Mrs. Bector’s Foods Posts Record Revenue in FY25; Expansion and Premiumization Drive Growth

BECTORFOOD (NSE/BSE: 543253) sees 15% revenue surge, plans ₹716+ crore capacity expansion to tap India’s booming bakery market.

Mumbai, 3 June 2025 – Mrs. Bectors Food Specialities Limited (BECTORFOOD), a leading player in biscuits and bakery products, reported robust financial results for Q4 and FY25, backed by strong demand in both domestic and export markets. The company’s strategic investments in automation, geographic expansion, and premium product launches position it to capitalize on India’s rapidly growing processed food sector.

Financial Highlights: Growth Amid Margin Pressures

• Record Revenue: FY25 consolidated revenue surged 15.4% YoY to ₹1,873.9 crores, driven by a 19% growth in the bakery segment (retail and institutional) and 7% growth in biscuits. Over two years, revenue jumped 37.6%.
• Profitability: EBITDA for FY25 stood at ₹251.5 crores (up 3.7% YoY), though margins contracted to 13.4% (vs. 14.9% in FY24) due to input cost inflation. PAT rose 2% to ₹143.2 crores.
• Balance Sheet Strength: Cash reserves soared to ₹86.2 crores (up 10x YoY), while debt reduced significantly. Debt-to-equity improved to 0.1x (Mar-25) from 0.3x (Mar-23).

Segment Breakdown: Bakery Outshines Biscuits

• Bakery Segment: Revenue hit ₹179 crores in Q4 (+19% YoY), fueled by partnerships with QSR giants like McDonald’s and Walmart. The segment now contributes 40% to total revenue.
• Biscuit Segment: Growth moderated to 7% YoY in Q4 (₹257 crores), though exports expanded to 70+ countries, including new launches in the UAE.

Growth Catalysts: Expansion and Innovation

• Capacity Boost: Commissioned plants in Dhar (MP) and Khopoli (Maharashtra) will add 21,000 MT biscuit and 24,741 MT bakery capacity. The company invested ₹716+ crores in FY21–FY25 for automation and premium product lines (e.g., sourdough, millet-based breads).
• Premiumization: Launched “Zero Maida” pav, plant-based cookies, and indulgent desserts targeting health-conscious urban consumers. Quick-commerce-exclusive products (e.g., animal-shaped crackers) drove online visibility.
• QSR Dominance: As a key supplier to McDonald’s and multiplex chains, Mrs. Bectors dominates India’s institutional bakery market (₹76,000 crore by FY29, per Technopak).

Industry Tailwinds

India’s bakery market is poised for explosive growth:

• Biscuit consumption per capita (4.25 kg/year) is 10x below the US/UK, offering massive headroom.
• Organized bread/buns market to grow at 11% CAGR (₹103 billion by FY29).
• Rising middle-class (33.5% of households earn USD 10,000–50,000 annually) fuels premiumization.

Strategic Initiatives

• Project IMPACT 1.0: Cost-optimization program targeting procurement, logistics, and wastage reduction.
• Digital Push: TVCs and social campaigns for “Magic Cream” biscuits and “English Oven” breads.
• Omnichannel Reach: Expanded retail footprint in South/West India and quick-commerce partnerships.

Challenges

Margin pressures persist: Gross profit margin dipped to 44.3% in Q4 (vs. 47.7% YoY) due to volatile raw material costs. Rising competition in premium biscuits also remains a watchpoint.

Outlook

Analysts expect revenue to cross ₹2,200 crores in FY26, leveraging new capacities and export opportunities. The stock (CMP: ₹1,420, NSE) has gained 24% over six months, reflecting investor confidence in its pan-India expansion and institutional partnerships.

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