Bikaji Foods International Ltd (NSE: BIKAJI) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Unidentified Speaker
Ambesh Tiwari — Investor Relations
Rishabh Jain — Chief Financial Officer
Manoj Verma — Chief Operating Officer
Analysts:
Abneesh Roy — Analyst
Rehan Saiyyed — Analyst
Harpreet Kaur Purba — Analyst
Nitin Gupta — Analyst
Shirish Pardeshi — Analyst
Abhishek Agarwal — Analyst
Janardhanan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Bigaji Food International Q3FY26 earnings conference call. As a reminder, all participants line will be in listen only mode and there will 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 touchtone phone. I now hand the conference over to Mr. Ambesh Tiwari.
Thank you. And over to you sir.
Ambesh Tiwari — Investor Relations
Thank you. Good afternoon everyone and thank you for joining The Force International Q3FY26 earning conference call. The management team we have with us Mr. Rishabh Jain, CFO and Mr. Manojwama COO. I now request Mr. Rishabh JAIN to take us through the key opening remarks after which we will have the floor open for question and answer.
Thank you. Over to you sir.
Rishabh Jain — Chief Financial Officer
Thank you to all the investors and friends. So largely from this quarter perspective, this quarter is the story of two halves. So in October where we have seen some pre bond of Diwali this year so we’ve seen sweet business being in negative growth this year. But overall when we see a core business which is ethnic snacks and western snacks so ethnic snacks have grown at close to 3 and a half percent versus Western snacks grew 20% plus growth. So we’ve seen overall snacks category growing at 14% plus in this year and we also seen some early sign of GST benefit which is government has passed on in September month.
So we’re seeing good volume growth also in ethnic snacks and western snacks overall so we’ve seen good sign in our core business that’s what in this quarter and also January is going on and we are seeing some good results also in this quarter. Also this quarter being also we done some two big campaign which is regarding with respect to Bujiya so Bujiyao to Bhikaji campaign which we started in September September and then ran in this full quarter and has given a very good result in a Buja category in our traditional snacks category which has grown at upward of 16 17% also we started one up specific up campaign which is Kya Baatheri which has started in December month to say but yeah getting good result in UP from bottom line perspective we’re seeing gross margin at a steady level at close to close to 35% which is including PLI.
But yeah overall we’re seeing gross margin 35% ad cost. Of course this October month is always big on ad quarter ad cost. So our ad cost was close to 4% in this third quarter. So. So our EBITDA is close to 12.5%. But overall we’re seeing good operational efficiency as well as GP has remained stable in last 3 quarters. 2, 3 quarters. From raw material perspective we’re seeing stability in all key raw material except Peanut which we just see, which we have seen some uptick. But overall Peanut is not so big in our overall portfolio. But all the other raw material has been stable and we started doing long term parking of each key raw material because it’s a peak season or peak crop season. So overall next three to six quarters what we see, we see some stable growth being we are at low category low utilization as of now 52%.
So we seen at least 10 of good recovery due to GST and good demand uptick. So we see at least 14 to 16% growth in our core category. That’s what overall from investment perspective we are doing some. We committed close to 131crore rupees of investment in the Hazard factory last year. Out of which 60 crore has been invested. We have taken 40% stake. We are putting additional 40 crore as per agreement this year. And we have powered in. We have taken the approval from the board also for this. And after this our overall stake will be close to 48%.
And also we have done JV with TK Khalil. TK Khalil is a big, big name in Middle east and having more than four decades of experience in bakery category. He’s made some big business in bakery in the list. And we’re tied up with him and formed a JV where he will be having 30% stake and we’ll be having 70% stake in our company in Bikaji Bakes separate company under Bikaji. And that’s a futuristic investment. But yeah we see that it can become 100 crore business because now all the children, children and all new new new TG normally see this business as a big business.
And we also some investment in this overall from the nine months numbers. Nine months number. So gross margins closed 34.9% with EBITDA 14.2% or revenue from operation. If you see this without PLI we grown it close to 14% revenue from operation at console level. From distribution perspective. Manoji, you can.
