Mrs. Bectors Food Specialities Ltd (NSE: BECTORFOOD) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Anoop Bector — Managing Director
Manu Talwar — Chief Executive Officer
Analysts:
Unidentified Participant
Abneesh Roy — Analyst
Raj Patel — Analyst
Amit Purohit — Analyst
Sonia Keswani — Analyst
Harit Kapoor — Analyst
Akhil Parekh — Analyst
Shirish Pardeshi — Analyst
Bharat Gianani — Analyst
Amit Agarwal — Analyst
Presentation:
operator
Are joined to the conference. The conference is now being recorded. Sat sa. Sam. Ladies and gentlemen, the conference of Mrs. Beckter’s food specialties will begin shortly. Please stay connected. Ladies and gentlemen, the conference of Mrs. Beckter’s food specialties will begin shortly. Please stay connected. Thank you. Ladies and gentlemen, the conference of Mrs. Bactus Food Specialities Ltd. Will begin shortly. Please stay connected. Ladies and gentlemen, the conference of Mrs. Bacter’s Food Specialty Limited will begin shortly. Please stay connected. Thank you. Ladies and gentlemen. Good day and welcome to the Mrs. Bechte’s Food Specialties Limited Q4FY25 earnings conference call. As a reminder, all participant lines will remain 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 the operator by pressing Star than zero on your touchstone telephone. Please note that this conference is being recorded. I would now like to hand over the call to Mr. Anubh Bechter, managing Director for his opening remarks. Thank you. And over to you, sir.
Anoop Bector — Managing Director
Thank you. Good evening everyone. On behalf of Mrs. Bechter’s Food Specialties Ltd. I extend a warm welcome to all participants joining us for Q4.25 and FY25 financial results discussion call. Joining us today are Mr. Manu Talwar, our Chief Executive Officer. Mr. Suvir Vector, Whole Time Director and Mr. Praveen Kumar Goyal, full time Director. We are also pleased to have in time our Investor Relations Advisor with us on the call. I trust you have had the opportunity to review our investor presentation and press release which have been uploaded to the stock exchanges as well as our company website.
The company registered a 15.4% year on year increase in revenue for FY2425 compared to FY2324. Revenue for Q4FY25 grew by 9.8% over Q4FY24amidst continued urban slowdown further exaggerated by higher end prices to consumers due to sharp input costs being passed on has impacted the growth momentum. However, with the easing of interest rates and taxation relief provided by the Hon. Finance Minister in the budget, we are optimistic of gaining back momentum. Despite a challenging environment. Both our core businesses biscuits and bakery recorded steady and resilient growth. Rising input material cost exerted significant pressure on margins. We remain confident that the calibrated price actions that were initiated in November 2024 which shall get over in Q1.
26 will enable us in mitigating the impact of inflation in this financial year. In parallel, we continue to drive cost optimization through a focus on operational efficiencies in manufacturing and supply chain areas. On the demand side, we are encouraged by a steady recovery in rural consumption. We are also witnessing mild up trading within low MRP paths as consumers increasingly opt for higher value offering reflecting and improving value perception. Additionally, with the revision in the tax labs announced in the union budget, we anticipate an increase in disposable income, particularly in urban India. This should translate into stronger demand momentum.
Heading into FY26, we are pleased to share that our recent product innovations continue to gain strong acceptance in the market. Our focus remains on driving premiumization through differentiated offerings that deliver great value addition and align with evolving consumer preferences. In line with this strategy, under Biscuits, our new shortbread cookies made with 25% butter and no palm oil cater to the premium indulgence segment. In kids snacking category, we introduced animal shaped crackers under the brand Teddy’s with no cholesterol and no trans fats. The initial response has been encouraging and we are actively planning product extension under this platform.
Under English Oven, we are piloting under Ready to Eat segments with the launch of Muffins Brownie Chocolava with intent of making indulgence easy, a space we believe holds strong potential for growth. Launched to meet rising demand for healthier options, we launched Zero Meta Power appealing to wellness focused consumer and strengthening our health centric portfolio. Further on building a premium health focused portfolio, we launched Nature Baked a clean label health Forward range in Q1 26 with the positioning it is honest, it is clean, it is Nature Baked. Additionally, brand innovation initiatives are underway for select legacy products to line with contemporary taste and packaging trends.
