Prataap Snacks Ltd Q3 FY26 Results

We are pleased to report a strong performance in the third quarter, with revenues of 2461.6 crore, representing growth of 3.8% year-on-year and 6.9% quarter-on-quarter. This also marks the highest-ever quarterly revenues in the Company’s history. We are witnessing early signs of improving customer sentiment across markets and regions, supported by expanded retail reach and sharper execution across our ‘Growth’ products and ‘Expand’ markets. Revenue growth, along with an increasing contribution from new distribution channels and operating leverage, translated into EBITDA of 4.4%. However, a sequential increase in key input costs, especially palm oil, exerted pressure on margins. In addition, we incurred expenditure of approximately Rs. 9 crore towards scaling up our presence and capabilities in alternate channels, most notably the quick commerce channel, which is expected to support revenue traction in the coming quarters. Together, these factors led to a contraction of around 300 basis points in EBITDA margins on a sequential basis. Against this, our efforts towards enhancing operational efficiencies and optimising cost, coupled with improved realisations has substantially mitigated the impact on EBITDA to 90 basis points. The investments in alternate channels this quarter are front-loaded and foundational in nature — primarily directed towards marketing, visibility enhancement and building operational capabilities, enabling us to transition to a more structured and scalable operating model which will yield benefits over time. We believe a replicable execution template is now in place for quick commerce and we plan to scale our presence across multiple platforms. In parallel, initiatives across modern trade and export channels continue to progress steadily, further strengthening our multi-channel growth strategy. We are pleased to share that the Board has approved the establishment of a new, state- of-the-art manufacturing facility in the vicinity of Indore for capacity of 60,000 MT entailing an investment up to Rs.425 crore. The facility will augment overall production capacity and incorporate a higher degree of automation, enabling improved process efficiency, streamlined operations, and a significant reduction in overheads. This is expected to optimise costs and structurally enhance the Company's margin profile. We remain confident that our internal growth initiatives—including capacity expansion, multi-channel distribution, product segmentation, and continuous efficiency improvements—combined with supportive external factors such as stable inflation, lower interest and tax rates, and GST rationalisation, position the Company well to deliver sustained topline growth and improved profitability in the quarters ahead.