Indian bakery and biscuit maker Mrs Bectors Food Specialities reported stronger-than-expected financial results for the first quarter of FY27, helped by growth in its biscuit and bakery businesses.
Revenue rose 16% year-on-year to Rs 5.49bn in the three months ended June, exceeding estimates of Rs 5.25bn.
The biscuit business, which accounts for about 60% of annual sales, grew 15.7%. Domestic sales increased at a high-single-digit pace, while exports recorded high-double-digit growth, marking a recovery after several subdued quarters.
The company said demand from US customers had improved, supporting a broader recovery in its international business. Exports now account for about 35% of total revenue.
The bakery business grew 17.5%, supported by improving demand from quick-service restaurants (QSRs) and continued growth in business-to-business sales.
Profitability also improved. Gross margins increased by 160 basis points to 47.2%, while the EBITDA margin rose 83 basis points to 13.1%. EBITDA increased 23.8% to Rs 721m and net profit rose 25.5% to Rs 388m.
The company expects margins to improve further and has retained its target of reaching a 14% EBITDA margin by the fourth quarter of FY27.
Mrs Bectors is also expanding its distribution network, with plans to add 40,000 billed outlets. It expects premium products, higher brand spending and deeper distribution to support domestic growth.
Capacity expansion is progressing at its Kolkata and Khapoli facilities, strengthening its presence in eastern and western India respectively.
Analysts said the company has sufficient existing capacity to support revenue of Rs 34-35bn, providing room for further growth.
With exports recovering, domestic demand improving and new capacity coming online, the company is expected to maintain double-digit growth while improving margins over the next few years.
