BIKAJI — earnings call

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Prepared remarks

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

MR. MANOJ VERMA – CHIEF OPERATING OFFICER –

Moderator · Conference Operator

MR. AMBESH TIWARI – S-ANCIAL TECHNOLOGIES PRIVATE LIMITED

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Moderator · Conference Operator

Ladies and gentlemen, good day, and welcome to the Bikaji Foods International Limited Q4 and

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 this year also.

And our ad cost increased this quarter compared to last year to tune of 1.5%.

And from EBITDA, overall we closed to INR88 crores of EBITDA with PAT margin of close to 8%.

Overall, from a year perspective, so largely our overall yearly revenue from operation is close to INR 2,994 crores at 9.5% volume growth.

In last quarter, volume growth was upward of 16%, which was highest in any quarter.

Overall GM at a full year level is plus 35.1% and EBITDA margin is 13.7%, upward of 120 basis points compared to last year.

From a capacity perspective, so largely, we have not added much capacity last year.

But yes, this year, we have plan to increase the capacity in sweets, which is going on.

From a distribution perspective, I request Manoj sir to…

Manoj Verma

Yes.

Thanks, Rishabh.

So, one of the key growth drivers, what we had called out was the continuous increase of footprint, which is distribution.

So, we delivered the target what we have taken for ourselves was to cross 3.5 lakh outlets, which is what team has done.

And this increase has come across all our core focus in other geographies.

These campaigns, what Rishabh just spoke about, did extremely well, and that was one of the reasons for our higher growth in the large pack.

So large packs has outperformed and these marketing campaigns have worked very well.

From core geography standpoint, Bhujia also Bikaji was a major and a great success.

And the number speaks louder than what I would say.

It is that if we -- if one is to look H1 versus H2, so there is a multiple growth in that stuff.

And in UP, we did the campaign, Kya Baat Hai Ji while looping in Pankaj Tripathi in that, this campaign also did very well for us.

And that's what is the reason that we look at quarter 4, so our Family pack has grown at 20%, while Impulse grew at 14%.

So, there's certainly room of improvement on Impulse, but Family pack outperformed in this.

Rishabh Jain

From key initiative perspective, this year also has been very significant for us as we have won SAP go-live this year in December.

We also won Darwinbox go-live.

There is new logo launch in January this year.

We completely changed our packaging, revamped our complete packaging, changed logo, our investment in the Hazelnut factory last year.

So, this year has been very good for the brand.

They crossed INR100 crores revenue this year and target is to grow 50%, 60% year-on-year for next 2, 3 years.

Our annual report has been ranked 42nd in American Communication Professionals.

And from export perspective also, we have crossed INR100 crores first time this year.

From revenue from operation perspective, in quarter 4, we have crossed close to INR720 crores of revenue with EBITDA of INR88 crores and PAT of INR56 crores.

From a working capital perspective, our working capital cycle is largely same compared to last year, largely same.

There's not much increase in working capital cycle.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 From raw material perspective, there is -- this war which was started in Feb and March.

We have seen a significant increase in our packing material and edible oils -- largely edible oil has increased to the tune of close to 12% 13%, 14% in fact, and packaging material has increased to close to 25%, 30%.

But overall, we have taken a price rise in April this year and which is suffice largely for the current price hike what we're seeing in raw material and packing material.

So, we'll see how this war goes and we need to take the price rise or not.

But yes, as of now, we have taken a price rise, which will manage our overall gross margin and EBITDA.

Thank you very much.

We are happy to take all the questions.

Moderator · Conference Operator

Thank you.

We take the first question from the line of Avnish Roy from Nuvama.

Please go ahead.

Avnish Roy

Yes, thanks and congrats on good performance.

My question was now Q1 almost 50 days are gone.

So, are you seeing good momentum continue in Q1 also based on the sales and volume trajectory in Q4?

Any divergence you're seeing in Q1?

Manoj Verma

Hi, Avnish, so momentum, what we are seeing is it's a continued momentum.

So, post November, the way of the trajectory we are on, this continues.

This also is the outcome of the kind of investment in demand generation, what we have done thus far and is keeping us on the same trajectory.

So, in spite of certain price being passed to the consumer, yet we haven't seen any slowdown in terms of the demand.

Rishabh Jain

Also, like we're seeing -- we've seen 2 turbulence in this last 50 days.

One, largely Bengal election and the factory, most of the labours are Bengali.

So largely some of the labours have moved to Bengal for elections and all.

And we've seen some production loss, but the overall momentum seems very strong.

And of course, our Chairman loss, so the factory was shut for 2.5, 3 days.

That was also -- but overall momentum side, what we are seeing, we are seeing good momentum.

Avnish Roy

So just to get clarification on these 2 points, 2.5 days factory shut and Bengal, the workforce has gone.

Did it lead to sales loss also or you had pre-planned.

So, in terms of sales, there is no impact.

Could you clarify on that?

Manoj Verma

Yes, so demand we were talking of, that's where you started off.

So, there's no issue in demand, very well created and that's on.

But yes, from supply end, yes, there were some disruptions because ours is not a phasing wherein that most of the billing happens in the last few days.

