Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Gopal Snacks Ltd (NSE: GOPAL) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Naveen Gupta — Chief Business Officer
Rigan Raithatha — Chief Financial officer
Analysts:
Rajesh Kumar — Analyst
Nitin Gupta — Analyst
Unidentified Participant
Resha Mehta — Analyst
Soham Samanta — Analyst
Shreya Chatterjee — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Gopal Snacks Limited Q4FY26 earnings conference call hosted by NK Global Financial Services Limited. As a reminder, all participant lines will be in the listen only mode and there’ll be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone form. I now hand the conference over to Mr. Rajesh Kumar from MK Global Financial Services Ltd.
Thank you. And over to you, sir.
Rajesh Kumar — Analyst
Good afternoon everyone. I would like to welcome the management and thank them for this opportunity we have with us today Mr. Naveen Gupta, Chief Business Officer and Mr. Regan Raithata, Chief Financial Officer. I shall now hand over the call to the management for the opening remarks. Over to you gentlemen.
Naveen Gupta — Chief Business Officer
Thank you Rajesh. Good afternoon and thank you for joining us for the earning call. We hope all you all had a chance to go to our investor presentation uploaded on the Stock Exchange. We’ll share our key operating and financial highlights for the quarter and full year ended March 31, 2026. As we reflect on Q4 and full year FY26. It has been a year of steady recovery, operational stabilization and consistent execution for Gopal Snacks. Despite the challenges encountered earlier in this year, we have made meaningful progress in strengthening our manufacturing footprint, improving supply chain resilience and expanding our market presence.
During the quarter, we reported revenue from operations of rupees 409.6 crore reflecting 29% growth on a YoY basis. For the full year, FY26 revenue was at 1508.2 crores reflecting the growth of 2.7% as compared to FY25. The performance during the period was supported by improved product availability, steady demand across key categories and continued expansion in our distribution network. During the quarter, we witnessed stable demand across our four categories supported by improved product availability and continued traction in key segments like Gatia, Namkeen and Snack Salads.
Our focus on strengthening four categories along with increased expansion into newer market has supported overall growth. A key milestone during the year has been the successful ramp up and stabilization of our Modata facility which is now fully integrated into our manufacturing network alongside our Nagpur plant. These facilities have played a critical role in improving production efficiency and ensuring consistent product availability across regions. During the quarter, the industry witnessed challenges related to gas supply restrictions.
However, we would like to highlight that our proactive approach towards adopting alternate fuel sources including the use of bio coal at our Modasa and Nagpur facilities ensure that our operations continued without any disruption. This not only highlights our operational resilience but also supports our long term focus on cost efficiency and sustainability. On the distribution front, we continue to expand our reach through deeper penetration in existing markets as well as entry into underserved regions.
Our focus on our SSD model and addition of 125 micro distributor has enabled us to improve accessibility and strengthen our presence across geographies. In terms of branding and marketing, we maintain momentum through targeted campaigns, strategic partnerships and enhanced on ground visibility. Gopal Snacks has undertaken targeted marketing initiatives including bus stop branding, branded bus speakers, out of home advertising and campaign across premium digital platforms such as jio, Hotstar, Sony Live and Spotify.
These initiatives have supported brand recall and consumer engagement across key markets. We also continue to strengthen our backend capabilities through improvement in our distribution management system and ERP integration which has helped us in enhancing supply chain efficiency, improve inventory visibility and support better decision making. With this improvement we continue to strengthen our distribution network which now includes over 953 distributors which was 884 at end of quarter three. Looking ahead, our focus remains on driving sustainable growth through continued investment in capacity, strengthening distribution and enhancing brand visibility.
With a more efficient manufacturing network, improved operational efficiency and a disciplined approach to execution, we believe Gopas NAX is well positioned to build on its growth momentum in coming years. I would now like to invite our Chief Financial Officer Mr. Regan Rayakatta to share his perspective on the financial performance during the quarter. Thank you. Naveen Gai Good afternoon to everyone. Let me take you through the key financial highlights for the quarter and the full year ended 31st March 26th.
Starting first with the quarterly performance during Q4FY26 we achieved revenue from operations of Rupees 409.6 crores reflecting a growth of 29% YoY basis and 2.2% quarter on quarter basis supported by stable demand trend and improved product availability across market. Gross profit for the quarter was at 113 crores translating into gross margin of 27.7% with a growth of 76.9% on yoy basis. Margins during the quarter were supported by improved operational efficiency and stable input cost environment.
