Shares of Mrs. Bectors Food Specialities Ltd have fallen over 40% in the past year, with a significant part of the decline extending into 2026—and for good reason.
Growth has slowed across the past four quarters for the packaged foods company that sells biscuits and bakery products. Consolidated revenue for the nine months ended December (9MFY26) rose 9% year-on-year to ₹1,558 crore, a decline from FY25’s 15.4% growth to ₹1,874 crore.
Exports have been a key drag this year amid tariff uncertainty. With 36% of FY25 revenue coming from overseas markets, the impact is material. In Q3FY26, export growth slipped to the low single digits. The biscuits segment, spanning domestic and export sales, grew 6% year-on-year, while the bakery business, including retail and institutional sales, fared better with 13% growth led by the English Oven brand. Overall, Q3 revenue rose 8.4% to ₹533 crore, with biscuits contributing about three-fifths and bakery making up most of the rest.
Management expects export momentum to recover in FY27, having guided for mid-to-high teens growth. In contrast, domestic biscuits and quick-service restaurant (QSR) channels are likely to see relatively slower growth. The company also supplies buns and other bakery and frozen products to QSR chains
in India.
Within biscuits, “(The) management highlighted that the bulk of future domestic distribution expansion will be focused on lower north markets, which are expected to account for nearly 80% of total distribution additions,” said analysts from Motilal Oswal Financial Services after recently interacting with Mrs. Bectors management.
Here, key markets include Uttar Pradesh, Haryana, Madhya Pradesh, and parts of Rajasthan. “The company targets adding 40k outlets by FY27 (from ~340k currently), expanding within a 400km radius of its plants, while growth in Punjab may moderate due to rising competition from national players,” said the broking firm’s report dated 11 March.
Capacity expansion is underway. The company has commissioned a new bakery unit in Kolkata in Q4FY26, with another plant in Khopoli, Maharashtra, slated to come onstream in the coming months.
Overall, management expects mid-teens revenue growth over the next two years, with operating margins around 13.5% in H1FY27. Margins stood at 12.6% in 9MFY26 and 13.4% in FY25.
“While FY26 growth appears moderated, we remain confident of a strong rebound starting FY27, fuelled by expanded distribution, product innovation, trade deals with the US and EU to boost exports, and QSR demand revival,” said a report Aditya Birla Money last month.
The stock trades at around 30x estimated earnings, as per Bloomberg. The key question now is whether the anticipated recovery, particularly in exports and distribution, materializes over the coming quarters.