Gopal Snacks sets FY27 revenue target at ₹1,900 cr

Key update from management

Gopal Snacks Limited (GSL) has guided that its profit margin for the second half of the current financial year (H2) will be in the 7% to 7.5% range, assuming raw material prices remain stable. The company also said it will not meet its earlier full-year revenue guidance of ₹1,750 crore. Management linked the miss to operational challenges, including delayed plant commissioning and supply chain disruptions after the fire incident at its Rajkot plant.

At the same time, the packaged snacks maker reiterated a growth-focused strategy driven by geographic expansion, distribution strengthening, and product portfolio changes. Management maintained an optimistic tone for the medium term and outlined clearer targets for FY27, with revenue and margin aspirations tied to higher capacity availability and network expansion.

Why FY26 revenue guidance is being missed

GSL’s earlier revenue guidance for FY26 was ₹1,750 crore, but the company indicated it will not be achieved. The stated reasons were delayed commissioning at facilities and supply chain issues, including disruptions linked to the Rajkot fire. Management commentary also pointed to the time taken to normalize manufacturing stability and logistics.

While the company expects H2 to be stronger than H1, it has effectively moved away from the earlier FY26 target. In management commentary, FY26 revenue was discussed at around ₹1,500 crore, indicating a reset in expectations as operations stabilize.

Q3 FY26 performance snapshot

For Q3 FY26, GSL reported revenue from operations of ₹400.8 crore, up 6.7% sequentially from Q2 FY26. Separately, the company also reported this figure as up 1.8% year-on-year. Gross profit for the quarter was ₹110.6 crore, translating to a gross margin of 27.6% versus 26.4% in the previous quarter.

EBITDA for Q3 FY26 stood at ₹30.4 crore, with an EBITDA margin of 7.6%. Profit before tax increased sequentially by 41.5% to ₹19 crore, and profit after tax was ₹15.5 crore, implying a PAT margin of 3.9%. The reported PAT included exceptional income of ₹0.10 crore linked to scrap sale arising out of the fire-affected facility.

9M FY26 numbers show margin pressure

For 9M FY26, revenue from operations stood at ₹1,098.6 crore. EBITDA was ₹69.7 crore, translating to a 6.3% margin. Profit before tax before exceptional items stood at ₹37.7 crore, while profit after tax was reported at ₹43.7 crore, with a margin of 4%.

These numbers underline the gap between the company’s longer-term margin aspirations and the near-term reality after operational disruptions. Management indicated that H2 performance should be better than H1 on both revenue and margins, with Modasa ramp-up playing a central role.

Modasa plant ramp-up and capacity addition

Management highlighted the successful commercialization of the Modasa facility, which added 63,085 metric tons of installed capacity. The company positioned Modasa as a key part of its manufacturing base to meet demand for gathiya and namkeen products across target regions.

In operational commentary, management indicated Modasa utilization should improve in Q4, with a cited range of around 50% to 55%. The company also said manufacturing stability and supply chain normalization benefited from the commissioning of Modasa.

Rajkot restart timeline and capex visibility

GSL expects the Rajkot facility to become operational by mid-April 2026. This timeline matters because it further restores manufacturing capacity after the fire incident and could reduce reliance on external arrangements over time.

On capital expenditure, management said the majority of Modasa capex has been completed, with ₹7 crore to ₹8 crore pending for Q3. The company also cited an additional ₹20 crore for Rajkot reinstatement, and said a Nagpur besan plant is under process. Separately, management indicated it anticipates minimal additional capex, as existing capacities are sufficient for near-term needs.

Balance sheet stance: no term debt

The company confirmed it operates solely on working capital facilities and has no term debt. This detail is important because the recovery plan involves operational ramp-ups and distribution investments, while management simultaneously signals a disciplined approach to capital allocation.

Distribution expansion and geographic push

GSL said it had 881 distributors on its SAP system and is targeting the addition of 250 to 300 new distributors in CY2026. Management described an ambitious plan of adding one net new distributor every working day over the calendar year.

The broader strategy includes expanding in Western and Southern India, increasing presence beyond the core market, and strengthening premium product lines. Leadership also referenced expanding footprint into neighboring states such as Maharashtra and Madhya Pradesh, and continuing to deepen distribution in Gujarat.

Product mix changes and marketing initiatives

Management discussed active product mix optimization by phasing out low-margin or loss-making SKUs and introducing higher-margin, scalable products. Newer introductions mentioned include popcorn, wafer biscuits, and Kaju biscuits, which management said are already showing promising run rates.

The company also outlined focused marketing initiatives, including a Filmfare partnership and amplified TV and digital campaigns. Alongside distribution and capacity, these initiatives are being positioned as key levers to support revenue scaling.

FY26, FY27 targets and what investors will track

For FY27, management guided for revenue in the range of ₹1,800 crore to ₹1,900 crore. This was described as an incremental growth of ₹300 crore to ₹350 crore over an estimated FY26 revenue of ₹1,500 crore. EBITDA margins for FY27 are targeted at 8% to 9% on an annualized basis, with an exit rate close to double digits.

Management also guided for H2 margin in the 7% to 7.5% range, and separately cited an FY2026 EBITDA margin target of 11%. Investors are likely to track how quickly the Modasa and Rajkot facilities stabilize, whether distribution additions translate into sustained throughput, and how product mix changes reflect in margins.

Conclusion

Gopal Snacks has set clearer medium-term targets for revenue and margins while acknowledging that FY26 revenue guidance of ₹1,750 crore will not be met due to commissioning delays and supply chain disruptions. The operationalization and ramp-up of Modasa, the expected Rajkot restart by mid-April 2026, and distribution additions in CY2026 are the key execution markers cited by management. The next set of quarterly numbers will show how much of the H2 margin guidance of 7% to 7.5% is translating into reported profitability as capacity utilization improves.