Manoj Verma — Chief Operating Officer
Yeah. So in. In terms of distribution and which is what is identified growth lever. So we continue to grow. If you look at in terms of our overall reach as Bikaji we are now close to 1.4 million outlets. And in terms of our direct Reach we are now at about 3.35 lakh outlets directly the marketing campaign which Rishabh just spoke about. So what we had identified was that we need to infuse something so as to accelerate the growth in Bujia category. With that in mind we we started a campaign Bujia Auto Bikaji which has given a good and an excellent dividend in terms of increasing our reach and increasing the consumption both resulting into our overall growth numbers which was primarily focused in our core stage.
The other campaign what we also did was we roped in Mr. Pankaj’s Tripathi as the celebrity and this was more towards up and nearby markets. That was the that’s the property campaign which we started. This was in the later half of quarter three so it’s too early to comment but that yes the initial reads and the responses what we are getting is very positive and we are very confident that this should help us build quarter four and thereafter business for us. So we did. We went on to multiple communication vehicles and very aggressive on digital media and this stuff.
Another big thing which has happened in this quarter is what we have relaunched our logo because the one which we have is more vibrant, it is more enticing and this is a refreshment of our old logo and effective this year, this calendar year we have now moved on to this new logo which is also there in the deck of ours growth if we look at SO quarter three volume growth so this is supported by the GST staff. So volume growth picked up for the quarter was 8.4% and ethnic snacks, Western snacks did extremely well so was papar.
So if you see there is two contrast pictures that where it was up to H1 and now what was quarter three. So this quarter three performance has led YTD performance moving up but to underline ethnic facts and western facts have done very well and things getting back on track on a YTD basis. If we look at so now ethnic stands 104 stand close to 10% and Western Sachs is 6% above which in H1 if you look at was a concern which had come up was pretty low but this is in this quarter it was made up for the first half sweets of course was low and that we had explained earlier.
Paul says well that it is always good to see quarter two and quarter three put together so this was early Diwali hence quarter two numbers were high and quarter three was a negative growth but on a YTD basis if we look at SO sweets is again on a positive stuff and a growth of 8.1% while quarter three was a negative stuff. Now this sweets and gifting category has impacted the growth of focus phase because the contribution of these two categories in focus and other states is very very high. So just to put a number and this is if in the core states it is 78% in other states it’s about 20 upwards of 30% and in focus states upwards of 25%.
So when these two categories because of Diwali got shifted. So therefore the growth of focus states or other states looks muted or negative. But if you wear gifting the growth for these two, these two state categories is also in line with the core state exports is very well. This is now the results what we are getting for the investment made in the yesterday quarters and years that is about building our capacity wherein we invested behind Ariba Foods scaling up our capability on production for the frozen items which is most salient in these markets. And also our people investment what we did in the exports market.
We expect this exports growth to continue and for next two, three years we should be witnessing same kind of growth. Family pact and impulse pact is again if we look at family pact looks weak in this quarter. This is on the back of the gifting and sweets which is primarily large pack only. There’s nothing small pack in that that is impacting that makes this picture bleak in terms of family packed growth. But if we look at finished snacking growth so we have grown higher in family pack than the small pack.
Rishabh Jain — Chief Financial Officer
So overall from retail business perspective. So our retail business has grown at 86% growth in quarter three being it’s the biggest because Diwali is big and for THF as well as for Bikaji, Diwali and sweets gifting is very big in retail retail stores. So we then delivered 47 crore rupees business from 23 stores as on date. As on date. And the target is to open at least 10 stores next year in THF as well as Silvikaji. Overall from revenue perspective revenue is growing close to 11% with EBITDA growth compared to last year quarter three quarter ignoring 77% being increase in EBITDA margin compared to quarter three.
That’s apart from the presentation. We are happy to take all the questions. Thank you.
Questions and Answers:
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue 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 queue assembles. The first question is from the line of Abneesh Roy from Nuvama Institutional Equities. Please go ahead.
Abneesh Roy
Thanks. My first question is on dry fruits and nuts. So consumer treats, dry fruits and nuts also as a broader part of the snacks category and clearly consumer is focusing more on health and we have seen many companies create big business. For example Tata consumers already 250 crore ARR in nuts they have created. What will be your thoughts on this? Because this is a very low hanging fruit because part of the same broader snacks category. Any thoughts on this? Have you tried this at any point of time? Any pilot projects you have done in this?
