Gopal Snacks Limited (NSE:GOPAL), is a leading vertically integrated manufacturer of packaged snacks in India, offering a diverse product portfolio that includes gathiya, namkeen, wafers, and snack pellets across six manufacturing facilities.
The company has reported a period of steady progress for the quarter ended December 31, 2025 (Q3 FY2026), highlighting a continued recovery from disruptions caused by a fire at its Rajkot I facility in the previous year.
Key Financial Highlights
- The company achieved revenue from operations of ₹400.8 crore, representing a 6.7% sequential (QoQ) growth and a 1.8% year-on-year (YoY) increase. The most notable financial improvement was in profitability metrics.
- EBITDA surged 95.8% YoY to ₹30.4 crore, with EBITDA margins expanding to 7.6% from 6.4% in the previous quarter. This margin expansion was driven by cost optimization, production leverage, and the successful ramp-up of new facilities.
- Profit Before Tax (PBT), excluding exceptional items, grew by 152.7% YoY to ₹19.0 crore. While Profit After Tax (PAT) showed a 39.7% decline sequentially to ₹15.5 crore, this was primarily due to a high base in Q2 FY2026 which included a substantial ₹21.5 crore exceptional profit.
Strategic Growth Drivers and Capital Allocation
Management’s strategy is currently centered on restoring production capacity and deepening market penetration. A pivotal development is the Modasa facility, which has added 63,085 MT of installed capacity specifically for the Gathiya and Namkeen segments. This facility is now a cornerstone of GSL’s manufacturing base, resolving supply chain challenges and restoring capacity lost in the Rajkot fire.
Priorities
To drive volume, the company is prioritizing:
- Regional Expansion: GSL entered a third-party manufacturing arrangement in Manendragarh, Chhattisgarh, to support market reach. Sales in “Other States” (outside core regions) grew by 28.7% YoY.
- Distribution Efficiency: The company is deploying an Advanced Distribution Management System (DMS) and ERP systems to improve real-time visibility and reduce lead times. Currently, 881 active distributors are supported by 93 micro-distributors under a new SSD model aimed at untapped regions.
- Brand Visibility: GSL has increased its marketing spend to 1.9% of revenue, launching a digital TV campaign for its Gathiya brand and securing a partnership as the Official Snacks Partner for the Filmfare Awards 2025.
Industry and Macroeconomic Context
GSL operates within the highly competitive Indian packaged snacks industry, which is characterized by evolving consumer preferences and a shift toward organized retail. The company’s performance reflects a broader sector trend where volume growth is being driven by SKUs priced above ₹10, which for GSL grew 12.0% YoY this quarter.
Despite the lingering impact of the Rajkot fire on 9M FY2026 figures where revenue is down 4.5% compared to the previous year, the sequential recovery in Q3 suggests that GSL is successfully navigating the competitive landscape through vertical integration and a diversified portfolio including gathiya, namkeen, and snack pellets.