Bikaji Foods Q2 Surge: Analysts Unveil 'Buy' Calls and Juicy Targets! Discover the Growth Secrets!

Consumer Products

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Updated on 13 Nov 2025, 05:57 am

Bikaji Foods International Ltd. showcased a resilient operating performance in its September quarter (Q2FY26) results, primarily driven by robust sales of packaged sweets and namkeen, while successfully maintaining healthy profitability amidst increasing competition. Revenue growth experienced a moderation due to a high comparative base and an early shift in festive sales, as noted by Nuvama Institutional Equities, but still reflected steady consumer demand in key regions.

A significant highlight was Bikaji's gross margin (excluding PLI incentives), which stood at 34%, positioning it favorably within its peer group. This was attributed to an improved product mix, reduced volatility in raw material prices, and a greater contribution from high-margin product categories, according to Emkay Global. The brokerage anticipates further expansion of the company's EBITDA margin in the second half of FY26, bolstered by cost efficiencies and favourable input cost trends. EBITDA is projected to potentially double in H2FY26, though on a lower base, with only a slight sequential moderation expected due to increased advertising expenditure.

Analysts remain optimistic about the company's outlook, encouraged by the management's focus on execution and product innovation, even with fluctuating near-term demand. Emkay Global highlighted initiatives like Paytm cashback offers to boost impulse pack sales, which had faced destocking pressure. They expect mid-to-high teens revenue growth in H2FY26, driven by a recovery in ethnic and western snack segments, benefiting from GST rate cuts and trade restocking. Nuvama Institutional Equities pointed to packaged sweets as a key structural growth driver, supported by the formalization of branded consumption during festivals and expanding export opportunities via the Ariba business. The company is also expanding its retail presence, aiming for 28 exclusive stores by FY26-end and around 40 by FY28.

Impact: This positive news, characterized by strong results, margin expansion, and renewed analyst confidence with 'Buy' ratings and increased price targets, is likely to boost investor sentiment towards Bikaji Foods. It suggests potential for further stock price appreciation and reinforces its position in the competitive FMCG market. Rating: 8/10.

Difficult Terms: * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating profitability. * CAGR: Compound Annual Growth Rate. It represents the average annual growth rate of an investment over a specified period longer than one year. * PLI: Production Linked Incentive. A scheme by the Indian government to boost domestic manufacturing and reduce import dependence. * GST: Goods and Services Tax. A consumption tax imposed on the supply of goods and services. * FMCG: Fast-Moving Consumer Goods. Products that are sold quickly and at a relatively low cost, such as packaged foods, toiletries, and other disposable items. * Ariba: (Assuming this refers to an export business name, as context suggests) A business division or unit focused on international sales and exports.