Manoj Verma
So if we look at into the mass category. So this is not mass. This is niche and the top of pyramid. If we look at in terms of just the dry fruit so that’s a commodity. But yes when you do process this stuff that becomes the snacking part of it which is actually 2% of the overall snacking category at this point in time. So we also do have some cashew nuts and the nut stuff but that has not been our focus thus far and in near future we this is not our priority because this is importantly on the on some few channels where the the premium products could be sold. So our focus has been more on the range of Namkeens and Bujia.
Abneesh Roy
Yes one follow up on the core versus focus. My question is why is sweets and gifting higher in focus market? Is it easier to do that especially in a new market? What is the reason?
Manoj Verma
So two reasons Abneesh. One is that the play of modern trade is very high because now by virtue of our modern trade presence in all these states reliance in Dmart so we are over indexed in these states and there the because modern trade does very well and all these stores. So therefore our sweets and gifting was very high. So this is what. This is the reason that our contribution of sweets and gifting is very high in focus and even high in other states.
Abneesh Roy
So my next question is on your overall advertising strategy. Generally we don’t see two brand ambassadors in the same category in the in the same geography. So Amitabh Bachchan till when do you have him as the brand ambassador as per the agreement and what is the specific reason for having in the same geography Pankaj Chipati as the brand ambassador for Nam Keen? So how does it help? Is it a long term transition from Amitabh to Pankaj Chipathi? Is that the reason?
Manoj Verma
No. So one is that not same geography if you look at Amitabh Bachchan is our brand ambassador nationally and internationally as well. And will continue to be our brand ambassador. We have extended his contract for another two years. So that’s one Pankat Tripathi we roped in for a campaign basically. So these are you know the geography specific which would be doing so not that in UP we are not using Amitabh Bachchan as our brand ambassador. That is it. But for specific is a we also engage with know one of the known agency. So this is Ogilvy we have worked with and we have done this now as a campaign. So this does not impact anything with what Amitabh Bachchan has been doing or would continue to do in that stuff.
Abneesh Roy
But I didn’t understand what was the need.
Manoj Verma
So no point is that Amitabh Bachchan helps us do all category right now getting one ambassador brand ambassador for specific stuff. So he’s a generic overall stuff. Pankat Tripathi we roped in because this connects more closer to this geography to the masses and the TG what we are looking at. So basis research we figured it out. The options were one we could have used Amitabh Bachelor. So one is the overall broad messaging and then focused for particular state. Instead the option what came the no brighter was that we have a different celebrity. But this is nothing to do with replacement of one over another.
Abneesh Roy
Thanks. That’s also my.
operator
Thank you. The next question is from the line of Rayan from 3Netra Asset Manager. Please go ahead.
Rehan Saiyyed
Thank you for giving an opportunity. So I have couple of questions. First of all the distribution strategy side. So direct distribution reach has increased to 13 point like 13.9 lakh outliers as of December 25. So from here should growth be driven more by higher to a higher throughput for outgrid or by entering new micro markets. And how should we think about the margin impact of this? This is my first question.
Manoj Verma
Yeah. So growth has come both. So it’s a two pronged growth strategy. One is that no continue to drive growth which is more now if you look at in terms of our core stage because that’s where our numeric distribution or our reach is already on a level. So there the growth story is more about throughput of store in the focus and core of the others. The focus and other stage. It is both that the stores where we are they will grow and the inorganic growth in terms of new stores where we were not present earlier.
And as we reach in that stuff now talking about the margin impact. So yes we make better margins in Our core state. And there increasing or driving growth from through input helps us mitigate for whatever, you know, when we expand more in our focus stage. So overall there’s no margin impact in that stuff. This is a thought through thing what we do.
Rehan Saiyyed
Okay, I’m just continuing my first question then just one more focus on the margin side. Like right now in quarter three your family pack continue to contribute 62% of revenue packet 38%. So it impulses PACs start going fast in non core markets. So should we expect any margin of working capital from a mixed perspective?
Rishabh Jain
No. No. So it will not have a major impact because of a gap between family and impulse PAC in overall gross margin is not more than 2% ethnic snacks category to do it. So what we see there in next 2, 3 years this 55, 45 should become so familiar. Should become 55 45% should be impulse specific. So it will have less than 10 to 20 basis point impact. And we are doing multiple things to improve built on efficiency and overall pricing strategy. So this will, this will offset this. So we don’t see any major effect if. If impulse pack goes up too. And we want to go. We want to go to improve our impulse pack contribution being it’s a trial pack to inner focus state.