Looking ahead, we have a robust innovation pipeline with several exciting launches planned that reinforce our commitment to quality, health and consumer delight. Performance of our export portfolios continue to be strong, further reinforcing our position as a trusted partner to leading international chains. However, towards the end of Q4, the announcement of potential tariff changes introduced a degree of uncertainty in the external environment. Despite this, we remain confident in the strength of our global partnerships and our ability to navigate market dynamics while maintaining growth momentum. Q Commerce continues to perform well, especially with newer product formats gaining traction.
To capitalize on Q Commerce momentum, we are partnering with major brands focusing on rapid innovation, launching impulse friendly SKUs and ensuring agile supply chains with city level inventory planning. On the traditional trade fund, we remain focused on expanding our distribution footprint, ensuring calibrated manpower deployment for sustainable growth. On the technology and digitization front, we have made a significant progress across functions we are undertaking a complete revamp of our IT infrastructure with a key focus on upgrading our core ERP system supported by AI and ML integration to drive smarter, faster and more connected operations in sales and distribution.
We have further strengthened the option of our distribution management system driving greater visibility and control. We are also focusing on digitizing our manufacturing and supply chain operations which will strengthen our process and improve our delivery, the result of which we expect to see and reap in the coming financial years. We remain firmly committed to our capex roadmap. In May 2025 we commenced operations at our indoor facility. This enhances our manufacturing capability especially for differentiated products and plays a pivotal role in our growth strategy. For exports, the location offers proximity to ports enabling smoother outbound logistics.
On the domestic front, it strengthens our supply chain by improving regional serviceability, enabling faster route to market, reducing logistic cost, all contributing to our ambition of building a strong Pan India presence. On the bakery side, we are equally focused on expanding our footprint. We are progressing well with two key projects, the new bakery facilities in Calcutta and Maharashtra. These developments are strategically aligned with our vision to make English Oven a truly Pan India brand. They will also enable us to serve QSRs and business partners that are currently beyond our reach due to supply constraints. These additions increase our nationwide servicing capabilities and enhance our competitiveness.
Before we move on to our financial performance for the quarter, I am pleased to share that the Board has recommended a final dividend of INR Rupees three per equity share subject to approval of the shareholders at the upcoming AGM of the company. Financial Performance Starting with biscuit, our biscuit segment revenue stood at 257 crores against 240 crores in Q4FY24 registering a growth of 7% compared to Q4FY24 including divesting and export Biscuit segment, the biscuit segment has grown by 26% compared to Q4FY23. Bakery segment revenue stood at 179 crore against 151 crores in Q4FY24 registering a growth of 19% compared to Q4FY24.
Including retail, bakery and institutional segment, the bakery segment has grown by 40% compared to Q4FY23. The consolidated revenues for the current quarter stood at INR 446.1 crores versus INR 406.4 crores in Q4FY24 thus registering a growth of 9.8% on a year. On year basis, EBITDA stood at INR 55.6 crore. The EBITDA margin for the quarter stood at 12.5%. PAT stood at INR 34.3 crores for the quarter registering a growth of 2% on a year. On year Basis, PAT margins for Q4FY25 stood at 7.7%. Moving to FY25 financial performance. The consolidated revenues for FY25 stood at INR 1,873.9 crore versus INR 1,623.9 crores in FY24 thus registering a growth of 15.4%.
EBITDA for FY25 stood at INR 251.5 crores versus INR 242.4 crores in FY 24 thus registering a growth of 3.7% with an EBITDA margin of 13.4%. PAD for FY25 student INR 143.2 crores as compared to INR 140.4 crore with a PAT margin of 7.6%. With this I request you to open the floor for questions and answers. Thank you so much.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, 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 their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Abneesh Roy from Nuvama Wealth Management Ltd. Please go ahead.
Abneesh Roy
Yeah, thanks for the opportunity. My first question is on the raw material side wheat crop is at a multi year high and even palm oil today we have seen from May 31st duty cut of 10% and USD terms also palm oil has corrected. So my specific question is in biscuits B2C do you see a good margin expansion starting Q2 and any chance of any price cut or grammage increase which can partly take away this benefit.
Anoop Bector
So currently you know we are you know under under the process of taking down the price rises what we had initiated in the last price rise which will which is getting completed in this quarter and going forward. On the raw material side we definitely see we believe in long contracts and on the wheat side our company faced a very less inflation in the last year. So in this year also our contracts have been long contracts but however the government of India keeps increasing prices. There has been a price increase in the wheat side by 150 rupees and that is the corresponding price increase which we shall be facing in the market.
