Thank you. Good afternoon, everyone, and thank you for joining the Bikaji Foods International Q3 FY26 earnings conference call.

From the management team, we have with us Mr. Rishabh Jain, CFO, and Mr.

Manoj Verma, COO. I now request Mr.

Rishabh Jain to take us through the key opening remarks, after which we will have the floor open for question-and-answer round. Thank you, and over to you, sir.

Thank you to all the investors and friends. Largely from this quarter perspective, this quarter is a story of two halves.

In October, where we have seen some postpone of Diwali this year, with sweet business being in negative growth this year. Overall, when we see our core business, which is ethnic snacks and western snacks, ethnic snacks have grown at close to 13.5% versus western snacks grow 20% plus growth, we're seeing overall snacks category growing at 14% plus in this year in this year.

We also seen some early sign of GST benefit, which is which is government has passed on in September month. We're seeing good volume growth also in ethnic snack ethnic snacks and western snacks overall.

We've seen good sign in our core business. That's what in this quarter.

Also January is being fast going on, and we are seeing some good results also in this quarter also. This quarter being also we run some two two big big campaign, which is regarding with respect to bhujia.

Bikaji Bhujia Ho Toh Bikaji campaign, which is started in September September month and ran in this full quarter and has given a very good result in in a bhujia category in our ethnic western snacks category, which has grown at upward of 16%, 17%. Also, we have started one UP specific UP campaign, which is Kya Baat Hai Ji, which is started in December month.

It's early to say, but yeah, getting good result in UP. From bottom-line perspective, we're seeing gross margin at a steady level at close to 35% close to 35%, which is including PLI.

Overall, we have seen gross margin 35%. Ad cost of course, this is October month is is always big on ad quarters ad costs.

Our ad cost was close to 4% in this third third quarter. Our EBITDA is close to 12.5%.

Overall, we've seen good mark operational efficiency as well as GP has remained has remained stable in last three quarters two-three quarters. From from raw material perspective, we're seeing stability in all key raw material except peanut, which which has seen which we have seen some uptrend uptick.

Overall, peanut is not so big in our overall portfolio. All the other raw material has been stable.

We we have started doing long-term parking of each key raw material because it's a peak season, a peak crop season. Overall, next 3 to 6 quarters what we see, we see some stable growth being we are at low category low utilization as of now 50%, 52%.

We we've seen early sign of good recovery on due to GST and good demand uptick. We see at least 14% to 16% growth in our core category.

That's what overall. From from investment perspective, we are doing some we committed close to ₹131 crore of investment in the Ariba factory last year, out of which ₹60 crore has been invested and we have taken 40% stake.

We are we are putting additional ₹40 crore crore as per agreement this year. We we have passed and we have taken the approval from the board also for this.

After this, our overall stake will be close to 48%. Also, we have done the done JV with T.K.

Khaleel. T.K.

Khaleel is a big big name in Middle East and having more than four decade of experience in bakery category. He's he's made made some big business in bakery in Middle East, and we are tied up with him and formed a JV where he will be having 30% stake and we'll be having 70% stake in our company in Bikaji Bakes, a separate company under Bikaji.

That's a futuristic investment. We see that it it can become ₹100 crore business because now all the children and children and all new new new new TG normally see this business as a big business, and we also had done some some investment in this.

Overall from 9-month numbers, 9-month numbers, our gross margin is close to 34.9% with EBITDA is 14.2%. Overall revenue from operation if you see, that's without PLI we've grown at close to 14% revenue from operation at console level.

From distribution perspective, Manoj ji, you can...

In in terms of distribution and which is what is identified growth lever, we continue to grow. If we look at in terms of our overall reach as Bikaji, we are are now close to 1.4 million outlets, and in terms of our direct reach, we have we are now at crossed 1 3.35 lakh outlets directly.

The marketing campaign which Rishabh just spoke about, what we had identified was that we need to infuse something so as to accelerate the growth in bhujia category. With that in mind, we started a campaign, Bhujia Ho Toh Bikaji, which has given good and and excellent dividends in terms of increasing our reach and increasing the consumption both, resulting into our overall bhujia bhujia growth numbers, which was primarily focused in our core states.

The other campaign, what we also did was we roped in Mr. Pankaj Tripathi as the celebrity, and this was more towards UP and nearby markets.

Kya Baat Hai Ji, that was the that's the property campaign which we started. This was in the later half of quarter three.