Rehan Saiyyed
Okay, fair enough. And like to last one more bookkeeping question. Like I want to understand regarding marketing intensity has increased with multiple regional campaigns and ATL BTS brands. So what I guess from as per management review, what internal metrics such as volume uplift, volume up, repeat purchase or outlet productivity do you use to assess ROI and in what time and what is campaigns typically break even.
Manoj Verma
So these are no multiple steps in IT and multiple vectors. If you look on this. So one is the first and foremost is that we look at the efficacy or effectiveness the campaign. So there are REITs agencies which gives that what was the viewership, how many viewed and how many did it multiple times. So that’s the part of campaign that how is it gone below. But this is all. No. So this is nothing to do with numbers, just how the campaign has gone. While this has a correlation with our numbers in terms of that your productivity sales team productivity start going up. Which means that there is some demand creation or which could be a new entry. And also in terms of repeat purchase or the throughput of the store. So both ways this gets measured. So one to the marketing team they have a KPI to deliver. And similarly in synergy sales team is to deliver KPI in terms of that how many new stores, how many you know what kind of productivity and throughput it has. So those are the measures what we track and then we call out that is was it successful or not or should we repeat it or not that.
Rehan Saiyyed
Okay, okay, that’s it from my sir and good luck for your coming quarter.
operator
Thank you. The next question is from the line of Harpreet from Global Consulant Research. Please go ahead.
Harpreet Kaur Purba
Yes, thank you for this opportunity. My question is regarding the stock run out. Like this has been a serious issue for the company for some time now. Like for some detailers they do not purchase on purpose and wait till the 24th of a month which causes stock run out and as a result loss in oil consumption. So what has the company been doing to deal with this?
Manoj Verma
Can you be little more specific on this question? I mean I’m so sorry, couldn’t understand. Well.
Harpreet Kaur Purba
Like for some retailers they do not purchase on purpose and being aware of the fact that discounted prices will be available from 24th of a month which leads to stock run out and as a result loss in your consumption. Like customers are not able to buy due to unavailability of products. So what has the company been doing to manage this?
Manoj Verma
Yeah, so one is that it is not that that 24th onwards there are schemes the scheme starts on the 1st of the month it that is one also none of the retailer because if company loses something that’s a sales loss to the retailer as well. Right? So that’s not the case. But what happens is that now whenever any schemes are anticipated unless you’re talking in in specific to the GST the when announcement was to happen. Right. So till 23rd people were waiting that now the the post GST rates will come down and then they buy.
So even at that point in time it was not that sales was zero what happened was that these retailers started destocking. So let’s say giving an example if a retailer keeps it 20 pieces or 15 pieces of one particular skew so that point in time he brought this inventory down to 5, 6 and he did not purchase in anticipation of that another rate GST impact benefit will come and then I’ll buy again 15, 20, whatever. So that was a momentary stuff. Otherwise in FMCG space this is how it works that round the month or all four weeks there are purchases but yet always, you know, you look at week four becomes little high and week one RI two and three are the regular servicing of that stuff.
Harpreet Kaur Purba
Got it. And like the Nepal GV is expected to start production in a year and in the ethnic snacks category which is a core category and we aim to become among the top three players there and gain high single digit market share. So what is the progress there?
Rishabh Jain
So largely from Nepal perspective, our plant will come up in next eight, close to next eight months largely and we started, we will start working with CG group in maybe by end of this year, end of this financial year. So we are hopeful that they are a big group there and they will be having good distribution. So next, next two to three years we’ll be having at least top three. We will be top three players in Nepal. That’s why we’ve done a JV with them and that’s what our aspiration is with them.
Harpreet Kaur Purba
Okay, thank you so much and all the best.
Manoj Verma
Thank you.
operator
Thank you. The next question is from the line of Nitin from MK Global. Please go ahead.
Nitin Gupta
Yeah, thanks for taking my question. Hi Manoji. Hi Rishabh. Can you please help us understand the monthly revenue trend? Like I want to assess how the GST rate cut is aiding demand and also want to know your view on the GST benefit earning demand ahead. Like how you think the GST rate cut will help overall improvement in the growth trajectory. That’s the first question.
