Gopal Snacks Ltd (NSE: GOPAL) Q3 2026 Earnings Call dated Jan. 28, 2026
Corporate Participants:
Naveen Gupta — Chief Business Officer
Rigan Raithatha — Chief Financial officer
Analysts:
Nitin Gupta — Analyst
Resha Mehta — Analyst
Azharuddin Jariwala — Analyst
Shreya Chatterjee — Analyst
Amit Agicha — Analyst
Dharmil Shah — Analyst
Bhumin Shah — Analyst
Shirish Pardeshi — Analyst
Soham Samanta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Gopal Snacks Limited Q3FY26 earnings conference call hosted by MK Global Financial Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star10Zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Nitin Gupta from MK Global Financial Services. Thank you. And over to you, sir.
Nitin Gupta — Analyst
Yeah, thank you. Good afternoon everyone. I would like to welcome the management and thank them for this opportunity we have with us today. Naveen Gupta, Chief Business Officer and Regan Dai Tata, Chief Financial Officer. I shall now hand over the call to the management for the opening remarks. Over to you, sir.
Naveen Gupta — Chief Business Officer
Thank you, Nathan. Good afternoon and thank you for joining us for the earning call. We hope you all got a chance to go through our investor presentation uploaded on the stock exchange. We will share our key operating and financial highlights for the quarter and nine months ended December 31, 2025. As we reflect on our Q3 FY 2026, it is evident that GOPAS Next has maintained steady progress demonstrating strong operational resilience and the ability to scale production despite challenges faced after the fire incident. Our revenue for Q3FY26 was at INR 480 crores, a 6.7% sequencing increase from Q2FY26.
This growth was driven by strong performance across our core product segments including the Snack Palates and Datia categories which grew 20.8% and 10.6% on QQ respectively. The growth highlights the continued strong demand for our products and the operational efficiencies we have achieved. A key focus for us during this quarter was the ramp up of our MODASA facility. This facility, with an added installed capacity of 63,000 8,500 metric ton, is now an integral part of our manufacturing base. It will play a vital role in meeting the growing demand for Gatia and Namkeen products across our target regions.
Additionally, we continue to strengthen our supply chain by working with third party manufacturers ensuring that we can meet market demand without disruptions. Our efforts to expand our regional footprint have been fruitful. With the support of 93 micro distributors under the SSP model, this initiative has deepened our presence in untapped regions contributing to 28.7% YoY growth in other states. The success of this strategy is a testament of our commitment to building a strong distribution network and improving market accessibility. In terms of marketing, we successfully secured a significant partnership as the official snack partner for the Filmfare Awards 2025.
This association has provided us with an exceptional opportunity to enhance our brand visibility and engage with a broader consumer base across key media platforms. Additionally, our marketing initiative during the festive season including the Navratri campaign, further increased our consumer reach and brand recognition and also we launched our Gatia digital and TV ad campaign three days back. We continue to make progress in improving our distribution management system which provides real time insights to our distributors. This system plays a crucial role in improving inventory management, reducing lead times and enhancing supply chain efficiencies, all of which are key to maintaining our competitive edge.
Looking ahead, our focus remains on expanding our production capacity, enhancing our market penetration and investing in strategic growth initiatives. With the continued operationalization of the Madasa plant along with our investment in technology and infrastructure, we are confident in our ability to sustain growth as we move into the final quarter of FY26. Gopal Snacks is well positioned for sustained long term growth and we remain committed to creating value for all the stakeholders. I would now like to invite our Chief Financial Officer, Mr. Regan Dyasatta to share his perspective on the financial performance during the quarter.
Rigan Raithatha — Chief Financial officer
Thank you Naveen Bhai. Good afternoon everyone. Let me now take you through the key financial highlights for the quarter and nine months ended 31st December 2025. Starting with the quarterly performance over during Q3 FY26 we achieved the revenue from operation of Rupees 400.8 crores registering 6.0 sequential growth supported by improving demand trends, stronger traction in Snake pellets and Gatia and continued distribution expansion across newer geographies. Gross profit for the quarter was at 110.6 crores translating to gross margin of 27.6% compared to 26.4% in the previous quarter. Operational performance during the period benefited from improving manufacturing stability, supply chain normalization following the commissioning of Morassa treasury with the commencement of commercial production in Morasan Namkin plant, we were able to address key supply challenges that had arisen after the fire incident at transport facility.
The consolidation of multiple product categories at a single location is expected to improve order servicing timelines, enhance dealer convenience which will aid to lowering of our trade discounts and ultimately will benefit the margin. EBITDA for the quarter was at rupees 30.4 crores reflecting an EBITDA margin of 7.6%. Sequential margin expansion was aided by operating leverage and prudent control over discretionary spends. Our profit before tax increased sequentially 41.5% to 19 crore rupees driven by stronger revenue and operational performance. Profit after tax for the quarter stood at 15.5 crores resulting into PAT margin of 3.9% for the quarter.
