Remember when you bought popcorn at PVR and felt it cost more than your Netflix subscription? Sundrop is the corporate version of that hustle—only they now own ACT II and Del Monte. From buttered popcorn to Italian pasta sauces, the company wants to be your kitchen’s Marvel Cinematic Universe. But behind the glossy slides and “vision” talk, Q1 FY26 revealed popcorn booms, peanut butter busts, and oil that behaves like petrol prices. Stick around—this call had more plot twists than a Rohit Shetty film.
2. At a Glance
Revenue up 12% – Grew faster than industry; FMCG peers looked like they were on 2G while Sundrop hit Wi-Fi.
EBITDA up 9% – Margins didn’t binge-eat profits; CFO whispered, “Wait for synergies.”
Gross Margins +110 bps – Thanks to cost kung-fu and grammage reduction (a.k.a. shrinkflation).
A&P spend +58% – Management clearly believes ads can do what pricing can’t.
Debt-free – Net worth ₹1,444 cr, free cash to flex at cocktail parties.
3. Management’s Key Commentary
“Our vision is to bring joyful food experiences to modern consumers.” (Translation: We’ll sell you mayonnaise in ten flavors until joy—or cholesterol—arrives.)
“Q1 was our first true combined quarter with Del Monte, growing 12% vs industry high-single digits.” (Translation: We beat Maggi in one test, but don’t ask about peanut butter yet.)
“We expanded coverage by 11,000 outlets this quarter.” (Translation: More shopkeepers now hate our salesmen’s guts.)
“Our popcorn business grew 21% in value, 12% in volume.” (Translation: We’ve mastered the art of charging more for hot air.)
“Peanut butter business is facing pressure due to new players.” (Translation: Protein bros with start-ups are stealing our thunder at gyms.)
“We are investing heavily in e-commerce, up 42% growth.” (Translation: Zomato grocery baskets are our new temples.)
“Normalized EBITDA margin would be 4.4% if you remove ESOP and advisor costs.” (Translation: Without paying employees or consultants, we’re actually profitable!)
4. Numbers Decoded
Metric
Value (Q1 FY26)
YoY Change
One-Line Analysis
Revenue – The Hero
₹372 cr
+12%
Outpaced food industry; popcorn did the heavy lifting.
EBITDA – The Sidekick
₹14.1 cr
+9%
Sidekick survived, but kept asking for margin popcorn.
EBITDA Margin
3.7% (4.4% adj)
Flat YoY
Barely breathing; double-digit dreams still far away.
Gross Margin – Buffed
+110 bps
NA
Shrinkflation + cost control saved the day.
A&P Expense – The Spend
+58% YoY
NA
CFO cried while CEO smiled at TV ads.
Net Worth
₹1,444 cr
NA
Balance sheet is gym-fit, zero debt six-pack intact.
5. Analyst Questions
Q: Will you defocus on parts of Del Monte? A: Nope, but chocolates and canned fruits are just side characters. (Translation: We’ll keep them alive, like old relatives at family functions.)
Q: When will Sundrop & Del Monte integrate operations? A: Next year, first let us “understand” each other. (Translation: Marriage counseling before joint bank accounts.)
Q: How do you get to 10% margins? A: Four levers: operations, synergies,