Rishabh Jain
So largely what we’ve seen that you see were core ethnic snacks in today ethnic snacks in first half has grown at 5, 6% versus this quarter in the third quarter as grown at around 13.3% and we’re seeing good uptick in family pack as well as impulse pack. That’s what we see the result of some safety input benefit what we’ve given. We’ve done some MRP reduction so it’s more affordable to consumer consumer and also some grammar increase in impulse spec. So we see some also there is possibility that there are smaller players who is largely doing not a business in a much more professional way.
So we get opportunity to do at 5% GST the chance of doing that type of business will be limited. So we’ve seen some benefit due to this also. So overall we see that and you will see a volume growth also in traditional snacks is close to 11 12%. So we’re seeing some good results after a GST rate cut and this will be continued in coming quarters.
Nitin Gupta
Yeah, this is really helpful. I just want to know like December would be the clean month with just a benefit any sense you can provide on like how would have been the growth in December month if you can.
Manoj Verma
So Nathan, if we were to look at you know in terms of ethnic snacks or the western snacks so immediately after GSE So complete even in October also they these categories did extremely well. So the it is only on account of sweets and gifting that October was a weak month in terms of overall company But GST benefits started reflecting or coming in October onwards. So it is not it has only come in December but the good thing is that the momentum continues. So what it was like September end there was a little confusion chows around that GST will bring the rates down and so the purchases were on hold which someone took up as a question as well. But this picked up October onwards. So all three months our growth has been by far higher than what we had delivered in the earlier yesterday quarters.
Nitin Gupta
This is helpful and do you expect like further acceleration in growth possible?
Manoj Verma
So I think see now it is rest on overall category growth as well. But momentum is good. January you know almost is about to get over. We don’t see any disruption or look back on this stuff.
Nitin Gupta
Thanks this is helpful. Second question pertains to your gross margin. So like a despite relatively weaker mix where package suite salience down almost around 900bps QoQ I am talking sequentially our gross margin correction has been limited to only 40bps. So can you help me understand like what other factors are helping to keep the gross margin stable on a sequential basis.
Rishabh Jain
So we have seen good growth in our core product which is Bikanari Bhujia and that’s highest in gross margin in our rathmic snacks and we’ve seen good growth being we done two campaign around this majorly Buji or to Bikati campaign. So we’ve seen good growth in Bikaneri Bhujia and that is overall has been improving gross margin. Also the product mix what we’re trying to improve on focus product which are high in gross margin and we started this two 2.5 years back so that is also worked well with this.
Nitin Gupta
Okay so it is largely to do with the BG that’s basically health and task. And lastly the core market growth at around 8%. So like how should we see this growth shaping up ahead?
Manoj Verma
So now growth if we look at it now in terms of our markets basically so as we have said that the focus would be growing higher than what the core markets are. But for now if we look at this in this particular quarter focus looked weak because as I explained in my earlier statement that there is a huge play of sweets and gifting which was which got shifted in quarter two otherwise other than sweets and gifting if we look at so the the growth of focus and other states is Also in fact ahead of what core has delivered. So going forward now to your question, focus will be growing, you know, higher than what the core states would grow.
Nitin Gupta
So this is helpful. Thank you and all the very best.
operator
Thank you. The next question is from the line of Shirish from Modilal Oswal. Please go ahead.
Shirish Pardeshi
Hi Manoj Rishabh ji, thank you for the opportunity and good afternoon. Manoj, just one quick question. When we entered the quarter September end, every industry player was very excited with 5% GST and shift which was expected. But when I look at nine month number, I think the focus market has grown only 10.2%. The reason why I’m asking is that I’m sure you are not happy with 8.4% volume growth. So two things. One is that you said there is a GST benefit which you have passed in terms of higher grammatics. So if you can split that 8.4% volume growth, what is the percentage or what is the contribution has added because of the grammage addition?
Rishabh Jain
Sure. So Sirishi, so largely from increase in grammar in quarter three, what we then due to GST. So it has helped in improving volume growth of one and a half 2% in overall. Yeah, but overall you will see that our overall volume growth in ethnic snacks and I think it’s snack category or all of snacks category is close to upper 12, 13%. So that’s. That’s high in the last three quarters and that’s what we targeted.
Shirish Pardeshi
Okay.
Manoj Verma
And anyway this impact in our speech business because that was same Papa and sweet stayed same. It was only in the stacking space.