It's a daily progression, a very seamless day on day what we do, right?

We have been talking in our earlier calls as well that we work on 2 days FG kind of custom or even less than 2.

So, the production impact has certainly resulted in some sales the quarter could have been even better.

But yes, overall, if you look at this quarter will be well in line with what you said.

Avnish Roy

And the Bengal workforce impact that will come in Q1, right?

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Manoj Verma

Q1. Yes, So this Bengal election first phase was on 23rd of April.

So, these people and after SIR and all that stuff I mean so people were -- there was no choice to hold them or no way one could have hold them.

And so majority of them went on leave.

And so, from 20th of April till say, 10th of May, I mean these people started coming back, there was disruption of the manpower problem in that stuff.

But we managed it somehow.

Avnish Roy

So just to close this point, 2.5 days because of the loss, which had happened, unfortunate, plus the election related.

So, can we say around 4 days of impact overall?

Rishabh Jain

Yes.

Avnish Roy

Okay.

Second question is on the inflation.

You said palm oil and edible oil inflation is around, say, 13%, 14%.

I wanted to understand packaging inflation because it's linked to the crude oil and crude oil inflation is much more than the 24%, 25%, which you mentioned.

So, if you could clarify on that.

And have you taken a shrink inflation, so grammage cut or in the larger packs, it's more of a price hike.

So, if you could clarify on those 2?

Rishabh Jain

Yes.

So, from packaging material inflation, we have seen that the average like packing material cost was close to INR190, INR200.

It has gone up to INR260, INR270.

But it has again came down to INR220, INR225.

So, it's not a high side as of now, it's manageable. but yes, overall, what we have done, we have increased price in Family pack and we have reduced grammage Impulse.

That's what we can do largely in Impulse.

Avnish Roy

Understood.

Okay.

That’s all…

Rishabh Jain

Overall, the price rise was close to 3%, which will be manageable, which can manage this increased RM PM price.

Avnish Roy

Okay.

Thank you.

That’s all from my side.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Siddhesh Deshmukh from IIFL Capital.

Please go ahead.

Percy Panthaki

Hi.

This is Percy Panthaki here.

Sir, what is the quantum of price hikes that you have taken?

Rishabh Jain

Yes.

So, the price hike was close to 3%.

Percy Panthaki

And do you think you will have to take more given where the commodity costs are currently?

Rishabh Jain

Currently, as of now, this is manageable for us.

We can manage the same DM largely at this current increase what we have taken.

We actually, we had good amount of packing material orders, which we have blocked.

And what we see that the PM prices came down from the price rise increase what we've seen in early days of war, but it has came down significantly.

So, it's manageable.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Percy Panthaki

Okay.

Secondly, I wanted to ask, if I look at your EBITDA margins first half of the year versus second half, there is a sort of lower second half margin versus first half.

So, is this something normal seasonality?

Or is there some other reason behind that?

Rishabh Jain

So largely our major ad cost, which comes in during festivity.

So normally in every year, our major ad cost comes from August to December.

But this year, we have continued campaign in the fourth quarter also.

So fourth quarter ad cost was significantly higher compared to last year quarter.

But overall, the ad cost was close to 2%, which was last year 1.6% on a yearly basis.

Percy Panthaki

Okay.

But like 40 basis points Y-o-Y, I understand and Y-o-Y, the margins are not a problem.

But I was looking at more versus the first half margins are close to like 13.5%, 14% and the second half margins are like close to 11%.

So, I was trying to understand that because the movement is like 280 basis points between first half and second half.

So, is the ad spend the explanation fully or is there some other reason?

Rishabh Jain

Majorly ad spend.

And there was 50 basis points some provision for doubtful debt, which we have taken in last 2 quarters, last quarter, in fact, which was one time.

Percy Panthaki

Okay.

Understood.

And can you just tell me what is the ad spend as a percentage of sales in 3Q and 4Q?

Rishabh Jain

So 3Q and 4Q ad cost was close to average 3.2%, 3.3%.

Percy Panthaki

Okay.

And in first half, it was like 1% or something, is it?

Rishabh Jain

Yes, 1%.

Percy Panthaki

Hello.

Rishabh Jain

Yes, 1%.

Percy Panthaki

Got it.

Secondly, sir, just wanted to understand this difference between consol growth of 19% and standalone growth of 15%.

So is there any organic -- sorry, inorganic remaining now?

Or it's just that the subsidiaries are growing at like 70%, 80%, which is giving this kind of growth?

Rishabh Jain

So, from consol to standalone, largely we have Bikaji USA, which is a core Ethnic snacks business, which is doing good.

We have Ariba Foods, which works for us for frozen segment.

And of course, this THF.

THF is going on very well.

This year, they've grown at close to 130% to cross INR100 crores.

So, retail business is going on very well.

So, the difference between Ethnic snacks and overall is close to 2.2%, which is THF retail.

Percy Panthaki

Understood.

So, there is no sort of inorganic portion this year on a Y-o-Y basis, right?

Everything is annualized?

Rishabh Jain

Yes, yes, yes.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Percy Panthaki

Got it.

Got it, sir.

That’s all from me.