On the palm oil side we. You are absolutely right. The prices are also subdued and along with that There is a 10% duty card which has just come in so which will start hitting us, you know, giving us the benefit completely by, you know, partially in the quarter two and then on the quarter three basis. So considerably considering we should be more positive than what we are today. And you know the margin expansion is not going to be that large that it enables companies to start passing down discounts at the moment what we feel what it looks like because there has been some inflation in the sugar side but these costs are now well covered under whatever price rises that happened.
I think we shall get into a more comfortable position.
Abneesh Roy
Two follow ups there. One is palm oil in the B2C biscuits. Will it be say around 20% of the RM basket and second follow up is on wheat. Is most of the wheat for you. The buying price is locked in already. You did say long term contracts and is it a multi month buying or most of the buying contract at least is frozen so that.
Anoop Bector
We end up, you know this has been a practice with Mrs. Becktor. We end up doing long contracts which are where we would cover around 75 to 80% of the material depending on, on the quality of the flour we need because for particular varieties especially on the bakery side we need very particular quality. So what we are doing is when the contracts are happening they are happening at the best prices. That’s what our bigger competitors would also be doing because that’s the time when the, when the contracts are entered. There is a time when wheat is at its lowest, you know, so, so you know what we like is more you know, a planned purchase than you know, getting facing any erratic decisions.
Right coming in. So in any case you know because the buying has happened in the month of April and May when the crop comes in so it’s the best, best buying. So on the palm oil I’ll really not be able because different risks have different consumptions of palm oil. But averagely 17 to 20% is consumed between the biscuit side and there will be some benefits coming in over there.
Abneesh Roy
Very useful. Last question on FY26 outlook. Almost all staples companies have been positive versus FY25 demand in your markets in again B2C biscuits. How do you see the demand side and any comment on market share?
Unidentified Speaker
So just to brief you on the especially on the biscuit side demand. So from the quarter four we have Started seeing a positive trend. And so we are building on that positive trend of growth. So growths are better than what it was in the first 3/4 of financial year 25. So the growth trajectory is there and it’s kind of started building it up. So that’s on the kind of a growth side of the biscuit domestic markets.
Abneesh Roy
Any guidance you want to Give for the B2C bear, part of the business.
Unidentified Speaker
Revenue growth on a B2C side is the business of Biscuit and Beefy together. We have a guidance that for this year, what it looks like, B2C business, we will be growing kind of a mid to low to mid teens kind of stuff. That’s what is visible now on an annualized basis.
Abneesh Roy
More back, back ended. First half will be a bit slower.
Unidentified Speaker
No, it will. Yeah, it will be. More back ended. Yeah, first half will be. Yes, thanks.
Abneesh Roy
That’s all from my side. Thank you.
Unidentified Speaker
Thank you.
operator
Thank you. The next question comes from the line of Raj Patel from RK Securities. Please go ahead. Raj, if you can please unmute your line and ask your question.
Raj Patel
Hello. Am I audible?
Anoop Bector
Yeah, you are.
Raj Patel
Okay. So what does the innovation pipeline for FY26 look like and can we expect more health forward or indulgent based launches?
Manu Talwar
Yeah. So if you would have heard the speech by the managing director, refer to some of the differentiated product launch. Right. Which we have done. And so whether it is 80s for the case or whether it’s a shortbread and there are few more lined up. So probably in the next three to six months time on a brisket site you will see further differentiated product launches. Hello. On a English homeowner side, again, as it was highlighted in the speech that we have launched a health branch.
It’s a new brand called Nature Bay and we want to build up that brand and different products under the brand alongside that. As in the last two, three years we build up a frozen product business and we were doing, we are doing that business and we have built up that business well with B2B where we enhance on B2B. So as a pilot, we have launched few products under the frozen category in English oven on a B2C side. And the objective will be to also start building that up as we see the results on that side.
So there is a fairly strong pipeline this year both for biscuit and bakery and also primarily on a differentiated product side. They are especially. We have clearly decided that we will stay away while our innovation bucket over the next few years we will stay more on a differentiated product rather than V2 product rather our new indoor biscuit plant which got commissioned in the May last month. So that is further strengthening our differentiated product portfolio both for domestic market as well as international market. So a lot of focus over the next 18 to 24 months to build a variety of new products which are differentiated.
Raj Patel
Okay, and last question from my side. So what is the expected contribution of the new indoor facility to domestic and export operations in FY26?