This includes exceptional income of 10 lakh rupees coming from the scrap sale arising out of the fire affected facility. Moving to the nine months performance for nine months, FY26 revenue from operations stood at 1098.6 crores while EBITDA is at 69.7 crores reflecting the margin of 6.3%. Profit before tax before exceptional items stood at 37.7 crores while profit after tax was 43.7 crores with a margin of 4%. As we move into the final quarter of FY26, our priority remains focused on expanding market presence, improving operational efficiency and continue to drive for innovation in our product offerings.
With our strengthened manufacturing network including the newly operational Modasa facility and a disciplined approach to capital allocation we are well positioned to sustain our growth. We are confident that Gopal’s next strategic initiative backed by strong financial foundation will continue to deliver long term value for its all its stakeholders.
Naveen Gupta — Chief Business Officer
Thank you. Over to you Nitin.
Questions and Answers:
operator
Thank you very much. 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 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, request will wait for a moment while the question queue assembles. The first question is from the line of Nitin Gupta from MK Global Financial Services. Please go ahead sir.
Nitin Gupta
Yeah, thank you. So my first question is around like post commissioning of Modasa facility. So I basically wanted to understand like how has been the growth improvement. Like we have seen the three quarters of decline and this is the first quarter like we have seen 2% revenue growth. So how materially a shift is happening now and how management is thinking that the growth can improve on a monthly basis from current levels. That’s the first question.
Naveen Gupta
So Nitin Bhai, as we had finally declared that from 1st of December we will start getting our complete range from Modasa facility. So we started getting complete range from our Modasa facility from 1st of December. Its reflection also came in our December number as well. So now overall supply chain from Gujarat perspective are stable as well. Few connecting states like Rajasthan is completely getting catered from Madasa only. And then there are parts of western western Madhya Pradesh and Mumbai and some parts of western Maharashtra also getting catered from Badassa facility only. So things are stable now.
Overall revenue loss owing to the supply chain disruption in Gujarat was to the tune of you know 8 10%. And even in the surrounding states Rajasthan was impacted the highest. So with the improved supply chain we are confident that our run rate will certainly improve.
Nitin Gupta
Yeah that’s really encouraging. So like we are actually from December like seeing the growth, sorry the supply improvement plus additionally the GST sort of support also from the government in terms of the great reduction. So qualitatively you will be able to highlight like how material is the shift in the numbers from November to December. Definitely December we will be ramping up. It will not be a true reflection but some qualitative sense would be really helpful here.
Naveen Gupta
December numbers were 7% more than November.
Nitin Gupta
Okay sir, this is good. And second with respect to like gross margin expansion of 120bps to 27.6 this is more of a sequential QQ. So could you help us understand the factors which have aided growth margin expansion? One point I can take from the commentary is that we we have taken back some of the trade promotion but if you can help us understand this better that would be really helpful.
Rigan Raithatha
Yes Nitin. So post our supply chain issues since I started getting resolved. So partially from the mid of November we started lowering our grid discount schemes and on account of that the benefit which flowed on in our gross profit was around 1% and also marginally due. To the. Low margin products or the loss making products also we are trying to cut out from our product market. So that is also aiding over gross profit margin raw material prices were by and large stable. So over there 0.3% benefit is there. And again post GST regime we have also reduced the dealer margin which has also benefited 0.5%.
Nitin Gupta
This is helpful. My last question pertains to like the this this new other smacking segment. Like we have basically split the other segment into two. So now I can see like other smacking segment is now 4% of revenues and sort of it is seeing in a way like this percentage was around 1.7% last year. So like how how we are positioned here we have multiple products, masala noodles, bakery flour, oil so jaggery. So like is this more of an adjacent business or you think that some of the categories can become bigger for us. I have seen like there is an ad wheat flour also we are getting into.
So like I just wanted to know your thoughts around like multiple new categories we are trying out in other snacking.
Naveen Gupta
Oh Nitin, by in our multiple commentaries we have expressed our intent to gradually reduce our dependency on imported oil. So as Regan Bai stated, we are doing two things simultaneously. One is cutting tail of Those products or SKUs which are low in margin contribution as well as revenue and simultaneously adding certain products which has got better margins and which are scalable in nature. So to name couple of products we introduced rather three products. We introduced somewhere in July, popcorn. So popcorn run rate is right now 50, 55 lakhs per month. We added wafer biscuit so it’s a comparatively high margin product and our run rate is 65 to 70 lakhs per month.
And we added another bakery product which is in 5 rupees price point which is Kaju biscuit. So it’s a Kaju shaped biscuit. So it has also got good margins and which has started contributing to the tune of 3540 lakhs per month. So this is helping us in two ways. One is overall product basket, we are trying to reduce contribution of imported oil. And second is we are adding high margin, high scalability potential product to our product basket.
Nitin Gupta
Sure, this is helpful. Thanks a lot.
Naveen Gupta
Thank you.
operator
Thank you. The next question is from the line of Risha Mehta from Green Edge Weld. Please go ahead.
