growth.
  3. Exports: Gradually building presence in international markets.

Prataap Snacks aims to grow these emerging channels from less than 1% of revenue to over 5% within three years.

Product Portfolio Strategy

The company has categorized its products into:

  • Anchor Products: Including chips, chulbule, and rings.
  • Growth Products: Focusing on pellets and namkeen.
  • Next Products: Exploring healthier options like puffs, makhanas, and popcorn.

This segmentation allows for targeted investment and scalable growth across different product categories.

Market Segmentation

Prataap Snacks has adopted a strategic market segmentation approach:

  • Command Regions: High-margin areas with strong existing presence.
  • Expand Regions: Large markets with initial traction, focusing on distribution expansion.
  • Maintain Regions: Areas where the company aims to maintain market share while optimizing costs.

Outlook

Amit Kumat, Managing Director and CEO of Prataap Snacks, expressed optimism about the company's future performance. He stated, "We are confident that this improved external environment, combined with the multiple internal initiatives we are implementing, will translate into accelerated topline growth and enhanced profitability."

The company expects these outcomes to become visible in the second half of the fiscal year, driven by near-term impact initiatives, and to further strengthen over time as medium to long-term measures take effect.

As Prataap Snacks navigates through a challenging demand environment, its focus on operational efficiency, channel diversification, and product innovation positions it well for potential growth in the coming quarters.

Historical Stock Returns for Prataap Snacks

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Prataap Snacks Reports 5% Sequential Revenue Growth in Q2FY26 Despite YoY Decline

1 min read     Updated on 04 Nov 2025, 07:43 PM
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Reviewed by
Radhika SahaniScanX News Team
Overview

Prataap Snacks Ltd announced Q2 FY2025-26 results with revenue of ₹4,298.00 crore, up 5% QoQ but down 2% YoY. EBITDA increased 20% YoY to ₹229.00 crore. Net profit surged to ₹463.87 crore, a 570.95% increase from Q1. The company faced challenges due to GST transition but saw improved gross margins at 29.80%. Management expects better demand in H2FY26, supported by distribution expansion and growth in various channels. A new automated facility in Indore is planned to enhance margins.

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*this image is generated using AI for illustrative purposes only.

Prataap Snacks Ltd , a leading Indian snack food company, has announced its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing mixed performance.

Key Financial Highlights

Metric Q2 FY2025-26 Q1 FY2025-26 QoQ Change YoY Change
Revenue ₹4,298.00 crore ₹4,089.00 crore 5.00% -2.00%
EBITDA ₹229.00 crore - - 20.00%
Net Profit ₹463.87 crore ₹69.13 crore 570.95% -

Quarterly Performance

Prataap Snacks reported revenue of ₹4,298.00 crore in Q2FY26, showing a 5.00% quarter-on-quarter growth but a 2.00% year-on-year decline. The company attributed the YoY decline to GST transition impact as channel partners hesitated to purchase inventory with old GST rates.

Despite challenges, EBITDA increased 20.00% YoY to ₹229.00 crore, with margins improving by 100 basis points despite palm oil price inflation of 28.00%. Gross margins improved to 29.80% due to process optimization and grammage rationalization initiatives.

The company's net profit for the quarter reached ₹463.87 crore compared to ₹69.13 crore in the previous quarter, marking a substantial growth of 570.95%.

Half-Year Results

For the half-year period, Prataap Snacks' net profit reached ₹533.00 crore, while the revenue was ₹83,873.38 crore.

Business Performance and Outlook

  • Namkeen and pellet categories continued driving growth through wider retail reach.
  • The company plans a new automated facility in Indore to reduce overheads and enhance margin profile.
  • Management expects improved demand in H2FY26 supported by distribution expansion and growth in quick commerce, modern trade, and export channels.

Other Notable Points

  • The company received an insurance claim of ₹77.17 lakh during the quarter related to a fire incident at a co-manufacturing plant in West Bengal.
  • Earnings per share for the quarter was ₹1.94 compared to ₹0.29 in the previous quarter.
  • The Board meeting was held on November 4, 2025, where the results were reviewed by the Audit Committee and approved by the Board of Directors.

Conclusion

While Prataap Snacks faced challenges with year-on-year revenue decline, the company demonstrated resilience with improved EBITDA and significant growth in net profit. The management's focus on distribution expansion and new facility plans indicate a strategic approach to enhance performance in the coming periods. As the company continues to navigate the competitive snack food market, its ability to maintain this growth trajectory will be crucial for its market position in the Indian snack food industry.

Historical Stock Returns for Prataap Snacks

1 Day5 Days1 Month6 Months1 Year5 Years
+0.62%+5.64%+9.45%-8.00%+3.24%+84.64%
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