Revenue and Profit Growth
Over the five-year period ending March 2025, Bikaji Foods’ net sales surged from ₹1,310.75 crores in March 2021 to ₹2,618.68 crores in March 2025, representing a compound growth trend that underscores the company’s expanding market presence. This growth trajectory is supported by a corresponding increase in total operating income, which rose in tandem with sales, indicating stable core business operations without reliance on other operating income.
Operating profit before depreciation and interest (PBDIT excl. other income) showed a notable rise from ₹144.77 crores in March 2021 to ₹327.89 crores in March 2025, although it peaked in March 2024 at ₹391.32 crores before moderating. The operating profit margin, however, experienced some volatility, reaching 17.51% in March 2024 but declining to 12.86% by March 2025, reflecting increased expenditure pressures.
Profit after tax (PAT) followed a similar pattern, increasing from ₹90.34 crores in March 2021 to ₹194.21 crores in March 2025, with a peak of ₹263.46 crores in March 2024. The PAT margin improved from 4.73% in March 2022 to 7.62% in March 2025, though it remains below the peak margin of 11.79% recorded in March 2024. Earnings per share (EPS) also reflected this trend, rising from ₹3.71 in March 2021 to ₹8.02 in March 2025, with a high of ₹10.61 in March 2024.
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Cost Structure and Expenditure
Bikaji Foods’ raw material costs have risen significantly from ₹909.26 crores in March 2021 to ₹1,676.39 crores in March 2025, reflecting both volume growth and input price inflation. Purchase of finished goods and other expenses have also increased steadily, with other expenses rising from ₹159.20 crores to ₹357.66 crores over the same period. Employee costs have nearly doubled, indicating investment in human resources to support expansion.
Despite these rising costs, the company has managed to maintain a gross profit margin above 11% in most years, peaking at 18.26% in March 2024 before settling at 13.57% in March 2025. Interest expenses have increased moderately, from ₹3.00 crores in March 2021 to ₹14.80 crores in March 2025, reflecting higher borrowings but still at manageable levels relative to earnings.
Balance Sheet and Financial Position
The company’s total assets have nearly doubled from ₹817.15 crores in March 2021 to ₹1,927.49 crores in March 2025, driven by growth in both fixed assets and current assets. Net block of assets increased from ₹409.02 crores to ₹876.08 crores, while capital work in progress surged notably to ₹95.74 crores, signalling ongoing capacity expansion.
Shareholder’s funds have grown robustly from ₹605.67 crores in March 2021 to ₹1,383.19 crores in March 2025, supported by accumulated reserves rising to ₹1,358.13 crores. This reflects strong retained earnings and a solid equity base. Total debt increased from ₹86.15 crores to ₹153.51 crores, with a mix of long-term and short-term borrowings, but the company’s leverage remains moderate given its asset base and equity growth.
Cash Flow Trends
Operating cash flow has improved significantly, rising from ₹117 crores in March 2021 to ₹193 crores in March 2025, indicating enhanced cash generation from core operations. Investing activities have consistently been cash outflows, reflecting capital expenditure and investments in growth initiatives. Financing activities show mixed trends, with repayments and borrowings fluctuating, resulting in a modest net cash inflow of ₹15 crores in March 2025 after a slight outflow in the previous year.
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Summary and Outlook
In summary, Bikaji Foods has exhibited strong top-line growth and expanding shareholder equity over the last five years, supported by steady improvements in profitability and cash flow. While margins have experienced some pressure in the most recent year, the company’s investment in assets and working capital signals a commitment to long-term growth. The balance sheet remains healthy with manageable debt levels and increasing reserves, positioning Bikaji Foods well for future expansion in the competitive FMCG sector.
Investors should consider both the growth trajectory and margin fluctuations when evaluating the company’s prospects, keeping in mind the broader market conditions and sector dynamics.
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