Manu Talwar
You see domestic, the indoor facility which we the plant got commissioned as a capacity of annually of 21,000 tons. Right. And it brings us closer to the port as well as it helps us servicing the geography of West India from there and central India in a much more efficient manner. So we will be using this capacity close to full. So it will gradually build up because it is a new plant. But objective is to maximize the use of this capacity.
Raj Patel
Okay, thank you. That was all from my side.
Manu Talwar
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and 1. The next question comes from the line of Amit Purohit from Ilara Capital. Please go ahead.
Amit Purohit
Yeah, thank you for the opportunity. Sir. Just on the growth rates, if you could provide some insights on the export either on a full year basis or for the quarter how it would have been for the biscuit business during the quarter and full year.
Manu Talwar
So on the export side first Amit, as all of us aware that over the last three years or four years export has been growing exceptionally exponentially. Right. Yeah. So there are some tailwinds which came in quarter four and quarter one. Right. Which are there but on an annualized basis. Very confident that in exports we should be able to grow mid teens kind of growth in this financial year. As far as domestic discrete are concerned, I would say that growth quarter four of financial year 25 and quarter it has. Growth has started building up and on an annualized and I see as inflation has come under very good control, interest rates have started coming down.
So what we were expecting in the very last year we should definitely expect now that this change of growth should clearly build up much better as we start hitting the festive season from August onwards. Right. And on a full year basis again I expect mid to low to mid teen kind of growth on a devastated size. And that’s what we are endeavoring. Yes, first half as I replied in the previous question to Raj that it will be a slow buildup but yes, there’ll be more weight on the H2 of this financial data.
Amit Purohit
So you’re saying H2 probably would see a good double Digit kind of a growth in the domestic biscuit business. And that is how one should read. Or saying
Manu Talwar
as well as domestic as well as on the export side. Yeah.
Amit Purohit
So just to clarify, sir, sorry, but you’re saying the double digit growth would be visible in the H2 part of it or. You said full year FY20F
Manu Talwar
basis. Okay, what I said, in the full year basis we can expect domestic biscuits, the low teens kind of growth and export will be somewhere around mid teens kind of.
Amit Purohit
Sure, sure. And for the full year FY25, is it fair to assume that domestic would have been a mid single digit growth in value terms or.
Manu Talwar
Yes, yes.
Amit Purohit
Okay, okay, okay, okay. And sir, just on this indoor facility which we have started, and when do you think that the utilization levels? Maybe in Q3, Q4. How does this ramp it up to like 50, 70% utilization.
Manu Talwar
We will be hitting 50% to 70% range of utilization in just about next 50 to 60 days time, not later than that.
Amit Purohit
Okay. And this clearly would have a benefit on two counts. One, you would be able to better service this west region and central part of the region. And the second is obviously on the cost side, the freight cost would be lower, right?
Manu Talwar
Yes, yes, yeah.
Anoop Bector
On the other side, it is also a line, you know, which can produce very different types of biscuits. So the premiumization will also start playing in. But the premiumization, what we are doing, we already developed the products. We are going to be introducing these products into the market initially in the export market. And so, you know, so there are three benefits. One is the transportation logistics. Then we do have NPD possibility which is now getting exponential. Right. I mean, because every biscuit plant cannot produce, you know, the required NPD what we are aspiring. So the indoor line does have that capability to give us a lot of new biscuits for the market.
But it is going to be, it’s a little come in time, you know, so it can’t come in immediately. So there would be a time of three to three months or a quarter or a quarter and a half, you know, where things will actually start flowing in very fast.
Amit Purohit
Okay. And the health foray, it is largely on the biscuit side. Sorry, I could not understand that part that you talked about.
Anoop Bector
No, the health foray is overall, I mean we, whatever we produce, a fraction of our production is going to be health. Where we are talking on the biscuit side on, you know, atta, you know, replacing mather with ATTA in certain products, you know, in the bakery side, like we said, we are bringing in lot of atta Products, you know, where customer feels more comfortable, you know, eating it. And then we’ve launched a clean label product which is without chemicals, you know, it’s absolutely clean. This clean label brand is called Nature Baked. So it is, it is showing positive results.
And this Nature Baked just come in I think probably a month back. So it’s very, very initial but it is doing well and that’s the need of the hour that you know we produce products which are absolutely clean. You know this it avoids palm oil, it avoids chemicals. So it’s like eating a homemade food.