It's too early to comment, but that, yes, the initial reach and the responses what we are getting is very positive, and we are very confident that this should help us build quarter four and thereafter business for us. We in did, we went on to multiple communication vehicles and very aggressive on digital media on this stuff.

Another big thing which has happened in this quarter is what we have relaunched our logo, Bikaji. Now the one which we have is more vibrant, it is more enticing, and this is a refreshment of our old logo.

Effective this year this calendar year, we have now moved on to this new logo, which is also there in the in the deck of ours. Growth, if we look at, quarter three volume growth, this is supported by the GST stuff.

Volume growth picked up is for the quarter was 8.4%. Ethnic snacks, western snacks did extremely well, was papad.

If you see there's a two contrast pictures that where it was up till H1 and now what was quarter three. This quarter three performance has led YTD performance moving up.

To underline, ethnic snack and western snacks have done very well and things getting back on track. On a YTD basis if we look at, now ethnic stands stands for stands close to 10% and western snacks is is 6% above, which in in H1 if you look at was a concern which had come up was pretty low, but this is in this quarter it was made up for the first half.

Sweets of course was low, and that we have explained in our earlier calls as well that it is always good to see quarter two and quarter three put together. This was early Diwali, hence quarter two numbers were high, and quarter three was a negative growth.

On a YTD basis if we look at, sweets is again on a on a positive stuff and a growth of 8.1%, while quarter three was a negative stuff. Now, this sweets and gifting category has impacted the growth of focus states, because the contribution of these two categories in focus and other states is very, very high.

Just to put a number, this is if in the core states, it is 7%, 8%, in other states, it's about 20 upward of 30%, and in focus states, upward of 25%. When these two categories, because of Diwali, got shifted, therefore, the growth of focus states or other states looks muted or negative.

If you we net off sweets and gifting, the growth for these two these two state categories is also in line with the core states. Exports has done very well.

This is now the results what we are getting for the investment made in the yester-quarters and years. That is about building our capacity wherein we invested behind Ariba Foods, scaling up our capability on production for the frozen items, which is more salient in these markets, and also our people investment what we did in the exports market.

We expect this exports growth to continue, and for next 2, 3 years, we should be witnessing same kind of growth. Family pack and impulse pack is again, if we look at family pack looks weak in this quarter.

This is on the back of the gifting and sweets, which is primarily large pack only, there's nothing small pack in that. That is, impacting that mix this picture bleak in terms of family pack growth.

If we look at traditional snacking rope, we have grown higher in family pack than the the small packs.

Overall from retail business perspective, our retail business has grown at 86% growth. We have in quarter three being it's the biggest because Diwali is the biggest for TCF as well as for Bikaji.

Diwali and sweets gifting is very big in retail retail stores. We done delivered ₹47 crore business from 23 stores as on date as on date, and the target is to open at least 10 stores next year in TCF as well as in Bikaji.

Overall from revenue perspective, our revenue has grown close to 11% with EBITDA growth compared to last quarter three quarter, EBITDA is 77% being there increase in EBITDA margin compared to quarter three. That's apart from the presentation.

We are happy to take all questions. Thank you.

Thanks. My first question is on dry fruits and nuts.

Consumer treat dry fruits and nuts also as a broader part of the snacks category, and clearly consumer is focusing more on health. We have seen many companies create business.

For example, Tata Consumer already ₹250 crore ARR in nuts they have created. What would be your thoughts on this because this is a very low-hanging fruit because part of the same broader snacks category?

Any thoughts on this? Have you tried this at any point of time?

Any pilot projects you have done in this?

If we look at into the mass category, this is not mass, this is niche and the top of pyramid. If we look at in terms of just the dry fruit, so that's a commodity, but yes, when you do process this stuff, that becomes the snacking part of it, which is actually 2% of the overall snacking category at this point in time.

We also do have some cashew nuts and the nut stuff, but that has not been our focus thus far. In near future, this is not our priority, because this is importantly on some few channels where the premium products could be sold.

Our focus is being more on the range of namkeens and bhujia.

Yeah. One follow-up on the core versus focus.

My question is why is sweets and gifting higher in focus market? Is it easier to do that especially in a new market?

What is the reason?

No. Two reasons, Avneesh.