Thanks and all the best.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Darshit Vora from Asit C Mehta Institutional Equities.

Darshit Vora

Yes.

Hi.

Good afternoon.

Am I audible?

Rishabh Jain

Yes, you are.

Darshit Vora

Thanks and congrats on a good set of numbers.

Just wanted to firstly understand if you could quantify the capex amount that you alluded in your opening remarks.

Rishabh Jain

What amount?

Darshit Vora

Capex amount?

Rishabh Jain

So, capex largely what we'll be doing, there's 2 capex, the sweet factory, which is coming in Bikaner.

And so, this year, we'll be doing close to INR100 crores of capex.

That's the plan, less than or close to INR100 crores capex.

Darshit Vora

Overall per annum…

Rishabh Jain

That is big warehouse, which is came in.

The capex has been done.

It will came in install in, I think, in the next 15, 20 days.

So that will suffice -- that will solve sort of supply chain problems.

Darshit Vora

All right.

And secondly, just wanted to get a sense on the Western snacks portfolio.

So, this quarter, we saw about an 8% kind of increase year-on-year.

So I mean if we look at the entire year also, we've seen 7% kind of a Y-o-Y increase.

So how do we see this moving forward in terms of growth.

Manoj Verma

Yes.

So, generally if you look at -- I mean, so just Western snack holistically, if we look at quarter 4 has been a 16% volume growth, wherein the Ethnic snacks is in line with overall volume growth, which is 16.1% value growth.

Packaged sweets did well.

Western snacks, one, of course, the INR5 pack, as I spoke in my earlier statement as well, that the trajectory what moved was more on the family pack and the family pack is more on the Ethnic side.

So perhaps that's what could have been better.

And to your question that going forward, if we look at the quarter 3, there it was 25% growth in Western snacks itself.

So, we will get back to that stuff and Western snacks will grow 20% plus if you look at them.

At an annualised level as well if we look at -- so the annualized level first half and second half was a key -- a major contrast in terms of growth across category.

And even here, if we look at Ethnic snacks is at 11% in that stuff.

And while Western snacks was better, but then because of this quarter 4, this has come down in this.

But going forward, this will fall in place.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Darshit Vora

Okay.

And are we taking into consideration the grammage cut impact despite that, we'll be seeing that 20% kind of a growth?

Manoj Verma

See, I think that's now a new normal in terms of as the inflation comes in, grammage starts coming down.

And as you know, there's deflation or there's cooling of commodity prices, companies do pass it back to the consumers which is what we saw that during this GST changes.

So, most of the companies and so did we pass back these extra grammages to the consumer, which now, again, with post-war after effects, maybe we'll cut down.

But this will keep going and coming.

We don't see much of a difference in that stuff.

One thing I want to bring it to the table that overall, if you look at the Western snacks growth in the last quarter for the category has also not been very bright in that stuff.

So relatively, if you look at 8.5% growth, while certainly we could have done better, and we know that what is that now we have to press on.

But overall, Western snacks was also on a little slowdown.

Darshit Vora

All right.

That will be all.

Thanks so much and all the best.

Manoj Verma

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Ronak Shah from Equirus Securities.

Please go ahead.

Ronak Shah

Yes.

Hi, sir.

Thanks for the opportunity.

Sir, my first question is -- am I audible?

Moderator · Conference Operator

Yes, Ronak.

Please go ahead.

Ronak Shah

So, my first question is regarding the core versus focus market.

So ideally, the long-term aspiration of the business is to grow the focus market at least by 1.3 to 1.5 times.

However, if you see the fourth quarter or FY '26 as a whole, the growth rates are not that different.

So what is holding us back from getting those sort of growth rates into the focus market?

Manoj Verma

So, if you look at in terms of the growth of focus markets vis-a-vis category is over-indexed in that sense, which means Bikaji’s performance of whatever we are doing now is doing -- is ahead of category.

However, to your question and so what we intend to do is of our 1.5x growth system.

So, there have been certain challenges that have been -- which keeps coming and we keep addressing.

So, like I just spoke about that UP, one of the large focus market, we made those investments and results started coming in.

So going forward, what we see and what we have been saying would continue that the focus states has to grow faster.

This 4 states did extremely well in quarter 4 is on the back of like the mega campaign, what we did Bhujia and the biggest consumption happens in these 4 states as well and Bhujia out performed, and that's what helps these 4 states over-deliver.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 In fact, going forward, if one was to give some guidance for next year.

So 15% growth would not be sustainable.

What we look at it is that's about 13 plus/minus kind of growth we'll look at from core states and from focus states would be, of course, up 20%.

Ronak Shah

Understood.

And when we see the EBITDA margin profile ex of the PLI benefit, in FY '27, considering the price hikes plus the inflationary trajectory, which we are sensing, how we are expecting the margins to flow in?

On top of that, we are having a higher focus on E&P as well.

So overall, how you are sensing your FY '27 EBITDA margin?

Rishabh Jain

So, from ad perspective, ad budget this year will be close to 2%, which is same from last year.

So, we're not increasing our ad budget, number one.

Number two, from EBITDA lens, we have taken one price rise in April, what we see in the price increase of raw material packing material.

