Gopal Snacks reports strong Q2 revenue growth, margin improvement

Gopal Snacks Limited reported revenue from operations of INR 375.7 crores for Q2 FY26, marking 16.6% sequential growth. This was driven by strong traction in other product segments and a recovery in its core portfolio. The company's EBITDA margin improved to 6.4%, with gross margin expanding to 26.4% due to operational efficiency, prudent cost control, and easing input costs. For H1 FY26, revenue stood at INR 697.8 crores, with an EBITDA margin of 5.6%.

During the quarter, Gopal Snacks received an interim insurance payment of INR 19.99 crores related to the Rajkot facility fire, with reinstatement work in progress. The Modasa plant began trial production, and the company entered long-term agreements for third-party manufacturing facilities in Hiriyur (Karnataka) and Kashipur (Uttarakhand), adding over 10,000 metric tons per annum of capacity to enhance regional reach and reduce lead times.

The company's strategic focus remains on expanding market presence, driving efficiency through technology, and product innovation. While the commissioning of the Modasa plant was delayed, its benefits are expected to partially reflect in Q3 and fully in Q4 results. The company anticipates stable raw material prices for the remaining year and is exploring acquisitions in the food business within Gujarat.