Bikaji targets 15% revenue growth while cooling its retail expansion
The snacks maker plans a ₹100 crore factory upgrade, yet the Hazelnut Factory subsidiary quietly trimmed its store footprint by nearly 15%.
What's new
- Management guides for 15% revenue growth in FY27.
- A ₹100 crore capex is earmarked for a new sweets factory and warehouse.
- Hazelnut Factory revenue grew 130% to ₹100 crore, but store count dropped to 20 from 23.
Why it matters
Bikaji’s retail strategy appears to be shifting from aggressive physical footprint growth toward consolidation. While the Hazelnut Factory is hitting revenue targets, the contraction in store count and the shelving of the Bikaji Bakes JV suggest management is tightening its focus on core efficiency.
What we're watching
- Whether the 3% April price hike holds without suppressing volume growth in coming quarters.
- The 20%+ growth target in focus states against broader market competition.
- Concrete timelines for the new factory and warehouse construction.
The full read
Bikaji Foods enters FY27 with a 15% growth target and a ₹100 crore capital expenditure plan for new production capacity. Management claims their recent 3% price hike in April caused no measurable dent in demand, a key defense as they look toward 20% growth in focus states. The Hazelnut Factory (THF) subsidiary reached a milestone, clearing ₹100 crore in revenue with 130% growth. Yet, the expansion narrative has a snag. The retail footprint for THF has contracted, falling to 20 stores from a previously cited 23. Combined with the decision to abandon the Bikaji Bakes joint venture timeline, the company is showing a sharper, more cautious edge to its expansion. The next test for the market is whether this discipline improves margins or merely signals a slowdown in their retail reach.