Resha Mehta
Yeah, thank you and good afternoon. So congratulations on the commercialization of the Modasa facility. So now with this, you know, like the Q1Q numbers have been better. Like you called out, December is higher versus November by 7%. Do we see a similar kind of growth rate which is also happening as we speak in January because we are almost at the end of January.
Naveen Gupta
Yes, numbers are in line with our December number. Historically out of last five years, Q4 has been lower than Q3. You know, in four years, out of five years, four years Q4 has been lower than Q 3. But we are confident of reversing this trend this year. January numbers are, you know, in line with December number which historically has not been the case.
Resha Mehta
Understood. And now like you said, so the supply chain problem gets solved. Right. Like we are able to supply a full basket to our distributors and hence that problem has completely gone away. Right. With at least 90%. All right. With the Madasa facility.
Naveen Gupta
We can say as on date more than 95%. We just did an exercise yesterday. So our fill rates as of now are, you know, with stipulated tax is 93%.
Resha Mehta
Right. And so does that mean that the wafers de growth, which was happening because it was more like a, you know, push product for us. Right. And you know, providing it as a Part of the overall basket. So that degrowth should kind of start reverse reversing.
Naveen Gupta
Yes, that degrowth will start reversing. There are two reasons of degrowth in vapors. One is we took an intentional price hike in vapor. So differential with the market leader versus our pricing to the retailer was to the tune of 20%. So we brought down the difference to the tune of 6, 7%. So probably we had not matured in that category to that extent that that steep hike was not taken generously by the retailer fraternity. And secondly, as a company, what we were doing earlier, suppose we were giving a target of distributor monthly target was 50 lakhs.
So we were doing a bundle activity with the wafer category to the distributor that he has to sell minimum, say 7 lakhs or 6 lakh of wafers to get the monthly incentive. But later on, going to our supply chain issues, we thought of, you know, not putting the pressure on distributor fraternity for the push product. Rather we were giving them, you know, a lot of comfort in selling the pull products. Only now, since our supply chain issues are resolved, so we will restart that activity. In fact, from the 1st of February, I am going to restart that.
Resha Mehta
Okay, and you just called out that, you know, we had taken price hikes in wafers. I would imagine, would we have also taken price hikes in, you know, other products like Gatia? Because I see the volume value gap is, you know, there’s quite a gap between the volume growth and the value growth even in Gatias. So have you taken price hikes there as well? Which has also helped in improving gross margins.
Naveen Gupta
I tell you, when we compute in number of packets, so it looks like that we sold lesser number of packets. However, when we convert the volume in metric terms, so we have grown by 4%. So typically what happened after GST on price point products, we passed on that benefit to the consumer by giving extra grammar. So we did not take any price hike or price drop in price point product. However, in larger packs we took a price cut like on MRP basis. Earlier the product getting sold was of 50 MRP. Now we are selling at 47 MRP, 500 grams.
We were selling at 89 MRP. Now the MRP is revised to 84 absolute terms. We moved in metric terms
Resha Mehta
and you. Know, our trade spends used to be at somewhere around three and a half percent. So since, you know, we’ve seen, you know, some reduction there, which you’ve mentioned. So now that number is reduced from three and a half to what levels? Now
Naveen Gupta
in this quarter we have reduced it by 1.2%.
Resha Mehta
Okay, okay. And, and, and subsequently this is expected to like in Q4 also would we see further reduction on the trade spend front?
Naveen Gupta
We will take our reduction on a very gradual pace, Rishaji. In Q4 it will be more or less in line with Q3. However in Q1 and we reduce it by 0.25% and then we’ll try to maintain that for six months. So annualized basis pay next year we’ll reduce it by half a percent.
Resha Mehta
And you know, so now would you be comfortable in giving some kind of a guidance for the next financial financial year? I understand that seasonally Q4 is weak. So what you’re giving a sense is that, you know, but we should still be higher than 400 crores or thereabouts in Q4. But in FY27, you know, considering Modassa plant has been commercialized and our supply chain issues are largely resolved, would you like to give any kind of revenue guidance and therefore even a margin guidance? Assuming raw material prices remain stable.
Naveen Gupta
We on YTD basis we have task 1100 crores. Right. And our four numbers are visible and we Q3 numbers are visible. We are stating that Q4 numbers. We are reversing the trend. So I mean we will be somewhere, you know, 1500 crores kind of number. We will be closing this year. So next year we have made a rough sketch of our annual operating plan. So we have taken a delta of 300 to 350 crores for next financial year.
Resha Mehta
1800 to 1850 crores. And on the margins, EBITDA margins assuming raw material prices are stable.
Rigan Raithatha
Yeah. So on the top line front it would be in the range of 18 to 1900 crores. That is what we are anticipating. And in terms of EBITDA margins in the current quarter, our EBITDA margins are close to 7.6%. So as we would be exiting on the similar rate, so next year we are targeting on an annualized basis ebitda margin between 8 to 9% within next year. Exit rate close to double digit.
