Q&T Foods Ltd. IPO

Q&T Foods

• Q&T Foods is coming out with an initial public offering (IPO) of 22,82,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 115 per equity share.
• The issue will open on August 12, 2026 and will close on August 14, 2026.
• The shares will be listed on SME Platform of BSE.
• The share is priced at 11.50 times higher to its face value of Rs 10.
• Book running lead manager to the issue is Corporate Makers Capital.
• Compliance officer for the issue is Satish Joshi.

Profile of the company

Q&T Foods is primarily engaged in the business of manufacturing, distribution, marketing and selling of bakery products in savoury category which include breads, buns, pizza bases, Kulcha etc. under its brand ‘American Bakers’ targeted primarily at local consumers. It offers a diversified product portfolio catering to consumers with varied preferences. The company manufactures and sells varieties of ‘breads’ such as Milk Bread, White Bread, Multigrain Bread, Brown Bread under ‘Bread category’ and other Bakery products like Kulcha; Pav; Burger Bun, Pizza Base etc primarily in the state of Uttar Pradesh. 

All its products are manufactured at its in-house, state of art manufacturing facility accredited with ISO (ISO 22000:2018) and Hazard Analysis & Critical Control Points (HACCP) for quality management systems situated at an area of 10,750 sq. feet situated at Kh No. 378, Deenanathpur, Puti Post Dasna, Ghaziabad, Uttar Pradesh and has 9,472 TPA installed capacity, which enables it to have an effective control over the manufacturing process and to ensure consistent quality of its products. Further, its manufacturing facility is strategically located near to majority of its customers allowing it to optimise its deliveries, reduce lead times and facilitate greater interaction with its customers. These factors contribute to enhanced customer service, operational flexibility and efficient management of its business operations.

Proceed is being used for:

• Financing the capital expenditure requirements for the purchase of equipment/machineries for existing manufacturing facility
• Part financing the requirement of working capital
• Repayment/pre-payment, in full or in part, of certain borrowings availed by the company
• Meeting general corporate purposes

Industry Overview

The Indian bakery market size was valued at $15.05 billion in 2025 and is projected to reach $32.05 billion by 2034, growing at a compound annual growth rate of 8.76% from 2026-2034. This growth is fueled by rapid urban developments, rising disposable incomes, evolving consumption patterns, and the widespread adoption of convenient ready-to-eat options among time-constrained consumers. The expanding organized retail landscape, coupled with increasing health awareness and demand for premium artisanal offerings, continues to reshape traditional bakery consumption, while government initiatives promoting millet-based and nutritionally enriched products are accelerating product diversification across urban and semi urban markets, thereby expanding the Indian bakery market.

The Indian bakery market demonstrates robust expansion potential driven by structural consumption shifts, retail modernization, and product innovation that aligns with evolving lifestyle patterns and nutritional preferences across demographic segments. Organized retail expansion into smaller cities creates distribution infrastructure that supports branded bakery product adoption, while rising per capita incomes enable trading up from unpackaged local bakery items to branded, hygienically packaged alternatives. Government initiatives supporting food processing industries, coupled with technological advancements in automated baking systems and ingredient innovation, will enable manufacturers to scale operations while maintaining quality standards.

Government initiatives promoting millet-based products and nutritional fortification are creating substantial opportunities for bakery manufacturers to develop innovative formulations that align with public health objectives while meeting consumer demand for healthier alternatives. In 2024, the Secretary of Food Processing Industries, promised that the government will tackle the issues faced by the bakery and confectionery sector, such as simplifying regulatory frameworks. An official statement indicated that during an interactive session with industry leaders, key focus areas were identified, such as regulatory simplification, sustainability, and innovation. This regulatory support is complemented by millet promotion campaigns that have normalized the use of ancient grains in bakery formats, encouraging manufacturers to invest in research and development for creating products that combine traditional ingredients with modern taste preferences, thereby expanding addressable markets while contributing to national nutritional goals.

Pros and strengths

Extensive and well-developed sales and distribution network: It has developed a dealer and its distribution network that provides support to its business operations. It sells its products through a network of dealers. It conducts periodic training programmes for sales personnel of its dealers to ensure appropriate marketing and showcase of its brands. It also provides sales incentives to its dealers, whereby, incentive credits are provided to dealers who achieve sales targets during a specified period. Such initiatives encourage its dealers to effect greater sales and increase its brand visibility. 

Focus on quality and timely delivery: Meeting deadlines along with managing quality are bed rock of successful strategy. It stresses on and constantly strives to maintain and improve its quality. Its focus on quality and innovation helps it to complete in the segment it deals. Intensive care is taken to determine the standard of every material/ product dispatched. Further, as a certification of the quality assurance, it has received ISO 9001:2015 and BIS Certification no. IS 7933:2022 for quality management systems. Its focus on quality of products has enabled it to sustain its business model to benefit its customers.

