Gopal Snacks Limited — Important, 11-02-2025: General Updates

**Financial Highlights:** Gopal Snacks reported a revenue increase of 7.1% year-on-year in Q3 FY25, reaching ₹393.6 crore. However, significant challenges impacted margins, with a gross profit of ₹84.2 crore, translating to a margin of 21.4%. EBITDA fell sharply by 56.1% to ₹15.5 crore, resulting in an EBITDA margin of 3.9%. PAT also declined by 70.3% to ₹5.3 crore, with a PAT margin of 1.4%. For the nine months ended December 2024, revenue from operations was ₹1,150.5 crore, reflecting a 10.2% increase year-on-year.

**Strategic Initiatives and Growth Drivers:** The company is focused on scaling operations at its newly commissioned Gondal facility, which aims to restore production lost due to a fire at the Rajkot plant. Increased distributor engagement helped achieve 207 new partnerships in nine months, enhancing market penetration.

**Business Developments:** Following the fire incident in December 2024, Gopal Snacks adapted quickly by utilizing Modasa and Nagpur facilities and engaging third-party manufacturers. The Gondal plant has begun commercial production of Gathiya and Namkeen products, aimed at improving supply chain stability.

**Market Position and Competitive Advantage:** Gopal Snacks continues to strengthen its market presence through an extensive distribution network of 874 distributors across 12 states and 3 Union Territories. The company is strategically targeting both core and focus markets to drive sales growth.

**Investor Implications:** Despite recent setbacks, Gopal Snacks shows resilience through adaptive strategies and operational recovery plans. The focus on expanding production capacities and enhancing distribution underlines a positive outlook for investor interest in the long-term growth trajectory.