Sundrop Brands Limited (NSE: SUNDROP, BSE: 500215) reported strong growth across key operating metrics in the December quarter, supported by higher contribution from core categories, accelerated e-commerce expansion and improved gross margins, according to the investor presentation shared at the analysts’ call on Feb. 13, 2026.
Q3 FY26 highlights
Consolidated revenue grew 10% year on year in Q3 FY26 on a like-to-like basis. Growth was broad-based, with B2B revenue up 9% and e-commerce revenue rising 31%. The company stepped up brand investments, with advertising spends increasing 22% in the quarter to support salience across core categories.
Profitability improved on operating leverage and mix. Gross margin expanded by about 330 basis points, while consolidated EBITDA rose 80% year on year (excluding ESOP and one-time costs). The balance sheet remained conservative, with free cash balance of ₹20.2 crore, borrowings of ₹21.5 crore, and net worth of ₹1,463 crore as of Dec. 31, 2025.
Nine-month FY26 snapshot
For the nine months ended Dec. 31, 2025, consolidated revenue grew 10% year on year. B2B revenue increased 12%, while e-commerce grew 39%, reflecting focused investments in performance marketing and quick commerce. Advertising investments rose 37%, supporting brand visibility and new category adoption.
Gross margin expanded by about 230 basis points, and consolidated EBITDA grew 41% year on year on a normalized basis, aided by margin improvement programs across packaging, manufacturing and logistics. The company said margin actions delivered sequential improvements through FY26.
Portfolio and category performance
Sundrop Brands operates a portfolio of three core platforms—ACT II, Sundrop, and Del Monte—with increasing contribution from high-growth core categories. Core categories accounted for 61% of sales in Q3 FY26, up from 53% in FY23.
In popcorn, the company maintained its number 1 position in ready-to-eat and ready-to-cook formats. The category recorded high-teens value growth, supported by new product launches, wider distribution and share gains in modern trade and e-commerce.
Premium staples posted mid-teens value growth year to date, with volume growth returning in Q3 FY26 as price-led inflation moderated and new SKUs were launched under the Superlite Advanced and Heart Plus franchises.
The spreads category faced pressure from mix shifts toward high-protein and chocolate variants in the market, but the company launched multiple SKUs to bridge competitive gaps. Despite value pressure, management said EBITDA margins expanded due to premiumization and manufacturing efficiencies, with e-commerce delivering 34% YTD growth.
In culinary, value and volume grew at double-digit rates year to date, driven by B2B demand and organized retail, supported by competitive pricing and higher discoverability spends. Italian products saw strong volume growth following price corrections in olive oil, though value growth remained under pressure.
Execution, launches and productivity initiatives
Sundrop Brands launched 70+ new SKUs in YTD FY26, contributing about ₹55 crore (~5% of sales), across popcorn, peanut butter, tomato puree, canned fruits and vegetables, mayonnaise and salad dressings.
The company accelerated sales force automation, with 97% of frontline sales teams tracking visits and productivity on a tech platform and 58% of targeted outlets onboarded by Q3 FY26, improving coverage and execution visibility. E-commerce investments continued to drive growth, with performance marketing and quick commerce supporting accelerated category expansion in oats and breakfast cereals.
Financial performance (reported)
On a reported basis, consolidated revenue from operations rose to ₹407.5 crore in Q3 FY26, up 96% year on year, reflecting the consolidation of Del Monte Foods Private Limited. EBITDA increased to ₹29.5 crore, with EBITDA margin at 7.2%, up from 6.9% a year earlier. For YTD FY26, revenue stood at ₹1,162.9 crore and EBITDA at ₹61.3 crore, with margin expansion of ~80 bps.
Summary
Sundrop Brands delivered double-digit revenue growth in Q3 FY26 with strong momentum in e-commerce and B2B channels. Margin expansion was supported by core-category mix improvement, pricing actions and cost programs across packaging and logistics. New launches, higher brand investments and sales force digitization strengthened execution. Management continues to focus on profitable growth across high-margin categories while maintaining capital efficiency and balance-sheet discipline.