Prataap Snacks Limited has informed the Exchange about Investor Presentation
DIAMONDYD · price
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Awaiting price reaction for this filing.
Prataap Snacks (Yellow Diamond) reported Q1 FY26 revenue of Rs. 4,089.4 Mn, down 2.4% YoY but up 3% QoQ, as weak consumption in lower-income groups continued to weigh on demand. Profitability was hit hard — EBITDA fell 40% YoY to Rs. 180 Mn with margins shrinking to 4.4% from 7.1%, and profit after tax plunged 93% to just Rs. 7 Mn, mainly due to a 38% surge in palm oil prices. Management highlighted that input cost pressures have started easing, with EBITDA improving 3.7x sequentially from Q4 FY25. The company laid out a transformation plan focusing on channel diversification (targeting emerging channels like Q-Commerce, modern trade and exports to grow from <1% to >5% of revenue in three years), plant consolidation, and a stated goal to improve EBITDA margin by 2-3%. Long-term targets include >10% EBITDA margin, 15-20% ROCE, and ~15% revenue growth, faster than the industry.
Near-term numbers are weak with sharp YoY declines in profits, but the sequential improvement and management's explicit margin recovery guidance (2-3% EBITDA expansion) provide some comfort. Investors should watch palm oil price trends and execution of the channel diversification plan, as the stock reaction may hinge on whether Q2 FY26 shows further margin recovery.