1. At a Glance
From market leader in Rings to ringing alarm bells — Prataap Snacks has gone from munchies to misfires. With TTM PAT at -₹43 Cr, promoter stake falling, and Q1 FY26 net profit crawling to ₹69 lakh, this snack-maker might be giving indigestion to its investors.
2. Introduction with Hook
Imagine buying a packet of chips and finding it’s 90% air. Now imagine buying a snack stock with the same outcome — that’s Prataap Snacks. The company’s Q1 FY26 earnings technically show a profit… but it’s smaller than the pack size of their ₹5 namkeen.
Revenue rose 3% QoQ. PAT came in at ₹0.69 Cr. That’s not a recovery — that’s a polite cough after choking.
3. Business Model (WTF Do They Even Do?)
- Yellow Diamond: Their flagship brand in snacks — extruded, rings, namkeen, chips.
- Rich Feast: The “sweet snacks” line, ironically named for a loss-making unit.
- Product Strategy: Price-point focused SKUs for Tier 2 and rural, aiming for mass-market munchies.
- Execution: Outsourced marketing, in-house manufacturing — and recently, outsourced profits.
Basically, they manufacture air-filled snacks while producing loss-filled financials.
4. Financials Overview
“From ₹56 Cr PAT in FY23 to ₹-34 Cr in FY25. That’s not a dip. That’s a dive off Mount Everest.”
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹1,653 Cr | ₹1,618 Cr | ₹1,708 Cr |
| EBITDA | ₹63 Cr | ₹141 Cr | ₹49 Cr |
| Net Profit | ₹20 Cr | ₹53 Cr | ₹-34 Cr |
| OPM % | 4% | 9% | 3% |
| EPS | ₹8.66 | ₹22.25 | ₹-14.35 |
Q1 FY26 PAT: ₹0.69 Cr
Let’s just say even Maggi cooks faster than this recovery.
5. Valuation
“Stock trades at 3.44x Book. More like priced like a unicorn, acts like a dead horse.”
- CMP: ₹995
- Book Value: ₹289
- P/B: 3.44x
- ROE: -1.22%
Fair Value Range:
- Optimistic: ₹700–₹800 (assuming PAT stabilizes around ₹40–50 Cr/year)
- Realistic: ₹500–₹600 (if FY26 ends flat or negative)
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: Revenue ₹411 Cr, EBITDA ₹18 Cr, PAT ₹0.69 Cr
- 3x jump in EBITDA QoQ but net profit still barely breathing
- New product launches announced (again) — maybe try “Profits Masala Flavor”?
- Promoter stake cut from 71% to 54.92% over 6 quarters
- ESOPs Allotment: 26,587 shares — staff getting equity, shareholders getting ulcers
7. Balance Sheet
“Liabilities climbing, reserves sliding. Looks like a see-saw on a cliff.”
| Item | FY25 |
|---|---|
| Equity | ₹12 Cr |
| Reserves | ₹678 Cr |
| Borrowings | ₹76 Cr |
| Other Liabilities | ₹189 Cr |
| Total Assets | ₹956 Cr |
Debt’s not terrifying, but erosion in reserves is. Balance sheet’s okay-ish… if you squint.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹80 Cr | -₹25 Cr | -₹52 Cr | ₹3 Cr |
| FY24 | ₹127 Cr | -₹107 Cr | -₹12 Cr | ₹8 Cr |
| FY25 | ₹26 Cr | -₹30 Cr | -₹15 Cr | -₹19 Cr |
CFO in FY25 dropped 80% YoY. Not a typo. It’s a financial fire drill.
9. Ratios – Sexy or Stressy?
“ROCE? Negative. ROE? Negative. This isn’t a stock — it’s a cautionary tale.”
| Ratio | Value |
|---|---|
| ROCE | -1.35% |
| ROE | -1.22% |
| OPM | 2% |
| D/E | ~0.08 |
| P/B | 3.44x |
High valuation with low returns = Wall Street’s version of a breakup letter.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,653 Cr | ₹63 Cr | ₹20 Cr |
| FY24 | ₹1,618 Cr | ₹141 Cr | ₹53 Cr |
| FY25 | ₹1,708 Cr | ₹49 Cr | ₹-34 Cr |
TTM Net Loss: ₹-43 Cr
Q1 FY26: PAT = ₹0.69 Cr
Recovery is happening — but slower than a kid saving ₹1 coins for a Ferrari.
11. Peer Comparison
“Others are baking profits. PSL is still burning toast.”
| Company | Rev (Cr) | PAT (Cr) | ROE | CMP/BV |
|---|---|---|---|---|
| Nestle India | ₹20,483 | ₹3,008 | 83% | 53.3x |
| Britannia | ₹17,942 | ₹2,195 | 52.9% | 30.9x |
| Bikaji | ₹2,700 | ₹195 | 14.9% | 14.0x |
| Gopal Snacks | ₹1,468 | ₹54 | 13.7% | 10.5x |
| Prataap Snacks | ₹1,697 | ₹-43 | -1.2% | 3.44x |
Even the newest kid on the snack block (Gopal) is outperforming. PSL? Still in detox mode.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 54.92% |
| FIIs | 6.79% |
| DIIs | 7.61% |
| Public | 30.67% |
Promoter holding fell from 71% to 54.9% in under 2 years. That’s not a reduction. That’s an escape plan.
13. EduInvesting Verdict™
Prataap Snacks is one of those stocks that looks tasty on paper — niche leader, good branding, wide distribution. But dig deeper and it’s mostly stale. ROEs are negative, profits have vanished like chips at a party, and the promoter’s been slowly backing out of the room.
If Q2 also turns out flat or negative, this one might soon be served cold.
“Feels like a packet of air — overpriced, overhyped, and empty inside.”
Written by EduInvesting Team | 25 July 2025
Tags: Prataap Snacks Ltd, Yellow Diamond, Q1 FY26, Snacks Sector, EduInvesting Premium