Shirish Pardeshi
Okay. The other thing which is the observation that in quarter two most not you but most of the players said that there is a destocking because there was a confusion what the GSP will happen and other things. But did you really get any benefit of restocking in the trade in quarter three? And again is it settled or it is still ongoing.
Manoj Verma
Okay, so Shirish for the impulse category, no one would wait for, you know, this thing. So the opportunity loss or the day loss is a loss however, you know, from consumption standpoint. But yes, if you look at in terms of destocking. So yes, there was certain impact but then that got over in a week’s time itself thereafter it’s an ongoing replenishment model to weekly servicing, weekly buying in that stuff. But yes, whatever convention loss happened during that time that the outlets who ran out of stock and all, you cannot replace that stuff.
Shirish Pardeshi
Okay, the other thing which I came, I mean I’m reading from slide 20 from your presentation. When I compare nine months growth in the focus rate which is just about 10% I mean I’m giving the benefit DI values come here or there or just to see that would have shifted. But in nine months months we are still 10% growth. Is is it much lower than your expectation and how much growth we can expect? I mean you did allude saying that the focus that will grow faster. But I think what are the issues?
Manoj Verma
Yeah, so sure rightly said that 10.2% growth is is not a good growth in that stuff. It will not be less than 15%. 15, 17% should be the bare minimum growth in that stuff. The disruptions you know when you talk about. So that because of gst, because of you know the suites could have done or the other categories could have done even better. This is what in the western stacks which again is a high contribution in focus in core state. In focus in other states was weak in quarter two. Those were the stuff. But if you look at the how it is made up in rest of the category. So Namkeem Western snacks and also it is again coming back to what in line for what we have said or in line with our plans, what we have.
Shirish Pardeshi
I have a specific question Manoj here out of six markets which we have identified in focus state specifically UP is a very large snacking market. So could you strip off what is the growth you are seeing in particularly up.
Manoj Verma
So UP is on a high growth in that stuff. So if 10% is the overall growth, so up is close to about 14% growth in this stuff. It’s on a high side. There’s one market now Delhi which we call as our focus stage has not done very well in that stuff. And we also did not invest as much in Delhi. So there’s no specific campaign or something what we have done for that. But to your question, yes, up has done better than the overall Focus stage.
Shirish Pardeshi
So up would be growing on an average about 50, 60 crores a month now.
Manoj Verma
No, no. Hello.
Shirish Pardeshi
Yeah,
Manoj Verma
yeah. So UP I said now if you look at now would have is about 1314% growth whereas overall focus space is 10%.
Shirish Pardeshi
Okay, got it. And in export, what are the reasons? I mean I do understand Ariba is yet to contribute meaningfully. But what are the drivers for this growth? Are you opening more markets or is that core markets in the export is showing you scalability.
Manoj Verma
Yeah. So Ariba is a enabler. Right. You have stocks to sell. Right. But the letter, the second question which you said that in terms of the Expansion. So the driver is expansion and all getting into new accounts, large accounts where we were not there earlier. We got listed and there is a good response or demand coming in. So that’s the driver. Reba is a back end stuff. I mean so which is solving for this problem.
Shirish Pardeshi
So which are the large market in your exports?
Manoj Verma
So large US of course continues to be a large market. US Canada, then Middle East. These are the markets which have done so. US in spite of odds like the tariff thing and all that stuff we did still well in US Costco is one of the largest account there where we were not there. And so we got listed in this quarter and a very good performance in this store and very good response in terms of repeats.
Shirish Pardeshi
Okay, just last question on bbpl. What is the rationale? I mean I know Khalil is a very big man but is the company is going to diverse and getting into biscuits and croissants and other segments. And what is the scalability of this model? Are you going to get the Khalil brand in India or you’re going to spread more? Because you are. You’re giving a capital also.
Manoj Verma
Yeah. So Suresh, one certainly not biscuits. Right. So this would have three parts of it. So very premium breads and then the third is cakes. These are, these would be the three segments we’ll be playing in. And the business would be under again three heads. One is frozen export and everything is frozen. That’s one. Second is that the business would come from. We’ll export from air. That’s what Khalil’s presence will bring in. Because he is already into this model of that stuff. It is the facility or manufacturing capability we are building in it. So one is export, second is B2B.
