Analysts expect snack maker Bikaji Foods to maintain growth momentum in H2

Analysts like Bikaji Foods' dual-engine growth strategy, i.e. continue to dominate the core states, while expanding and capturing new markets in key states

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Bikaji Foods share price today

 

Analysts have maintained their optimistic outlook on Bikaji Foods International Ltd., following the announcement of the company’s September quarter (Q2FY26) results. The bullish views, they said, stem from steady margin expansion in the recently concluded quarter, and hopes of growth momentum sustaining through the second half of the financial year (H2FY26).

 

Emkay Global Financial Services has reiterated its ‘Buy’ rating on the stock, with a target price of ₹950, valuing it at 65x FY26E P/E. The brokerage cites strong earnings visibility and improving execution as the key reasons for its positive view.

 

Nuvama Institutional Equities, too, remains constructive, pointing to consistent performance and margin resilience despite short-term softness in some product segments. The brokerage retained its ‘Buy’ rating and increased the share price target to ₹985 (from ₹970).

 

On the bourses, Bikaji Foods share price gained 0.7 per cent on the BSE (₹721.6 per share) in the intraday trade.

Bikaji Foods Q2 results: Key highlights

For the September quarter (Q2FY26), Bikaji Foods reported a resilient operating performance, supported by strong packaged sweets and namkeen sales, while maintaining healthy profitability despite rising competition.

 

According to Nuvama Institutional Equities, the company’s revenue growth moderated due to a high base and early festive sales shift but remained within expectations, reflecting steady consumer traction in key regions.

 

Emkay Global, meanwhile, highlighted that Bikaji’s gross margin (ex-PLI) stood at 34 per cent, among the best in its peer set, aided by a better product mix, lower raw material volatility, and greater contribution from high-margin categories.

 

The brokerage expects the company’s Ebitda margin to expand further in the second half of FY26, supported by cost efficiencies and favourable input trends.  

Ebitda is projected to double in H2FY26, albeit on a low base, with sequential moderation only due to higher advertising spends.  ALSO READ | Vodafone Idea can rise up to 50% from here, Airtel may gain 9%: Tech charts

Bikaji Foods outlook: Brokerages’ views

In this backdrop, analysts remain encouraged by the management’s focus on execution and innovation, even as near-term demand dynamics fluctuate.

 

Emkay Global noted that the company has implemented consumer promotions, including Paytm cashback offers from late September, to revive growth in impulse packs that saw destocking pressure earlier in the year. It expects mid-to-high teens revenue growth in H2FY26, led by a recovery in ethnic snacks and western snacks, both benefiting from GST rate cuts and trade restocking.

 

Nuvama Institutional Equities, meanwhile, pointed out that packaged sweets have emerged as a structural growth driver for Bikaji, with festive consumption patterns turning more formal and branded. The segment, coupled with improving export growth through the Ariba business, is expected to sustain momentum, though exports currently remain dilutive to margins.

 

On the retail front, Bikaji’s exclusive stores and experiential outlets continue to expand, with management targeting 28 stores by FY26-end, rising to around 40 by FY28, underlining its intent to build brand visibility and premium presence.  ALSO READ | Here's why Indraprastha Gas shares were ruling higher on bourses on Nov 13

Bikaji Foods stock strategy

Both Emkay and Nuvama believe Bikaji’s growth outlook remains healthy, supported by stable raw material prices, ongoing product innovation, and better trade engagement.

 

However, regional competition and slowing impulse pack demand remain key downside risks, they said.

 

Nonetheless, Emkay forecasts 15 per cent revenue CAGR and 27 per cent earnings CAGR over FY25–28E, expecting margin expansion and volume recovery to sustain.

 

Nuvama noted that the company’s steady performance, balance sheet strength, and strong brand recall justify current valuations in the premium FMCG bracket.

 

"The company is strategically placed to benefit from ongoing consolidation in the unorganised sector in the Indian snacks market. It plans to expand direct reach over near term, which would propel sales volume and market share. We second Bikaji's dual-engine growth strategy, i.e. continue to dominate the core states while expanding and capturing new markets in focus states. This strategy would unlock significant revenue and market share growth, in our view," it said.