Apex Frozen Foods Ltd

Financial Performance

• Net revenue: INR 257 crores in Q1 FY27, flat vs INR 258 crores Q1 FY26.
• EBITDA: INR 33 crores; margin 12.7% vs 7.1% YoY.
• PAT: INR 22 crores; PAT margin 8.4% vs 3.5%.

Volumes and Realizations

• Realization per kilo: INR 930; volumes 2,624 MT vs 3,015 MT Q1 FY26.
• USA share: 70% of shrimp sales in Q1 FY27; 54% Q1 FY26.
• EU+UK share: 25% of total; 39% Q1 FY26.
• RTE share: 16% of total volume; 15% Q1 FY26.
• RTE margin differential: USD 0.50 per kilo between RTC and RTE.

Market Dynamics

• Farm-gate prices rising; realizations supported; margins stable; freight costs rising.
• War-led transport disruptions impacted volumes; container shortages.
• Depreciating rupee aiding realizations.

Capacity and Utilization

• Q1 FY27 capacity utilization: 38%; last year: 39%.
• Annual production target: ~12,000 MT for FY27; RTE utilization 16%.
• Order book good through middle of Q3.

Outlook and Markets

• UK-India FTA effective from July 15; EU FTA expected end of this year or early next year.
• Russia by end of Q2 or Q3; Australia under discussion; audits pending.
• Tariffs: US 10%; ADD/CVD apply; refunds not yet known.

Q&A Highlights

• Margins stable with volume growth; freight and farm-gate cost increases offset by realizations.
• Q2 realization expected around INR 930 per kilo; similar level anticipated.
• RTE to 18-20% of volumes; proprietary products could contribute 3-4% of total sales.
• EU FTA benefits expected by end of this year or early next year; UK FTA already in effect.
• Tariff refunds unclear; Russia/Australia progress on audits; FTAs to drive volumes later.

Meeting Details

• Date and time: 18 August 2026 at 11:30 IST (audio recording of the investors’ conference call).
• Type and mode: group investor conference call (audio recording).
• Event/organiser: Investors’ Conference Call hosted by Apex Frozen Foods.

Participants

• Key company participant: Managing Director.

Purpose

• Purpose: discuss un-audited Q1 2026 results with investors.

Additional Notes

• Recording available on company website.

Business overview

• Integrated shrimp exporter with hatcheries and processing plants in Kakinada and G. Ragampeta.
• Focus on ready-to-cook and ready-to-eat products and VAP.
• Capacity headroom supports growth in higher-value segments.

Operational highlights

• Q1 FY27 net revenue ₹2,565 Mn; total income ₹2,593 Mn.
• Shrimp sales 2,624 MT, down from 3,015 MT last year.
• Gross margin rose to 41.9% vs 33.6% YoY.
• EBITDA ₹330 Mn; EBITDA margin 127%.
• PAT ₹217 Mn; PAT margin 8.4%.
• Debt levels prudent and comfortable.
• RTE capacity expansion added 5,000 MT in May 2023.
• EU approval for second facility completed.

Financial performance

• Net revenue ₹2,565 Mn; gross profit ₹1,086 Mn.
• Gross margin 41.9% (33.6% YoY).
• PAT ₹217 Mn; PAT margin 8.4%.
• EBITDA ₹330 Mn; EBITDA margin 127%.

Capital structure & liquidity

• Current assets ₹3,633 Mn; current liabilities ₹1,206 Mn.
• Short-term borrowings ₹995 Mn.

Strategic priorities & outlook

• RTE and VAP growth remain key priorities.
• Total capacity stands at 34,240 MTPA across two plants.
• Non-US sales share rose to ~45% in Q1 FY26.
• EU second facility approval completed; logistics near-term focus.

Risks & mitigation

• Labor shortages and transport disruptions reduced Q1 volumes.
• Cost-efficiency measures support profitability.

Governance & leadership

• MD: Karuturi Subrahmanya Chowdary (no governance changes indicated).

Financial results approved

• Un-audited Q1 FY2026 results approved for the quarter ended 30 June 2026.
• Revenue from operations Rs 25,653.04 lakh.
• Net profit Rs 2,166.53 lakh; Basic EPS Rs 6.93.

AGM scheduled

• 14th AGM proposed for 17 September 2026; via VC/AVM at 10:00 AM.

Auditor observations

• Limited Review Report by Padmanabhan Ramani & Ramanujam; no material misstatement.

Operational and group structure

• Single segment: export of processed shrimp; consolidation not applicable.
• No investment in subsidiaries/associates/joint ventures.

Meeting Details

• Earnings call scheduled for Tuesday, 18 August 2026 at 11:30 AM IST.
• Type: group conference call; Mode: virtual.
• Event: Q1FY27 Earnings Call hosted by Apex Frozen Foods Limited.

Participants

• Key company participants: Managing Director & CFO; Sr. Manager, Accounts.

Purpose

• Purpose: discuss Q1 FY27 results for the quarter ended 30 June 2026.

Financial Performance 📊

• Q3 FY26 revenue from operations rose 14.5% YoY to ₹26,428.71 lakhs; total income increased 15.1% to ₹26,816.19 lakhs.
• Cost of materials consumed fell 14.1% YoY to ₹13,101.91 lakhs in Q3 FY26; employee benefits expense rose 14.8% to ₹1,229.10 lakhs.
• Finance costs declined to ₹104.39 lakhs in Q3 FY26 from ₹278.73 lakhs YoY.
• EBITDA and profit before tax were ₹1,335.30 lakhs in Q3 FY26 versus losses of ~₹21 lakhs YoY.
• Net profit for Q3 FY26 was ₹1,009.00 lakhs, reversing a loss of ₹22.24 lakhs YoY; basic and diluted EPS stood at ₹3.23.
• Nine months ended Dec 2025 revenue from operations grew 23.4% YoY to ₹76,078.65 lakhs; net profit rose to ₹3,106.09 lakhs from ₹191.20 lakhs.

Operations & Segment 🗒️

• Company operates solely in the shrimp processing segment.
• Export benefits included ₹1,244.05 lakhs in Q3 FY26 and ₹3,762.73 lakhs in nine months FY26.

Audit & Compliance 🧾

• Auditor’s limited review report for Q3 and nine months FY26 noted no material misstatements.

Risks & Regulatory ⚠️

• Labour Code changes assessed; incremental past service cost deemed immaterial.

Corporate Structure 🧱

• No consolidated financials prepared as company has no subsidiaries or associates as of Dec 31, 2025.

Financial Performance 📊

• Approved unaudited standalone financial results for Q3 and nine months ended December 31, 2025, under Ind AS.
• Q3 2025 total income was ₹26,816.19 lakhs; net profit was ₹1,009.00 lakhs.
• Net profit for nine months ended December 31, 2025, was ₹3,106.09 lakhs.
• Diluted EPS was ₹3.23 for Q3 2025 and ₹9.94 for nine months 2025.
• Revenue includes export benefits of ₹1,244.05 lakhs for Q3 and ₹3,762.73 lakhs for nine months 2025.

Auditor and Compliance ⚠️

• Independent auditor issued limited review report with no material misstatement or qualification for Q3 and nine months results.
• Company evaluated impact of new Labour Codes; no material financial effect recognized.