Papadmalji Agro Foods IPO

Incorporated in 2017, Papadmalji Agro Foods Limited is a Bikaner, Rajasthan-based manufacturer of papads and related food products. The business traces its roots to Vishal Namkeen Bhandar, a sole proprietorship started in 2012, which the company took over in 2018.

The company runs two FSSAI-licensed manufacturing units in Bikaner, one of which holds ISO 22000:2018 certification. Hand-made papads are produced through the Batara–Batari model, where contractors oversee women who roll papads from home, while machine-based lines handle dough preparation, sheeting, cutting, drying and packing.

Extensive Distribution Network: As of March 31, 2026, the company works with 76 distributors and 30 wholesalers who together service 8,710 retail outlets in the general trade channel. The network reaches urban, semi-urban and rural areas across 12 states and 1 union territory, with Rajasthan as its core market.

Multi-Channel Presence: Besides general trade, the company sells through seven modern trade channels and one quick commerce platform on a purchase-order basis, as of March 31, 2026. One merchant exporter supplies its products to six Middle Eastern countries, and its own website serves customers directly.

Wide Range of Product Variants: The portfolio covers hand-made and machine-made papads, ready-to-fry variants, rice papads (khichiya), vrat special papads, 2D and 3D cereal pellets and moongodi, each in several flavours. In FY2026, hand-made papads contributed 41.33% of revenue from operations, machine-made papads 27.86% and rice papads 24.09%.

Dependence on Limited Customers: A large share of revenue comes from a small number of customers. In FY2026 the top 10 customers contributed 45.94% of revenue from operations and the largest customer 9.08%, compared with 69.25% and 19.84% in FY2025. Losing a key customer or a cut in orders could hurt revenue and cash flows.

Supplier Concentration Without Contracts: Key raw materials such as urad dal, moong dal, flours, edible oils and spices are bought from third-party suppliers without long-term contracts. The top 10 suppliers accounted for 61.02% of purchases in FY2026. Supply disruptions or price increases could affect production, costs and profitability.

Reliance on Sales Channels: Sales depend on general trade, modern trade, quick commerce, direct-to-consumer and merchant exporter channels, each with different operating terms. General trade provided 57.91% and modern trade 40.74% of FY2026 revenue from operations. Disruption or underperformance in any channel could reduce sales and profitability.