So that will suffice the overall cost pressure what we got largely.

So, from that perspective, gross margin, the target of gross margin at consol should be same for us.

We need to maintain the gross margin this year.

That's important.

That's challenging also because that's a very fluctuating year as of now started with a very fluctuating year where we're seeing the fluctuation in edible oil as well as raw material depending on how war react.

But yes, overall, our target is to be -- to maintain the same gross margin and that's -- and EBITDA lens largely -- so if we maintain the same gross margin, EBITDA will improve because there is a lot of fixed costs, which will be fixed and there is production from outside Bikaner, which is CMU will also increase -- so there a lot of operational efficiency which will come in this year.

Ronak Shah

Understood.

And lastly, on the retail business front.

So, we are seeing very good traction over there.

So, over a period, how we are sensing to open the newer stores on top of that, how the overall opex and all are looking like?

Rishabh Jain

So, from retail lens largely, our major focus investment was on THF last year and THF is doing extremely well.

So, they have close to 19, 20 stores.

Intent is to open 8, 10 stores every year for next 3 years and to grow our business at 50%, 55% top line growth.

That's the target.

And the best part is that they are profitable.

So that's not EBITDA dilutive.

That's important for us at the same speed what they want to grow for next 2, 3 years.

So from Bikaji lens also, we opened outlet -- 2 outlets will open in the next 6 months, and we will see how we grow our own retail business.

Ronak Shah

Understood, understood.

That's it from my side.

Thank you.

Rishabh Jain

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Abhishek Mathur from Systematix.

Please go ahead.

Abhishek Mathur

Yes.

Hi, team.

Thank you for the opportunity.

Just wanted to check out of our direct reach of about 3.5 lakh outlets, what would be the split in terms of how much is in focus markets, how

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 much is in core, et cetera?

And also, if you can -- so we have a target of about 5 lakh in 3 years, about 50,000 per annum.

Of that 5 lakh, what is our target split in terms of how much would be in focus and core and the others?

Manoj Verma

Yes.

So currently, if you look at out of 3.5 lakh outlets, so about 120,000 outlets is in core states.

So here, the distribution is more led to the wholesaler.

So whereas if you look at indirect reach is about 8.2 lakh. Coming on to focus states.

So we cover about 1.7 lakh outlets in the focus state.

And here, our indirect reach, I mean, so the wholesale channel and the other stuff.

Our overall reach here is 3.5 lakh outlets.

And in the other states, we cover about 60,000 outlets.

This all adds up to 3.5 lakh outlets.

Going forward, the increase is to come from the core as well because that's where now we are going down for set up, increasing instead of keeping our dependence on wholesalers, we are trying and we are getting in directly there so as to sell grain so as to establish NPD and the stock rate in the store.

So that's what will help us drive same-store growth in core states, whereas the key driver would be distribution reach in the focus states.

So that's where the majority of the new stores was coming.

Abhishek Mathur

Right, sir.

So, if I hear you correctly, the delta of 150,000 in the next 3 years, most of it will come from the focus -- will be in the focus states.

Is that right?

Manoj Verma

Right.

So, this would be from core and focus states.

Other states would be incidental because that's where we do not have as much priority in general trade.

So there, we do need-based kind of a stuff.

So, the other state sales is driven by the growth, what we take pride on is on the basis of the other channels such as modern trade, e-com, institutions, so on and so forth.

So doing extremely well in all that stuff and which is what is getting the brand recall.

So there also, if you look at the indirect reach in the other states is also about 1.8 lakh outlets there.

Abhishek Mathur

Right, sir.

And secondly, on the raw material inflation front, you have talked about the packaging material and the edible oils.

But in terms of our pulses and flour, that part of our basket, what is the trend that you're seeing on inflation?

Or is it benign as of now?

Rishabh Jain

We have not seen any major price rise in all pulses and flours.

Abhishek Mathur

All right.

Great, sir.

Thanks and all the best.

Thanks.

Rishabh Jain

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Soham Samanta from Motilal Oswal Financial Services Limited.

Please go ahead.

Soham Samanta

Yes.

Thanks for the opportunity.

Sir, just wanted to check on focused market.

Last time you called out that Delhi market was not performing well, while UP has been doing good.

So, on a full year basis, how the 2 major market have been doing in the focus market, UP and Delhi?

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Manoj Verma

Sorry, Delhi and which one?

Soham Samanta

UP.

Manoj Verma

So UP, if you look at in terms of TAM, so out of 6 markets, UP is equal to rest of the 5 – on the focused states.

So that's the size of price for UP.

Delhi is not as big in terms of -- I mean, however, it is -- it has a weight, but not as big the TAM there.

In terms of our performance, UP has outperformed, so has brought in the overall numbers, whereas Delhi, as we said last time, that has not done well.

And we have not invested also behind Delhi as much in this stuff.

So, Delhi has brought these -- the growth numbers down only.

Soham Samanta

In UP, what kind of growth we're expecting 20%, 25% kind of growth or it's higher than that?

Manoj Verma

Yes, upwards of 20% growth, yes.

Soham Samanta

Okay.