EBITDA for the quarter was 31.5 crores with an EBITDA margin of 7.7% during the quarter. Company also spent around 1.2% on the advertisement cost. The improvement was driven by the operating leverage, better capacity utilization and continued cost. Profit before tax before exceptional item was 22.4 crores while profit after tax was 29.9 crore resulting into fat margin of 7.3%. Now moving on to the full year performance for FY26. Revenue from operation was at 1508 crores reflecting 2.7% growth over the previous year.
EBITDA for the full year is 101 crores with a margin of 6.7%. Supported by gradual improvement in operations and normalization of supply chain during the year. Profit before tax before exceptional item was 60 crores and profit after tax is 73.7 crore with a margin of 4.9%. With regard to insurance during the quarter we received 17.5 crores as an additional insurance proceeds as a part of our ongoing claim process. Taking the total receipts during the financial year to approximately 37.5 crores. The process of asset restatement is in progress and we remain confident of recovering the balance gain in due course of time.
Recently we have updated to the stock issue regarding the Rajput manufacturing production facility commissioning. With this the installed capacity of Rajput plant is 1,5000 metric ton. And with this we also complete our restatement of the Rajput manufacturing facility. As far as production facilities is concerned, this plant will have a manufacturing diverse portfolio of Rakhiya Namkin and snack products. With the initiation of Rajput plant, company will discontinue the Bundel facility. Commissioning of this plant will lead to improvement in operational efficiency and will also improve supply chain for sales in Saharashtra and Prash.
As we move on into FY27, our focus remains on expanding our market presence, improving operational efficiency and driving growth across our key product categories. With the strengthened operational deals and disciplined capital allocation, we remain confident of sustaining the growth moment. We are confident that Gopal’s next strategic initiatives backed with a strong financial and operational performance will continue to deliver long term value for our stakeholders. Thank you. And over to you, Rajeshwar.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we’ll now open the floor for questions. Anyone who wishes to ask a question may press star and one on the touch on telephone. If you wish to remove yourself for the question two, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question to assembles participants. You may press RN1 to ask a question. The first question is from the line of Nitin from HDFC securities.
Please go ahead.
Nitin Gupta
Thanks a lot for taking my questions first. Congratulations on getting the Rajkot facility back to operations. My first question is with respect to top line. So with hundred percent supply resumption. So FY27 will be a catch up journey. So how do you see the top line shaping up and could you break down the key growth drivers ahead?
Naveen Gupta
Hello Nick invite. Thank you for your question. Oh sorry to interrupt
Operator
You. Can I request you to come little closer towards the speaker and all.
Naveen Gupta
Yeah sure. So Nitin Bhai, you want a breakdown from product perspective or I mean from. No no no.
Nitin Gupta
So. So like given the current demand setting how do you see FY27 shaping up and broadly qualitatively. If you can highlight like what are the sort of strategy steps we are taking to sort of drive growth or whatever the target we have for FY27 not product specific in general like how you are going to go for the growth ahead because your supply chain issues are now in the base. So with 100% supply you should do better. So just wanted to sense like what is your aspiration for FY27 and how the growth drivers will be
Naveen Gupta
Okay both attributors we are talking about right? So in our core market we have taken an aim of you know growing to generate a Delta of around 170 to 180 crores on annualized basis. And main growth attributor in Gujarat will be as I earlier stated that split coverage line wide coverage. We had covered 24% of our beats by quarter three end on double coverage. I mean twice in a week by end of Q4 we already have touched 29% of our beats our own double service module. And by end of quarter one we have aimed to bring 40% of our bids on twice in a week service in Gujarat.
Now coming to the focus state. You know there will be growth from two attributors. One is footprint expansion. We can see that we added roughly 6570 dealers in Q4 versus Q3 so that momentum will continue and then there will be organic growth. So we are aiming 125 to 130crores of growth from focus state and from the other states plus E commerce, railway, modern trade etc. We’ll be clocking around 35 crores delta on annualized basis. So from current year we are aspiring and aiming a Delta of roughly 330 to 350 crores.
Nitin Gupta
Thanks a lot for detailed answer. Next question will be pertaining to the inflation. So on current inflation how are you placed with Q1 and what actions have you taken to pass on the effect to consumer? Additionally like from a long term perspective after GST and now with this inflation just wanted to have A sense on like how sector formulation you see. So two parts to this question. First is on near term inflation and how we are countering it. And second is on long term sector play.
Naveen Gupta
So hi Nitin Regan. This right. So as far as first part is concerned there has been an increase in the raw material prices which ranges in palm oil to packaging which ranges from 15 to 20% as far as our product basket is concerned which if you look from the impact perspective till now it is around 4.5%. So out of which majority we have been negate through reduction in grammage and increase in prices and also through some our internal bomb corrections. So majority of this has been negated. We are also reviewing the situation on a weekly and fortnightly basis.
