Bikaji Foods shares plunge around 13% following weak Q3 results; profit down 39%
Bikaji Foods shares fell nearly 13% after reporting weak Q3FY25 results, with net profit down 39% YoY to ₹28.6 crore. Despite a 14.5% revenue growth, EBITDA declined 26%, leading to significant investor sell-off amidst rising costs and margin pressures.
Shares of Bikaji Foods tumbled nearly 13 percent in intra-day trading on February 7 after the company reported weak financial results for the third quarter of FY25. A sharp decline in profitability and margin contraction weighed on investor sentiment, leading to a significant stock sell-off.
Q3FY25 Financial Performance
Bikaji Foods posted a net profit of ₹28.6 crore in Q3FY25, marking a 39 percent year-on-year (YoY) decline from ₹46.6 crore in the corresponding quarter last year. The decline was largely attributed to weaker operational performance despite moderate revenue growth.
Revenue increased 14.5 percent YoY to ₹714.9 crore, supported by a 3 percent rise in volumes. However, earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 26 percent YoY to ₹55.5 crore. The EBITDA margin contracted sharply by 425 basis points to 7.8 percent, primarily due to inflationary pressures and higher raw material costs.
The ethnic snacks segment, which accounted for 62.1 percent of total revenue, witnessed a 10.5 percent YoY growth. The packaged sweets category recorded an 11.2 percent increase, contributing 18.1 percent to overall revenue. Meanwhile, western snacks revenue remained flat at 6.8 percent, whereas the papad segment posted 9.6 percent growth, making up 6 percent of total revenue.
For the nine-month period ended December 31, revenue increased by 17.1 percent YoY to ₹2,008.2 crore, with a 10.9 percent rise in volumes. EBITDA for the period stood at ₹253.9 crore, reflecting a 12.6 percent margin, while profit after tax (PAT) came in at ₹154.4 crore, with a net margin of 7.7 percent. Basic earnings per share (EPS) for the period was ₹6.24.
Stock Performance and Market Reaction
Following the earnings announcement, Bikaji Foods’ stock plunged 12.8 percent to an intra-day low of ₹638.10. The stock is now over 36 percent below its 52-week high of ₹1,005, which it hit in September 2024. However, it remains 34 percent above its 52-week low of ₹475.50, recorded in March 2024.
Despite gaining 30 percent over the past year, the stock has been under pressure in recent months. It has declined nearly 5 percent so far in February, marking its fifth consecutive month of losses. In January alone, it shed over 11 percent.
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