Papadmalji white-label share fell as modern trade expanded

Papadmalji Agro Foods Limited reduced the reported contribution of white-label sales from 20.61% of revenue from operations in Fiscal 2023 to 4.59% in Fiscal 2025. White-label revenue fell from Rs 5.15 crore to Rs 1.46 crore, while modern-trade revenue more than doubled to Rs 10.32 crore and represented 32.52% of Fiscal 2025 revenue.

Why did Papadmalji’s white-label share fall to 4.59%?

Papadmalji’s white-label share fell because white-label revenue declined in absolute terms while revenue from operations increased. White-label revenue was Rs 5.15 crore in Fiscal 2023, Rs 3.73 crore in Fiscal 2024 and Rs 1.46 crore in Fiscal 2025. Its share of revenue from operations consequently declined by 16.02 percentage points between Fiscal 2023 and Fiscal 2025.

White-label manufacturing means Papadmalji produces handmade papads that clients market under their own brands and packaging. The company says the model can help utilise production capacity and diversify revenue streams. However, the channel disclosure records a reduced contribution from this activity in Fiscal 2025, when white labelling accounted for 4.59% of revenue from operations.

The shift did not result from a decline in company-wide revenue. Revenue from operations rose from Rs 24.99 crore in Fiscal 2023 to Rs 26.27 crore in Fiscal 2024 and Rs 31.75 crore in Fiscal 2025. The Fiscal 2025 outcome therefore combines a Rs 3.69 crore fall in white-label revenue from Fiscal 2023 with growth in other reported sales channels.

The channel table includes a disclosure note that white labelling comprises sales through general trade and modern trade. This means white labelling is reported as a distinct sales classification, even though the company’s products also reach customers through those two broader routes. The data show the reported white-label classification becoming less material within the overall mix.

How did modern trade expand as Papadmalji’s white-label share fell?

Modern trade became Papadmalji’s second-largest reported channel in Fiscal 2025, generating Rs 10.32 crore, or 32.52% of revenue from operations. That compared with Rs 4.94 crore, or 19.76%, in Fiscal 2023 and Rs 6.85 crore, or 26.09%, in Fiscal 2024. Modern trade added 12.76 percentage points of revenue share over the two-year comparison.

Modern-trade revenue increased by Rs 5.38 crore between Fiscal 2023 and Fiscal 2025, whereas white-label revenue declined by Rs 3.69 crore. Modern trade generated Rs 8.86 crore more revenue than white labelling in Fiscal 2025. In Fiscal 2023, by comparison, white labelling exceeded modern trade by Rs 21.24 lakh.

Papadmalji’s stated milestones record listings or vendor registrations with two leading modern-trade channel brand owners in 2021, two in 2022, three in 2024 and one in 2025. As of June 30, 2025, the company was associated with eight modern-trade channels, one quick-commerce platform and one merchant exporter. Transactions with modern trade and quick commerce are conducted on a purchase-order basis.

What does the sales mix indicate about Papadmalji’s portfolio?

Papadmalji’s reported brand and product data show increased contributions from Rozana and machine-made papads alongside the modern-trade expansion. Rozana revenue rose from Rs 2.00 crore, or 8.00% of revenue from operations, in Fiscal 2023 to Rs 7.03 crore, or 22.15%, in Fiscal 2025. Papadmalji describes Rozana as a machine-made papad brand available through modern trade and quick commerce.

Zhakaas was the largest reported brand in Fiscal 2025, contributing Rs 11.00 crore, or 34.64% of revenue from operations, while Vishal contributed Rs 9.37 crore, or 29.51%. Zhakaas includes rice papads, vrat special papads, ready-to-fry products, cereal pellets and moongodi, and is distributed through general trade, modern trade, quick commerce and a merchant exporter.

Machine-made papad revenue increased from Rs 4.77 crore in Fiscal 2023 to Rs 8.00 crore in Fiscal 2025. Its revenue share rose from 19.10% to 25.18%. Handmade papads remained the largest product category in Fiscal 2025 at Rs 11.47 crore, but its share fell from 49.37% in Fiscal 2023 to 36.14%.

The disclosures do not provide profitability by sales channel, brand or product. They also do not forecast future channel revenue. Continued modern-trade growth would depend on purchase orders, product availability and consumer sales through the company’s eight modern-trade relationships as of June 30, 2025.

How concentrated was Papadmalji’s revenue after the shift?

Papadmalji remained concentrated in general trade and Rajasthan despite the rise in modern trade. General trade generated Rs 19.66 crore, or 61.90%, of Fiscal 2025 revenue from operations, up from Rs 14.46 crore, or 57.87%, in Fiscal 2023. General trade and modern trade together accounted for 94.42% of Fiscal 2025 revenue, compared with 77.63% in Fiscal 2023.

Rajasthan produced Rs 16.91 crore, or 53.25%, of Fiscal 2025 revenue from operations. This was nearly unchanged as a proportion from Rs 13.33 crore, or 53.34%, in Fiscal 2023. Although products were sold in 20 states and two Union Territories as of June 30, 2025, the state remained the company’s largest reported geographic source of revenue.

Papadmalji’s general-trade network included 68 distributors covering 5,050 retail outlets and 25 wholesalers covering 915 retail outlets as of June 30, 2025. Rajasthan represented 50 of the 68 distributors and 3,500 distributor-served outlets. In the three months ended June 30, 2025, Rajasthan accounted for Rs 3.76 crore, or 46.45%, of revenue from operations.

The company states that distributors and wholesalers manage orders, warehousing and logistics in their territories, with product title transferring upon delivery. It also provides trade discounts, volume-based incentives and target-linked promotions. These arrangements support general trade, which remained the largest channel even after modern trade gained revenue share.

Conclusion

Papadmalji’s white-label share fell to 4.59% in Fiscal 2025 as white-label revenue declined to Rs 1.46 crore and modern-trade revenue reached Rs 10.32 crore. The revenue mix became more weighted toward general trade and modern trade, which jointly represented 94.42% of Fiscal 2025 revenue from operations, while Rajasthan remained the largest geographic market at 53.25%.

The disclosed next step is the planned Bachhasar manufacturing unit in Bikaner district, Rajasthan. The 45,000-square-foot project has an estimated cost of Rs 7.61 crore and is planned to centralise machine-made production, add 5-inch and 7-inch rice papads under Zhakaas and introduce mini papads under Rozana; it is proposed to be funded through IPO proceeds. Later channel disclosures will show whether these additions support the sales-mix change.