As and when required we will further take the necessary steps to stabilize the margins. As far as Q1 concerned.
Nitin Gupta
And any sense on like this inflation how is the impact on the unorganized players? So do you see that the shift is happening and plus rupees 5 sku salience going down and shifting towards 10 any thought you can offer there?
Naveen Gupta
Definitely whenever this cyclical thing takes place in our industry so the unorganized sector players come under pressure. So there are two elements of this situation. One we have not so far witnessed any you know action from regional or local players. However we can sense that they’ll be coming under pressure and we expect that industry will ultimately will have to take a call how to and when and how much transition will take place take place from 5 rupees price point to higher price point products.
We have not so far witnessed any action from smaller players on this.
Nitin Gupta
Okay, thank you. And lastly like if you can sort of given the current inflation setting, if you can guide for the margin we are attempting to do in this FY27 and also like last year we had a supply chain issue so the logistic cost must have gone up. So if you can quantify what was the margin impact from the logistic cost. Thank you.
Naveen Gupta
Yeah so next year for the margin front as we have been guiding we still stick to the same guidance that is 8% to 9% the drivers for this margin growth. Obviously from the operational point of view since our Rajput facility has stabilized so we will get the full year as far as Rajput facility is concerned. So that will definitely give us an impact, positive impact as far as operational cost is concerned. Secondly, transportation cost as we have been guiding earlier post our Modasa commissioning facility that will start flowing into the P and L.
So in the current quarter also around 0.4 to 0.5% benefit has flowed to our P and L and that shall continue in the next financial year also. So owing to all these benefits and on the operational leverage since our sales target is 20, 25% higher. So that should also give us the benefit going to that. We are quite confident that we will be able to achieve the margins between 8 to 9.
Nitin Gupta
Sure. Thanks a lot. Thanks for answering my question and all the best for FY27.
Naveen Gupta
Thank you.
Operator
Thank you. Next question is from the line of Avnish Roy from Nuama. Well, please go ahead.
Unidentified Participant
Yeah, thank you and congrats. My first question is if I see your focus state in Q4 has grown slightly slower than core states, if you could tell us in detail more reasons behind this and in terms of outlook, would you expect focus states to come back faster than core state in Q1 and Q2?
Naveen Gupta
Yeah. Amnesh Bhai, hello. Typically our Q Par Q4 historically have been lower than Q3. If you see four out of five years Q4 has been lower than, you know, Q3. So growth percentage in focus state if you compare with, you know, our core state. So core state was more impacted because of this fire incident. So base became depleted. The focus states are stable and with footprint expansion, most of the footprint expansion will come in core states only. In in focus states only. So we will definitely get back on track in focus states as well.
Unidentified Participant
So near term your core state can still grow faster than focus market. Your core market can grow faster near term.
Naveen Gupta
Near term definitely we can say that focus market and core market growth percentage will be at par. But on annualized basis focus market growth will be higher than core market.
Unidentified Participant
Understood. Second question is in biscuit we saw odd pricing of 4.5 and 9 rupee in your markets. Did we see this in your business also that some players were selling at 4.5 and 9 rupee and have they come back in case they had cut to this odd pricing?
Naveen Gupta
No, we didn’t see this odd pricing in our industry anywhere. And I’ll fail to comment on how they will, you know, revise the pricing in near future. I’m sure that they will come to the normal pricing regime very soon because inflation pressure start biting them as well.
Unidentified Participant
Understood. Now last question. Last two months, of course India has seen the GLP that weight reduction, drugs, medicines, fast, sharp reduction in prices long term. Would you be concerned on this? I know India is such a large market, mass market and these are still reasonably expensive for most Indians. But from a conceptual standpoint, thought process point of view, obviously in Developed market, this is a concern for all junk and these kind of categories. Would you be concerned that medium long term as India lot of the middle class especially this could become a concern.
And then I’m sure you will say that you will go for all this healthy snacks etc. But if you can address this from a conceptual stage,
Naveen Gupta
Meanwhile we will have to deep dive into more data. Let me tell you, in India, per capita consumption of snacking from organized sector is still far lesser than, you know, developed countries, right? So typically price point as well as snacking industry in India will continue to grow. Coming to this healthier snack kind of thing. This phenomena is largely confined to quick commerce and commerce as of now. Because consumer the TG there and in GT are totally different.
Unidentified Participant
Understood
Naveen Gupta
In historically if I name few bigger brands like whether listed or unlisted, they have attempted multiple times to introduce, you know, base chips and healthier snacks and all those till their contribution is, you know, below 2% on the national average. So in terms of percentage we may see at a 40% growth healthier snack. But base remains very very low. We don’t see any threat to our industry. However, as we earlier stated, as we stated earlier in our commentary as well, gradually we are trying to reduce our dependence on palm oil based products.
