Gopal Snacks Ltd (GOPAL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (DAM Capital Advisors Limited): Ladies and gentlemen, good day and welcome to Gopal Snacks Q2 FY27 earnings call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines
Moderator (DAM Capital Advisors Limited): will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" then "0" on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Manyal from DAM Capital Advisors. Thank you, and over to you.
Sanjay Manyal (DAM Capital Advisors Limited): Thank you. Good afternoon, everyone. We would like to thank the management of Gopal Snacks for providing DAM Capital with the opportunity to host Q2 FY27 conference call. We have with us today, Mr. Naveen Gupta, Chief Business Officer, Mr. Reagan Raythatha, Chief Financial Officer. I hand over the call to the management for opening remarks. Over to you, sir.
Naveen Gupta (Gopal Snacks Ltd): Thank you, Sanjay. Good afternoon, and thank you for joining us for the earning call. We hope you all had a chance to go through our investor presentation uploaded on the stock exchange. We will share our key operating and financial highlights for the quarter and half year ended September 30th, 2026. Q2 FY27 marks further progress for Gopal Snacks as the restoration of manufacturing capabilities and expansion of our distribution network translated into higher revenue and improved profitability. Our focus during the first half has been on improving product availability, strengthening manufacturing integration, and reaching more consumers across our markets. During the quarter, revenue from operations increased by 22.9% year-on-year to INR 461.5 crore, with sequential growth of 9.3%. For first half FY27, revenue increased by 26.7% to INR 883.9 crores. Demand across key product categories contributed to this performance, with gathiya sales growing by 25.6%, wafers by 40%, snack pellets and extruded snacks by 23% year-on-year during the quarter. Improved product availability and wider distribution coverage helped us serve this demand more effectively. On the distribution front, we continued to deepen our presence in existing markets and improved coverage across un underserve regions. Our distributor network increased to 1,057 at end of September, compared to 1,007 at end of June and 953 at end of FY26. In addition, our net our network include 150 micro-distributors under the super-stockist model, helping improve accessibility across markets. We also continue to strengthen our distribution management system to improve inventory visibility and distributor engagement. Better visibility across the network helps us plan supplies and respond more effectively to market requirements. These capabilities remain important as we expand our reach and improve service levels. In terms of branding and marketing, we continue targeted initiatives across digital platforms and traditional media. Campaigns across JioCinema, Hotstar, SonyLIV, and Spotify along with influencer collaborations, newspaper advertisements, and event sponsorships help increase brand visibility and consumer engagement. Looking ahead, our focus remains on improving capacity utilization, expanding distribution, and building greater consumer awareness. With our manufacturing capabilities restored and a wider distribution network, we will continue to work towards converting these investments into sustained growth and improved profitability. We remain committed to delivering quality products and creating long-term value for all the stakeholders. I would now like to invite our Chief Financial Officer, Mr. Reagan Raythatha, to share his perspective on the financial performance during the quarter.
Reagan Raythatha (Gopal Snacks Ltd): Thank you, Naveenbhai. Good afternoon to everyone. Now, let me take you through the key financial highlights for the quarter and half year ended September 2026. Gross profit for the quarter was INR 125 crores, registering a growth of 26.1% year-on-year basis. Gross margin improved to 27.1%, as compared to 26.4% in Q2 FY26. Improved pricing, grammage correction, and manufacturing efficiency help us to manage the gross margin in a challenging raw material cost environment. EBITDA for the quarter increased by 72% year-on-year and 32% sequentially to INR 41.6 crore.
Reagan Raythatha (Gopal Snacks Ltd): to 9% as compared to 6.4% in Q2 FY26 and 7.4% in Q1 FY27. The improvement reflects reflected due to operational leverage, profitable product mix, and continued cost discipline as the revenue increases. Profit before tax before exceptional item is ₹25.9 crores, an increase of 93% year-on-year basis. Profit after tax was at ₹45.9 crores resulting in a PAT margin of 9.9%. Reported profit also includes net exceptional gain of ₹35.3 crores during the quarter. Now, moving on to the half year performance. For H1 FY27, revenue from operations increased to 26.7% year-on-year to 884 crores. Gross profit increased by 30.5% to to ₹238.6 crores with a gross margin improving to 27% from 26.2% in H1 FY26. EBITDA for first first half increased by 85.7% to ₹73 crores with a margin expanding to 8.3% from 5.6%. Profit before tax before exceptional item increased by 138% to ₹44.5 crores and profit after tax was at ₹58.7 crores as compared to ₹28.2 crores in H1 FY26 with a PAT margin of 6.6%. The half year PAT includes the net exceptional gain of ₹35.3 crores as compared to ₹21.8 crores in a corresponding period of last year. Following the quarter end, we have received full and final insurance claim of ₹36.4 crores relating to fire incident from the insurance company in October 2026. Aggregate recovery including the earlier interim payment, scrap sale proceeds, and the final approved claim amounts to ₹77.4 crores. On the operational front, production product consolidation and greater backward integration remain important area of focus. These initiatives are expected to lower our operating cost, logistic cost, and power cost going forward. The besan manufacturing unit commenced during the September at Nagpur brings a key input closer to our snack manufacturing operations simplifying material movement and enabling recurring transportation cost savings. As we move towards second half of FY27, our focus remains on a profitable product mix, passing on the inflationary inflationary cost to the consumers and maintaining the cost discipline which will continue to support our margins along with the revenue. We'll continue to manage our working capital requirements and capital allocation carefully with the objective of translating revenue growth into sustainable profitability in cash flows. That's it from my side. Over to you, Sanjay, for further questions.
Sanjay Manyal (DAM Capital Advisors Limited): Sir, shall we open the floor for Q&A?
Reagan Raythatha (Gopal Snacks Ltd): Yes, please.
Moderator (DAM Capital Advisors Limited): Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Anuj Sethi from Antique Stock Broking Limited. Please go ahead.
Anuj Sethi (Antique Stock Broking Limited): Hi, team. Congratulations on a great set of numbers. I think, one major question on the core state, I think, during first quarter, management had guided, say, around ₹100 crores per month run rate. We are slightly below that. Are we satisfied with the growth trends that we are seeing in the adjacent category, of say, western snacks in the newer ventures?
Naveen Gupta (Gopal Snacks Ltd): So thank you, Anuj. Yes, definitely, we aimed you know, ₹100 crores per month run rate. so definitely, we are not satisfied with this run rate in Gujarat. Given the competition intensity, we are taking a prudent approach. We have taken very careful path, you know, in managing our pricing, as well as grammage. So, definitely, this revenue numbers of ₹100 crores per month
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