Resha Mehta
Wouldn’t you say that 8 to 9% annualized margin for next year is very conservative assuming raw material prices are stable. Or are we, you know, despite Modasa planning operational for two months, we’ve not seen, you know, those distributors whom we lost, they’re not coming back. Or maybe we are not, you know, seeing, you know, market share gains again. So that’s why, you know, we would want to guide for lower margins. Or is there some other reason?
Rigan Raithatha
So there are a Couple of other things. One thing to post Modasa commissioning so that we are quite confident over there. There is nothing of an issue. As in our opening commentary we said we are now aggressively moving into the market in terms of spending more on the advertising, sales, promotion schemes. So that is one of the things. So sequentially probably we would be improving on that trajectory. So probably in, let’s say in first or second quarter improvement might be little bit less. But next going forward it should be on a very fast trajectory. So that’s the reason we are likely to maintain between this range.
And that’s the reason we are also seeing that our exit rate would be much higher than the average.
Resha Mehta
Understood. And you know on the other products. Right. I think even the previous participant called that out. While I appreciate that you know we want to reduce our dependency on palm oil but you know, I think we’re also selling beauty soaps and washing bars and ghee, you know, I mean and jaggery. Right. So wouldn’t you say that you know these are completely unrelated products. What would be our right to win and you know, very fringe. What are your thoughts here? Why are we getting into these products?
Naveen Gupta
These are, you know, our byproducts only. Rishaji. When we process our products through oil so lot of oil gets generated as a byproduct. So this detergent, this oil, soap and you know, this is byproduct.
Resha Mehta
Understood. All right. Thank you.
Naveen Gupta
Thank you.
operator
Thank you. The next question is from the line of Asrahuddin Jariwala from Samiksha Capital. Please go ahead. Azradin, your line is not clear.
Azharuddin Jariwala
My audible now.
operator
Yes, you’re audible now. Can you please repeat?
Azharuddin Jariwala
So thank you for taking my question. My question is on the side of the geographical volume which we are seeing quite immediate growth in the core market of the company. So I just want to know about how are we taking the measures to stabilize and revive the volume in the core market.
operator
Azharuddin, sir, There is some static in your end.
Azharuddin Jariwala
Am I audible?
Naveen Gupta
However, what I could understand that you are asking that what is our strategy to grow in core market. Right.
Azharuddin Jariwala
Correct.
Naveen Gupta
There are two things we have already started in Gujarat which is our core market. One is frequency. Oh. We have initiated to increase our number of salesmen and that is. That is completely facilitated by automation. Number two is when we have started our marketing endeavor like TV campaign, digital and print etc. So that is going to aid growth to our core market faster than non core markets. So if I summarize, one is improving on distribution efficiency and another is it has to be backed by marketing endeavor.
operator
The Line for the participant has dropped. We will move with the next question from Shreya Chatterjee from Angels Capital. Please go ahead.
Shreya Chatterjee
Hello. Thank you for taking my question. So I wanted to understand a bit more that the quarter over quarter growth in the focus markets is bit slower than the core market. So what are like our strategies on the focus market? What would be the future growth rate in the focus markets? And what about adding distributors in both the core and focus markets? If you could give a bit more color to that.
Naveen Gupta
Yeah. So one thing is in core markets we will not add to number of distributors. We have got footprint in 99% of Gujarat at levels. So we will not add to number of distributors in our core market. Now coming to Focus and other markets we have taken an ambitious aim of adding one net new distributor every working day starting from 1st of January till the 31st of December. So right now we have 881 distributors on our SAP. And we have taken an ambitious aim that we will add somewhere between 250 to 300 distributors within this calendar year.
So coming to how will we perform in focus market? So there was, there was a reason that why in focus markets our growth rates were not, you know, these were subpar. One was Rajasthan, west Maharashtra and west Madhya Pradesh was you know, disturbed in terms of supply chain. However, these are streamlined. Now within focus markets and other states the growth will come from two factors. We have aimed just 15% growth from our existing distribution network. And roughly 75 crores of Delta will come from addition of new distributors. So there will be a complete ladder which will be.
Which will get built the way with the way we did in 2024 as well from April. Yeah, please.
Shreya Chatterjee
Yeah. So the guidance of 1800 to 19004 which you just gave now for FY27, is it factoring into this 250 to 300 distributors that ambitious guidance like even or are you taking into consideration like Even if like 80 to 90% of it is achieved you’d be able to take 1800 to 1900 crore.
Naveen Gupta
We have taken a range of, you know 150 crores to 160 crores. Delta coming from our Gujarat business, from non Gujarat business, we have taken an aim of delta of 130 to 150 crores. So out of this 140 crores, 70 crores will come from existing set of distributors and 70, 75 crores from new set of distributors. Besides this there are alternate trade channels. So alternate, by alternate trade channels I mean that we have got business of railway modern trades with Commerce and exports. Unfortunately in the entire year YTD we have just done 80 lakhs of export this year.