But not at cost of our core products. Like in recent times we introduced Kaju biscuits, wafer biscuits, popcorn noodles, rust vapor rolls. All these products are non palm oil based products. And very recently in last 15 days we have introduced cupcake, we have introduced 10 rupees price point drinks etc. We are consciously doing that but not at cost of our core product. And we don’t foresee decline in any consumption pattern on snacks category.
Unidentified Participant
And sir, one last follow up. This time El Nino is there and so deficit in rains 7% 8% is possible. How does this impact your rural consumption in H2 of FY27? And in terms of inflation, can pulses also see inflation because of all this? So your RM and demand both could get impacted in H2.
Naveen Gupta
As far as raw material is concerned, our basic raw material which is Chennai and potato. So for the next six to eight months we have the sufficient stock which is our requirement. We have stock till almost till the end of November. So any increase in the prices of the pulses will not impact our profitability.
Unidentified Participant
Second half.
Naveen Gupta
Second half probably around November December. Yes, we need to buy from the market. At that time we’ll go across. But then option is also there. Like in the FY25, 26 the imported option was also Available as far as Chennai is concerned. So we took the price benefit over there also. Similar options we’ll Explore in the Q4 as and then our required BTU is there.
Unidentified Participant
And demand side,
Naveen Gupta
We don’t see any downside in demand. We don’t find any, you know, major reason for any downsizing demand.
Operator
Okay, that’s all from my side. Thank you.
Naveen Gupta
Thank you.
Operator
Thank you. Next question is from the line of Resham Mehta from Green Edge Wealth. Please go ahead.
Resha Mehta
Yeah, thank you. So the first one is, you know on the, the fire, the loss related to fire that we had booked was around 47 crores and I think we’ve received around 37 crores. So how likely, you know, we can expect the balance 10 crores claim to also kind of go through.
Naveen Gupta
It would not be balanced. 10 crores there will be a higher amount than that. The reason being that we have gone for the restatement and whatever we had written off in books of accounts was based on WBB purchase. So our restatement cost is obviously much higher. So that we can expect by probably quarter two for that money to be coming into our business.
Resha Mehta
And so how much is that incremental amount that we are expecting? Assuming they are, you know, they, you know, give us the full benefit of the restatement,
Naveen Gupta
It would be somewhere in the range of 35 to 44.
Resha Mehta
Okay. Okay. And you know, so you know with all this fire incident and you know, the supply chain issues, we had lost market share, right. So since the Modasa plant started somewhere around in November of 2025 and the supply chain issues majorly got resolved. So since then have we seen that recovery of market share or you know, regaining whatever shelf space that you know, we would have lost. How is the traction been there in terms of regaining the market share? And maybe if you could split that in terms of your core market, Gujarat and you know the Rajasthan I believe was also impacted.
So I could comment on these markets.
Naveen Gupta
Thank you for your question. We are witnessing improved trajectory from March onwards to be very specific. And right now as well, our current run rate is an indicator that we are on recovery path in terms of.
Resha Mehta
And this is across all markets. Right. Core focus.
Naveen Gupta
Yeah. Now we can see the per day run rate is across market. In fact even uttar Pradesh in H2 has been more than 26% over H1.
Resha Mehta
Right. And, and you know, just coming to your raw materials, right. So if you could call out what is the RM basket like? Chana and potato are the major ones but would they be like what 40, 50% of the total RM basket. And also if the other major ones like palm oil and laminates, if you could comment.
Naveen Gupta
Yeah. So as far as our purchase basket is concerned, so major are Palm Oil, Chennai Ltd. And LARP is the potential. If I talk about palm oil, it is around 26 to 27%. Chennai is around 21 to 22%. Laminate, that is packing material, it is around 18 to 19%. And for lifetime
Resha Mehta
Is that what is 18 to 19%
Naveen Gupta
Packing material.
Resha Mehta
Right, right, right. Okay.
Naveen Gupta
And potato is around 6%. This I’m referring from the purchase basket.
Resha Mehta
Potato is 6%. Right. Okay. And you know, considering that to regain market share, of course we would have had to, you know, spend more on trade spends and you know, also we are seeing an inflationary trend. But there you all seem to be reasonably confident of, you know, passing on whatever inflation you all are seeing. Right. So with that and you know, the fact that now with the Rajput plant coming in and we are seeing some logistics cost benefit and labor cost and power cost benefits, wouldn’t you see and the fact that we’ve already started gaining market share then in that light, would it your guidance of, you know, 8, 9% EBITDA margin for the next financial year FY20.