One is that the play of modern trade is very high, because by virtue of our modern trade presence in all these states, Reliance and DMart, we are over-indexed in these states. Because modern trade does very well in all these stores, therefore our sweets and gifting goes very high.

This is the reason that our contribution of sweets and gifting is very high in focus and even high in other states.

Sir, my next question is on your overall advertising strategy. Generally, we don't see two brand ambassadors in the same category in the same geography.

Amitabh Bachchan, till when do you have him as the brand ambassador in as per the agreement? What is the specific reason for having in the same geography Pankaj Tripathi as the brand ambassador for namkeen?

How does it help? Is it a long-term transition from Amitabh to Pankaj Tripathi, is that the reason?

No. One is that not same geography.

If you look at, Amitabh Bachchan is our brand ambassador nationally and internationally as well, and will continue to be our brand ambassador. We have extended his contract for another two years, so that's one.

Pankaj Tripathi, we've roped in for a campaign basically. These are the geography specific which would be doing.

Not that in UP, we are not using Amitabh Bachchan as our brand ambassador. That is it, but for specific, Kya Baat Hai Ji we also engaged with one of the known agency.

This is Ogilvy we have worked with, and we have done this as a campaign. This does not impact anything with what Amitabh Bachchan has been doing or would continue to do in that stuff.

No, but

I didn't understand what was the need.

No, point is that Amitabh Bachchan helps us do all category, right? Now getting brand ambassador for specific stuff, he's a generic overall stuff.

Pankaj Tripathi we roped in because this connects more closer to this geography, to the masses, and the TG what we are looking at. Basis research, we figured it out the options were, one, we could have used Amitabh Bachchan, one is a overall broad messaging and then focused for particular state.

Instead, the option what came brighter was that we have a different celebrity, but this is nothing to do with replacement of one over another.

Sure. Thanks.

That's all from my side.

Good afternoon to the team, and thank you for giving me the opportunity. I have a couple of questions.

The distribution strategy side. Direct distribution reach has increased to 13.9 lakh 13.9 lakh outlets as of December '25.

From here, should growth be driven more by higher throughput per outlet or by entering new micromarkets, and how should we think about the margin impact of this? This is my first question.

Yeah. Growth has come both, it's a two-pronged growth strategy.

One is that continue to drive growth, which is more if you look at in terms of our core states, because that's where our numeric distribution or our reach is already on a higher level. There the growth story is more about throughput of store.

In the focus and other states, it is both that the stores where we are, they will grow, and the inorganic growth in terms of new stores where we were not present earlier and as we reach in that stuff. Now talking about the margin impact, yes, we make better margins in our core states, and there increasing or driving growth from throughput helps us mitigate for whatever when we expand more in our focus states.

Overall, there's no margin impact in that stuff. This is a thought-through thing what we do.

Okay. Just continuing my first question and just one more follow-up on the margin side.

Right now in quarter three, your family pack continued to contribute 62% of revenue with impulse pack at 38%. If impulse packs start growing faster in non-core markets, should we expect any margin or working capital pressure from a mix perspective?

No, no. It will not have major impact because gap between family and impulse pack in overall gross margin is not more than 2% in ethnic snacks category, 2%, 2.5%.

If what we see that in next 2, 3 years, this 55/45 should become. Family should become 55% and 45% should be impulse pack.

It will have less than 10 to 20 basis point impact. We are doing multiple things to build on efficiency and overall pricing strategy.

This will offset this. We don't see any major impact if impulse pack goes up to, and we want to go to improve our impulse pack contribution, being it's a trial pack in our focus state.

Fair enough. Like to ask one more bookkeeping question.

I want to understand regarding marketing intensity has increased with multiple regional campaigns and ATL and BTL spends. As per management view, what internal metrics, such as volume uplift, repeat purchase, or outlet productivity, being used to assess ROI?

In what timeframe do these campaigns typically break even?

These are multiple steps in it and multiple vectors if you look on this. One is the first and foremost is that we look at the efficacy or effectiveness of the campaigns.

There are reach agencies which gives that what was the viewership, how many viewed, and how many did it multiple times. That's the power of campaign that how is it gone below.

This is all so this is nothing to do with numbers, just how the campaign has gone. While this has a correlation with our numbers in terms of that your sales team productivity start going up, which means that there is some demand creation, or which could be a new entry and also in terms of repeat purchase or the throughput of the store.

