Financial Performance Q1 FY27

Revenue:

  • Net revenue remained flat at ₹257 crores compared to ₹258 crores in Q1 FY26

Profitability:

  • EBITDA increased 79% YoY to ₹33 crores from ₹18 crores in Q1 FY26
  • EBITDA margin expanded to 12.7% from 7.1% in Q1 FY26
  • Profit After Tax stood at ₹22 crores compared to ₹9 crores in Q1 FY26
  • PAT registered 138% YoY growth with margin improving to 8.4% from 3.5%

Operational Metrics:

  • Total shrimp sales volume declined to 2,624 metric tons from 3,015 metric tons in Q1 FY26 (13% decrease)
  • Average shrimp realization increased 15% YoY to approximately ₹930 per kilo from ₹812 per kilo in Q1 FY26
  • Capacity utilization was 38% in Q1 FY27 compared to 39% in Q1 FY26

Geographical Sales Mix

  • USA accounted for 70% of total shrimp sales in Q1 FY27 (up from 54% in Q1 FY26)
  • Shrimp sales to USA increased 13% YoY and 121% QoQ
  • EU and UK together contributed 25% of total shrimp sales (down from 39% in Q1 FY26)

Product Mix and Value-Added Products

  • Ready-to-Eat (RTE) products contributed 16% of total volume in Q1 FY27 (similar to 15% last year)
  • RTE realization increased from $11.18 to $12.05 per kilo
  • Margin differential between RTC and RTE is approximately $0.50 per kilo minimum
  • Company expects RTE sales to reach 18-20% of total volume in current fiscal year

Factors Affecting Performance

Positive Factors:

  • 15% improvement in average shrimp realization
  • Stable farm gate prices during Q1
  • Depreciating rupee supporting realizations
  • Cost efficiency measures
  • Removal of tariff uncertainties in US market (finalized at 10%)

Challenges:

  • Labour shortage in April and May affecting production
  • War-led transportation disruptions affecting export markets
  • Increased ocean freight costs (more than doubled compared to Q4 FY26)
  • Regulatory testing and certification requirements affecting EU shipments

Management Guidance and Outlook

Volume Expectations:

  • Expecting volume recovery in Q2 FY27 subject to normalization of global transportation conditions
  • Targeting approximately 12,000 metric tons for FY27
  • Planning for 14,000-15,000 metric tons in FY28/FY29 subject to market conditions

Margin Outlook:

  • Expect stable margins supported by:
  • Stable export realizations in dollar terms
  • Depreciated rupee
  • Cost efficiency measures
  • Volume growth improving cost efficiency
  • Potential margin pressure from:
  • Increasing farm gate prices (6-7% increase over past 3-4 weeks)
  • Higher freight costs due to war disruptions

Market Diversification:

  • Focus on expanding presence across markets for diversified and resilient business
  • Japan market initiated after more than a decade absence
  • Russia market expected to start by end of Q2 or Q3 FY27
  • Australia market still at discussion stage pending customer audits

Order Book and Capacity Utilization

  • Current order book healthy until middle of Q3 FY27
  • Planning to maintain capacity utilization above 35-40% through the year
  • Labour shortage issues resolved towards end of Q1

Regulatory and Tariff Updates

US Tariffs:

  • Current import tariffs at 10% with ADD and CVD additional
  • No clarity on potential refunds of previously paid tariffs
  • Countervailing Duty (CVD) review expected in December 2026 - potential reduction from 5.77% if US accepts Indian government explanations
  • Anti-Dumping Duty (ADD) review expected in September 2026 (currently 3.4%)

Free Trade Agreements:

  • UK-India FTA effective from July 15, 2026 - inquiries increased but non-tariff barriers remain
  • EU FTA expected by December 2026 or January 2027
  • FTAs typically take minimum 1 year for full implementation

Balance Sheet Position

  • Company maintains lean financial profile with prudently managed debt levels
  • Focus on disciplined working capital management
  • Healthy balance sheet position as business scales

Conference Call Participants

Management:

  • Mr. Karuturi Chowdary - Managing Director and Chief Financial Officer
  • Mr. Durga Prasad - Senior Manager, Accounts

Moderator:

  • Mr. Hrithik Hattiangadi - Stellar IR Advisors

Forward-Looking Statements

Management noted that the call contained forward-looking statements based on company's beliefs, opinions and expectations as of the date, which are not guarantees of future performance and involve unforeseen risks and uncertainties. The company undertakes no obligation to update any forward-looking statements.