Sorry, for the current financial year FY27, doesn’t that seem to be on the conservative side? Because if gross margins, you know, can be protected and your operational costs will be going down and assuming you’re regaining market share, then your trade spend should also kind of be pared down. So just your thoughts there.
Naveen Gupta
So as far as trade spend is concerned, we would be obviously looking on that front but that our reduction on the trade spend would be in a very gradual phase wise manner. So on an immediate, let’s say in 26, 27, it is not, we would not be looking on a major cut as far as trade spend is concerned. Yes, our advertisement spend that will continue to have like in current financial year we have spent around 1.7%. So next year we are projecting another 2.2 to 2.3%. So that’s where we continue to spend.
And secondly, when we say the guidance of 8 to 9%, it is purely based on current volatility of the raw material prices and we are quite confident that our exit run rate would be near to double digit, although average annualized EBITDA margin will continue to remain 8 to 9.
Operator
Thank you. I’ll request to come back for a follow up question, please. Thank you. I request to all the participants, kindly limit yourself to two questions per participant and rejoin the queue for a follow up. Next question is from the line of Soham from Motilal Oswal. Please go ahead.
Soham Samanta
Yeah. Thank you for the opportunity. I just wanted to check Navinji as you guided these 330 to 350 crore data for FY27 on product wise how do you look? So basically we have product like Garthia Namkin pallets and wafers with the four category imagery we have on product wise how do we look for next year on growth wise.
Naveen Gupta
Yeah. So Ambai, before I answer specifically to your question let me give a clear statement that improving market share, protecting market share is to be paramount for us. So Rishaji was talking about this trade spend thing. We are on, you know very good business model in terms of our very least dependence on superstoppies. 97% of our business comes to direct distributors. We will start reaping benefit of distribution automation on full scale from H2 onward. Then we will definitely look into cutting down some of our tradesmen.
Now coming to your question Gatia we have a base of roughly 410 crores. So we are aiming 18 to 20% growth. From Gatia segment Namke we have a base of 350 crores. We are aiming 15% growth in this financial year Prams we have a base of 250 crores. We are aiming 15% growth there. Wavefirst we have a base of 155 crores. We are aiming 40% growth there. And all other products put together be it papad retail pack of based on spices or bakery products or noodles or rust etc. We are aiming growth of 30%.
So that is a split of category wise.
Soham Samanta
Okay. And if we look these three categories like Gatia, Namkin and pallet if you can give how this industry has been growing in Gujarat. Because majority of our port state is still on the gur. So I just wanted to check in last year, last financial year how this product wise Gia Namkin how this category has been growing in the Gujarat.
Naveen Gupta
Our assessment is that Gatia has a growth of 15 to 20% in Gujarat. And you know industry growth itself is 14 15% and prime growth must be in line with the industry growth. Only that 15% kind of.
Soham Samanta
Okay. And what kind of cafe we are doing for next couple of years. I believe it’s only maintenance capex. Right?
Naveen Gupta
Yeah. So our majority of expansion FX has been done for the next financial year. What we are looking at 40 to 45 crores kind of a capex which would include some of the our corporate office building at Rajput. So that capex will happen in this financial and rest would be maintained.
Operator
Thank you. So may I request you to come back for a follow up question? Please. I request to all the participants. Kindly limit yourself to two questions for participants. Next question is from the line of Sri Naran Mishra from Baroda BNP Bhariba. Please go ahead.
Rigan Raithatha
Thanks. So my first question is on capacity utilization. On slide 11 are the numbers for 4Q or full year.
Naveen Gupta
That is for full year.
Rigan Raithatha
So on 4Q basis would you have the capacity utilization?
Naveen Gupta
It would be almost near to that number.
Rigan Raithatha
Okay. Okay. So why I’m asking this is that when you are saying your beta margins would be at a double digit exit rate in FY27 what kind of capacity utilization you expect, you know from the 300, 350 crore incremental sales that you would be doing in FY27
Naveen Gupta
Capacity utilization would be roughly around 43 to 45%.
Operator
Thank you Srinath. Kindly come back for the next question. Next question is from line of Pallavi from Samiksha. Please go ahead.
Unidentified Participant
Yes sir. Thank you for taking my question. I wanted to understand on this Zaras and cupcake, you know this others category what would be their share? Is it more in the from the core markets we’re getting these revenues or it’s also focus markets.
