Welcome to the most flavourful balance sheet in Rajkot — Gopal Snacks Ltd (₹331, MCap ₹4,130 Cr), the king of gathiya and drama. After a year full of factory fires, GST show-cause notices, and Modasa expansions, the Q2FY26 numbers are finally out. Revenue for the quarter stood at ₹376 Cr, up 16.6% QoQ, with EBITDA rising to ₹24 Cr — clearly, the company fried its problems along with the namkeen.
Profit After Tax came in at ₹9.87 Cr, a 65.8% drop YoY but a relief compared to the chaos of the previous quarter when insurance payments worth ₹19.99 Cr literally rescued the P&L. With ROCE at 16.3%, ROE at 11.4%, and an expensive P/E of 163, investors seem to be paying for crunch, not cash flow.
Still, the stock trades far below its ₹485 high. Whether that’s a “dip” or “deep fry” moment is up for debate. Let’s unwrap this packet layer by layer — the masala, the moisture, and the marketing.
2. Introduction
In India, snacks are serious business. One misplaced salt ratio and your customer switches to Haldiram’s faster than a falling Sensex. Gopal Snacks, born in 1999 in Rajkot, has built its empire on the humble gathiya — a Gujarati legend that now travels to 12 states, 3 UTs, and even to Canada, UAE, UK, and USA.
But this FY25-FY26 phase has been like mixing jalebi and mirchi powder. The company has faced GST notices totaling over ₹22 Cr, a fire loss of ₹47 Cr in FY25, and still managed to operationalize its Modasa expansion (63,085 MT) — the most productive phoenix act since Baba Ramdev’s “return from vanvaas.”
The Q2FY26 revival seems to mark a turning point. From -₹40 Cr net loss in March to ₹9.87 Cr profit now, Gopal Snacks is finally back in business — literally and symbolically. But before we raise our teacups, let’s remember: this is an FMCG player trading at 163x earnings. Even its wafers don’t have that much air.
3. Business Model – WTF Do They Even Do?
Gopal Snacks does what most Indian moms do best — make snacks and distribute them everywhere. The company operates as a full-stack FMCG house producing ethnic snacks, western snacks, papads, bakery items, spices, and even oil soaps (yes, because who doesn’t like diversification between bhujia and bathing?).
Their star lineup includes:
Gathiya (27% of H1FY25 revenue) – the emotional anchor of Gujarat’s snack bowl.
Namkeen (27%) – every railway pantry car owes its salty soul to this category.
Other products (2%) – papad, rusk, noodles, masala, chikki, etc.
Three mega plants in Rajkot, Modasa, and Nagpur churn out 410,000 MTPA, supported by three ancillary units for spices, besan, and papad. But here’s the kicker — capacity utilization is only 35–40%, which means 60% of the machines are probably scrolling through reels of Haldiram’s ads. The company targets 70% utilization by FY27, implying double the volume from the same infrastructure if all goes well (and if no more fires).
4. Financials Overview
Quarterly Performance (Figures in ₹ Crore)
Metric
Q2FY26 (Sep’25)
Q2FY25
Q1FY26
YoY %
QoQ %
Revenue
376
403
322
-6.7%
+16.6%
EBITDA
24
47
15
-48.9%
+60.0%
PAT
9.87
29
3
-65.9%
+229%
EPS (₹)
2.06
2.32
0.20
-11.2%
+930%
If we annualize EPS (₹2.06 x 4 = ₹8.24), that gives a P/E of ~40x on forward basis — still spicy, but at least edible.
Commentary: Last quarter’s revenue growth looked like a wafer-thin line, but insurance income of ₹19.99 Cr rescued EBITDA from melting. The company’s fire compensation literally saved the quarter, proving once again that sometimes “claims” can outperform “sales.”
5. Valuation Discussion – Fair Value Range Only
Let’s keep it desi, disciplined, and deliciously data-backed.
Method 1: P/E Multiple Approach
Annualized EPS (FY26E): ₹8.24
Industry Average P/E (Packaged Foods): ~52x
Fair Range = ₹8.24 x (40–60) = ₹330 – ₹495 per share
Method 2: EV/EBITDA Approach
TTM EBITDA = ₹57 Cr
EV = ₹4,194 Cr → EV/EBITDA = 73x
FMCG midcaps usually trade around 25–40x
Adjusted fair range EV/EBITDA = 25–40x → Fair EV = ₹1,425–₹2,280 Cr → Equity Value = EV – Debt + Cash ≈ ₹1,425–₹2,280 – ₹65 + ₹100 (approx.) → Fair Market Cap = ₹1,460–₹2,315 Cr, implying ₹117–₹185 per share
GST Notices (₹14.6 Cr + ₹8 Cr) – alleging HSN misclassification since April 2020. The company plans to contest — maybe with a lawyer and a packet of gathiya for moral support.