Both ways this gets measured. One, to the marketing team, they have a KPI to deliver, and similarly, in synergy, sales team is to deliver KPI in terms of that how many new stores, what kind of productivity and throughput it has.

Those are the measures what we track, and then we call out was it successful or not or should be repeated or not that.

Okay. That's it from my side, and good luck for your coming quarter.

Thank you.

Yes. Thank you for this opportunity.

My question is regarding the stock runout. This has been a serious issue for the company for some time now.

For some retailers, they do not purchase on purpose and wait till the 24th of a month, which causes stock runout, and as a result, loss in real consumption. What has the company been doing to deal with this?

Can you be a little more specific on this question? Couldn't understand well.

For some retailers, they do not purchase on purpose and being aware of the fact that discounted prices will be available from 24th of a month, which leads to stock runout, and as a result, loss in real consumption. Customers are not able to buy due to unavailability of products.

What has the company been doing to manage this?

Yeah. One is that it is not that 24th onwards there are schemes.

The scheme starts on the 1st of the month itself. That is one.

Also, none of the retailer, because if company loses something, that's a sales loss to the retailer as well, right? That's not the case.

What happens is that whenever any schemes are anticipated, unless until you're talking in specific to the GST when announcement was to happen, right? Till 23rd, people were waiting that now the post-GST rates will come down and then they buy.

Even at that point in time, it was not that sales was zero. What happened was that these retailers started de-stocking.

Let's say giving an example, if a retailer keeps say 20 pieces or 15 pieces of one particular SKU, so that point in time, he brought this inventory down to 5, 6, and he did not purchase in anticipation of that now the rates GST impact benefit will come and then I'll buy again 15, 20, whatever. That was a momentary stuff.

Otherwise, in FMCG space, this is how it works that round the month or all four weeks there are purchases. Yes, always, you look at week four becomes little high, and week one are high.

2 and 3 are the regular servicing of that stuff.

Got it. The Nepal JV is expected to start production in a year, and in ethnic snacks category, which is the core category, and we aim to become among the top three players and gain high [single-digit?]

market share. What is the progress there?

Largely, from Nepal perspective, our plant will come in next eight close to next 8 months largely, and we started we will start working with CG Group in maybe by end of by end of this year, end of this financial year. We are hopeful that there are a big group and they are having good distribution.

Next next 2 to 3 years, we'll be having at least top three to will be top three players in in Nepal. That's why we done a JV with them, and that's what our aspiration is with them.

Okay. Thank you so much and all the best.

Thank you.

Thanks for taking my question. Hi, Manoj ji.

Hi, Rishabh. Can you please help us understand the monthly revenue trend, I want to assess how the GST rate cut is aiding demand?

Also want to know your view on the GST benefit aiding demand ahead, how you think the GST rate cut will help overall improvement in the growth trajectory? That's the first question.

Largely what we've seen that, you see our core ethnic snacks in first half has grown at 5%, 6% versus this quarter, third quarter, has grown at around 13%, 13.3%. We're seeing good uptick in family pack as well as impulse pack.

That's what we see the result of some GST input benefit what we given, we done some MRP reduction, it's a more affordable to consumer and also some grammage increase in impulse pack. We see also there is possibility that the smaller player who are doing largely doing not a business in much more professional way, we get a opportunity to do at 5% GST, the chance of doing their type of business will be limited.

We've seen some benefit due to this also. Overall, we see that and you'll see a volume growth also in traditional snacks is close to 12% 11%, 12% 11%, 12%.

We're seeing some good results after the GST rate cut, and this will be continued in coming quarters.

This is really helpful. I just want to know December would be the clean month with GST benefit.

Any sense you can provide on how would have been the growth in December month, if you can?

Nitin, if we were to look at in terms of ethnic snacks or the western snacks, immediately after GST, even in October also, these categories did extremely well. It is only on account of sweets and gifting that October was a weak month in terms of overall company.

GST benefit started reflecting or coming in October onwards. It is not that it has only come in December, but the good thing is that momentum continues.

September end, there was a little confusion, chaos around that GST will bring the rates down and so the purchases were on hold, with someone took up as a question as well. This picked up October onwards.

All three months, our growth has been by far high than what we have delivered in the earlier yester-quarters. Right,

this is helpful. Do you expect further acceleration in growth is possible?

I think, see, now it rests on overall category growth as well, but momentum is good. January almost is about to get over.

We don't see any disruption or look back on this stuff.