Whereas previously we had done 8 crores of export this year. So delta coming from these alternate trade channels will be 25 crores. So that will translate into the overall delta of 350 crores.
Shreya Chatterjee
So is it then fair to assume that we can see a growth rate of 15% plus in the focus market once everything stabilizes.
Naveen Gupta
Yeah.
Shreya Chatterjee
And also what is your capex plan going ahead given that now you are increasing the grammage in your packets. So what would be the capex plan going ahead?
Naveen Gupta
Answering your first question Shreya, in the core state there will be two regions for us to grow. One is our stabilized supply chain which will be backed by automation and distribution plus our marketing endeavors coming to capex part. Let Mr. Regal answer to this question.
Rigan Raithatha
As far as capex since we have enough capacities available currently so we don’t require to build any additional capacity to incur additional sales or to improve the branch.
Shreya Chatterjee
Got it. So thank you. And so about the Namking category. Do we see the growth coming back once the like full. Once we get a full quarter of operation Madhasa facility Or is there a degrowth of some sort in the Namkin category? Because there has been a slight decrease in the Namkeen quarter over quarter.
Naveen Gupta
So let me deep dive into the numbers Shreya. Typically when we start our operations in Modasa so our first priority was to manufacture the single line product items. So all the ghatias are you know single line product items. Whereas when we sell namkins so namkins have got five items which has got mixture. So manufacturing mixture is a comparatively complex thing. Because then you have to you know do mixture of several things. So now since entire production and supply chains are stabilized so namkes will also come in come into growth.
Shreya Chatterjee
Got it sir. Got it sir. Thank you.
operator
Thank you. The next question is from the line of Azaruddin Jariwala from Samiksha capital. Please go ahead.
Azharuddin Jariwala
Am I audible?
Naveen Gupta
Yeah Mr. Jariwala you are audible now.
Azharuddin Jariwala
Okay so my question is on the side of the geographical volume as we are seeing quite muted growth in our core market. So how are we taking any measures to revive the volume in core market?
Naveen Gupta
Yeah Mr. Jariwala I already stated that when if you consider Gujarat as our core market so strategy is very clear that one since our supply chain have stabilized distributor will start getting full. Have already started getting full rain from one place only. So that helps in faster rotation his business. Second we have already started Automation of our distribution ecosystem and that we are complementing through adding more number of salesmen to cater majority of outlets twice in a week instead of once in a week. And third sector will be, you know, marketing endeavor. We started our TV campaign as well as digital campaign as well campaign three days back.
So that is going to help largely into core markets itself which is Gujarat.
Azharuddin Jariwala
Okay. And for the next year as you are assuming the delta of 300 to 350 crores incrementally. So how are you looking at the. Category wise like the Gasta and or any which are the higher margin products which you are focusing currently. So how are we looking at the. Category wise revenue.
Naveen Gupta
At company level if we are aiming to have a growth of 20% plus so that will come from the respective categories only. So in our frams category this was first quarter after so many quarters that we are able to bounce back. The fram will continue to grow by 20%. We are doing certain innovations and renovations in our primes category. In Gatia category it will be added through, you know, TV ad and your marketing campaign. So Gatia we will certainly grow by 20% and in wafer category since our base have depleted. So we will like to come back to our original run rate, the overall growth run rate growth.
We are aspiring 20% plus. So it will get reflected in across categories.
operator
Thank you. The next question is from the line of Amit Agicha from Edgy Haba. Please go ahead.
Amit Agicha
Yeah. Good afternoon sir and thank you for the opportunity. So what was the marketing spend in Q3 and 9M or FY26 in crores and in percentage of revenue.
Naveen Gupta
So in Q3 in terms of percentage of revenue it was close to 2%.
Amit Agicha
And would it be possible for giving in the 9M favor 9 months favor? If you have digital you can mail it later and such. Also how does the management measure the return on investment on the sponsorship which all did in film fair and festival sponsorships.
Naveen Gupta
See Amit Bhai, it was first mega event in which we did participation right. So it was important for us to before we launch our TV campaign. So it was important for us to get into some sizable platform. There are agencies, third party agencies which gives us measurement in terms of improvement in brand recall value. If we consider that in terms of revenue, how much, what was the roi? So that is attributed to various sectors. So it’s challenging to dissect that how much incremental revenue came from which factor. However, we have already delegated this task to our marketing agency to measure how much improvement it is giving us in terms of brand recall.
Amit Agicha
And so would it be possible for you to give what percentage of revenue currently comes from Ecom Q compact forms?
Naveen Gupta
Yeah, sure. So on YTD basis we have done 15 crores revenue comprising of four alternate trade channels. One is railway, another is modern day third is commerce and fourth is export. Q3 our railway business was 2.3 crores. Modern trade was 1.48 crores and quick commerce was 1.91 crores and Q3 exports was zero. And on YTD basis railway we have done 5.41 crores. Modern trade 3.59 crores, e commerce 5.3 crores and exports 80 lakhs.
Amit Agicha
So do you see this E commerce as a brand building channel or a material revenue driver over the next two to three years?