Right. And the third would be domestic which will be the least of that stuff. Now this is a futuristic investment. We have set up our plant in Bangalore and as Rishabh said that over three years, I mean this has the potential to get us about hundred crores in our top line number. That’s where it is. So this will not be, you know, it will be a complete separate team. Not that anything to do with this will be done by a professional team which is no more into bakery and all this stuff.
Shirish Pardeshi
So you mean to say that the existing stores which Khalil is operating in UAE is not a part of this deal.
Rishabh Jain
No, no, no, no.
Manoj Verma
So this is, this is Indian stuff only.
Shirish Pardeshi
Okay. Okay. And this plant, when do you think we’ll get operation? Say another a year or so or will take a Little longer?
Manoj Verma
No, no, no. By end of this quarter only it will happen.
Shirish Pardeshi
Okay. Okay. Thank you and all the best.
operator
Thank you. Anyone who wishes to ask a question may press star and one on their touchstone telephone. Thank you. The next question is from the line of Abhishek from systematic groups. Please go ahead.
Abhishek Agarwal
Yeah, hi sir, thank you for the opportunity. While you mentioned in your opening remarks on the raw materials being fairly stable, just wanted to check specifically on potato, what is the procurement cost trend that you’re seeing in potato? Because I understand that December, January is the period of crop flow and procurement and you can correct me if that is not accurate, but just wanted to check what is the sort of procurement cost trends that you’re seeing specifically in potato right now.
Rishabh Jain
So potato crop has been very stable and good this year. So we will. We don’t see any major disruption in price or quantity availability this year. And we started. It’s early to say but early to do. But yeah, in next two months we’ll do a long term buying of all of at least for next six, seven months. That’s what we do normally in February, March. But yeah, price has been very stable.
Abhishek Agarwal
All right, so got it. That’s very helpful. Thanks. And all the best.
operator
Thank you. The next question is from the line of Anjit from Goldman Sachs. Please go ahead.
Unidentified Speaker
Hello. Am I audible?
Rishabh Jain
Yes, yes.
Unidentified Speaker
Yeah, hi. Thank you for taking my question. I just wanted to understand on this Bikaji bakes, what is the trajectory? Are you expecting revenues to start coming in from FY27 itself? And in terms of the products, in terms of say premium breads etc. Is it just going to be export or you will. Is it going to be like in stores etc. In different stores or will it be. Just in your retail stores and Bikaji retail stores?
Manoj Verma
Yeah. So your first question. Yes, revenue will start coming in from year one itself on the product side. So yes, the split of the business, you know, if you look at would be majorly exports then B2B and then few top end stores as well. So domestic sales. So this would be available in top end stores because this would be all premium and also we leverage the QCOM E Com channel also on this stuff. So should be available there as well.
Unidentified Speaker
And will this be under the same brand of bikaji or how do you plan to brand this?
Rishabh Jain
If the work is going on in this, but it will not be in the same brand.
Manoj Verma
We’ll announce it shortly before we, you know, come this commission the factory but not Bikaji for sure.
Unidentified Speaker
Okay, thank you so much.
operator
Thank you. The next question is from the line of Tohum from Otilal Otswar. Please go ahead.
Unidentified Speaker
Yeah, thank you. Reception Manoji just wanted to check one direct coverage. Right now we have a 334k direct coverage. And last one year we have added almost 46,000 addition. So Manuji, if you want to give a ballpark breakup of this 46k breakup of this code versus non code addition in the last one year.
Manoj Verma
So the most of the addition which has come in is in the focus states. Right. So as I speak come in. So it’s about 1.65 lakh outlets is what we are covering. In focus state and core states is about 1.15 and the rest is other states about 55,000 outlets.
Unidentified Speaker
Okay. So majorly it is a non core addition. Okay.
Manoj Verma
Yeah, sorry.
Unidentified Speaker
Yeah. On the impulse pack right now if you look the snacking portfolio. So almost 50% of snacking portfolio comes from impulse pack. And in nine months data which is grew only 6.8%. So like for full year for next basically for next Financial how do you look this impulse for growth for the FY27.
