Popcorn brand net sales
₹400Cr+
+18% YoY
Popcorn brand crossed ₹400 cr net sales, growing 18% with RTE now 34% of mix.
SUNDROPBRANDS
Other
15 May 2026
Sundrop Brands Ltd — Q4 FY26
Sundrop Brands delivered a strong Q4 FY26 with consolidated revenue growth of 11% YoY, driven by 12% B2B growth and 26% e-commerce growth.
✓ Verified against BSE filing
2-Min Summary
Sundrop Brands delivered a strong Q4 FY26 with consolidated revenue growth of 11% YoY, driven by 12% B2B growth and 26% e-commerce growth. EBITDA margin expanded to 7.3% (excl. one-offs and ESOP), a 421 bps YoY improvement, supported by gross margin expansion of ~4% from cost efficiencies. Core categories (popcorn, culinary, premium staples, Italian) grew 12-13%, with popcorn brand exceeding ₹400 cr and RTE now 34% of popcorn sales. Management guided for 150-250 bps annual EBITDA margin expansion, targeting double-digit margins by FY29, with synergy benefits of ~100 bps in FY27 and 150-200 bps in FY28 from ERP integration and distribution optimization. Key risk: edible oil inflation and competitive pressure in peanut butter and Italian segments could temper margin recovery.
Key Numbers
E-commerce channel growth
35%
+35% YoY
E-commerce grew 35% in FY26; quick commerce driving RTE popcorn and pasta.
Core categories share of portfolio
62%
+1pp QoQ
Core categories (popcorn, culinary, premium staples, Italian) now 62% of portfolio, up from 61% last quarter.
Volume growth in Italian business
17%
+17% YoY
Italian portfolio (olive oil, pasta) grew 17% in volume despite value decline from price pass-through.
Management Guidance
EBITDA margin expansion of 150-250 bps annually
Management expects 150-250 bps EBITDA margin improvement each year, with double-digit margins targeted by FY29.
marginsMarketing spend to reach 8-9% of revenue over 2 years
Marketing investment will grow ahead of topline, reaching ~8% of revenue in 2 years, with core categories seeing double-digit spend.
growthERP integration completion in 12-14 months
Common ERP platform for Sundrop and Del Monte expected to be operational by June-August 2027.
otherSynergy benefits of ~100 bps in FY27 and 150-200 bps in FY28
Cost synergies from distribution optimization and back-end integration will deliver ~100 bps margin benefit in FY27 and 150-200 bps in FY28.
marginsKey Risks
Edible oil inflation impacting margins
Rising edible oil costs in Q4 FY26 compressed material margins; management passed on increases but further inflation could pressure margins.
medium · management_commentaryPeanut butter market share loss in modern trade and e-commerce
Peanut butter business declined 7% due to low-priced competitors and share loss in modern trade/e-commerce; recovery expected from Q2 FY27 but uncertain.
high · analyst_questionItalian business value decline despite volume growth
Olive oil price deflation led to 4% value decline in Italian portfolio; value growth recovery depends on stable commodity prices and campaign effectiveness.
medium · management_commentaryIntegration risks from ERP and distribution harmonization
ERP integration and sales force optimization over next 24 months may face execution challenges, potentially delaying synergy benefits.
medium · analyst_questionNotable Quotes
Our ambition will be to grow at least 4 to 5% higher than where we today are. And today we are reaching to about 5 to 6% of spends. In a longer play, I would want to be sitting at around 8 to 9% of spends.
We are playing the strategy of profitable growth. We intrinsically understand and believe that marketing spend will be very critical for accelerating the growth.
Our entire focus honestly is on building the category. We are today as a popcorn player we are doing a fair pricing. Of course bigger pack as I said enjoy bigger margins also but endeavor is to really drive on the consumption of popcorn categories.