Amit Purohit
Bakery side. Right. Sorry,
Manu Talwar
I’m explaining in both sides. So Short Door, which is a very new innovative product which we launched on the E Com channel, it comes with no palm oil. Right. And similarly we launched the Atta Power as well as we launched kulcha which is 100% atta. So this health journey will continue to build on both sides. Yes, we have done much faster actions on the bakery side where the adoption by the consumer is much fast paced as compared to biscuits. But biscuits also we have started doing and there are a few more things lined up over the next 90 days.
Manu Talwar
Sure. And anything on the margin outlook sir for next year given the now changes in input duty, what do you think would it be now a bit more earlier last quarter you called out, I mean probably Q1 post Q1 in other words you would see normalization of margins. You stand the similar guidance.
Manu Talwar
So Amit, what I see it will, it may take almost H1 by the time the normalization of kind of margins happens for us. Right. It will start getting better but it’ll take about six to nine months. It’ll be almost that kind of period as of now. It’ll take that time because there are few reasons for that. The reasons, yes the good news on custom duty cut on the palm oil will definitely kind of help us. But you we always been maintaining and as you heard in the speech also we were taking very calibrated price increase.
We were not taking price increase in a kind of a mode that we just need to cover all the cost because we also need to keep the consumer in mind. Right. So with these calibrated price increases we knew that you know we will be able to cover so much of margin because of those prices and there is something which will come through cost efficiency or any other positive impact on the commodity side. So yes, it will take about six to nine months time as it looks like now for us to get into the full margin recovery.
Amit Purohit
So for FY 2613 to 14% range is a fair estimate, right?
Manu Talwar
Our endeavor is that. Absolutely. Our endeavor is that we kind of achieve that on a full year. Full year basis.
Amit Purohit
Sure. Thank you so much, sir. Thank you. All the best.
operator
Thank you. The next question comes from the line of Sonia Keswani from Nijan Wealth. Please go ahead.
Sonia Keswani
Hello. Am I audible? Yeah. Thank you for the opportunity. So I had a couple of questions on the working capital front. If I see the debtor days have largely remained constant year on year, but they had increased significantly in FY24. And the reason for that was the Red Sea issue that happened. So right now, if given the better levels for FY25 are largely similar to FY24. And if I assume export grew much faster than domestic, has that issue normalized or has it improved in any sense? Any color on that.
Manu Talwar
So first thing is export. In terms of overall data, in terms of number of days, we have improved over 24 by 10%. Right. And red Sea issue still persist. It has not gone away. It still persists. So that challenge is still there with us. But yes, it has reduced a little bit. Not much. But just to clarify that our data days has improved by 10% over financial year 24 in 25.
Sonia Keswani
Okay. So that improvement in better days has come on the export front also.
Anoop Bector
Marginally. Marginally, yeah.
Sonia Keswani
Okay. And can you give, can you give me a rough percentage of how much exports would be as a percentage of our total revenue?
Manu Talwar
We normally don’t share. We share biscuit segment and bakery segment. Right. So please excuse me from that. As of now we have not started sharing. We share only up to the biscuit segment and the bakery segment.
Sonia Keswani
Got it. No problem. The other question was on inventory. It has increased by over 300 crores year on year and even the inventory days have shot up. What is the reason behind that?
Anoop Bector
So 300. Would 300 crores be right for the many cr. Pardon?
Sonia Keswani
30 crores, I suppose. Sorry, I think 300 million. Yeah, right.
Anoop Bector
Sorry. Yes. So our better days have gone up marginally by 10% again over last financial year. And it randy happened on account of some additional FGE inventory being built up. Got built up in the month of March, but that’s being utilized in the first quarter. So it should get back to the same level as FY24 by June end.
Sonia Keswani
Okay, sure. Got it. And my last question was on the bakery segment. So this 20 growth that came in, in Q4 and if I see one second. Yeah, so and it was 18 on the year on year perspective in FY25. So which segment, if you can help me understand which segment was the key growth driver in terms of institutional and. English urban brand of yours
Manu Talwar
last financial year? Both grew well. So both B2B business, English owned business, both have grown very, very well into B2B segment. I would like to just highlight that as I was saying earlier, that over last two, three years we started building up a frozen business, right. And this frozen business, both on the sweet and the savory side, has really shown a good traction over the years. So last year, last part of very aggressive growth and very good growth which we saw on a frozen side. Right. And which has driven, as we all know, qsr still the growths, the growths are there, but still they still to come back to their previous level of good growth. But frozen business has grown extremely well on the last financial year, which was a very high double digit growth.
