Q&T Foods IPO

India’s FMCG sector is among the country’s largest economic sectors, supported by rising disposable incomes, a young consumer base, increasing brand awareness and expanding retail channels.  

FMCG demand is being supported by rural consumption, e-commerce, smaller pack sizes, and changing consumer preferences. Quick commerce has also emerged as an important distribution channel.  

The Indian bakery market was valued at USD 15.05 billion in 2025 and is projected to reach USD 32.05 billion by 2034, registering a CAGR of 8.76% between 2026 and 2034.  

Urbanisation, busy lifestyles and the growth of dual-income households are increasing demand for convenient, ready-to-consume products such as bread, buns and pizza bases.  

Rising incomes and greater awareness of hygiene and quality are encouraging consumers to shift from unorganised bakery products to branded and packaged alternatives.  

The expansion of quick-commerce platforms is improving access to bakery products and helping address distribution challenges associated with their relatively short shelf life.  

Consumers are increasingly seeking healthier bakery options, including brown, multigrain and oats-based products, as well as products made with millet and other functional ingredients.  

Bread accounted for 36% of the Indian bakery market in 2025, supported by its growing role as a regular household food product.  

Supermarkets and hypermarkets accounted for 35% of the bakery market in 2025, benefiting from organised displays, hygiene standards, and promotional offers.  

North India accounted for 30% of the bakery market in 2025, supported by urban demand, higher consumption of Western bakery products and a concentration of manufacturing facilities.  

The bakery industry remains competitive, with established national brands, multinational companies, and regional players competing on pricing, product variety, distribution, and brand recognition. 

Capital Expenditure: Up to ₹4.42 crore will be used to purchase and install automated bakery processing machinery at the Ghaziabad facility to improve production efficiency and capacity.  

Working Capital: Up to ₹7.50 crore will fund working capital requirements, including raw material purchases and trade receivables, to support business expansion.  

Debt Repayment: Up to ₹6.75 crore will be used to repay or prepay existing borrowings, helping reduce interest costs and the debt-servicing burden.  

General Corporate Purposes: The remaining proceeds will support operational requirements, brand building, marketing, and other strategic initiatives. 

Q&T Foods operates a 10,750 sq. ft. manufacturing facility in Ghaziabad with an installed capacity of 9,472 TPA. The facility is ISO 22000:2018 and HACCP certified and recorded 84.39% capacity utilisation in FY25.  

The company distributes its products through more than 50 dealers, who supply multi-brand retail stores and local outlets.  

Its “American Bakers” brand offers bread, buns, kulcha and pizza bases, helping the company build a presence in the savoury bakery segment.  

The Indian bakery market is projected to grow from USD 15.05 billion in 2025 to USD 32.05 billion by 2034, at a CAGR of 8.76%. Bread accounted for 36% of the market in 2025, aligning with Q&T Foods’ core product portfolio.  

With operations concentrated in Uttar Pradesh, the company can use its existing manufacturing and distribution capabilities to expand into other markets, particularly across North India.  

The company plans to deploy up to ₹4.42 crore from the IPO proceeds towards automated bakery machinery to improve production efficiency, consistency and capacity utilisation.  

Up to ₹7.50 crore will be used to fund working capital requirements, including raw material procurement and trade receivables, supporting the company’s planned expansion.  

Up to ₹6.75 crore will be used for repayment or pre-payment of borrowings, which could reduce interest costs and lower the company’s debt burden. 

Bread contributed 99.90% of operational revenue in the nine months ended December 31, 2025, and 99.63% in FY 2024-25. Any decline in bread demand or product-related issues could materially affect revenue.  

Uttar Pradesh contributed 99.32% of operational revenue in the nine months ended December 31, 2025, while Haryana accounted for only 0.68%. Regional disruptions or competition could therefore affect operations.  

The company’s flagship brand logo is currently marked as “Opposed” under Class 30. Failure to secure the trademark could affect brand usage and expose the company to potential legal disputes.  

Bakery products have a limited shelf life. Production mismatches, transportation delays, or supply chain disruptions could result in spoilage, returns, and inventory losses.  

Contamination, adulteration or lapses in food safety standards could lead to product recalls, reputational damage, legal action, and financial losses.  

The company’s Ghaziabad manufacturing facility operates on leased premises until December 31, 2028. Failure to renew the lease or relocation could disrupt production.  

The top 10 customers contributed 24.97% of revenue, while the top 10 suppliers accounted for 37.06% of purchases during the nine months ended December 31, 2025. The absence of long-term agreements increases dependency on these parties.  

The company reported negative cash flows from operating activities of ₹17.28 lakh in FY24 and ₹152.41 lakh in FY23. Continued cash flow pressure could affect liquidity and expansion plans.  

Trade receivables of ₹977.82 lakh and inventories of ₹621.43 lakh accounted for a significant portion of current assets as of December 31, 2025. Delays in dealer payments could increase working capital pressure.  

Secured borrowings stood at ₹1,067.70 lakh as of December 31, 2025, backed by assets and promoter personal guarantees. Any repayment pressure could affect the company’s liquidity.  

The company had ₹106.86 lakh of unsecured borrowings from related and other parties, which are repayable on demand.  

As of December 31, 2025, contingent liabilities relating to pending litigation stood at ₹20.61 lakh, along with disputed tax demands and pending e-proceedings involving promoter Rakesh Gupta. 

Q&T Foods IPO DRHP 

Q&T Foods IPO RHP 

Corporate Makers Capital Limited 

Contact Number: 011-26812682 

Email Address: ipo@skylinerta.com