Right, this is helpful. Second question pertains to your gross margin.

Despite relatively weaker mix where packaged sweet salience down almost around 9 100 bps Q-o-Q, I am talking sequentially, our gross margin correction has been limited to only 40 bps. Can you help me understand what other factors are helping to keep the gross margin stable on a sequential basis?

We've seen good growth in our core product, which is Bikaneri bhujia, and that's highest in gross margin in our ethnic snacks. We've seen good growth, being we done two one-two campaign around this, majorly Bhujia Toh Bikaji campaign.

We've seen good growth in Bikaneri bhujia, and that has overall helped in improving gross margin, also the product mix what you're trying to improve on focus product, which are high on gross margin, and we started this 2, 2.5 years back. That is also worked well with this.

It is largely to do with the bhujia, that's really helpful. Lastly, micro market growth around 8%, how should we see this growth segment shaping up ahead?

Growth if we look at in terms of our markets basically, so as we have said that the focus would be growing higher than what the core markets are. For now, if we look at, in this particular quarter, focus looked weak because as I explained in my earlier statement, that there is a huge play of sweets and gifting, which got shifted in quarter two.

Otherwise, other than sweets and gifting if we look at, the growths of focus and other states is also, in fact, ahead of what core has delivered. Going forward now to your question, focus will be growing higher than what the core states would grow.

Awesome, this is helpful. Thank you, and all the very best.

Hi, Manoj, Rishabh ji. Thank you for the opportunity and good afternoon.

Manoj, just one quick question. When we entered the quarter September end, every industry player was very excited with 5% GST and shift which was expected.

When I look at nine-month number, I think the focus market has grown only 10.2%. The reason why I'm asking is that I'm sure you are not happy with 8.4% volume growth.

Two things: one is that you said there is a GST benefit which you have passed in terms of higher grammage. If you can split that 8.4% volume growth, what is the percentage or what is the contribution has added because of the grammage addition?

Sure. Shirish ji, largely from increase in grammage in quarter three, what we did due to GST, it has helped in improving volume growth of 2% 1.5%, 2% in overall.

Overall, you will see that our overall volume growth in ethnic snacks category, overall snacks category, is close to upper 12%,

13%.

That's highest in last three quarters, and that's what we targeted.

Okay.

Anyway that did impact in our sweet business because that was same because papad and sweets stayed same, it was only in the snacking space.

Okay. The other thing which is the observation, I talked to most not you, but most of the players said that there is a de-stocking because there was a confusion what the GST will happen and other thing.

Did you really get any benefit of restocking in the trade in quarter three? Again, is it settled or it is still ongoing?

Okay. Shirish, for the impulse category, no one would wait for this thing.

The opportunity loss or the day loss is a loss, however, from consumption standpoint. Yes, if you look at in terms of de-stocking, yes, there was certain impact, but then that got over in a week's time itself.

Thereafter, it's a ongoing replenishment model, the weekly servicing, weekly buying in that stuff. Yes, whatever consumption loss happened during that time that the outlets who ran out of stock and all, you cannot replace that stuff.

Okay. The other thing which I'm reading from slide 20 from your presentation, when I compare nine months growth in the focus state, which is just about 10%, I'm giving the benefit Diwali has come here or there or festivities whatever shifted, but in nine months, we are still 10% growth is it much lower than your expectation?

How much growth we can expect? You did allude saying that the focus state will grow faster, but I think what are the issues?

Yeah. Shirish, rightly said that 10.2% growth is not a good growth in that stuff.

It will not be less than 15%, 15%, 17% should be the bare minimum growth in that stuff. The disruptions, when you talk about, because of GST, because of the sweets could have done or the other categories could have done even better.

This is what in the western snacks, which again is a high contribution in other states, was weak in quarter two. Those were the stuff, but if you look at that, how it has made up in rest of the categories, namkeens, western snacks and all, it is again coming back to in line for what we have said or in line with our plans what we have.

I have a specific question, Manoj, here. Out of six markets which we have identified in focus state, specifically UP is a very large snacking market.

Could you strip off what is the growth you are seeing in particularly UP?

UP is on a high growth in that stuff. If 10% is the overall growth, UP is close to about 14% growth in this stuff, it's on a high side.

There's one market, now Delhi, which we call as our focus state, has not done very well in that stuff, and we also did not invest as much in Delhi, there's no specific campaign or something what we have done for that stuff. To your question, yes, UP has done better than the overall focus states.