Naveen Gupta
I mean it’s both for us. Next financial year we will be doing on annualized we’ll be doing roughly 1517 crores from commerce. So that will translate a little less than 1% of our top line. So I mean it’s helpful indefinitely in brand building as well. We sell product at E commerce platform so it’s not price point product, it’s in house consumption product. So it helps us in brand building.
Amit Agicha
And the last question sir. So how does management balance the debt reduction versus growth capex post the fire recovery?
Naveen Gupta
Sorry, come again.
Amit Agicha
How does management balance the debt reduction versus growth capex post the fire recovery?
Naveen Gupta
So in terms of debt currently we. Have only working capital facilities. So we don’t have any term loan in our balance sheet currently. And in terms of capexes so post completion of the fire related capex we don’t see much of the capex majorly going forward. Capex is mainly would be either it would be profit margin improvement or would be some maintenance capex.
Amit Agicha
Thank you for answering my questions and all the best for the future. Thank you.
Rigan Raithatha
Thank you.
Naveen Gupta
Thank you.
operator
Thank you. The next question is from the line of Dharma Shah from Dalmas Capital Management. Please go ahead.
Dharmil Shah
Hi. Hi. Thank you for taking my questions. So first question is more on the Q4 commentary which you mentioned that it would be similar to Q3. In Q3 the Modusa plant was only operational for the December month. And despite it being operational for the Entire Quarter in Q4, why is it that it would be at similar levels at Q3? I mean are there any other challenges apart from manufacturing we are facing right now at distribution level or on the ground?
Naveen Gupta
There are no such challenges. As I stated that historically Q4 is always weaker versus Q3 to the tune of 4% to 10%. So we will definitely reverse that trend. Either we will do at par or it will be slight better than Q3.
Dharmil Shah
Okay, and the challenge you mentioned that you are increasing the salesman at ground level. How long would it take to normalize this challenge post fire? What you had mentioned.
Naveen Gupta
That’S an ongoing exercise. I started that exercise somewhere in May 25, but then we backed out because of operational challenges and we stopped that exercise in July. We have restarted that exercise now and in last couple of months we are able to add 200 more salesmen in Gujarat alone. And now roughly 24% of the beats are getting double coverage. So that, that, you know, procedural change is taking some time. And then there’s a behavioral change because how does retailer react to double service? How a distributor is able to manage the secondary distribution supplies when you know, bookings, booking frequency has gone from once in a week to twice in a week.
So overall, typically it takes 100 days to stabilize once we start, you know, double service in a particular market. But when I say it’s a gradual process. We have got 324 distributors right now in Gujarat. So already at 85 distributors we have full bids under, you know, double coverage. And roughly 45, 50 distributors are such where partial bids are under double coverage. So when I say gradual, so over a period of time we will bring 80 to 90% of our dealers and beats under double coverage. That will take overall, the whole thing will take one year to get stabilized.
Dharmil Shah
Got it. Got it. And. Initiated the marketing campaigns in November. I mean film fair was one TV ads. And because most of our portfolio is impulse category tilted, the impact should have been more. Right? I mean what are you seeing? The trend from the market.
Naveen Gupta
Was one of the events and we didn’t spend much money to amplify that event. However, our full blown communication started on 25th of January. Only just three days back. Only we have yet to assess. We are sure since I have my own previous experiences that when impulse category buying, low price, low involvement category or replaceable category kind of brand, you know, start the marketing campaign. Then how does core market react and how non core market react? So there are lot of curious distribution inquiry calls from known core markets. However, actual revenue, absolute revenue growth comes from core market.
Because non core you have to first respond to that distribution inquiry call and that the ratio of converting from inquiry to actual appointment is just 1.4%. So if we get 100 inquiries and only 1.4 distributor actually get get appointed advertisement.
Dharmil Shah
Understood. And for this core Market the marketing campaign would only be through TV ads or I mean are we tapping into social media as well?
Naveen Gupta
Social media, digital, hair, radio, hair out of home hair print, hair, tv.
Dharmil Shah
Okay, what is the budget that we have kept in mind? I mean to incorporate all of these campaigns?
Naveen Gupta
Eight crore. Eight crores budgeting.
Dharmil Shah
Got it. Got it. Last question. I mean if you see the organized player in the snacking segment, each company has got a, I mean hero product which is successful at pan India level. Not just very state specific, I mean buji or. Or is it wafer for some other company? Do you think Gatia can become a hero product in a long time because it’s a very community specific product so far. Do you think it’s possible maybe in next five to 10 years. And what would it take to do that?
Naveen Gupta
So I’ll request you to go through, you know slide number nine in our presentation. If you see Gatia contribution in FY23 from Core State was 76.4% and it is 69.3% as on date in Uttar Pradesh my current run rate is you know 6 crore rupees. Out of that 6 crore rupees, 72% contribution comes from just 2 SKUs of GAT. Similarly run rate is 2 and a half crore rupees. Out of that 2 and a half crore rupees revenue, 1.75 crore revenue is coming just from Gatia. So this is what I have been stating in my previous commentary that ownership is on us.