Long-standing relationship with dealers: It continually invests in strengthening its dealers’ relationships which are its customers. Although, it generally does not enter into long term agreements with its dealers and customers, however, it has developed long-standing relationships with these dealers. Maintaining strong relationships with its key dealers is essential to its business strategy and to the growth of its business. Owing to its strong relationships and product quality, it has been able to retain a number of its dealers on a pan India basis ensuring uninterrupted supplies of its products to them. It is well positioned to capitalise the growth opportunity in the bakery business by leveraging its dedicated manufacturing facilities, its relationships with its customers and creating a variety of product options for its retail customers. 

Risks and concerns

High dependence on bread products for revenue and profitability: The company deals in two categories of products, one is bread and other consist of other bakery items. The company’s revenue from ‘bread’ for last three financial year ended on March 31, 2026, 2025 and 2024 was 99.91%, 99.63% and 89.46% respectively. If there is any change in consumer preferences or taste of its breads or decrease in the quality of its breads, there will have an adverse effect on its business as it will decrease the sale of only product of the company that significantly contributes to its sales and profitability. 

Dependence on limited customers for revenue: Its revenues have been significantly dependent on few customers and its inability to maintain such business may have an adverse effect on its results of operations. For the period ended March 31, 2024, March 31, 2025 and March 31, 2026, its revenue from operations from its top 10 customers contributed to 31.56%, 24.85% and 25.01% respectively of its revenues from operations as per its Restated Financial Statements. Its reliance on a limited number of customers for its business exposes it to risks, that may include, but are not limited to, reductions, delays or cancellation of orders from its significant customers, a failure to negotiate favourable terms with its key customers or the loss of these customers, all of which would have a material adverse effect on the business, financial condition, results of operations, cash flows and future prospects of the company.

Concentration of business operations in Uttar Pradesh: Its business operations are majorly concentrated in the state of Uttar Pradesh and Haryana. Any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations. For the financial year ended on March 31, 2026, its revenue from its customers situated in Uttar Pradesh and Haryana contributed 99.25% and 0.75% respectively of its revenue from operations as per its Restated Financial Statements. The manufacturing operations of the company are carried in the state of Uttar Pradesh. Due to the geographical concentration of its manufacturing operations in Uttar Pradesh, its operations are susceptible to local, regional and environmental factors, such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in the transport of its products and raw materials, loss of key managerial personnel, and/or otherwise adversely affect its business, financial condition and results of operations.

Outlook

Q&T Foods is engaged in the business of manufacturing of Bakery products. It carries all its manufacturing operations through its manufacturing facility accredited with ISO (ISO 22000:2018) and HACCP for quality management systems situated at an area of 10,750 sq. feet at Kh No. 378, Deenanathpur, Puti Post Dasna, Ghaziabad, Uttar Pradesh and has 9,472 TPA installed capacity. It has established an efficient, technology-driven manufacturing process that enables it to produce its products in accordance with the specific requirements and specifications for manufacturing of all types of Bread, Kulcha, Bun, Pizza Base. On the concern side, business operations require maintaining substantial inventory levels, which exposes it to significant financial losses due to the perishable nature of its products and raw materials, and accordingly any mismanagement of its inventory, may have an adverse effect on its business, cash flows, financial condition and results of operations. Besides, its inability to anticipate, respond to and meet the tastes, preferences or consistent quality requirements of its consumers or its inability to accurately predict and successfully adapt to changes in market demand or consumer preference could reduce demand for its products, affect its brand loyalty and impact its sales.

The company is coming out with an IPO of 22,82,400 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 115 per equity share to mobilize Rs 26.25 crore. On performance front, its revenue from operations increased by 16.97% to Rs 5,477.63 lakh for FY 2026 from Rs 4,683.07 lakh for FY 2025. Net profit after tax has increased by 90.10% from Rs 273.55 lakh for FY 2025 to Rs 520.03 lakh for FY 2026.

Meanwhile, its strategy is to expand into products with higher margins. It will continue to expand its product portfolio within the existing product segments, focus on increasing sales realisation and volumes, and strive to provide differentiated offerings to its consumers.  Going forward, it intends to expand its geographical reach and enter the large domestic market for growth opportunities of its business. Currently, it has presence in the state of Uttar Pradesh and it plans to deepen its presence in the existing market and expand its reach and penetrate into the large available market by giving scale down low-price solution and grab major market share.

Spencer's Retail has informed that pursuant to Regulations 30, 33 and other applicable Regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 {‘SEBI (LODR)’} the Board of Directors of the Company, at its meeting held today, August 13, 2026, has considered, approved & taken note of the Unaudited Financial Results (Standalone and Consolidated) of the Company, together with the Limited Review Report issued by the Statutory Auditors of the Company, for the first quarter ended on June 30, 2026 pertaining to the Financial Year 2026-27. A copy of the said results along with the Limited Review Report issued by the Statutory Auditors of the Company, is enclosed as ‘Annexure-A’. The meeting of the Board of Directors of the Company commenced at 2:00 PM and concluded at 3.20 PM.

The above information is a part of company’s filings submitted to BSE.