Sonia Keswani
Okay. And is the, apart from the frozen segment, the QSR segment that you said is yet to come back. So is it growing in low single digit or how is it, how is the number like.
Manu Talwar
No, no. So yes, they are just small loads, double digit for the last financial year on the revenue side. Yeah.
Sonia Keswani
Okay. Okay. Yeah, that’s. That’s about it. Thank you so much.
Manu Talwar
Thanks. Thanks Somia.
operator
Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and 1. The next question comes from the line of Harith Kapoor from investech. Please go ahead.
Harit Kapoor
So I just wanted to check on this innovation side. If you look at this quarter, this last quarter, you’ve seen a bunch of new things that have happened driven partly also by the quick commerce proliferation. Seems like 26 would be a year of significantly higher inflation given the number of things you guys are planning. Just wanted to get your sense on, do you think this can be a material driver for domestic growth both for biscuits and breads this year around especially FY26? Because it seems like you have a bunch of things in pipeline along with the fact that your capex expansion is also happening. Just wanted to get a bit of color because it seems like it’s a bunch of exciting new things. So just your thoughts on it?
Manu Talwar
Yeah, so very right, Harith. We have pressed the pedal for the new products and differentiated products both for the biscuits and the bakery side. And we have done few launches over the last few months and we will be building it up very, very aggressively over the next 9 12, 15 months to come. Will they start contributing in the financial year 26 itself substantially? Because any new product takes time to kind of build up in Terms of revenue cycle.
So. But yes, for the future perspective these are differentiated. These are new product where we are finally taking a route of Quickcom Ecom and our Krimika preferred outlets on the biscuit side. And similarly the same way we are taking root of Vicom and also general trade in the English own side. But yes, we are betting a lot and as I said earlier that on the biscuit specially be very clear that we won’t be launching MeToo products. Our all launches will be differentiated products as we have just done with two, three products in the last 90 days.
And we will build up that the buildup will take some time. The build up resulting in a huge revision this financial year itself may not happen. But yes, over the next few financial years they should create a differentiation and revenue growth digit reforms.
Harit Kapoor
Fantastic. And the second was on distributions specifically on biscuits and bread domestic distribution. If you could just highlight for this year is the plan a slower rate of growth in distribution number of outlets both on biscuits and breads. This pace of expansion this year is the focus more innovation, less distribution exposure and just a little bit sense of distribution.
Manu Talwar
So you know, whenever I’m attract I point out one thing. The objective of distribution always has been to increase the customer reach, right? And what has dynamically changed over the last two, three years is that E Comm. Especially Goodcom has been able to demonstrate a much faster reach to the consumers. And consumers also are enjoying the speed of delivery and ramping up on the Quickcom platforms. And we see the Quickcom platforms kind of really kind of taking off. So from our focus point of view, the first thing is Englishwoman side B has done extremely well on the Quitcom side.
And we were ahead of the industry curve and we have created a good market share there and we continue to maintain the lead there. So on a quick comp side the contribution in English oven is almost is over 25%. Right? And we continue to build and increase quarter on quarter. Similarly on the biscuit side we in our plan we have put long date on the driving the growth through the E Comm. Right? And all these differentiated products we just spoke about was to build ride on the E Com Because E Com are the consumers which want to try they relish the differentiated products so long it is going to drive our reach through quick come even on the biscuit side we have a very aggressive plans to grow almost few X times on the quickcom side in the biscuit alongside we are playing on more weighted approach.
What do I mean by weighted approach is that CPO the premise of preference outlet has done extremely well for us. If you look at 23, 24 we were on four and a half thousand last year we ended around 7,000 and they started contributing a fair amount of contribution to our business. So a lot of focus is going on CPO and further driving them Again we have a plan of growing CPO outlook for almost 40% in this financial year. So these are the two approaches we are taking to drive the reach consumer reach in both biscuit and bakery side.
In a bakery side I would just add that we will be now entering Calcutta. Another 23 months time Calcutta will be ready to expansion. So we will start getting into eastern side of the market and similarly Kapoli plant half of the plant getting ready in September in the balance half in Jan. We will have the capacity to expand much faster in the territory which comes within 250 300km. So a lot of other parts of Maharashtra which are urban and strong Maharashtra we would be expanding there and maybe some other side of the west also. So that’s also I just thought uses opportunity to brief you in terms of driving the reach.
Harit Kapoor
Great, thank you. Wish you all the best.
operator
Thank you. The next question comes from the line of Akhil Parekh from from BNK Securities. Please go ahead.