We are flag bearer of this category so we have to shoulder this responsibility. This is why a true marketing campaign was badly needed to make the product more visible nationally. We have just unveiled that campaign so we will certainly improve lot in distribution and marketing campaign will definitely help us in expanding our hero product category.
Dharmil Shah
Got it. Got it. That’s it. From my word. Thank you so much for answering. All the best.
Naveen Gupta
Thank you, Dharmil, bhai
operator
Thank you. The next question is from the line of Bhumin Shah from Equatorial Securities. Please go ahead.
Bhumin Shah
Yeah, Good afternoon. I have only one question. Across the category there is a delta between the revenue growth and the number of packets sold on a yoy basis as well as Q of Q business. So can you explain that if we have taken any price hike or behavioral changes are there and people are moving towards the higher grammar packet or high price point package.
Naveen Gupta
There is decline in number of packets. However in absolute metric terms the growth is 4% in volume terms. So consumer has overall eaten in more quantities. So we have not taken any price hike except in vapor segment. So we understand that in terms of packets there has been decline. But with. With various measures which I just stated. In my know on the previous question. We’ll recover on that part as well.
Bhumin Shah
Correct. So there is no change in the composition of rupees 510 or larger packs being sold. Because if I look at Gartia For QoQ there is 2% growth in terms of package sold. Whereas there is 10% growth in terms of revenue.
Naveen Gupta
Yeah. If we see the slide number 25. So we can see by price point now above 10 MRT contribution is 18%. Whereas 5 rupees price point contribution is 63.3%. And if we talk 3 years like somewhere 22, 23 years old, 5 rupees price point contribution was the tune of 80% in product basket of. Good.
Bhumin Shah
Okay. Okay. Thank you.
operator
Thank you. The next question is from the line of Shirish Pardeshi from Motilal Oswald. Please go ahead.
Shirish Pardeshi
Hi Naveen. Good afternoon.
Naveen Gupta
Good afternoon.
Shirish Pardeshi
Yeah, just on slide 22. Just extending the previous question. We have GST event coming up. That’s first part. Second, we have ramped up our facility and production. Third, last quarter we also said that we are building the contract manufacturing. So this question is specifically on the UPN the other markets I think the growth is picked up. But when I. When I do the math you said that the volume growth is 4% which is still lower. So I’m not able to consign. Because your volume grower packets growth is 0.9 for Gatia I’m talking about only specific organization.
Naveen Gupta
Just give me a moment.
Shirish Pardeshi
Yeah.
Naveen Gupta
We increase the grainage in price point packs. You know all five price point. You are giving 2122 grams. So now we are giving 2324 grams. So there is 6.6%. 6.6% volume growth in terms of metric ton. In five rupees SKU price point in terms of tonnage.
Shirish Pardeshi
Okay, but you said it was 4%. The volume growth metric tonnage growth was 4%
Naveen Gupta
overall 4%. But in 5 rupees price point it is 6.6%.
Shirish Pardeshi
And this could. What could be this number for specifically for gate in terms of tonnage growth. Volume growth.
Naveen Gupta
I will have to take. Just give me a moment.
Shirish Pardeshi
Okay. Maybe later on you can share. The second question is UP apparently is a very large market. And we also have a very positive view. Can you report the growth we are expecting in UP in terms of capacity expansion, in terms of distribution expansion and in terms of scale product portfolio.
Naveen Gupta
Right. So let me come to capacity expansion. We already commenced a third party operations in Kashipur three months back we are manufacturing just four SKUs there. Series 5 and these four SKUs eventually contribute more than 80% of our top line currently in Uttar Pradesh. So we have no dearth of capacity or no supply chain issues as of now in Uttar. So distributor earlier was getting stocks in three days from Nagpur. Now he is getting stocks either second day or either second day or third day maximum. Now coming to distribution expansion part. We have currently 110 distributors in Uttar Pradesh.
And the maximum number of distributors which we have aspired to grow is in Uttar Pradesh and the area surrounding to our Nagpur factory. We are. We are aspiring 180 plus distributors in this whole calendar by end of this whole calendar year in Uttar Pradesh.
Shirish Pardeshi
Okay.
Naveen Gupta
Concerned we. We are trying to work on efficient distribution model as well as efficient product baskets. So we do not intend to expand our product basket particularly in Uttar Pradesh market that will be purely need based and situation based. We. Whatever new distribution we are going to appoint in Uttar Pradesh we’ll keep them confined to a very limited number of scheme product baskets. So a regular salesman can cover more than 50 outlets per day instead of selling more number of SKU and discovering 40 outlets in a day.
Shirish Pardeshi
Okay. And on the Podasa you are. You said you are catching four categories. You started manufacturing or full range is started?
Naveen Gupta
No, not four categories, just four sku. Shirishbai.
Shirish Pardeshi
Modasa
Naveen Gupta
Sorry. Yeah, yeah.
