What the company does
The company makes savoury bakery products including milk, white, multigrain and brown bread, pav, burger buns, kulcha and pizza bases under the American Bakers brand.
Q&T relocated to a manufacturing facility at Dasna, Ghaziabad in 2024. It distributes primarily in Uttar Pradesh through a network described as more than 50 dealers, making production scheduling, freshness, returns and delivery-route density central to economics.
The company was incorporated in 2018 and converted to a public company in 2024. Nishant Raj Gupta is identified as a promoter and leads corporate strategy; promoter concentration and the short public-company track record require ongoing governance checks.
Customer concentration declined as the top ten supplied 25.01% of FY26 revenue versus 31.56% in FY24. Supply remains somewhat more concentrated: the top ten suppliers represented 36.07% of FY26 purchases, and the company has no long-term raw-material agreements.
Where the IPO money goes
Three-year financial snapshot
| Year | Revenue | EBITDA | PAT | Net worth | Borrowings | Assets |
|---|---|---|---|---|---|---|
| FY24 | ₹40.22 Cr | ₹3.77 Cr | ₹1.96 Cr | ₹2.44 Cr | ₹9.84 Cr | ₹14.34 Cr |
| FY25 | ₹46.83 Cr | ₹4.82 Cr | ₹2.74 Cr | ₹7.04 Cr | ₹10.11 Cr | ₹19.68 Cr |
| FY26 | ₹54.78 Cr | ₹8.37 Cr | ₹5.2 Cr | ₹12.24 Cr | ₹11.05 Cr | ₹26.57 Cr |
Restated financial information from IPO source materials; rounding may create small differences.
FY26 revenue growth
16.97%
Revenue rose to ₹54.78 crore from ₹46.83 crore in FY25.
FY26 EBITDA margin
15.27%
Up from 10.29% in FY25 and 9.37% in FY24.
FY26 PAT margin
9.49%
PAT rose 90% to ₹5.20 crore.
FY26 debt/equity
0.90×
Total borrowings were ₹11.05 crore before the ₹6.75 crore repayment object.
SBI cash-credit line
₹9.50 Cr / ₹11.00 Cr
Amount drawn versus sanctioned at 31 July 2026. The facility carried an 8.40% rate and a 12-month tenure.
Secured / demand debt
₹10.90 Cr / ₹0.15 Cr
FY26 secured loans were ₹10.8956 crore; the balance was a nil-interest, on-demand loan from promoter-director Nishant Raj Gupta.
FY26 operating cash flow
₹3.99 Cr
Approximately 77% of PAT after receivable and inventory growth.
FY26 capacity utilisation
91.33%
Production was 8,651 tonnes against 9,472 tonnes installed capacity, up from 84.39% in FY25.
Top-ten customer share
25.01%
Down from 31.56% in FY24; the largest customer represented 2.76% of FY26 revenue.
Top-ten supplier share
36.07%
Down from 39.90% in FY24, but purchases are made without long-term supplier agreements.
FY26 cash conversion cycle
≈101 days
The prospectus reports 47 inventory days plus 62 receivable days less only 8 payable days.
Receivables + inventory
87.64% of current assets
FY26 trade receivables were ₹9.38 crore and inventory ₹5.37 crore; the two balances supplied 55.73% and 31.91% of current assets.
FY24–FY26 inventory growth
114.7%
Inventory increased to ₹5.37 crore from ₹2.50 crore; the prospectus attributes the rise to raw material not fully consumed in production.
FY28 working-capital gap
₹20.89 Cr
Up from ₹13.82 crore in FY26 and an estimated ₹17.36 crore in FY27; IPO funding is ₹4.00 crore in FY27 and ₹3.50 crore in FY28.
FY26 reported ROCE
70.88%
Up from 60.69% in FY25. It is calculated on the pre-issue capital base and will mechanically reset after the ₹22.59 crore net fresh issue.
BSE close-book demand
31,99,200 shares
Official 14 August 5:36:15 p.m. snapshot: nil QIB, 3,33,600 NII and 28,65,600 retail bids. Derived demand is 1.40× gross or 1.48× net offer; category offered-share fields were blank.
BSE first-day outcome
₹109.25 / −5.00%
Official 19 August 4:00 p.m. quote header; the session opened and peaked at ₹115 before ending at the ₹109.25 low.
Promoter ownership bridge
91.28% → 61.86%
The RHP records 43,78,000 promoter and promoter-group shares before and after the entirely fresh issue. The post figure uses BSE's 70,77,200 final listed-share count.
