E-commerce growth
31%
+31% YoY
E-commerce revenue grew 31% in Q3, fueled by quick commerce growing ~50%.
SUNDROPBRANDS
Other
10 Feb 2026
Sundrop Brands Ltd — Q3 FY26
Sundrop Brands delivered a solid Q3 FY26 with consolidated revenue growth of 10% YoY, driven by strong volume momentum in core categories.
✓ Verified against BSE filing
2-Min Summary
Sundrop Brands delivered a solid Q3 FY26 with consolidated revenue growth of 10% YoY, driven by strong volume momentum in core categories. EBITDA surged 80% YoY as gross margins expanded 330 bps sequentially, led by the foods business. E-commerce grew 31% and quick commerce ~50%, while advertising investments rose 22%. The popcorn business (Act II) saw 12% volume growth, and Italian (Del Monte) olive oil volumes jumped 34% despite value decline from price pass-through. Management reiterated a path to double-digit EBITDA margins over 2-3 years via 3-4% gross margin expansion and 3% SG&A reduction. Key risk: intensifying competition in popcorn from Marico's entry, which could pressure market share if not countered effectively.
Key Numbers
Popcorn volume growth
12%
+12% YoY
Act II popcorn volumes grew 12% in Q3, with ready-to-eat segment up 36%.
Olive oil volume growth
34%
+34% YoY
Del Monte olive oil volumes surged 34% YTD as price cuts stimulated demand.
Innovation contribution
₹55 Cr
+5% of sales
Products launched in last 24 months contributed ₹55 crore, ~5% of total sales.
Management Guidance
Double-digit EBITDA margin in 2-3 years
Management targets expanding EBITDA margin to double digits over the next 2-3 years through 3-4% gross margin improvement and 3% SG&A reduction.
marginsRevenue growth acceleration to ~15% CAGR
Aiming to double revenue in 3-4 years, implying ~15% CAGR, with 2/3 from volume and 1/3 from value in near term.
revenueSalesforce automation completion by FY26 end
Expect to cover all 375,000 outlets on mobile app by end of FY26, improving distribution productivity.
expansionMarketing investment to remain at ~6% of sales
Marketing spend as a percentage of revenue will stay at ~6%, with absolute investment growing ahead of revenue.
growthKey Risks
Competition in popcorn from Marico
Marico's entry into popcorn with strong distribution could pressure Act II's market share if not countered effectively.
high · analyst_questionSpreads business underperformance
Peanut butter and spreads continue to decline due to innovation lag and share loss in modern trade and e-commerce.
medium · management_commentaryEdible oil margin volatility
Commodity inflation in edible oils may pressure gross margins; management is protecting absolute margins rather than percentage.
medium · management_commentaryPromoter pledge impact on stock
Promoter increased stake via off-market purchase from Del Monte Pacific, but pledge of 33% holdings has caused ~30% stock decline.
medium · analyst_questionNotable Quotes
We are number one player in both RTE and RTC formats both ready to cook and ready to eat format we are by far the dominant player in this market.
Our biggest bet is popcorn business and the entire Act II franchise. Our second biggest bet would be Italian franchise which is sitting under Del Monte portfolio.
We will not let any stone unturned to make sure that this business does not get compromised. Our endeavor is to actually grow this business much faster in the period ahead.