Naveen Gupta
You know we do pilot of any new product first in core stage and that doing selective parts of core. Then we roll out to the other states. For example we pilot of Kaju biscuit as well as popcorn first in Gujarat. That limited parts of Gujarat then rolled in D. Then we went ahead with the full all the geographies. So right now we released this cupcake couple of days back only in Gujarat only drink the same treatment we released 15 days back in Gujarat only we’ll see the response and if response is good then only we’ll roll out in rest of the geography
Unidentified Participant
Is it said. I mean we have shown 26% growth in four markets. So how much of that would have been contributed by these new products?
Naveen Gupta
Just give me a moment. From the new products. I mean you wish to ask whatever new products we introduced during the financial year.
Unidentified Participant
Yes. One. One year.
Naveen Gupta
Yeah. So this you are popcorn and
Unidentified Participant
Kaju biscuits.
Naveen Gupta
How much was the contribution from the product? Yeah.
Unidentified Participant
Or roughly you can say if it’s been a big driver for this core market growth or. Yeah. Just a broad sense. If you can give us.
Naveen Gupta
Yeah. Just. 25 crore. Say it has gone to 60, 63 crores in full Financial year. So this delta. Out of this delta 38 crores roughly. You know 50 crores has come from four states.
Unidentified Participant
Right. Okay. My second question would be. What the other margins for these new products would they be lower than the existing products? A popcorn should be higher.
Naveen Gupta
Yes. Yes. Exponent is higher. Even vapor biscuits are more or less in same line of margins as of our existing product.
Unidentified Participant
Just to
Naveen Gupta
Update you, we have been doing another exercise. We have been rationalizing our product basket by eliminating low margin, low contributing SKUs and even products. And we have been trying to, you know, promote the high margin, high contribution products.
Operator
Thank you Pallavi. I’ll request to come back for a follow up question. Please. Next question is from the line of Shirish Pradeshi from Motila Loswal. Please go.
Unidentified Participant
Congratulations for Rajkot plant reinstatement. Good afternoon. Naveen and Regan bhai on slide 27. We have given the breakup of SKU price point. I see that large pack has gone up by 300 basis point. And 5 rupees has come down by 300 basis point. So I just wanted to understand and assess your thoughts in terms of margin, how it moves. Because five rupees obviously will have a lower grammage and also higher packing cost and even distribution cost. So if this number is changing by a 200300 basis point in FY27.
How delta for the margin. You will see.
Naveen Gupta
Historically Rs. 5 rupees price point SKU have been giving us similar or better margin versus our larger pack. However, since dynamics are changing very fast. When we rationalize the grammag in smaller pack simultaneously we are taking a price hike in bigger SKU as well. So this you know 3% 300 basis point reduction from 5 rupees price point largely attributed to introduction of newer products. Like we introduced this wafer biscuit. So wafer Biscuit although remains 5 rupees. But however when we compute in our SAP so there are 40 pieces in a jar.
So for us in our system that Mrp is 200 rupees. Got my point?
Unidentified Participant
Yes.
Naveen Gupta
In our case we work in industry like this. When whenever there is a pressure in 5 rupees price point margin. So we reduce damage comportionately.
Unidentified Participant
Okay, Got it. My second question now in terms of capacity. I mean last year we have done some contract also arrangement. Now what we understand now Modasa is full fully occupied. And there is a capacity utilization which will happen. But Rajput is also started. So just wanted to understand. If you give overview what we are producing in Rajkot. What we are producing in Madhasa and what will happen to Gondul. So maybe in terms of manufacturing on facilities how and where we are happening and maybe we somewhere said that in UP also we will do only top three SKUs and try and exploit the market not giving all the products.
So given this all is the growth number is cyclosan.
Naveen Gupta
Yeah. So as far as Goondal facility is concerned that will discontinue as we have started manufacturing from Rajpur and Darjpur facility will have Raatia numpine snake pellet extruded snow. Murasa facility will continue to have all kinds of numpine as well as vapors. Nagpur facility will have Garcia Namkins snake pellets and vapors. So this is in line with our earlier guidance that all the three plants will produce almost all kinds of products except vapors. And as far as third party is concerned.
So third party wherever we had communicated earlier that for the UP as well as SGARH and for the south those third party arrangement has been done predominantly to improve the supply chain and to enter into those markets which will help us to have our footmarks in those markets wherein current our transportation cost was much higher. So we thought to pass on this additional transportation cost to the consumer through third party.
Unidentified Participant
Just one quick follow up on this. Yeah I got that Regan Bhai. So I’m just tying out the focus market growth on a QQ basis is only 1.5%. The yoy is a function of capacity utilization and scale up which has shown 25%. I’m more interested this growth which is in the focus market. We have this contract third party manufacturing element to streamline the supply. So what I mean on the back side I also gave credit to Naveen that there is a distribution scale up also which has happened. But is this growth is too small or too large can come in FY27.