Final share-count variance
1,200 shares
BSE's 70,77,200 post-allotment shares are one market lot below the prospectus's 70,78,400 fully subscribed assumption; no explanation is stated in the listing notice.
Property and stock cover
₹11.00 Cr
The prospectus lists fire and burglary cover from 4 October 2025 to 3 October 2026, alongside smaller motor policies and stated exclusions and deductibles.
What stands out
- Bread and everyday bakery products can provide frequent repeat purchases when freshness, availability and dealer economics are maintained.
- Revenue increased to ₹54.78 crore in FY26, while EBITDA margin expanded to 15.27% and PAT reached ₹5.20 crore.
- The issue is entirely fresh capital and allocates ₹6.75 crore to debt repayment, which could reduce finance cost and balance-sheet risk.
- The machinery and working-capital allocations could support higher throughput at the relocated Dasna facility if distribution expands without elevated product returns.
Key concerns
- Fresh bread has limited shelf life. Forecasting errors, retailer returns, wastage and weak route density can reduce realized margins even when factory output rises.
- FY26 borrowings were ₹11.05 crore. The ₹6.75 crore repayment object is material, but it is only a partial repayment against the ₹9.50 crore SBI cash-credit draw at 31 July. The prospectus also says a 2% repayment or takeover charge may apply and would be funded from internal accruals; actual post-issue debt and finance cost need confirmation.
- Flour, edible oil, sugar, yeast, packaging and fuel costs can move quickly, while regional competition and consumer price sensitivity may delay pass-through.
- The company is geographically concentrated in Uttar Pradesh and operates from one principal facility, exposing it to local disruption and limiting brand diversification.
- Food contamination, allergen or labelling failures, failed quality tests and product recalls can cause direct cost, regulatory action and brand damage.
- The ₹7.50 crore working-capital allocation equals about 1.44× FY26 PAT. Dealer credit, inventory and supplier advances can absorb cash as the route network expands.
- Trade receivables reached ₹9.38 crore, or 17.12% of FY26 operating revenue, while inventory reached ₹5.37 crore. The prospectus says no bad debts occurred historically, but 42–62 day dealer credit and perishable stock still place most current assets behind collection and sell-through assumptions.
- Inventory more than doubled from FY24 to FY26 and the issuer attributes the increase to unused raw material. FEFO controls reduce but do not eliminate spoilage, expiry, product-return and write-off risk in short-shelf-life bakery products.
- Promoters have mortgaged properties and provided personal guarantees for bank facilities. Even after the proposed ₹6.75 crore debt repayment, continuing limits, collateral release and dependence on promoter support should be verified from post-listing accounts.
- The SBI working-capital facility is secured by stock, receivables and other current assets, three properties and four personal guarantees. The prospectus does not commit to release every security after the partial repayment, so the post-issue collateral package remains a specific verification point.
- The ₹0.15 crore interest-free promoter-director loan is small relative to total debt but repayable on demand. Its balance and any replacement funding should be reconciled in the first post-listing accounts.
- The three-year filing period shows rapid margin expansion, but FY26 performance has not yet been demonstrated across a long commodity, wastage or demand cycle.
- The BSE listing notice's final share count is one 1,200-share lot below the prospectus assumption despite gross close-book demand exceeding the offer. The exchange count is used for valuation, but the basis-of-allotment or a subsequent filing should be checked for the reason.
- BSE SME shares can have limited liquidity, large minimum tradable lots, market-maker dependence and wide bid-ask spreads.
- The American Bakers trademark application is opposed by a third party. No adverse order had been passed at the prospectus date, but an unfavourable outcome could require brand changes or create legal and marketing costs.
- Five supplier-payment proceedings disclosed in the prospectus carry aggregate exposure of ₹34.52 lakh. Although small relative to the offer, they are relevant to payment discipline and vendor relationships.
- The ₹4.42 crore machinery budget was based on quotations without purchase orders; quoted prices were time-limited. Cost escalation, installation delay or lower incremental utilisation would weaken the return on the expansion.
- The prospectus records delays in depositing income tax, GST, provident fund, employee-state-insurance and other statutory dues during FY24–FY26, although it says the amounts had been deposited by the prospectus date.
- FY26 contingent liabilities were ₹20.61 lakh for litigation pending in various courts. Related-party transactions principally involved remuneration and loans, so post-listing balances and terms should be reconciled against audited disclosures.
