Aelea Commodities H1 FY27 Revenue Up 42% YoY

Revenue: ₹246 crore for H1 FY27, representing a 42% increase compared to the previous year
EBITDA: ₹23 crore, with corresponding increase in absolute terms but margin percentage declined due to revenue composition
PAT: ₹8.63 crore, marginally lower than previous year's ₹8.70 crore
EPS: Marginally lower by 3 paisa compared to previous year
Finance Cost: ₹8.39 crore for H1 FY27 compared to ₹8.36 crore for H2 FY26, despite significant increase in borrowings

Total Borrowings: Increased from ₹111 crore at H2 FY26 end to ₹232 crore at H1 FY27 end
Working Capital Impact: Three primary factors driving increased working capital requirements:

1. Increase in raw material prices (cashew nuts)

2. Logistics delays increasing transit time from 35-45 days to 110-112 days

3. Later Diwali due to Adhik Maas requiring additional finished goods inventory

Management explained the unique margin structure of the cashew business:

Revenue comprises raw cashew nut price plus fixed value addition margin (approximately ₹27/kg)
Operating costs are approximately ₹20/kg
EBITDA per kg remains stable at ₹7/kg regardless of raw material price fluctuations
As raw material prices increase, EBITDA percentage declines while absolute EBITDA per kg remains constant

Current Capacity: 140 metric tons per day shelling capacity
Certification: FSSC 22,000 certified operations
Sourcing Strategy: Buying directly from African origins through merchant traders in UAE, Singapore, or Europe
Market Focus: Targeting Middle East exports alongside domestic market, with merchant exports already commenced

On 2nd November 2026, the board approved a major expansion project:

Shelling Capacity: Increase from 140 to 200 metric tons per day (60 metric ton addition)
New Facilities: Cardanol production unit
Infrastructure: Staff housing colony
Project Cost: ₹100 crore for manufacturing unit and land, plus ₹14 crore for staff housing colony (Total: ₹114 crore)
Timeline: 30 months for completion
Funding: Through internal accruals and debt

CNSL Oil Plant: Expected to commence operations by mid or end of December 2026 (delayed due to technical modifications)
Solar Plant: Expected to commence by mid or end of December 2026 (delayed due to approval delays from substation and rains affecting civil work)
Utilization: Expected to reach full input levels of 100 tons per day (from 140 metric tons shelling capacity) by year-end

India: Largest consumer with 30% market share (300,000 tons)
Europe: Second largest with 25% market share (300,000 tons), currently affected by economic challenges
United States: Third largest with 140,000 metric tons
China: Fourth largest with 110,000 tons, predominantly served by Vietnam
Logistics Impact: Strait of Hormuz closure and Bab el-Mandeb inclusion in conflict significantly increased transit times and costs

Confident in utilizing expanded capacities based on current 95-97% utilization rates
Targeting 1000 metric ton capacity by 2037 through phased expansions
Export margins generally lower than domestic market, but exports provide liquidity for higher quality grades
Realizations currently around ₹735-738 per kg for kernels, influenced by raw cashew prices, shell prices, and packing material costs

Management acknowledged learning from previous timeline commitments and now providing more conservative project timelines (30 months for new expansion)
Working capital requirements expected to remain elevated due to continued high cashew prices and logistics challenges
Long-term debt remains low despite increased working capital borrowings
Volume data available upon request via email