UP would be growing on an average about ₹50 crore, ₹60 crore a month now?

No, no, Shirish. What Hello?

Yeah.

Yeah. UP, I said, now if you look at, this is about 13%, 14% growth, whereas overall focus states is 10%.

Got it. In export, what are the reasons?

I do understand Ariba is yet to contribute meaningfully, but what are the drivers for this growth? Are you opening more markets, or is that core markets in the export is showing you scalability?

Yeah. Ariba is an enabler, right?

You have stocks to sell, right? The second question which you said that in terms of the expansion, the driver is expansion, getting into new accounts, large accounts where we were not there earlier.

We got listed, and there is a good response, a demand coming in. That's the driver.

Ariba is a back-end stuff, which is solving for this problem.

Which are the large market in your exports?

Large, US, of course, continues to be our large market. US, Canada, then Middle East, these are the markets which have done.

US, in spite of odds like the tariff thing and all that stuff, we did still well in US. Costco is one of the largest account there where we were not there and so we got listed in this quarter, and a very good performance in this store and very good response in terms of repeats.

Okay. Just last question on BBPL.

What is the rationale? I know Khaleel is a very big man, but is the company is going to diverse and getting into biscuits and croissants and other segments?

What is the scalability of this model? Are you going to get the Khaleel brand in India, or you're going to spread more because you're giving a capital also?

Yeah. Shirish, one, certainly not biscuits, right?

This would have three parts of it. Very premium breads, viennoiserie, and then the third is cakes.

These would be the three segments we'll be playing in. The business would be under, again, three heads: one is frozen exports, and everything is frozen, that's one.

Second is that the business would come from we'll export from here, that's what Khaleel's presence will bring in, because he is already into this model of that stuff, which is the facility of manufacturing capability we are building in here. One is exports, second is B2B, right, and the third would be domestic, which will be the least of that stuff.

Now this is a futuristic investment. We have set up our plant in Bangalore.

As Rishabh said that over three years, this has a potential to get us about ₹100 crore in our top-line number. That's where it is.

It'll be a complete separate team, not that anything to do with Bikaji. This will be run by a professional team which is more into bakery and all this stuff.

You mean to say that the existing stores which Khaleel is operating in UAE is not a part of this deal?

No, no.

This is Bikaji Bakes. This is Indian stuff only.

Okay. Okay.

This plant, when do you think will get operational? Say another a year or so, or will take little longer?

No, no, no. By end of this quarter only it will happen.

Okay. Okay.

Thank you, and all the best.

Thank you.

Hi, sir. Thank you for the opportunity.

While you mentioned in your opening remarks on the raw materials being fairly stable, just wanted to check specifically on potato, what is the procurement cost trend that you're seeing in potato, because I understand that December, January is the period of crop flow and procurement, and you can correct me if that is not accurate, but just wanted to check what is the sort of procurement cost trends that you're seeing specifically in potato right now?

Potato crop has been very stable and good this year, we don't see any major disruption in price or quality availability this year. It's early to do, but yeah, in next 2 months, we'll do long-term buying at least for next 6, 7 months.

That's what we do normally in Feb or March. Price has been very stable.

All right, sir. Got it.

That's very helpful. Thanks, and all the best.

Okay.

Hello, am I audible?

Yes, yes.

Hi. Thank you for taking my question.

I just wanted to understand on this Bikaji Bakes. What is the trajectory?

Are you expecting revenues to start coming in from FY27 itself? In terms of the products, in terms of say premium breads, etc., is it just going to be export or is it going to be in stores, etc., in different stores, or will it be just in your retail stores, in Bikaji retail stores?

Yeah. To your first question, yes, revenue will start coming in from year one itself.

On the product side, yes, the split of the business, if you look at, would be majorly exports, then B2B, and then few top-end stores as well, domestic sales. This would be available in top-end stores, because this would be all premium.

Also, we'll leverage the Q-com, e-com channel also on this stuff. Should be available there as well.

What

will this be under the same brand of Bikaji, or how do you plan to brand this? No,

the work is going on in this, but it will not be under same brand, Bikaji. The work...

We'll announce it shortly before we commission the factory. Not Bikaji for sure.

Okay. Thank you so much.

Thank you, Rishabh ji, Manoj ji. Just wanted to check our direct coverage.

