Sundrop Brands delivered strong Q2 & H1 FY26 performance, solidifying its position as a scaled food platform.
**Business Performance:** Q2 consolidated revenue grew 8% to 383.3 Cr, with H1 up 10% to 755.4 Cr. Q2 proforma EBITDA rose 29% to 15.5 Cr (4.0% margin), and H1 proforma EBITDA climbed 30% to 31.8 Cr (4.2% margin). B2B revenue surged 23% in Q2, while e-commerce saw exceptional growth of 41%. Core categories like Popcorn and Culinary drove value growth, increasing their contribution to 64% of business. Gross margins expanded by 250 bps in Q2.
**Growth Drivers & Strategy:** Sundrop is strategically focused on its core portfolio, increasing advertising investments (+34% Q2) and performance marketing in e-commerce. Sales Force Automation is boosting productivity, and margin improvement programs in packaging, manufacturing, and logistics are yielding results.
**Recent Developments:** Multiple new products launched across Act II, Sundrop Peanut Butter (high protein, jaggery, chocolate variants), and Del Monte (Tomato Puree, Mayo, Salad dressings).
**Management Outlook:** The company aims to bring joyful food experiences through innovative solutions, capitalize on consumer mega-trends, and drive profitability via focused investments and operational efficiency. It maintains a strong balance sheet with 24 Cr free cash and NIL borrowings.