Akhil Parekh
Hi. Thanks for the opportunity. So my first question from the QSR. Side of the business. Would you be able to highlight what. Is the salience of QSR segment to. Us and are we seeing now any improvement in QSR for first two months of FY26? That’s my first question.
Anoop Bector
So I think that what we clearly see that all QSR partners we remain very committed to investing, opening new stores and driving the business towards a growth side. And so yes there are some signs of improvement but we’ll have to look at some more. Look at for some more quarters in terms of trend of growth on the QSA side. And yes, so the partners are committing, they are opening new stores, they are driving the growth and I’m sure growth will get back to the earlier levels in a strong double digit. Last year we have grown our revenues in double digit.
Akhil Parekh
Okay. And salience of the business if you can highlight that
Anoop Bector
same for the
Akhil Parekh
QSR business how big it is for us. If you can highlight.
Anoop Bector
So our B2B business on the bakery side is approximately 11 to 12% of our.
Akhil Parekh
Okay. My second question is what is the potential sales possible from the indoor facility at the peak capacity utilization.
Manu Talwar
So the all the capacity which we have added including the Kapoli which will can get Commissioned in this financial year. And there is the current copoli plant will move to some other place. We should expect on a full use, a full utilization basis. Revenue on current prices can be close to 3400 crores.
Manu Talwar
So this is for combined three facilities you said. Sorry, I didn’t get it. Indore, Kopoli and.
Manu Talwar
All facilities. Yes. Yes, you’re right. With these all three facilities coming in, Indore has already come in and Kapoli and Calcutta also coming in. And the today current plant which we have in Kapoli which will get relocated to some other territory. So taking all that into account.
Akhil Parekh
Sure. And last question on the capex side. Is it fair to assume now our Capex cycle will go over for at least next two years and we’ll have only maintenance capex starting from the second quarter of FY26.
Manu Talwar
So CapEx because we have a lot of WIP in Capex. Whatever projects we started Capoli will complete this year. Indore got commissioned this year, right? In the FY26 Kapoli will also get commissioned FY26. Calcutta. So our capex cycle would start coming down considerably from FY27.
Akhil Parekh
Okay, that’s all from my side and best luck. Thank you very much.
Shirish Pardeshi
Thank you. The next question comes from the line of Shirish Paradeshi from Motilal OSOL Financial services. Please go ahead.
Manu Talwar
Yeah. Hi Manusar Anup. Good evening. Thanks for the opportunity. This quick question, if you can spell out for FY25 what is the volume contribution for the export business and what is the total volume growth we have achieved in FY25?
Shirish Pardeshi
So other than a copac business our volume growth in F5. Just give me a minute. In a FY25 our volume growth was in in single digit, right? It was a high single digit kind of volume growth both in this.
Shirish Pardeshi
And what is the entire volume contribution from exports for FY25? I forgot biscuits.
Manu Talwar
I’m talking about biscuits for biscuit revenue growth.
Shirish Pardeshi
Volume, volume.
Manu Talwar
Volume contribution will be difficult for me. Because we look at biscuits and tons and we look at bakery pieces.
Shirish Pardeshi
That’s what I asking. Biscuit volume.
Manu Talwar
Biscuit volume contribution to what?
Shirish Pardeshi
To the overall volume. What we have achieved in FY25.
Manu Talwar
That’s why I’m saying both doesn’t have this case.
Shirish Pardeshi
I’m asking.
Manu Talwar
Oh okay. You are asking what is the contribution of domestic and biscuits, right? You’re saying.
Shirish Pardeshi
No, if we have done the volume for biscuits is 100. What is the export contribution to that hundred? I’m only talking about Biscuit as a segment.
Manu Talwar
Yeah. So it’s, it’s a. It’s a 50, 50 to 53% kind of range.
Shirish Pardeshi
Okay. And just one follow up here. What is the gross margin we would have achieved in FY25 on the export biscuit business?
Manu Talwar
We don’t share segment wise gross margin. Right. We share overall which is given on the financials.
Shirish Pardeshi
Okay. The last question on the. Do we have any particular contribution to be achieved in FY26 from the new product segment?
Manu Talwar
Yes. So we are targeting to get close to 5% of our revenue. That’s our target. So we want to get close to 5% of our revenue contribution coming out of NPD.
Shirish Pardeshi
And this you will achieve with the existing product which is already launched.
Manu Talwar
Yes, the products which are launched and they will be launched. Right. This is for the financial year 26.
