Crazy Snacks files DRHP for ₹15.64 crore SME IPO
Crazy Snacks Limited filed its DRHP for a ₹15.64 crore IPO to fund machinery purchase and debt repayment. While FY2025 revenue fell to ₹111.38 crore, PAT rose to ₹6.33 crore with improved margins. The company faces geographic concentration risks and has unsecured loans of ₹3,386.51 lakhs.
*this image is generated using AI for illustrative purposes only.
Crazy Snacks Limited has filed its Draft Red Herring Prospectus (DRHP) with market regulators to launch an Initial Public Offering (IPO), aiming to fund capital expenditure and reduce debt. The Gorakhpur-based food manufacturer, incorporated in 1995, reported a revenue from operations of ₹111.38 crore in FY2025, a decrease from ₹127.59 crore in FY2024. The company intends to use the net proceeds from the fresh issue, totaling ₹15.64 crore, to purchase machinery and infrastructure enhancement worth ₹6.27 crore and ₹2.51 crore respectively, acquire goods transportation vehicles for ₹1.15 crore, and repay or pre-pay outstanding borrowings of ₹5.71 crore. The IPO is scheduled to open on June 25, 2026, and close on June 30, 2026.
Financial Performance
The company has demonstrated growth in profitability over the past three fiscal years, despite a recent decline in revenue. Profit After Tax (PAT) increased from ₹3.54 crore in FY2023 to ₹6.33 crore in FY2025. For the nine months ended December 31, 2025 (Q3 FY2026), the company recorded a revenue from operations of ₹87.54 crore and a PAT of ₹6.00 crore. The PAT margin has improved, rising from 3.97% in FY2023 to 5.68% in FY2025 and further to 6.85% in Q3 FY2026.
| Period | Revenue from Operations (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) |
|---|---|---|---|
| FY2023 | 89.13 | 3.54 | 3.97% |
| FY2024 | 127.59 | 5.32 | 4.17% |
| FY2025 | 111.38 | 6.33 | 5.68% |
| Q3 FY2026 | 87.54 | 6.00 | 6.85% |
Business Operations
Crazy Snacks Limited operates through two entities, Crazy Snacks Limited and Crazy Bakery Udyog Private Limited, offering over 297 products under the brands Crazy, Bity, and Baked Gold. The product portfolio includes bakery items such as breads, buns, rusks, cakes, and cookies, as well as snack items like chips and namkeen. The products are priced between ₹2 and ₹170 per unit. The company manages its distribution through a network of 2,045 distributors as of March 31, 2025, primarily concentrated in Uttar Pradesh and Bihar, which accounted for 97.47% of revenue in FY2024.
Manufacturing and Capacity
The company's manufacturing facilities are located in Gorakhpur, Uttar Pradesh, and are ISO 22000:2018 certified. The combined installed capacity of these facilities stands at 25,860 units, with a capacity utilization of 77.58% in FY2024. The proposed capital expenditure includes the procurement of semi-automatic and automatic machinery, including kneader machines, ovens, and dough mixers, as well as civil work for additional manufacturing space. The DRHP notes that orders for this equipment have not yet been placed, introducing execution risk regarding the primary use of IPO proceeds.
Risk Factors
The company faces significant geographic and product concentration risks. Uttar Pradesh and Bihar accounted for 97.47% of revenue in FY2024. Additionally, rusk, breads, and buns contributed 68.94% of revenue for the period ended June 30, 2024. The company also noted that its manufacturing facilities and registered office are situated on leased land, including 99-year leases from the Gorakhpur Industrial Development Authority. Other risks include four civil litigation cases totaling ₹518.05 lakhs, unsecured loans of ₹3,386.51 lakhs as of May 31, 2026, and nine regulatory notices received regarding product quality and compliance.
How does the company plan to mitigate the significant geographic concentration risk where Uttar Pradesh and Bihar account for nearly 98% of revenue?
What specific strategies will be employed to reverse the recent revenue decline while maintaining the improving profit margins?
Will the company prioritize expanding its distribution network beyond its current core regions to ensure sustainable long-term growth?
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