Naveen Gupta
Right now we are manufacturing third party through wafers only and in Kashipur we are producing only 4 SKUs which contribute to 76 77% of that Uttar Pradesh sales. Now coming to this Q4 Focus Markets Growth percentage being lesser than expected. So my answer remains the same. Historically our Q4 has been lower than Q3 to the tune of 6 to 7%. But this time we have reversed the trend. Q4 has been better than Q3 and now with the supply chain being stable if you see our distribution footprint number for the first time now we have started this growth number again.
We have declined in our number of distributors in Q1 Q2 now since we have started adding those numbers as well. So growth will definitely come from focus markets as well.
Operator
Thank you. I’ll request you to come back for a follow up. I request to all the participants, kindly limit yourself to two questions for participants. Next question is from the line of Women Shah from Equator Securities. Please go ahead. Woman, May I request to unmute your line and proceed with your question. The line for the participant dropped. The next question is from the line of Shreya Chatterjee from AGLS Capital. Please go ahead.
Shreya Chatterjee
Hello sir. Thank you for taking my question. On the top line side could you just indicate what would be the number of dealers or the dealer expansion you’re planning to do and the revenue for dealer in the core and focus market as well as if you plan to take any more grammage reduction or price hikes in your various products like Garthia Nam Kingdai for.
Naveen Gupta
In Q4 we added 69 new distributors and in entire calendar year we have we took an aim to add 250 distributors. So we are on right track number one coming to this grammage reduction we already took roughly 4% grammage reduction in mid of April itself. And now we keep observing and we keep tracking competition activity. We will take another call based on how industry reacts. Definitely there will be internal factor that how much inflation impact come on us. But definitely we will see how industry also reacts.
Shreya Chatterjee
Got it. And if like on that follow up question what would be the revenue per dealer like for the mature markets markets and the focus markets when the dealers mature
Naveen Gupta
In core markets. Right now our run rate is close to 8590 crore rupees and we have a base of 300 distributors. So run rate will be close to 30 lakhs per month per dealer. And in focus markets typically we do 400 crores on annualized basis. So that converts into roughly 35 crores on monthly basis on a base of 600 distributors. So range of you know size of scale of business of a dealer varies. To start with we start dealer with a top line of around 1 lakh to 2 lakhs only then gradually it goes up. So we have very different range.
Like in Chhattisgarh we have a dealer of 1 lakh as well and we have a dealer of 70 lakhs as well. In Rajasthan we have a dealer of 1 lakh as well and we have a dealer of 65 lakhs as well. The range will differ from state to state and you know depends how what is the age of that builder.
Shreya Chatterjee
Got it. On the margin front like the EBITDA margin Front While your gross margin has improved because of the restoration of Rajkot facility. But your other expenses has been generally elevated versus your previous years. Like you used to do much lower SGNA to sell previously compared to FY26. So do we see that trend going forward? Also your receivable and inventory days have also increased on FY26. So what do you see to be going forward?
Naveen Gupta
As far as receivable fees is concerned it has increased and if you look at number of days it is nine days. But we are also able to negotiate about trade payable bills. So as far as overall working capital cycle is concerned, still it remains in our comfortable. Secondly, if we look at you are referring to full year margin credit, correct? Hello. Hello.
Shreya Chatterjee
Hello. I’m referring to the other expenses part.
Naveen Gupta
Other expenses part. So that includes the transportation cost, advertisement cost and all other pertaining to operation cost which is contractual manpower. So as we say for the next financial year definitely we would have a margin benefit front. Since our operational leverage as on the additional share we expect on an overall basis it would increase. But if you look from the margin perspective it should give us benefit of around 1%.
Operator
Thank you Shreya. I’ll request you to come back for a follow up question. Next question is from the line of Ashok Shah from Etlaby and Mesco. Please go ahead.
Unidentified Participant
Thanks for allowing me to ask the question for Navindi. Can you just give me some guidance? What is the size of the order from the retail counter and quarter wise we are getting whether it is increased and do we offer them a better bidding or booking system to return counter in a village area. Because today don’t have what I.
Naveen Gupta
You are asking about retail counter.
Unidentified Participant
Yes. Yes.
Naveen Gupta
So nationally we are catering to 3.9 lakh dealer through our DMS system. And as far as indirect distribution are concerned through wholesale channel and other channels estimated premiums at roughly 1 lakh more outlets. So we at national level are present at 5 lakh outlet.
Unidentified Participant
So do we give them any of the eight besting comes directly through our manufacturing plant. And we have got the control over our products and everything. Because one of one of the industry has done the purchase system and they have lots of saved on the self system and distribution system. As our distribution first goes to the our distributor, our product goes to distributor Then it is kept there for two, three days and then it is distributed. So product inventory and everything also doesn’t go directly to the consumer.
