Sundrop Brands Limited, formerly known as Agro Tech Foods Limited, has reported robust financial performance for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Revenue Growth and Margin Expansion

The company achieved consolidated revenue growth of 8% for Q2 FY26 and 10% for H1 FY26. This growth was accompanied by substantial margin improvements, with gross margin expanding by 250 basis points in Q2 and 190 basis points in H1.

EBITDA Performance

Sundrop Brands' EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed impressive growth on a proforma basis:

• Q2 FY26: 29% growth
• H1 FY26: 30% growth

Key Performance Highlights

The company's core categories now contribute 64% of the business, up from 47% in FY23, indicating a strategic shift towards higher-value segments.

Product Performance

The popcorn category demonstrated strong growth, with a 16% increase in H1 FY26. Both ready-to-cook and ready-to-eat formats performed well in this segment.

Innovation and Expansion

Sundrop Brands has been actively expanding its product portfolio, launching multiple new products across its range. The company has also implemented sales force automation, now covering 113,000 outlets, which is expected to enhance distribution efficiency.

Financial Position

As of September 30, 2025, Sundrop Brands maintains a strong financial position:

• Net worth: INR 1,449.00 crore
• Borrowings: Nil

This debt-free status provides the company with financial flexibility for future growth initiatives.

Marketing Investments

The company has significantly increased its marketing investments:

• Q2 FY26: 34% increase
• H1 FY26: 44% increase

These investments are primarily focused on core categories and e-commerce growth, aligning with the company's strategy to strengthen its market position in high-growth segments.

Outlook

While the company has reported strong growth, it's important to note that these results are for a specific period and may not necessarily indicate future performance. Investors and stakeholders should consider broader market conditions and potential risks when evaluating the company's prospects.

Sundrop Brands' focus on core categories, e-commerce, and B2B segments, coupled with increased marketing investments, suggests a strategic approach to capitalizing on evolving consumer trends and market opportunities. The company's strong financial position provides a solid foundation for potential future growth initiatives.

Sundrop Brands Limited, formerly known as Agro Tech Foods Limited, has released its unaudited financial results for the quarter and half-year ended September 30, 2025, along with several corporate updates.

Financial Performance

For the quarter ended September 30, 2025, Sundrop Brands reported:

• Consolidated revenue from operations of ₹383.30 crore, compared to ₹205.64 crore in the same quarter last year
• Profit before tax of ₹5.60 crore, up from ₹0.23 crore in Q2 FY2025

The company's consolidated half-year results showed:

• Revenue from operations of ₹755.42 crore, compared to ₹386.70 crore in H1 FY2025
• Profit before tax of ₹1.77 crore, up from ₹0.49 crore in the previous year's first half

Leadership Changes

The Board of Directors has accepted the resignation of Ms. Jyoti Chawla from her position as Company Secretary and Compliance Officer, effective November 27, 2025. Ms. Kavita has been appointed as her replacement, taking on the roles of Company Secretary, Compliance Officer, and Nodal Officer, effective November 28, 2025.

Ms. Kavita brings over 14 years of experience in the FMCG sector, having worked with organizations such as Del Monte Foods Group, Walmart India, and Tata Consumer Products. Her expertise spans corporate secretarial duties, legal and regulatory compliances, M&A, governance, and contract management.

Employee Stock Option Plan Update

The Nomination and Remuneration Committee has approved the cancellation of 11,500 employee stock options that were originally granted on June 7, 2025, under the Agro Tech Foods Limited Employees Stock Option Plan, 2024. These cancelled options will be available for re-grant under the ESOP scheme.

Additional Notes

• The company's consolidated financial results now include Del Monte Foods Private Limited (DMFPL), which was acquired on February 6, 2025. DMFPL contributed revenue of ₹162.34 crore and ₹163.56 crore for the quarters ended September 30, 2025, and June 30, 2025, respectively.
• The Group has recognized share-based payment expenses of ₹7.89 crore for the half-year ended September 30, 2025, under Employee Benefits Expense.

Sundrop Brands Limited continues to operate primarily in the "Foods" segment, as reviewed by the Chief Operating Decision Maker at an overall Group level.