Company Overview

Prime Fresh Limited (Scrip Code: 540404) is an emerging agri-supply-chain and fresh-produce distribution company headquartered in Ahmedabad. The company operates at a PAN India level, working directly with over 130,000 farmers across 85+ districts. The company is listed on the Main Board of BSE Limited and is rated CRISIL BBB/Stable.

Q1 FY27 Financial Highlights

Revenue & Profitability:

  • Revenue from Operations: ₹61.71 Crore (15.7% YoY growth)
  • EBITDA: ₹6.07 Crore (51.0% YoY growth)
  • PAT: ₹4.35 Crore (34.3% YoY growth)
  • EBITDA Margin: 9.83% (230 bps YoY expansion)
  • PAT Margin: 7.05% (163 bps YoY expansion)
  • Diluted EPS: ₹2.94

Operational Metrics:

  • Sales Tonnage: 17,982 MT (68.0% YoY growth)
  • Trade Receivable Days: 56
  • Inventory Days: 61
  • Trade Payable Days: 33

Cost Structure:

  • Other Income: ₹1 Mn (-48.0% YoY)
  • Expenses except Depreciation: ₹557 Mn (25.5% YoY increase)
  • Finance Cost: ₹7.2 Mn
  • Depreciation: ₹3.3 Mn
  • Tax: ₹13 Mn (-24.7% YoY)

Business Highlights & Strategic Initiatives

Product Expansion: The company is aggressively expanding into organic, specialty, and value-added categories with focus on high-margin products like tomatoes, capsicum, green peas, and carrots.

Geographic Expansion: Strengthening footprint in emerging domestic regions including Uttar Pradesh, Bihar, Odisha, Guwahati, Madhya Pradesh, West Bengal, and key southern states.

Land Acquisition for Expansion:

  • Acquired 6 acres of land at Shrirampur Village, Sinnar Taluka, Nashik District, Maharashtra
  • Leased 3.73 acres at Nandur Shingote Village, Sinnar Taluka, Nashik District, Maharashtra for 16 years
  • Leased 0.09 acres at Arai Village, Baglan Taluka, Nashik District, Maharashtra for 16 years

Partnerships: Collaborating with ITC, Syngenta, and agritech innovators to transform fruits and vegetables supply chain sector.

Cluster Development Programme: Ranked No. 1 across all three NHB Cluster Development Programme EOI applications submitted by the Company.

Business Model & Operations

Key Activities: Service Business (21 Services) and Supply Chain business in Fruits & Vegetables (Procurement, Processing and Distribution)

Customer Segments: Serves 828 B2B clients, 320 consumers, and both domestic and export markets. Key customers include Tata Star Bazar, HyperCity, and Reliance Fresh Limited across Gujarat.

Service Business: Using 3PL model serving corporations including RIL, Agility Logistics, Waghbakri Tea, pharmaceutical and spice companies across 25 locations.

Core Competencies: Maintains less than 3% F&V wastage in supply chain, strong distribution network across 18 states, and expertise in ripening chambers.

Historical Financial Performance (Consolidated)

Revenue Growth:

FY20: ₹499.7 Mn → FY26: ₹2,739.8 Mn (33% CAGR)

Profitability Trends:

  • EBITDA Margin: Improved from 6% in FY20 to 7% in FY26
  • PAT Margin: Improved from 3% in FY20 to 5% in FY26
  • PAT grew at 43% CAGR from FY20-FY26

Balance Sheet Strength:

  • Near-zero debt (D/E 0.1)
  • Long Term Borrowings: NIL in FY26
  • ROE: 18% in FY26
  • ROCE: 20% in FY26
  • Working capital cycle remained stable over last two years

Management Commentary

Mr. Hiren Ghelani, Founder and Whole Time Director, stated: "Q1 FY27 marks a strong and encouraging start to the year. We continued to build on operating momentum with healthy traction across key categories including onions, mangoes and pomegranates, along with continued margin improvement in our Services Business. The improvement reflects benefits of disciplined cost control, better operating efficiencies, stronger utilization of our sourcing and distribution network, and improving product and business mix."

Forward Outlook

The company acknowledges that the operating environment may remain dynamic due to agricultural seasonality, crop-specific quality variations, and measured demand in select HORECA and export channels. Priorities include deepening sourcing and customer relationships, strengthening higher-margin services and value-added categories, improving operating efficiencies, and progressing CDP initiatives.