Bikaji Foods International shares surged 7% on Wednesday, snapping a two-day decline after the company's Chief Operating Officer Manoj Verma maintained the company's sales and volume growth outlook for 2026-27. The stock rose nearly 10% to ₹607.50 during the day and settled 7% higher on the NSE, as reported by CNBC TV18. This recovery came after the company had faced recent market pressure despite maintaining its positive business outlook.
Bikaji Foods expects its full-year profit margins to contract by 100 to 150 basis points as the company absorbs a portion of elevated raw material costs, according to Chief Operating Officer Manoj Verma. As reported by CNBC TV18, Verma stated that with all crude prices going up and all commodities increasing, margins are expected to face a slip of about 100-150 basis points. Despite this margin pressure, the company has maintained its guidance for mid-teens topline growth for FY27. The company's current market capitalisation stands at ₹14,745.81 crore.
Demand momentum is accelerating ahead of Diwali, with distributor loading typically beginning 15 to 30 days before the festival. As reported by CNBC TV18, volume growth is expected at around 10-11%, supported by robust festive demand and strong growth in e-commerce sales. While snacking is already witnessing high-teens growth, the bulk of sweet sales, which have a shorter shelf life, will materialise from October onwards. This festive push is being amplified by digital channels, with e-commerce growth now measured in 'multiples' rather than percentages, as noted by COO Manoj Verma. "Earlier, this category was not as salient on this platform, but even that is also picking up. So Qcom and all channels are doing extremely well," Verma stated.
The export business is navigating significant headwinds due to geopolitical challenges and container shortages that have disrupted supply chains. According to the company's assessment, freight costs have surged to roughly four times higher compared to normal levels. Despite these challenges, the company expects the export segment to grow 1.5 times faster than traditional snacks, projecting it will account for 11 to 12% of the company's overall business within the next two years.
Looking ahead, Bikaji Foods is aggressively targeting the Western snacks category as a major expansion opportunity. While traditional ethnic snacks remain the company's core business, the broader market size for Western snacks presents significant growth potential. The company expects this segment to grow 1.5 times faster than traditional snacks, representing a strategic diversification beyond the company's traditional ethnic snacks portfolio. As reported by CNBC TV18, this expansion strategy is part of the company's broader growth initiatives despite current margin pressures.