Manoj Verma
So what we plan to do is that see for us family pack is equally important and we get better margins also in that stuff. That also in our core stage. This is what helps us store throughput also in the channels like say Modern trade ecom. It is the play of the large pack only. But as we drive distribution as we drive focus states. And which is where as I said that the faster growth would come from the focus states. So that’s where the role of the impulse pack. So to your question what we see that the growth of impulse and family Pact will be in line. Not that a very differential growth in that stuff you’ll see. But yes, impulse would be on a slightly higher side.
Unidentified Speaker
Okay. And in this code versus focus market, like as you previously you said that focus your target could be 15 to 17. So what could be the target for code? High single digit for next year?
Manoj Verma
Double digit target. So you will see that about 13% plus minus would be the core states performance.
Unidentified Speaker
The 13% plus minus for code and focus would be more than 50.
Manoj Verma
Yeah, upwards of 15%. Yes.
Unidentified Speaker
Okay, got it. And researching for this margin for nine months gross margin XPLI we have done 33.5 and operating margin we have done 12.5. So how do you look for this year next year for gross and operating xpli?
Rishabh Jain
So largely we see EBITDA margin should move up at least 50 basis points. From this year
Unidentified Speaker
And for operating. Okay, you’re staying operating is 50 and gross will be stable. How is it?
Rishabh Jain
So beta should be. Should improve by 50 basis. Pointy beta.
Unidentified Speaker
Okay. Every side and A and P would be the range of 2 and 2.5. Right. For next year as well.
Rishabh Jain
Yes, yes. Yes.
Unidentified Speaker
Okay, got it. Thank you so much. Thank you. Thank you.
operator
Thank you. The next question is from the line of Parsha from Mehta Equities. Please go ahead. Mr. Parsha. Please go ahead.
Unidentified Speaker
Yes, yes. Thanks for opportunity. I want you and I wanted to understand about the product range when we are launching the new product. What are the strategies that we are we are used to see. Basically I wanted to understand the strategy states that how because the company researching the products to distribution as per the geography.
Manoj Verma
So this is two approaches. What we take one is the innovation team, the R and D team which keeps working all that keep picking up. You know, we participate actively in all food exhibitions like Gulf Food, Indus, Ahar, so on and so forth. So which is a forward looking stuff and ongoing process. That’s one second is that we also picked up what is doing well in the market. What how the category is behaving. Which subcategory is doing well and how is RV index to the overall category staff. This is the principle three by three which arrives us on where to work on.
And that’s how we pick up the subcategories that what should be developed. And this is how we get these NPD’s out in the market. Now talking about geography. There is diversity across states and that’s how the consumption palette is. So we then it becomes region specific kind of stuff. Certain things. This is how we do and this is what is our strategy on adding new products of a new product launch. Yes.
Unidentified Speaker
Yes, perfect. Thank you Sahajit.
operator
Thank you. Participants are requested to ask a question. Please press star and one on their touchstone telephone. The next question is from the line of Janadharan, an individual investor. Please go ahead.
Janardhanan
Hello, Am I audible?
operator
Yes sir, you’re audible.
Janardhanan
Yeah. Hello Sir, I am an individual investor in it. So my only question is if raw material costs normalize upwards. Right? And demand softens. I understand that demand is going to go up but just this is an hypothetical question. If raw material costs normalize upwards and demand softens which lever be it pricing, be it mix or be it cost will protect margins the most for Bikaji.
Manoj Verma
If raw material prices goes up. Right. So one we’ll try to see that what further optimization can be done because that is one. Then if this would be true for competition as well, we’ll closely watch that how competition is behaving on that stuff and will respond accordingly. That’s what we do. Because there’s a threshold. We would not go, would not wish to go below our threshold in terms of our margins.
Janardhanan
Part yes. And one more question. Where do you see Bikaji’s market share in the organized ethnic snack space over the next three to five years?
Manoj Verma
So we see a double digit market share in next three to five years, maybe around 11%. Eleven. Eleven and a half. Kinds of.
Janardhanan
All right. Thank you. Thank you so much, sir. Thank you.
operator
Thank you. As there are no further questions from the participant, I now hand over the conference to management for closing comments.
Manoj Verma
Thank you everyone for taking time out and being part of this call. Hopefully we could answer the questions. What came up. Still, anything left out, we’ll be happy to revert back. You can reach out to our corporate affairs person, Pratik, or the agency and we’ll revert back to the questions. Anything left. Thank you very much.
operator
Thank you. On behalf of Pikachi Food International. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.