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Competition in popcorn from Marico
View Risks →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.
bullish
high
✓ Verified against BSE filing
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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.
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E-commerce growth
31%
+31% YoY
E-commerce revenue grew 31% in Q3, fueled by quick commerce growing ~50%.
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.
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Guidance and risk preview
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.
Marico's entry into popcorn with strong distribution could pressure Act II's market share if not countered effectively.
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