Papadmalji Agro Foods Limited

Papadmalji Agro Foods Limited, incorporated in December 2017 and rooted in the sole proprietorship business "Vishal Namkeen Bhandar" established in 2012 by Mr. Jai Agarwal in Bikaner, Rajasthan, is an ISO 22000:2018 certified and FSSAI-licensed organized food processing enterprise. The company specializes in the in-house manufacturing of a broad spectrum of ethnic Indian snacks, including handmade papads, machine-made papads, machine-made ready-to-fry papads, rice papads (khichiya), vrat-special papads, and moongodi. In addition to its core in-house production, the company undertakes white-label manufacturing of handmade papads for institutional clients, allowing it to optimize plant capacity utilization and diversify revenue streams. It also trades ready-to-fry 2D and 3D cereal pellets under its proprietary brand identity, creating an integrated product portfolio that spans both traditional recipes and modern convenience foods.

The company operates a strategic portfolio of five distinct brands tailored to specific consumer segments, product categories, and distribution channels:

Zhakaas: Offers rice papads (khichiya), vrat-special papads, ready-to-fry variants, cereal pellets, and moongodi through general trade, modern trade, and quick-commerce platforms.

Vishal: Focuses on traditional handmade papads crafted via established formulations for general trade and merchant export markets.

Rozana: Delivers machine-made papads designed for daily household consumption through modern trade and quick commerce.

Diamond: Caters to specific regional markets for handmade papads.

Papadmalji: Serves as the flagship direct-to-consumer (D2C) brand, offering premium handmade papads sold exclusively through the company's dedicated online platform.

Papadmalji Agro Foods Limited reaches its target demographic of urban, semi-urban, and rural households through an omni-channel distribution network that spans 21 states and 3 Union Territories in India, alongside a select export footprint in the Middle East (including UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain) managed via a merchant exporter. As of March 31, 2026, its general trade network comprised 76 distributors and 30 wholesalers servicing 8,710 retail outlets, with core market concentration in Rajasthan, Haryana, Assam, Punjab, and Uttar Pradesh. Furthermore, the company is empanelled with 7 prominent modern trade brand owners and 1 leading quick-commerce platform on a purchase order (PO) basis, while actively pursuing supplier empanelment with the Kendriya Police Kalyan Bhandar (KPKB) to expand its institutional footprint.

The company's operational infrastructure is centered in Bikaner, Rajasthan, across two FSSAI-licensed manufacturing facilities:

Gharsisar Unit: Handles dough preparation, automated machine-made papad production, moongodi manufacturing, centralized storage, and quality testing. For FY26, it possessed an installed annual capacity of 9,12,500 kg for machine-made papads (achieving an actual production of 6,26,925 kg at a capacity utilization of 68.70%) and 2,19,000 kg for moongodi (actual production of 40,055 kg at 18.29% capacity utilization).

Karni Unit (Leased): Focuses on rice papads (khichiya) and vrat-special papads. It possessed an installed capacity of 10,95,000 kg for khichiya and achieved an actual production of 10,20,031 kg in FY26 (93.15% capacity utilization).

To meet rising volume demand and achieve operational consolidation, the company is establishing a new semi-automated 45,000 sq. ft. manufacturing facility at Bachhasar, Bikaner, funded via IPO proceeds, which will incorporate a 250 kW rooftop solar power system.

To produce its handmade papads, the company employs a decentralized, community-driven "Batara–Batari" operational model. Under formal Batara Agreements, independent contractors (Bataras) coordinate local women workers (Bataris) who perform home-based hand-rolling and sun-drying of dough balls using traditional wooden tools (chakla and belan) and prescribed quality specifications. This provides sustainable livelihoods to local women while preserving culinary heritage. While the company does not maintain a standalone R&D department, innovation is driven through continuous collaboration between its sales, marketing, and production teams. This collaborative model has successfully generated product extensions such as flavored rice papads (Jeera, Ajwain, Red Chilly), fasting-permissible vrat papads made from sabudana and potato flakes, mini papad variants, and hygienic packaging solutions designed to enhance shelf-life and retain product crispness.

Based on its historical financial data, Papadmalji Agro Foods Limited posted total income and net profits of ₹26.29 Cr / ₹2.11 Cr in FY24, ₹31.76 Cr / ₹4.72 Cr in FY25, and ₹33.54 Cr / ₹5.21 Cr in FY26. The company has shown steady revenue growth alongside net profit expansion. Its debt-to-equity ratio improved from 1.66x in FY24 to 0.62x in FY26, as total debt stood at ₹9.99 Cr as of March 31, 2026. It boasts an average EPS of ₹6.65 and an average RoNW of 36.22% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 3.04 against a NAV of ₹23.67 (as of March 31, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.95. Attributing the latest earnings to the expanded post-issue equity base, the asking price translates to a Post-Issue P/E of approximately 32.09x (FY24), 14.31x (FY25), and 12.97x (FY26). According to the RHP, there are no listed companies in India engaged in a strictly comparable business segment or scale.

On the Book Running Lead Manager (BRLM) front, the issue is managed by Kreo Capital Private Limited, which has handled 3 public issues to date. Out of its last 3 managed IPOs, two listed below the issue price, while the remaining one listed at or above it. As of September 25, 2026, two of these recent issues are currently trading below their issue price, while the remaining one is trading at or above it. Mas Services Limited is acting as the Registrar to the Offer.

• 1 Mr. Jai Agarwal
• 2 Mrs. Prem Lata Agarwal
• 3 Ms. Aanya Agarwal