Bikaji Foods shares snap 2-day fall to rise 7% as CEO maintains FY27 sales, volume outlook

According to fresh market updates, Bikaji Foods International shares rose 7 percent on Wednesday, snapping a two-day slide, after the firm's Chief Operating Officer Manoj Verma maintained the firm's sales and volume expansion outlook for 2026-27, while flagging margin pressure due to elevated raw material costs.

The stock rose nearly 10 percent to Rs 607.50 per share on the NSE through the session and settled 7 percent elevated.

The firm maintained its expectation of mid-teens topline expansion in FY27, with volume expansion guidance of 10-11 percent, CNBC-TV18 noted, citing Verma.

He anticipates robust festive demand and firm expansion in e-commerce sales to backing volume expansion.

That stated, Bikaji Foods anticipates its earnings margins to contract by 100-150 basis points in FY27 as the firm partially absorbs elevated raw material costs.

"With all crude prices going up, all commodities going up, so margins – we feel that there would be a slip of around 100-150 basis points there," Verma stated.

Raw material prices are anticipated to climb 6-7 percent year-on-year, mainly due to elevated edible crude prices and increased crude-linked packaging costs. The firm has been able to pass on only 4.5-5 percent of the cost increases to consumers, Verma stated.

The firm's export business is additionally facing headwinds from geopolitical challenges and container shortages, which have affected supply chains and increased freight costs nearly four times.

Bikaji Foods is additionally targeting the Western snacks category as part of its expansion strategy. While traditional ethnic snacks stay its core business, the firm sees an expansion opportunity in the larger Western snacks market.

Verma anticipates the Western snacks segment to grow 1.5 times faster than traditional snacks and account for 11-12 per cent of the firm's overall business within the next two years.