Gopal Snacks navigates fire disruption with strategic growth outlook in FY25

Gopal Snacks Limited (BSE: 544140, NSE: GOPAL), one of India’s major players in the packaged food industry, reported its audited financial results for the quarter and financial year ended 31 March 2025, highlighting a mixed performance shaped by both operational resilience and unforeseen disruption. On 23 May 2025, shares of Gopal Snacks Limited closed at ₹291.20, down 1.07% from the previous session, reflecting subdued market sentiment amid a fire-induced loss in Q4 and a challenging macro environment for FMCG companies.

What Were the Key Financial Results of Gopal Snacks for FY25?

For the full year FY2025, Gopal Snacks posted a revenue from operations of ₹1,468 crore, registering a modest growth of 5% year-over-year. Despite the revenue uptick, profitability came under pressure with EBITDA standing at ₹105.2 crore, reflecting a margin of 7.2%. The company reported a profit before tax of ₹74.2 crore before exceptional items. However, a one-time exceptional loss of ₹47.2 crore due to a fire incident at its Rajkot plant significantly impacted the bottom line, leading to a net profit after tax of just ₹19 crore for the year. Diluted earnings per share for FY25 stood at ₹1.50.

The gross margin for FY25 was recorded at 25%, signalling ongoing cost pressures and potentially weaker pricing power in the face of inflationary raw material inputs, especially within the palm oil and packaging cost segments.

How Did the Business Segments Perform?

In terms of segment performance, the wafer category emerged as a standout with a 41.1% year-over-year revenue growth, now contributing 11.3% to the company’s overall sales. Gathiya, which continues to be a flagship category for Gopal Snacks, grew at 3.1% YoY and represented 27.2% of revenue. On the other hand, the namkeen category—a traditionally high-margin segment—saw a revenue decline of 3.7% and now comprises 25.3% of total sales.

Pellets and extruded snacks experienced a 9.1% YoY decline, potentially pointing to weaker demand traction in rural or price-sensitive markets. Other snacks and diversified products saw a healthy 12.6% increase in revenue contribution, highlighting the company’s focus on portfolio diversification.

What Caused the Q4 FY25 Decline in Profitability?

The fourth quarter of FY25 was marred by a significant fire accident at the Rajkot facility, resulting in an exceptional loss of ₹47.2 crore. This disruption led to Q4 revenues of ₹317.5 crore and a dismal EBITDA of ₹2 crore, translating to a margin of just 0.6%. The company registered a Q4 net loss of ₹39.5 crore due to this event. Nevertheless, an insurance claim process is underway, and the company has assured that the loss is expected to be recouped following the reinstatement process.

Operationally, the company’s new Gondal plant helped restore supply chain continuity and facilitated the complete exit from third-party manufacturing, thereby improving cost controls and operational command. The existing Modasa and Nagpur plants functioned optimally to manage production load during the crisis.

What Are Gopal Snacks’ Expansion Plans for FY26?

Looking ahead, Gopal Snacks is pushing forward with strategic capacity expansion. The ongoing expansion of the Modasa facility is on track and is expected to be completed by early Q2 FY26. This is aimed at strengthening penetration into non-Saurashtra regions—an area where Gopal Snacks seeks to boost its market share.

The company also added over 180 new distributors during FY25, pointing to a deliberate thrust on expanding its distribution footprint. Marketing initiatives are being recalibrated to drive brand visibility, with a renewed focus on both urban and semi-urban markets.

Moreover, Gopal Snacks has committed to product innovation, aligning its offerings with evolving consumer preferences. Investments in process improvements, quality enhancement, and targeted campaigns are expected to support growth across diverse customer segments.

How Is the Stock Performing and What Is Market Sentiment?

On the trading front, Gopal Snacks’ stock witnessed a slight decline of ₹3.15 (–1.07%) on 23 May 2025, closing at ₹291.20. The stock had opened higher at ₹296.95 but faced selling pressure, with the day’s low touching ₹288.65. Volume traded stood at 1.19 lakh shares, translating to a traded value of ₹3.48 crore. The stock is trading at an adjusted P/E ratio of 43.35, which suggests rich valuation compared to sector peers, especially given the temporary earnings dent due to the fire.

The stock remains significantly off its 52-week high of ₹520 (recorded on 6 November 2024), and yet well above its 52-week low of ₹255.90 (hit on 17 March 2025), suggesting some degree of resilience and institutional holding confidence. The free float market capitalization is ₹602.75 crore out of a total ₹3,629 crore market cap.

Daily volatility stood at 2.17%, with annualized volatility at 41.46%, indicating the stock is relatively active and possibly speculative in the short term.

What Is the Outlook for FY26?

Despite the operational hiccup in Q4 FY25, the management remains confident about FY26 and beyond. The expansion of manufacturing capacity, focus on regional penetration, digital marketing initiatives, and product development efforts position the company to capitalize on India’s growing demand for packaged snacks.

Chairman and Managing Director Bipinbhai Hadvani emphasized the importance of innovation, supply chain efficiency, and consumer engagement as strategic pillars for sustained growth. The fire incident is seen as a temporary setback, and insurance recovery could offer one-off financial relief in the coming quarters.

With a broad SKU portfolio of 375 items across 102 product types, Gopal Snacks is aiming for diversified demand across consumer segments. The company also benefits from its leadership position in key categories like Gathiya and Snack Pellets, and is looking to expand its national footprint further beyond Gujarat.