Financial Performance Highlights

Full Year FY25-26 Performance:

  • Revenue from operations: Rs. 524.7 crore (up approximately 38% from Rs. 380.5 crore in FY24-25)
  • Export revenue growth: Approximately 23%
  • Export volume growth: Almost 8%
  • EBITDA: Rs. 36.03 crore (up approximately 26%)
  • Profit After Tax: Rs. 15.90 crore (up approximately 60%)
  • Earnings Per Share: Rs. 4.06

Q4 FY25-26 Performance:

  • Revenue: Rs. 117.24 crore (up approximately 25% year-on-year)
  • Quarterly profitability was impacted by Middle East conflict and raw material costs

Operational and Strategic Updates

Market Diversification:

  • Export portfolio well balanced with US and China comprising ~40% of exports
  • Russia, Southeast Asia, Europe, and Middle East comprise remaining 60%
  • Added 2 new clients in Russia during FY26
  • Penetrated Chinese market with black tiger shrimp product, working with 5 customers

Geopolitical Impact on Q4 Operations:

  • Middle East conflict affected approximately 20 containers of shipments
  • Half of containers (10) had to be rerouted to alternate destinations
  • 5 containers were in transit and required special handling with shipping liners
  • Remaining shipments held as inventory for reprocessing
  • This resulted in increased operational and logistics costs

Raw Material Challenges:

  • Sharp increases in key raw materials (fishmeal and soya) impacted feed division margins
  • Abnormal increase in fishmeal prices due to unprecedented reasons
  • Company maintained healthy inventory levels but faced cost increases

Domestic Market Expansion:

  • Commenced sales to Hyperpure in Q4 FY2025-26
  • Initial focus on base products (raw frozen shrimp) for domestic market
  • Processing plant emphasizing R&D for new product development for Indian consumers

Sustainability and Innovation Initiatives:

  • Setting up 1-megawatt solar power plant for captive consumption in processing division
  • Part commissioned in Q4, balance to be commissioned shortly
  • Feed division R&D incorporating alternate substitutes to fishmeal (insect protein)
  • Pilot farming projects underway during FY2025-2026

Forward-Looking Guidance and Targets

Medium-Term Roadmap (FY27-28):

  • Targeting annual export revenues of up to Rs 1,000 crore
  • Strategies include deeper penetration in Russia and China
  • Re-entry into European Union market
  • Measured build-out of domestic and value-added portfolio

Value-Added Products Strategy:

  • Value-added products currently represent 7-10% of export volume
  • Target to double this contribution by volume in FY27 (subject to normal market conditions)
  • New PD Curl control product showing incremental EBITDA margins of 5-10% above base

Market Outlook:

  • US tariff reduction from 50% to 10% effective February 2026 improves competitiveness
  • India-EU FTA expected to provide substantial tariff reductions for seafood exports
  • Company's plant already carries EU certification
  • Domestic market potential seen as substantial over next 4-5 years

Q&A Session Highlights

Market Share:

  • Current market share in Indian shrimp exports: 0.5% to 0.75%
  • Indian shrimp exports estimated at Rs 50,000-55,000 crore
  • Feed business market share: sub 2%

Risk Factors:

  • Raw material price volatility identified as key sector risk
  • Weather patterns affecting farm-based operations
  • Geopolitical stability and trade barriers
  • Company focusing on diversification and relationships to mitigate risks

Growth Strategy:

  • Collaboration with like-minded sector participants
  • Building long-term customer relationships to endure volatilities
  • Focusing on domestic market opportunity with protein-deficient population
  • Maintaining diversified export portfolio across regions and products