Prataap Snacks Limited has announced the closure of its Bengaluru manufacturing facility effective January 1, 2026, as part of a strategic operational consolidation. The company informed stock exchanges about this development under Regulation 30 of the SEBI Listing Regulations, emphasizing that the move aims to achieve operational efficiency and synergy.

Manufacturing Operations Transition

The company has ceased manufacturing activities at its Bengaluru plant located at No. 260, Bommasandra–Jigani Link Road, Jigani Hobli, Anekal Taluk, Bengaluru – 560105, Karnataka. Operations from this facility have been shifted to another manufacturing arrangement within the same region, aligning with the company's operational requirements and strategic manufacturing plan.

Financial Impact Assessment

The financial contribution of the closed Bengaluru unit has been disclosed as minimal to the company's overall operations. According to the regulatory filing, the unit's revenue and income contribution was not material to Prataap Snacks' overall business operations. The net worth contribution from the closed facility represented approximately 1.00% of the company's total net worth.

Strategic Consolidation Initiative

The closure represents part of Prataap Snacks' broader strategic consolidation of manufacturing operations. The company emphasized that this transition aligns with its operational requirements and long-term manufacturing strategy. By consolidating operations within the same geographical region, the company aims to optimize manufacturing resource utilization while maintaining operational continuity.

The company has assured stakeholders that the transition will not adversely impact overall production capacity, supply commitments, or financial performance. This strategic move reflects the company's focus on operational efficiency and resource optimization in its manufacturing network.

Regulatory Compliance

Prataap Snacks filed the disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary Sanjay Chourey signed the regulatory filing, ensuring compliance with mandatory disclosure requirements for material events affecting listed companies. The disclosure included detailed information as required under Schedule III of the listing regulations.

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

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.