It goes to to the number of channels.
Naveen Gupta
Yeah. So since why not clear. But whatever question I could get let Me explain you how our DMS functions at 90% of our dealer. Our fully integrated DMS is operational. So it is mandatory for them to book the order through that interface only. So that booking is visible to us on real time. This is live basis or we track secondary sales. We can track secondary sales on daily basis. On hourly basis basis. That secondary trend. We have yet to introduce auto replenishment system to our distributor. That work is in pipeline.
That is working progress as of now. Distributor place order to the company to 6pm is the cutoff. This is that order. We supply those stocks within 48 hours. This is how we function as of now.
Operator
Thank you. Next question is from the Rhino Anuj Kashya from A3 Capital Private Limited. Please go ahead.
Unidentified Participant
Hello.
Operator
Yes sir, go ahead.
Unidentified Participant
Just I wanted to know how much amount of money do you spend on the innovation? Because I see a lot of money is changing this sector. The New York City built Balaji wafers have got a good amount of money from the private equity fund.
Naveen Gupta
If you are asking about product innovation, that’s very simple methodology. Our our marketing team, you know they do market work. They do research on the basis of what is scalable and which are the growing categories. So basis that they come with product sample and then they give their recommendation. Then we assess whether those products are manufacturable and are profitable to us. And then we assess if those products have synergy with our existing product basket. If they fit to our existing distribution network or not.
So in terms of product research, we do not spend any heavy money. Everything is in house as far as other research reports are concerned. So last financial year we had hired Kantar and we got a research report from them that was based on Gatia specific. We paid just 30 lakh rupees
Unidentified Participant
Last time. I remember in one conference. What is your take on it?
Naveen Gupta
After stabilizing of this supply chain thing we have resumed our exports to selective countries to our, you know, older customer. Right now we are in discussion with a company who is 100% EOU company and has a good consumer base over 66 countries. We intend to do a third party tie up instead of bringing scale through our internal efforts. Because those are time consuming and costlier ways.
Unidentified Participant
Yes, Margin degree. So. Thank you sir.
Naveen Gupta
Thank you.
Operator
Thank you. Next follow up question is from the line of Sri Naran Mishra from BNP Bharab. Please go ahead.
Rigan Raithatha
Thanks for the follow up. My question is on debt level and working capital levels. This seems to be a bit elevated. Is it in the wake of rising cost inflation that you have piled up inventories and because of that should we expect higher finance costs next year?
Naveen Gupta
Working capital has increased primarily on account of we have stored more amount of Chennai as compared to last year since expecting prices to increase 2627. So definitely the bank borrowings has gone up purely on account of increase in our inventory levels. Secondly as we would expecting insurance proceed to also give us some amount into our panel. So we are expecting that should reasonably maintain our finance cost for next financial.
Rigan Raithatha
So you are guiding similar finance cost next year or higher than last year.
Naveen Gupta
It would be slightly higher than the current financial year. So if you look at overall our finance cost for the current financial year it is around 7 crore. So we are expecting Russia to close around 10 crores.
Rigan Raithatha
Okay. Okay. And sir, last quarter you had highlighted in UP that we are doing 6 crore monthly sales from top 2 SKUs. So what’s the update there in 4Q has it increased or. I mean what’s the update for up?
Naveen Gupta
Our total per month sale is 6 crores in up and out of that 72% sales come from two SKUs alone. So H2 has been very promising. H2 there has been turnaround in UK and we have grown by 26% percent over H1 in.
Rigan Raithatha
So what’s the run rate now? Monthly run rate.
Naveen Gupta
Currently monthly run rate is 6 and a half cr 6.
Rigan Raithatha
Okay. Okay. So so basically that can grow by FY27 and 2878 crore or 9 cr
Naveen Gupta
We expect since UP is among among our focus market and we are targeting a growth of 35% from. From focus market. You know we had started this Kashipur thing somewhere in October November. So one of the attributor to growth in UP has been the third party operations from that Kashipur plant. So we expect that momentum to continue and we expect that exit should be down to you know 8 and a half crore to 9.
Rigan Raithatha
Okay. Okay, thanks.
Naveen Gupta
Thank
Operator
You very much ladies and gentlemen. We’ll take that as the last question. I now hand the conference over to the manager for closing comments.
Naveen Gupta
I would like to thank everyone for joining this hour and I hope we have been able to respond to all your queries satisfactory and adequately. If you feel further any information is required please get in touch with us with our investor relations. Stay safe, stay healthy and thank you once again for joining us. Thank you.
Operator
Thank you very much on behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.