And if we want to maintain that 15% kind of top line growth, in that case, on product- wise, how we are looking like Ethnic versus packaged sweets, as you mentioned, that Western snacks to be the higher growth category, I mean 30% to 50%.

But Ethnic and packaged sweets is how we're looking for next couple of years?

Manoj Verma

So, if you look at the critical -- to your question that if one is to deliver 15% year-on-year growth.

So, one category you cannot choose to ignore is the traditional snacks, which is about 70% of our business.

So that has to take lead, followed by the second largest category is sweet, which is about 12.5% to our business, right?

And this is where when we see -- when we are on our strat plans.

So, this is one category where the shift from unorganized to organized is going to happen.

So, for the category, this growth is going to be large, and we cannot miss the opportunity.

So therefore, -- this would be second one.

Third is, Western snacks, our base is very small.

So even 20%, 25% will not add as much value to our overall consol growth of that sub.

But yes, Western snacks will continue to grow in double digit, 20% plus kind of a growth year-on-year, Western should do.

And this is what we are talking of also that in next 3 years, currently, what it is 8.5% Western contribution should move to about 11% in the next 3 years.

Soham Samanta

And sir, last question from my side in core markets like Bihar, Assam and Rajasthan, within 3 markets, what is the most growth driver as of now?

Or how do you look at each market?

Manoj Verma

No, say again, what is the?

Soham Samanta

So basically, what is the fastest growth driver within this 3 markets.

Manoj Verma

So, Rajasthan, in fact, is our homeland in terms of closest to Bikaner and all that stuff and is very large.

So put together, Bihar and Assam is equal or less than what the Rajasthan market is.

So, the delta what comes, the growth what comes, Rajasthan is the largest.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 This year, if you look at when we say when we report numbers 4 delivered 15%.

So it's not just one state.

It's a whole state performance wherein all these states have done extremely well.

And I think all are inputting the team what they spread behind this growth, I think this has paid us dividend.

The campaigns, what we did.

So when we say Bhujia also Bikaji, that was a very straight campaign because we witnessed in the first half that there was a slowdown in Bhujia category per se.

So I'm not talking Bikaji.

I'm talking of overall Bhujia as a subcategory.

And we being market leader, it was our responsibility to spike up this growth, build this category further and hence, these campaigns were done rolled out and worked very well for all 4 states.

Soham Samanta

Okay.

Thank you, sir.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Shirish Pardeshi from Motilal Oswal Financial Services Limited.

Please go ahead.

Shirish Pardeshi

Yes, hi, Manoj, Rishabh, thank you for the opportunity.

Just 2, 3 questions.

About 3, 4 months before, there was a lot of noise around GST rationalization, unorganized player will exit.

There is a lot of momentum, which you said that the unorganized player will be able -- will not be able to compete at INR5, INR10 or maybe compliance burden will happen.

So, in your experience, given this framework, which is now implemented, which are the states you have seen this has been beneficiary to us?

Or is there realistically anything has happened because parallelly, we might have got the benefit of 5%, but inflation is also inching up?

Manoj Verma

So, I think very nice question, Shirish.

And if you look at what we did, so the Family pack there, this is no impacted more in that stuff.

So -- and as our numbers are, I'm sure other companies also would have done better.

In this INR5 and INR10 play, the regional and local nuances are also very, very high.

So, it is like a few new players get in and few get weed off kind of a stuff.

So that's what is the phenomena and the trends what we see.

But going forward, if you look at -- so it will not -- and this is what we always have been calling it out on our calls, that the results of the impact would be seen over 2 to 4 quarters, you will see the impact in this stuff.

But certainly, this GST regime change would benefit the organized player or the larger players also.

Shirish Pardeshi

But really, is there any trend you are picking up that the national branded players are getting the sales and unorganized are tapering down?

Or it's too early to judge because parallelly, again, I'm using the word inflation is inching up.

Manoj Verma

See, unorganized when you say unorganized, you don't track because you don't get data.

It is like it's -- when you do market visits, you get some sense in price.

But yes, if you talk about the local and regional players.

So yes, I mean, so this is where certain players we have seen that the

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 kind of traction what they had has slowed down is not as much.

The kind of trade investments they were doing, it's a little muted stuff.

But for their survival, they will certainly do for 2 quarters at least.

So I think the right time, maybe next quarter onwards, as the year will pass by, you will see those impacts coming in.

Shirish Pardeshi

Okay.

Sorry, I'm stretching.

Let's pick up, UP as an example.

So what happens to Avon, Apricot, Evita.

These brands are still existing, but if I check on the ground, they're still growing.

Manoj Verma

So, see, Evita and Apricot is not a small brand for that reason.

I mean, if you look at the kind of player, so in UP itself, there are 200 listed brands there, right?

Top 10 brands that you look at after that, any brand is less than 1% market share.

So that's the fragmentation in this UP though which actually is not a state, it's a country in itself.

So that's what it is.

Morano another brand, if you look at on account of its UP sales, it's among top 10 players in the country for that stuff.

I'm talking of the players which were regional and local like, Jain, Popat, Mahesh Namkeen, which is only the geography of 100 or 150 kilo like PK Namkeen in west UP, those are the ones I'm talking about.

