Total Income: ~INR 145 crores, representing 23% year-on-year growth.
EBITDA: ~INR 20 crores with an EBITDA margin of 14%.
Profit After Tax (PAT): ~INR 12.6 crores.
Sequential Growth (vs H2 FY26): EBITDA grew by 21% and PAT grew by 19%; EBITDA margins improved by 190 basis points.
Volume Processed: Approximately 8,500 metric tons.
Realization: Stood at nearly INR 170 per kg of raw cashew nut.
Operational Highlights
Plant Utilization: The existing plant in Andhra Pradesh operated at ~95% utilization during H1 FY27, compared to 86% in FY26.
Sourcing: Farm gate relationships across seven producing countries in Africa secured supply. Input costs remained high, leading to a strategy of protecting volumes and holding higher raw nut inventory, which increased working capital and interest costs.
Institutional Business: Contributed 37.5% of H1 revenue (vs 34% in FY26) with orders from leading food and snack confectionery companies.
Distribution Network: 178 distributors across more than 20 states.
Consumer Brand (Royal Meva): Contributed 4.6% of H1 revenue, up from 1.36% in H1 FY26. Growth is focused on offline distribution, online platforms, and corporate gifting, with a measured approach to quick commerce.
Strategic Updates and Expansion
Vizianagaram Facility (New Greenfield Project): A new 35,000 metric ton capacity plant is under construction. Work was delayed by approximately 45 days due to three cyclones (Arnab, Musaru) in Andhra Pradesh. Trial production is now expected by February 2027, with commercial production targeted for Q4 FY27. The facility is designed for higher automation and lower processing costs. IPO proceeds are being deployed as planned. Upon commissioning, total Indian capacity will reach 53,000 metric tons.
Acquisition of Pacific Global FZCO: The board has approved the acquisition of a 100% stake in Pacific Global FZCO.
Target Company: Pacific Global FZCO is a UAE-based company that owns a 100% subsidiary in Cote d'Ivoire operating a 60,000 metric ton cashew processing facility.
Strategic Rationale: Provides processing at origin (world's largest producer of raw cashew nuts), access to international customers (US, Europe, Middle East, China), and aims to create an end-to-end global cashew platform.
Consideration: The acquisition will be paid for entirely through the issuance of Pajson Agro shares (a share swap) at a valuation determined by an independent valuator, stated to be close to the NAV of Pacific Global. The deal is subject to shareholder and other applicable approvals.
Current Status: The Ivory Coast facility is a greenfield project that recently commenced operations. It is expected to operate at ~50% utilization in FY27. The acquisition is anticipated to be EPS-accretive. Consolidation is expected within 2-3 months (by Jan-Feb-Mar 2027).
Post-Acquisition Capacity: Combined processing capacity will increase to 113,000 metric tons across India and West Africa.
Management Appointments: Mr. Vu Thai Son, with over three decades of experience in the global cashew industry, has been appointed as a strategic advisor.
Employee Stock Option Scheme: The board approved the Pajson Agro Employee Stock Option Scheme 2026.
Management Commentary and Outlook
FY27-FY28 Outlook: Management expects these to be transformational years. The Vizianagaram plant is anticipated to reach 60-70% utilization in FY28, while the existing plant maintains ~90% utilization. The goal is to achieve 85-90% utilization across all facilities by FY29.
Margin Outlook: Margins are expected to improve in the long term due to the origin processing facility (which has better margins than India), higher automation in the new plant, and improved procurement strategies. Near-term margins were impacted by high input costs, forex volatility, and increased freight surcharges.
Working Capital: Requirements are expected to increase with expansion. The company is in talks with financial institutions for additional working capital lines.
Long-Term Vision: To achieve a 5-8% global market share and a leadership position in the world cashew industry within the next 5-7 years.
Risks Identified: Geopolitical disturbances affecting forex and freight, policy changes in India or other countries, and the operational challenges of managing a scaled, global business.
Q&A Session Key Points
The acquisition valuation was defended as fair for a pre-revenue, greenfield asset, with the deal structured as a share swap without cash consideration.
Management emphasized strong corporate governance and alignment with minority shareholder interests.
The African facility's margins are expected to be 5-7% higher than Indian operations.
The procurement strategy is shifting towards more direct farmgate relationships to improve quality, pricing, and timing, reducing reliance on merchant traders.
No immediate equity fundraise is planned, but working capital debt will increase with volume growth.