Right now, we have a 334k direct coverage, and last one year, we have added almost 46,000 additions. Manoj ji, if you want to give a ballpark break-up of this 46k break-up of this core versus non-core addition in the last one year?

The most of the addition which has come in is in the focus states, right? As I speak, it's about 1.65 lakh outlets is what we're covering in focus states, and core states is about 1.15, and the rest is other states, about 55,000 outlets.

Majorly it is a non-core addition. Okay.

Second...

See, because

the... Yeah.

On the impulse pack, right now if you look the snacking portfolio, almost 50% of snacking portfolio comes from impulse pack. In 9-month data, which is grew only 6.8%.

For full year, basically for next financial, how do you look this impulse pack growth for the FY27?

What we plan to do is that see, for us, family pack is equally important and we get better margins also in that stuff. That also in our core states, this is what helps us store throughput also.

In the channels like say modern trade, e-com, it is the play of the large pack only. As we drive distribution, as we drive focus states, and which is where as I said that the faster growth would come from the focus states, so that's where's the role of the impulse pack.

To your question, what we see that the growth of impulse and family pack will be in line, not that a very differential growth in that stuff you'll see. Yes, impulse would be on a slightly higher side.

Okay. In this core versus focus market, as you previously said that focus your target could be 15% to 17%, what could be the target for core?

High single digit for next year?

No, no, double-digit target. You will see that about say 13% plus minus would be the core states performance.

So 13% plus minus for core, and focus would be more than 15%.

Upwards of 15% in case.

Upwards of 15%. Got it.

Rishabh ji, for nine months gross margin ex-PLI, you have done 33.5% and operating margin you have done 12.5%. How do you look for this year and next year for gross and operating ex-PLI?

Largely, we see EBITDA margin should move up at least 50 basis points from this year.

For operating? You are staying operating is 50, and gross will be stable or how is it?

EBITDA should improve by 50 basis points, EBITDA.

EBITDA 50. A&P would be the range of 2% and 2.5%, right, for next year as well?

Yes, yes.

Got it, got it. Thank you so much, thank you.

Thank you.

Yes, yes. Thanks for opportunity, Rishabh ji.

I wanted to understand about the product range. When we are launching the new product, what was the strategy that we are used to see?

Basically, I wanted to understand the strategic steps that how Bikaji company researching the product to distribution as per the geography.

This is two approaches what we take. One is the innovation team, the R&D team, which keeps working all that, keep picking up.

We participate actively in all food exhibitions like Gulfood, Indus, AAHAR, on and so forth, which is a forward-looking stuff and ongoing process. That's one.

Second is that we also pick that what is doing well in the market, how the category is behaving, which sub-category is doing well, and how are we indexed to the overall category stuff. This is the principal 3x3 which arrives us on where to work on, and that's how we pick up the sub-categories that what should be developed, and this is how we get these NPDs out in the market.

Now talking about geography, there is diversity across states, and that's how the consumption palate is. Then it becomes region-specific kind of a stuff, certain things.

This is how we do, and this is what is our strategy on adding new products or for new product launch.

Yes, yes. Perfect.

Thank you, sir. Thank you.

Hello, am I audible?

Yeah.

Yeah. Hello, sir.

I'm an individual investor in it. My only question is, if raw material costs normalize upwards, right, and demand softens—I understand that demand is going to go up, but just this is an hypothetical question—if raw material costs normalize upwards and demand softens, which lever, be it pricing, be it mix, or be it cost, will protect margins the most for Bikaji?

See,

if raw material prices goes up, right, one, we'll try to see that what further optimization can be done because that is one. Then this would be true for competition as well.

We'll closely watch that how competition is behaving on that stuff and will respond accordingly. That's what we do.

Because there's a threshold we would not wish to go below a threshold in terms of our margins part.

Yes, yes, sir. One more question.

Where do you see Bikaji's market share in the organized ethnic snack space over the next 3 to 5 years?

We see a double-digit market share in next 3 to 5 years. Maybe around 11%, 11%, 11.5% kinds.

All right. Thank you.

Thank you so much, sir. Thank you.

Thank you, everyone, for taking time out and being part of this call. Hopefully, we could answer the questions what came up.

Still anything left out, we'll be happy to revert back. You can reach out to our corporate affairs person, Pratik, or the agency, and we'll revert back to the questions anything left.

Thank you very much.