Shirish Pardeshi

So the likes of Rajshree and all what you're saying?

Manoj Verma

Exactly, you got it.

Shirish Pardeshi

Okay.

Got it.

Second, on slide 10, given promotions which we ran, consumer offer, Bikaji campaign, UP campaign with Mr. Tripathi and the other packaging what -- so on a broader terms, if I split what are -- I mean, tangibly, you may not be able to quantify, but in the current era of packaging or maybe packaged food industry itself is so complex.

Such kind of measures has brought any benefit to the company in terms of quantitatively, you can say that we got distribution expansion or volume growth or maybe some percentage of sales would have happened.

I mean just a ballpark number?

Manoj Verma

So, Shirish, you come from a FMCG background and so when so ever company plans any consumer offer.

So, this is not just to subsidize sales.

It's always now the objective of that will this give you 20% extra, 30%.

This, again, is kind of investment you're doing.

So, for example, Paytm, if we look at it, this comes at negligible cost to us.

So hence, if one was -- my sales team is to plan, so I cannot – I have very bullish number on this stuff.

But yes, certainly, delta will come in.

And the investment what we do, the kind of focus what we bring in, are the larger or the big ingredients to get a good result out of it, which is in terms of that the motivation, so the team, the posters, digital activation around that, buzz what you create.

So there is more power of execution on ground and which is what gives us delta for sure.

And the number speaks more louder than what I can speak on this stuff that you look at what was quarter 1 or quarter 2 and then what is post so when these campaigns were up on air or was on ground.

So, this has certainly given this stuff.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 Any company, when they do these kind of offers, there could be 2 objectives.

One is that if they are seeing decline, they say that I want to hold it.

And holding on those numbers in itself is an achievement because they knew the relative is and at what rate they were falling down.

And the other is that what growth are they wanting to or next trajectory you want to go on.

So those are the measures what we see, what we track.

And this is this, we'll call out for our next promotion in the campaigns.

Shirish Pardeshi

No, I understand.

No. We both are from the same background.

So, my worry is that these are all routine activities.

We need to do promotion.

We need to excite the consumer, but then we are creating a benchmark.

So, it becomes more challenging that the next promotion has to be better than the previous one.

So that's why I was worrying because we are building a base.

Manoj Verma

Yes.

So, you will see the next campaign will be Phase 2 of it.

So certainly, we'll not repeat the exact stuff.

You will see build a little, let's say, last year in UP, what we did was that not trying to establish Bikaji.

Now the part 2 would be a different communication the challenge statement, identified challenge statement or opportunity, we will try and address with the campaign.

So not -- it will not be airing of the same film what we did last year.

So that's what is -- certainly, I think you have a very good point, and we are -- we work in the same way itself, not to repeat, to build on that.

Shirish Pardeshi

All right.

My last question, Rishabh, on Ariba, THF, can you give us how the momentum is picking up?

I mean we have also given some press release last time saying that we are looking for JV in Nepal.

So, in terms of scale up, in terms of our 100% acquisition path to profitability, something if you can tell?

Rishabh Jain

Yes.

So, from THF lens, THF revenue while the last three top line was close to INR50 crores.

This year, they double top line.

And what we see that THF grew at 50% to 60% year-on-year for next 3 years at least.

They have a strong plan.

And largely, they are focusing on the northern part of India, UP, Haryana, Punjab and they can go towards Bihar and that part.

Largely, that part still target on for the next 3 years.

So, from THF lens the reduced retail investment is going on very well.

Ariba is just a manufacturing capability, and they are just solving our export problem, which we had -- which was there before Ariba when they were dependent on other vendors.

And during their peak time, they're not able to supply, there was always supply chain issue.

And you will see that after Ariba, our export growth is growing at 50-60%.

And this year also, this will be the same momentum what we see this year.

So Ariba is largely manufacturing facility of course, concluding the focus because they cannot be an EBITDA dilutive to us, and that's what we are working on.

Currently, they are at low utilization.

This will be close to 55%, 60% utilization and that will solve this EBITDA issue also.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Shirish Pardeshi

Okay.

Just last question.

On the warehouse, what we were trying to build into the adjacent location, would fully covered the operational -- I mean, is there any benefit you have started exactly.

Rishabh Jain

Trials has started 2 weeks back early.

And it will start completely in -- by 15th of June.

So, by end of this quarter, so by next quarter, we'll see a benefit in this.

And of course, we'll see benefit because currently, we have space of keeping finished good less than 2 days.

And this warehouse has capacity to keep storage of around 6 to 8 days.

So of course, we'll see a momentum, we'll see production running seamless and all.

So, we'll see momentum in the second quarter.

Shirish Pardeshi

All right.

Thank you and all the best.

Rishabh Jain

Thank you.

Manoj Verma

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Nitin Gupta from HDFC Securities.

Please go ahead.

Nitin Gupta

Yes.

Thanks for taking my question.

My first question pertains to the very first question around like people movement from our factory.

So, when you have highlighted for West Bengal labourers have moved from 20th April to 10th May.