Shirish Pardeshi
So Modasa how many categories started now. Manufacturing
Naveen Gupta
100 categories is getting manufactured in Madasa right now. Everything is
Shirish Pardeshi
okay. Okay. Got it.
Naveen Gupta
Everything except third party. There are four third party products like banana wafers we get manufactured from third party. Then there’s a Kaju biscuit and wafer biscuit which we get manufactured from third party. So except these items everything is getting manufactured in.
Shirish Pardeshi
So today Modasa will stabilize maybe about 50 60% capacity utilization in quarter four and March or it will be lower. I mean you are scaling up the operations. That’s why I’m asking this question.
Rigan Raithatha
So capacity utilization in the current quarter it was less obviously in the March quarter it should improve. So it should be in the range of around 50, 55.
Shirish Pardeshi
Okay. And this Rajkot will. By what time you will start getting the capacity utilization? Do you have any timelines you’ve charted out?
Naveen Gupta
So Rajput plant majority should get operationalized by the last week of March or probably by the mid of April. So that should start reflecting in the next.
Shirish Pardeshi
So all in all you are. You are very confident that you will match the revenue what you have achieved in FY25 and you will be recouping the margin because of the operational efficiencies. That’s what we should look at 26 or will be lower.
Rigan Raithatha
So in terms of top line, yes. We should be higher than the last year’s four years number. And in terms of margin full year in terms of EBITDA we should be around 7%.
Shirish Pardeshi
Okay. All right. Thank you and all the best.
Naveen Gupta
Thank you.
operator
Thank you. The next question is from the line of Sohan Samantha from Motilal Oswal. Please go ahead.
Soham Samanta
Thank you for the opportunity. So I just wanted to check on gross margin. In nine months we have done 27 and half. So how do you expect to close this for this year? Gross margin?
Naveen Gupta
Gross margin for the full year you are answering?
Soham Samanta
Yeah, for FY26.
Rigan Raithatha
So full year gross margin we would be around 27%. So in the Q4 we are expecting. To be in the similar lines of Q3.
Soham Samanta
So just hypothetical over here as you mentioned earlier that our EBITDA margin will be in the range of 8 to 9 for FY27. So earlier we used to do 11, 12, I mean two, three years ago used to do for, you know, on the range of 12%. So obviously for next 28 it’s not possible to go in that level. But if you, if someone, if Gobal snacks wants to go in that level particularly what are the key factors, you should look from 9% to 12%.
Rigan Raithatha
So one thing is so by 28, when you say 28, obviously we will be aiming to achieve that number. When we say next year when we are seeing 9% around and I say the quarterly, our exit rate would be near to double digit. So Obviously for the 27, 28 then double digit becomes the normalized EBITDA margin. So we should be reaching to that kind of inhibitor margin by 2017.
Soham Samanta
So in that case
Rigan Raithatha
You asked a question.
Soham Samanta
Yeah. So basically that’s why I’m asking what is the key factors from 9 to 12%.
Rigan Raithatha
So key factors 9 to 12% would be one, we would be as Naveenji said in the previous questions, we are improving our product basket mix. We are reducing the categories or we are cutting down the products wherein the lower margin or the very minimal margin was there. Instead of that we are introducing the high margin products. Secondly, once we will shift from fully from Bundal to the Rajput facility that should improve our operational efficiencies. Thirdly, our freight cost should also improve from the Modusa which we have said previously should benefit on a yearly basis somewhere around 8 to 10 crore of rupees share should translate around 0.5 to 0.6% margin.
Firstly the wherever long term agreements we have entered that should also improve our efficiency level. Because freight cost would reduce over there also. So these are the few parameters. And also we are introducing in terms of process efficiency everywhere the bio coal would be. So that also should improve our operational efficiency. We are coming with the basin plan at Rajput. So that should also improve by 0.2 0.3% of our EBITDA margins and so.
Naveen Gupta
On by not to forget then when we start incurring marketing expenses. So that gives us strength to take little more money from consumers pocket as well as from trade pocket.
Soham Samanta
Right? And last question from my side. Like if when to grow 15% over here. How do you look Namkin as a category? Is it a par with our code? If we expect 15% category growth at par or to be much lower or higher. How do you look the Namkin category.
Naveen Gupta
See Namkin The growth rate in a across category will be between 15 and 25% wafers we will aspire to do more. However our total wafer value base is lower. So it may be 30% in the range of 30%. So Gatia 20% and then you know frams is 20% vapor 30%. So numkins will be between 15 to 20%.
Soham Samanta
Got it. Got it Okay. Thank you Ravindji.
Naveen Gupta
Thank you Sombai.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Naveen Gupta
I would like to thank everyone for joining this call. I hope we have been able to respond to all your questions adequately. In case of any further information required. We request you to please get in. Touch with our investor relationship. Stay safe, stay healthy. And thank you once again for joining this call.
operator
Thank you on behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Naveen Gupta
Thank you everyone. It.