Quantifies the severe impact of the Rajkot facility fire, explaining the Q4 FY25 performance and setting a baseline for recovery. Insurance coverage is a positive.

“As far as Q4 numbers are concerned, those are in line with our previous commentaries. Uh, the factory which we lost was contributing 65% of our topline and we lost 110 man-days to be very precise, between Q3 and Q4. So our per day revenue loss on weighted average was 1 crore rupees. So if we just add back those 100 crore rupees to our delivered revenue, the numbers were aligned.”

“Further, consequent to fire incident, we have booked the total loss of Rs 47 crores under exceptional items covering damages to plant and machinery, factory building, and stock, which are covered under insurance claim. Now coming to full year performance for FY25.”

Details significant raw material inflation impacting margins, forcing pricing actions and grammage adjustments. Highlights cost pressures faced by the snacks industry.

“Our gross profit for the quarter ended stood at 64 crore rupees, representating a gross profit margin of 20.2% as compared to 28.1% last year. Our margins during the period were impacted majorly by rising key raw material costs that rendered the pressure on the margins. Key raw material materials such as palm oil, potato, maida floor, chana witnessed a sharp increase which has substantially impacted our cost structure.”

“Palm oil increased by 54% from 85 rupees per kg to 132 rupees per kg. Potato by 56% from 12 rupees per kg to 19 rupees per kg and maida floor by 21% from 28 rupees per kg to 34 rupees per kg. In response to that, we have undertaken multiple initiatives like downward revision in grammage in our 5 rupees and 10 rupees SKU of Gathiya and Namkeen products and upward revision in selling prices in larger packs.”

— Regan Raithatha, CFO

Addresses investor concern about high dependence on low-margin Rs 5 SKUs (65% of sales), outlining a clear strategy shift towards higher MRP products.

“So what steps are we taking further to reduce the dependence on 5 rupee pack? Okay. So there are two, three pillars which are going to help us in terms of reducing our dependency not only on 5 rupees MRP pack, rather on palm oil based products as well. One is, uh, once we roll out our marketing endeavor, that will be a full-blown TV advertisement. So that definitely uplifts, uh, brand perception in consumer's mind.”

“So we are trying to promote our 10 MRP packs in wafers category. It, it has a positive cascade effect on, you know, other categories as well. Other category also start selling in higher MRP products. Secondly, we introduce our candy pouches, uh, which we introduced in all the modern trade chains and all the e-commerce as well as general trade. So it, its full benefit has yet to come. So we will definitely, we are definitely expecting that whatever the industry average is in terms of larger pack contribution, we'll come at par with industry or rather better of them.”

Offers a cautiously optimistic view on rural demand in its key market, an important factor for volume growth, and indicates Q1 FY26 (likely) is on track.

“Now, as far as slower demand and other factors are concerned, see, we have deep penetration in rural India, in rural Gujarat particularly, right? So rural demands are okay. So as of now, as well, our current quarter's numbers are aligned to our internal projections.”