- The central FSSAI licence was valid to 21 October 2026, but the prospectus says its address was still being updated to the current manufacturing facility. Timely amendment and renewal are important operating controls for a food business.
- The prospectus records a CFO resignation in October 2025 and replacement effective January 2026, plus a company-secretary resignation in January 2025 and replacement effective February 2026. The appointments fill the positions, but the recent finance and compliance leadership turnover is a governance-continuity signal.
What to monitor after listing
- Sales by product, district and dealer; route productivity, product returns, wastage and shelf-life performance.
- Capacity, utilisation and commissioning of the ₹4.42 crore machinery programme at Dasna.
- American Bakers trademark proceedings, supplier-payment litigation and any new vendor claims.
- Gross and EBITDA margins versus flour, oil, sugar, packaging, labour, electricity and distribution costs.
- Operating cash flow, receivable and inventory days, dealer credit and use of the ₹7.50 crore working-capital allocation.
- Raw-material versus finished-goods inventory, expiry and write-offs, FEFO control effectiveness and whether the FY26 inventory build reverses without increasing returns or wastage.
- Receivable ageing, bad-debt allowances and dealer defaults, especially as receivables and inventory together represent 87.64% of current assets.
- Actual debt repayment, the 2% repayment or takeover charge, finance costs, continuing cash-credit availability, security release and post-issue debt/equity.
- Continuity and quality of financial reporting under the recently appointed CFO and company secretary, including statutory-payment discipline and timely BSE disclosures.
- FSSAI address amendment and renewal, ISO 22000 and HACCP validity, food-safety compliance and recalls.
- Statutory-payment timeliness, contingent litigation, related-party remuneration and loans, and BSE SME liquidity.
Valuation context
BSE notice 20260818-34 confirms 70,77,200 post-allotment shares, one 1,200-share lot below the prospectus's 70,78,400 fully subscribed assumption. The ₹109.25 end-of-session value on 19 August implies approximately ₹77.32 crore market capitalisation, or 14.87× FY26 PAT of ₹5.20 crore, compared with ₹81.39 crore and 15.65× at the ₹115 issue price.
The prospectus also presents a 10.61× P/E from ₹10.84 FY26 EPS, but that EPS uses pre-issue weighted shares. Market capitalisation divided by FY26 profit is the dilution-consistent historical comparison.
The 70.88% FY26 reported ROCE is also a pre-issue measure. Post-issue returns should be recalculated after the debt repayment, machinery installation and incremental working-capital cycle are visible in audited accounts.
Mrs. Bectors and other listed bakery or packaged-food businesses operate at much larger scale with broader brands, institutional channels and geography. Their multiples are not directly transferable to a regional SME bakery.
The valuation case should be tested on post-wastage cash margins and return on the new machinery after working capital, not revenue growth or factory capacity alone.
Q&T Foods IPO FAQs
What is the Q&T Foods IPO price band?
The stated price band is ₹115 fixed price. Offer terms should be checked against the final prospectus and exchange notices.
When does the Q&T Foods IPO open and close?
The IPO is scheduled to open on 12 August 2026 and close on 14 August 2026. The stated listing date is 19 August 2026; BSE SME MT group.
What is the Q&T Foods IPO issue size?
The stated total issue size is ₹26.25 Cr, comprising ₹26.25 Cr of fresh issue and ₹0 Cr of offer for sale.
What is the minimum lot for the Q&T Foods IPO?
The stated minimum lot is 2400 shares.
What do the latest Q&T Foods financials show?
For FY26, the offer documents report revenue of ₹54.78 Cr, EBITDA of ₹8.37 Cr and PAT of ₹5.2 Cr. Read these figures with the cash-flow, leverage and working-capital analysis on this page.
What is a key risk in the Q&T Foods IPO analysis?
Fresh bread has limited shelf life. Forecasting errors, retailer returns, wastage and weak route density can reduce realized margins even when factory output rises.
How is the Q&T Foods IPO valued?
BSE notice 20260818-34 confirms 70,77,200 post-allotment shares, one 1,200-share lot below the prospectus's 70,78,400 fully subscribed assumption. The ₹109.25 end-of-session value on 19 August implies approximately ₹77.32 crore market capitalisation, or 14.87× FY26 PAT of ₹5.20 crore, compared with ₹81.39 crore and 15.65× at the ₹115 issue price.