Sundrop Brands Ltd(SUNDROP)

NSE: SUNDROPBSE: 500215

₹ 610-2.87%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 2,300 crWebsite: www.atfoods.comUpdated: 24 Oct 2026

About

Sundrop Brands Ltd is an Indian branded foods company whose portfolio spans ready-to-cook and ready-to-eat popcorn (ACT II), edible oils (Sundrop), spreads, breakfast cereals, culinary sauces, and Italian products (olive oil, pasta) under the Del Monte brand. The company reported revenue of Rs 1,549.44 Cr in FY26, with the group growing consolidated revenue 15% YoY to INR 428.1 Cr in Q1 FY27. It holds leadership positions in ready-to-cook and ready-to-eat popcorn and approximately 85% share of the popcorn category as of Q1 FY27.^[1]

Business segments

Sundrop segment was ~56% of consolidated group revenue in Q1 FY27, growing 16% YoY, accelerating from 14% in Q4 FY26.^[2]
Del Monte segment was ~44 - 45% of consolidated group revenue in Q1 FY27, growing 14% YoY, accelerating from 9% in Q4 FY26.^[2]
Core categories (popcorn, spreads, breakfast cereals, culinary, Italian) contributed 60% of total sales in Q1 FY27, up from 53% in FY23.^[2]
Chocolates saw a volume decline of 70% and value decline of 67% in FY26 after investment ceased; the company is evaluating whether to divest or re-pivot those capacities.^[3]

Products and brands

Brand portfolio spans Ready-to-Cook Snacks, Ready-to-Eat Popcorns and Other Snacks (ACT II), Spreads, Breakfast Cereals, Edible Oils (Sundrop), and Del Monte (culinary, Italian, B2B).^[3]
Italian portfolio (olive oil, pasta, olives) grew 15% volume and returned to 8% value growth in Q1 FY27, after commodity-driven deflation through FY26.^[2]
Spreads registered a volume decline of 10% and a value decline of 7% in FY26 amid intense competition; peanut butter/spreads declined 3% in Q1 FY27.^[3][2]
~100 products launched in the 24 months to Q1 FY27, contributing ~INR 60 Cr (~4% of FY sales); innovation reached ~6% of Q1 FY27 sales.^[2]
The company decided to exit French Fries, Wafer and Chocolate products due to their failure and scalability in the market, and to dispose of related assets (FY25 annual report).^[4]

Manufacturing operations

Manufacturing facilities are at Kothur (Telangana), Kashipur (Uttarakhand), Unnao (Uttar Pradesh), Jhagadia (Gujarat), Mangaldai (Assam), and Chittoor (Andhra Pradesh).^[3]
Four wholly-owned subsidiaries: Del Monte Foods Private Limited, Sundrop Foods India Private Limited, Agro Tech Foods (Bangladesh) Private Limited, and Sundrop Foods Lanka (Private) Limited, plus one step-down subsidiary.^[3]
Approx. 400+ employees were absorbed by the company from its subsidiary Sundrop Foods India from January 2026.^[3]
Management cites raw material risk from India importing 60%+ of its vegetable oil and drought affecting Gujarat peanut supply (FY26).^[3]

Key operating numbers

Blended group volume grew ~8% and core portfolio volume grew 9 - 10% in Q1 FY27.^[2]
ACT II holds ~85% share of the popcorn category in Q1 FY27; popcorn grew 18% value and 12% volume in Q1 FY27.^[2]
Olive oil volume grew ~20% in Q1 FY27, with e-commerce olive oil up 40%; pasta volume grew 10%.^[2]
Mass edible oils registered a volume decline of 21% and a revenue decline of 6% in FY26, by design, as the focus shifted to premium oils.^[3][4]
Edible oil (Premium Staples) grew 15% volume and 20% value in Q4 FY26.^[5]
B2B revenue grew 18% YoY in Q1 FY27.^[2]

Distribution and customers

Direct retail coverage stood at 493,000 outlets across India as of FY26, with ~375,000 outlets tracked on the Bizom sales force automation app.^[3]
E-commerce gross sales grew 32% YoY in Q1 FY27, led by Quick Commerce (+35%) and Hybrid Platforms (+23%).^[2]
Advertising and Promotion expenditure increased by 25% during FY26.^[3]

Integration and expansion

Del Monte CFA consolidation: reduce from 10 unique CFAs to 2 by end of FY27; two already consolidated and a third underway as of Q1 FY27.^[2]
Del Monte distribution in the East is being piloted through the Sundrop sales team ahead of full sales-force integration (Q1 FY27).^[2]
ERP migration to a single system for Sundrop and Del Monte targeted within 12 months from Q1 FY27 (by approximately August 2027).^[2]
EBITDA margin (ESOP-adjusted) target of 12% by FY30, from 7.0% in Q1 FY27, with ~200 bps expected from Sundrop - Del Monte synergies over 18 months.^[2]
The company plans to use Del Monte to build foodservice and RTE snacks and to step up its presence in SAARC countries (FY25 annual report).^[4]

Recent developments

Sundrop received a GST show cause notice for a demand of Rs 26,37,65,281.41 (including penalty of Rs 2,39,78,661.93) from Deputy Commissioner (SGST), Ghaziabad; the company is contesting it (Sep 2026).^[6]
Promoter CAG-Tech (Mauritius) Limited acquired an additional 18,81,073 shares off-market, raising its stake from 33.92% to 38.91% as at 31 March 2026.^[3]
CRISIL rating moved from CRISIL A/Watch Developing to CRISIL A/Stable, A1 in FY26, after being placed on Watch Developing on November 26, 2024.^[3][4]
Directors did not recommend a dividend for FY26, retaining cash for capacity expansion, brands and acquisitions.^[3]
The company acquired 100% of Del Monte Foods Private Limited via share swap; control passed from Conagra to Zest Holding Investments w.e.f. Aug 28, 2024.^[4]
Promoter shares are subject to encumbrance by way of a Non-Disposal Undertaking (FY26).^[3]

Market Cap

₹2,300 Cr

High / Low

₹805 / 556

Stock P/E

80.4

Price / Book

1.6

Book Value

₹392

EPS

₹5.5

No. of Shares

3.77 Cr

ROCE

2.0%

ROE

1.4%

OPM

1.9%

Debt / Equity

0.00

Sales

₹1,549 Cr

Net Profit

₹20 Cr

Promoter holding

43.9%

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