So I just wanted to reconfirm like how many days of sales got impacted.

So that time answering to that, you had confirmed 4 days.

I just wanted to double check on that.

Rishabh Jain

So largely, there are 2 things.

One is overall few labour movement from Bikaner to Bengal, and there was a loss of a Chairman where our factory got close for 2.5 days.

So overall, close to 4 to 5 days, 4, 4.5 days loss of production was there in -- and now like it's close around 16 -- from 16, 17 from this Month, all the labours have come back and our production is in full swing.

So -- so we'll try to cover this.

But yes, until now the loss is 4 to 4.5 days.

Nitin Gupta

Okay.

So 4 to 5 days, like it's more of a scattered impact, not a continuous impact.

Okay.

Its fine.

And second, just wanted to understand like how at a consol level, how do you see the growth for FY '27?

And also wanted to sort of understand like how we are placed with sweets.

So, was there a capacity constraint that's where the growth in last 3 years was around 6% CAGR or like any other reasons you wanted to cite for the sweets business slowdown?

Rishabh Jain

So, from sweet lens largely, of course, that's more of manual.

So capacity was constrained.

And sweet has different challenge.

Like during festivity, we have capacity constraint during non- festivity, we have very surplus capacity because during festivity, we work in 100% dilation and so we are building one sweet factory in Bikaner, which will solve this sweets production issue.

And also, we are trying to build all-season sweets, small pack, INR5, INR10 pack in sweets and soan papdi everything.

So that can be all season that can improve overall growth of sweet category.

And from sweet snacks largely our this year growth was close to 9% and our target is

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 to be at 11% to 12%.

That's the target what we are taking on.

And not so on sweet, 11%, 12% growth, our major focus will be on our Ethnic snacks and Western snacks.

Nitin Gupta

Thanks for the answer.

But the way Manoj ji has highlighted like big part of formalization is spending on sweet side.

So, don't you think we should target a higher growth?

Or is there a genuine sort of constraint in terms of driving this formalization on the growth?

Manoj Verma

So Nitin, talking on sweets business, if you look at, so these 4 months, the festive from, say, Rakhi till Diwali, 80% of our sweets business comes in these 4 months.

And then balance 20%, 25% comes in 8 months.

So, in these 4 months, we are over utilized our output is -- it exceeds 100% over time and all that stuff starts happening, whereas in rest of the time, it is very poor utilization.

Now that's the dichotomy we are in if we increase capacity, so which means that in off-season time, we will be further under utilizing our capacity for this stuff.

So that's the stuff and which is what we are trying though how do we make sweets around the year kind of a category leveraging on our e-com modern trade stuff, and that's the work which is on.

So, what Rishabh spoke about is that when we build budgets in our annual operating plan and all that stuff, we have kept sweet about 12.5% growth.

However, the working is on that how that we can exceed these numbers because that's where the opportunity is.

Now how soon and how much we explore on that stuff, would be on our capability and speed to act.

Nitin Gupta

Thanks for the detailed answer.

Now this is very clear.

Last question pertains to like how we are placed with e-com and particularly quick-com.

And any thoughts around like Q-com seeing a faster growth convenience channel.

So, in terms of the portfolio expansion, maybe leveraging the third-party, we wanted to do something for the quick commerce to ride on the faster growth rate?

Thank you.

Manoj Verma

So yes.

So, e-commerce certainly as a channel is doing well for the entire FMCG or even other categories as well.

And so, it's true for Bikaji.

If you look at last year, our e-com contribution to overall business was 2%, which now has moved to 3%.

So that's the kind of business shift the importance this channel is gaining.

This channel has delivered about upwards of 75% of growth, whereas against company's growth of far less 11%, 12%, that's the kind of over index growth.

We are present across all players and have a strong JVP, so the joint business planning for the year, quarter and so forth.

So, the growth drivers are, of course, one is that inorganic growth, which is that as these accounts are getting into from, say, Tier 1, Tier 1 to Tier 2 and further below.

So that's the inorganic growth, how we look at it is.

And also, what we're doing is that in the increase of number of SKUs ranged on these platforms.

Now when we speak to e-com platforms or q-com platform, what they're saying is that the growth in the metro towns is getting stagnated because now they've exploded what they could.

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026 So even they are looking at the out of the box thinking that how do we grow metro and therefore, new categories, premium stuff, so let's say, introduction of new sweets range and all that stuff, which is what will certainly benefit us and these channels is there.

This is what it is.

So. we see a huge growth -- continued growth in this channel for us next year as well.

Nitin Gupta

Thanks a lot.

And all the very best.

Manoj Verma

Thank you so much.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Mahima, an Individual Investor.

Please go ahead.

Mahima

Yes, hello.

Am I audible?

Manoj Verma

Yes, you are.

Mahima

Okay.

Thank you for this opportunity and congratulations for your results.

I was asking that as lifestyle changes, are you planning to enter into a healthy snack segment?

Manoj Verma

See, frankly speaking, there's nothing called healthy snack.

There could be less unhealthy snacking, right?

And in our portfolio also, there's a long list of SKUs which fall in that space.

So, in terms of future ready, we are, right?