Shirish Pardeshi
Okay. All right. Thank you and all the best.
Manu Talwar
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and 1. The next question comes from the line of Bharat from moneycontrol Pro. Please go ahead.
Bharat Gianani
Yeah, thanks for the opportunity. Sir, can you provide growth outlook for the bakery business for the current year?
Anoop Bector
The bakery business for the current financial year 26. We expect it to grow somewhere mid to high teens. Okay sir, thanks and all the best.
Amit Purohit
Thank you.
operator
Thank you. The next question comes from the line of Amit Agarwal from Kotak Securities. Please go ahead.
Amit Agarwal
Good evening, sir. So my question pertains to raw material prices. Britannia and its latest call mentioned that currently experiencing commodity tailwinds. So are we experiencing the same?
Manu Talwar
Yeah. So commodity prices, there is soft of commodity prices at number of places but at certain areas commodity prices are still strong. Milk is not, you know, milk is higher than last year and cocoa is still rules strong. But yes, there has been softening in prices of palm oil which forms a considerable part of the, you know, inflation for our sort of product. And there is a softening in that. And also just two days back we have seen some price reductions which will come in in the form of custom duty reduction. So I mean if you look at in that perspective, yes, there is a softening of prices.
Amit Agarwal
So can we expect our margins to improve only because of softening of raw material prices going forward?
Manu Talwar
So there would be some impact. Now what are the matters is too soon to, you know, really call for it because I mean the reduction in port duty has just happened two days back. So we are also seeing, you know what is going to be the impact. But there will be some positive impact.
Amit Agarwal
On this and Q3 call. We have mentioned that we will see improvement in operating margin trajectory from Q1 of FY26. So are we on track to achieve that?
Manu Talwar
Pardon? Come again? Sorry Amit.
Amit Agarwal
Q3 we had mentioned that Q1 FY26 we will see margins improving for the company. Currently we are at around 12.5. So we did a margin of around 14.5 15 in the past. So are we on track to get back to that old level?
Manu Talwar
So not in Q1. I just answered before. Also when Amit from Elara asked that as of now the visibility is that it will take bulk almost up to end of the quarter three. We should be able to neutralize our margin and get back to the earlier margins.
Amit Agarwal
Any guidance on the volume front? Like since we are an expanding company, we were primarily present in NCR earlier. Now we are expanding to West East. So our volumes have grown at around high single digits. So can we see this to grow in double digits going forward?
Manu Talwar
As of now our volume projections also same bottom line. To grow high single digit and get close to double digit volume growth. Right. And that’s the plan?
Amit Agarwal
No sir. Because west will start contributing because of the copoli plant contributing. And even you mentioned that Q2 we will see even East Calcutta starting to. Isn’t that adding up to the volumes?
Manu Talwar
Calcutta will start adding from Q2 to the volumes. But Calcutta is an absolutely new market for us. For English. Okay. And so that market will take some time to kind of build up. We have. We will be introducing the English oven brand to the eastern side of market. Especially Calcutta to start with. And the ramp up will take few quarters to do that.
Amit Agarwal
Volume more or less will remain same what we experience in FY25.
Manu Talwar
I’m talking in terms of growth. Yes. We are aiming to grow double digit volume growth and this financial year. So that’s endeavor.
Amit Agarwal
Okay. Okay. Fine. Thank you.
Manu Talwar
Thanks.
Amit Agarwal
Yeah.
operator
Thank you. We take the next question from the line of Gaurav Gandhi from Glory Tail Capital Management. Please go ahead.
Unidentified Participant
Yeah. Thanks for the opportunity. Just one question, sir. As of now we don’t see much presence of Cremica brand biscuits on the. Shelves of modern retail chains or quick. Commerce platforms at least in Maharashtra. So as the new facility at Dhar has commissioned. What’s the plan to improve the presence in these areas?
Manu Talwar
Yeah. So with Dhar facility coming suddenly our reach into the west region, Maharashtra, Gujarat gets stronger. And the objective is to drive our presence both in empty channel as well as E Com quick com channel in a much faster pace. And central India also. Thank you.
operator
Thank you. Ladies and gentlemen, in the interest of time. That was the last question. I now hand the conference over to the management for their closing comments.
Anoop Bector
Thank you everyone for joining us. I hope we have been able to answer all your queries. In case you have any further details, you may please contact us or must in time. Our investor relation partner. Thank you so much.
operator
Thank you. On behalf of Mrs. Bechter’s Food Specialties Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.