Bikaji Foods International Ltd
(NSE:BIKAJI)
₹
613.3
-3.6 (-0.58%)
Market Cap: 153.76 Bil
Enterprise Value: 155.34 Bil
PE Ratio: 59.61
PB Ratio: 9.57
GF Score: 90/100 
Q1 2027 Bikaji Foods International Ltd Earnings Call Transcript
Aug 06, 2026 / 06:30AM GMT
Release Date Price:
₹624.25
(-4.01%)
Key Points
Positve
- Bikaji Foods International Ltd (BOM:543653) reported strong demand recovery in the latter half of Q1 FY2027, with the last 45 days of the quarter achieving approximately 20% growth, indicating robust momentum heading into the festive season.
- The company's EBITDA margin improved significantly to 13.5% in Q1 FY2027, up from 12.2% in the previous quarter, driven by better operating leverage and cost efficiencies.
- Bikaji Foods International Ltd (BOM:543653) continues to expand its direct distribution network, adding 17,000 new outlets in Q1 FY2027 to reach a total of 370,000, supporting its long-term growth strategy.
- The company's focus states are delivering strong growth, with Uttar Pradesh growing at an impressive 37% year-over-year, validating the effectiveness of its regional expansion and marketing investments.
- Bikaji Foods International Ltd (BOM:543653) is making strategic investments in capacity and supply chain, including a new ASRS system in Bikaner and the decentralization of Bhujia production to mitigate future operational risks.
- The retail business, particularly the THS format, is scaling rapidly with a 71.8% year-over-year growth, and the company plans to expand from 28 to 50 stores over the next few years, targeting high-margin premium sweets and gifting.
- The company's quick commerce channel is growing at over 100% year-over-year, outpacing the category growth and demonstrating strong brand traction in this high-potential channel.
- Bikaji Foods International Ltd (BOM:543653) has successfully taken two price increases over the last four months to offset input cost inflation, while maintaining its commitment to not raise prices further until after the festive season.
- The company is investing in future growth areas such as the bakery segment and non-palm oil offerings, positioning itself to cater to evolving consumer preferences and Gen Z demand.
- International expansion is progressing with a new JV plant in Nepal expected to start production within 8-9 months, which will enhance competitiveness and reduce import duties in that market.
Negative
- Bikaji Foods International Ltd (BOM:543653) reported a modest overall top-line growth of only 2.5% in Q1 FY2027, significantly impacted by supply disruptions in the first 45 days of the quarter.
- The company faced operational disruptions due to the passing of its chairman, which led to a 3-4 day plant shutdown across India, and the Bengal elections caused a shortage of labor, particularly impacting Bhujia production in Bikaner.
- Input costs are rising due to geopolitical issues, with edible oil prices increasing and lower rainfall affecting pulses like moong dal and chana dal, putting pressure on gross margins.
- The exports channel experienced a decline of 2.2% year-over-year, primarily due to US tariff disturbances and a 2-3x surge in freight costs, which deferred shipments and created uncertainty.
- The papad segment faced challenges, declining by 6.5% due to early monsoon impacts on the handmade production process, which is highly dependent on weather conditions.
- The company's EBITDA margin guidance for the full year FY2027 is 13%-13.5%, which is lower than the Q1 FY2027 actual of 13.5%, indicating expected margin pressure in the upcoming quarters due to heavy advertising spends during the festive season.
- Bikaji Foods International Ltd (BOM:543653) will face a significant headwind next year as the PLI scheme benefits, which currently contribute approximately 150 basis points to EBITDA, are expected to be phased out.
- The company's core states (Rajasthan, Bihar, and Delhi) are growing at a slower pace of 11% compared to focus states, reflecting high market saturation and intense competition in these established markets.
- The company has not taken any MRP increase despite rising input costs, choosing to absorb the margin impact to maintain consumer demand during the festive season, which could further pressure profitability.
- The management's long-term target of 15% operating margins is not expected to be achieved this year, with a more gradual improvement planned over the next three years, indicating a slower margin expansion trajectory.
Operator
Ladies and gentlemen, good day, and welcome to the Bikaji Foods International Q1 FY 2027 earnings conference call. (Operator Instructions)
I will now hand the conference over to Mr. Ambesh Tiwari. Thank you, and over to you, Ambesh.
Ambesh Tiwari
Bikaji Foods International Ltd - Analyst
Thank you.
Thank you for having me because of this session. (inaudible)
Operator
Sorry to interrupt, Ambhesh. Your line is not coming out clear. Could you please arrange your handset?
Ambesh Tiwari;Rishabh Jain
Bikaji Foods International Ltd - Analyst;
Okay. Good afternoon, everyone, and thank you for joining the Bikaji Foods International Q1 FY 2026-2027 earnings conference call. From the management team, we have with us Mr. Rishabh Jain, CFO, and Mr. Manoj Verma, COO. I will now request Mr. Rishabh Jain to take us through the key opening remarks, after which we will have the floor open for Q&A sessions. Thank you, and over to you, sir.
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