And there's a range.

But today, if you look at the contribution of these categories is by far low.

Today, the companies which are surviving is purely on the q-com platform, you will still see these -- the clean label products kind of a stuff.

But when you speak on the masses, this is not true for now.

We perhaps are 5, 6 years behind time and in the next as many years, you will see that these things will start picking up even faster.

From our readiness standpoint, yes, we have the entire range with us.

Mahima

All right.

Thank you so much.

And all the best.

Manoj Verma

Thank you.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Utpal Saikia, an Individual Investor.

Please go ahead.

Utpal Saikia

Yes.

Hello.

Thank you for taking my questions.

First of all, I'd like to pay my heartfelt tribute to the Founder Chairman Shiv Ratan Agarwal ji.

So, I have actually 2 short questions.

The first one is as a company is trying to build consumption habit of Bhujia and other Indian snacks in the Western countries, so how are the consumers' behavior evolving?

Are we seeing a good momentum and the consumer primary in the western market, primarily is consumer of the Indian origin?

Or are we also attracting mainstream Western consumers?

Manoj Verma

So is this you're talking from the export standpoint, right?

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Utpal Saikia

Hello?

Manoj Verma

Hello, this question is more from exports lens or from domestic, I mean so if you can clarify.

I'll answer accordingly.

Utpal Saikia

No, it is for export oriented.

Manoj Verma

Yes.

Thank you.

So one is that there's a huge Indian diaspora, right?

So that is our primary TG , which is what we focus on.

And there, if you look at the two approach of growing business, one is the new growth category.

So, for the category leaders, or if we were 50% market share.

Then our task would be that how do I grow consumption grow users, right, throughputs or occasions of consumption, right?

That was if I was a major player.

When I'm not a major player, then my job is not to build categories there I'm not looking at that how many more people have started eating Bhujia there.

I will look at that how do I eat share that I mean, today they're eating of competition or some other players other category, how do I get them to my hold.

So, this is what we are working on for overall namkeen, what is called the frozen item because there we are gaining share from the competition.

We are not building category.

For our Bhujia,which is our hero product and if you look at across players, Bikaji, Bhujia is number one in the Bhujia segment.

That's where we build consumption and our consumers, to your question, is not just Indians, what we see when we travel to these places when we interact to our consumers there.

So, there are lots of foreign origin guys as well that who like this snacking.

Something is very famous about India is, one is, tourism and second is food and India's food is appreciated across.

We are taking this food, this snacking stock to their country.

This is gradually shifting.

It's not a major shift, but it is not just stuck to Indian diaspora.

It is the foreign -- foreigners as well who consume our products.

Utpal Saikia

Thank you.

Thank you so much.

Moderator · Conference Operator

Thank you.

We take the next question from the line of Darshit Vora from Asit C Mehta Institutional Equities.

Please go ahead.

Darshit Vora

Yes, hi.

Thanks for the follow-up.

Am I audible now?

Manoj Verma

Yes, you are audible.

Darshit Vora

So just wanted to pick your brain on this Western snacks portfolio again.

Just wanted to understand why do you think the industry growth is coming low for the Western snack front?

And the other part to this question is that if the industry growth is kind of moderated I mean lower than Ethic snacks, how do we plan to grow higher?

Is it distribution expansion or like innovation in products what else?

BIKAJI FOODS INTERNATIONAL LIMITED · MODERATOR:

May 22, 2026

Manoj Verma

So, I'll take your latter question first.

See, one is that we have very small share.

If you look at all India level at Western snacks is 1.1% market.

So, it's a drop in the ocean.

That leaves us with the opportunity of disproportionately high growth.

So now theoretically, this is one.

Now to your first question, when we say relatively -- so these growth trends keep changing.

So if it is down does not mean -- that it is the right takeaway would be when you see the declining trend that over the last 4 quarters, this is coming down.

Then you can extrapolate and come to some conclusions or correlation of that stuff.

One quarter in particular, leads us with no, it is just a reference point.

So please now consider that if Western Snacks has not done well is a reference point only.

Darshit Vora

Okay.

Got it.

And secondly, just wanted to clarify on the gross margin front, you said that you're going to maintain margins on the gross margin side.

So is it like margins or absolute gross profit you’re talking about….

Rishabh Jain

Sorry can you repeat…

Darshit Vora

Because you earlier -- you earlier alluded that we will be maintaining gross margins.

So you mean gross margins or absolute gross profit.

I just wanted to clarify that.

Rishabh Jain

The gross margin in terms of percentage.

Darshit Vora

All right.

That'd be all.

Thank you so much.

Moderator · Conference Operator

Thank you.

Ladies and gentlemen, we take that as the last question and conclude the question- and-answer session.

I now hand the conference over to the management for their closing comments.

Manoj Verma

Thank you so much for taking time out for the call.

It was a good interaction and we tried and answered most of the questions.

Still anyone felt left out, happy to get connected separately or through our relation manager.

With this, thank you so much and look forward to connect again.

Moderator · Conference Operator

Thank you.

On behalf of Bikaji Foods International Limited, that concludes this conference call.

Thank you for joining us, and you may now disconnect your lines.

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