Sharat Industries Ltd

Independent Director Re-appointment

• Re-appointment of Independent Director Mr. Swayze Mani for a second five-year term.
• Effective from 16 May 2027 to 15 May 2032, subject to shareholders' approval.
• Reason: re-appointment for second term as Independent Director.
• Board approved on recommendation of Nomination and Remuneration Committee.
• Profile: over 25 years in Human Resource Management.
• Relationship: not related to any other Directors.
• Not debarred from holding office by SEBI or other authorities.
• Shareholder approval to be sought at the 36th AGM.

CFO resignation

• Balasubramanian R resigns as CFO and KMP, effective 10 August 2026, citing personal reasons.
• He will cease to be a KMP under applicable Companies Act provisions.

Appointment of new CFO

• Ganesan Nilakanatan, CS & Compliance Officer, appointed CFO with effect 10 August 2026.
• Appointment is full-time, per employment agreement, on board recommendation.
• He is 62, CS, Cost Accountant, ACMA UK, with 35+ years’ experience.
• Disclosure of relationships with directors: Not applicable.
• Board approved appointment on 10 August 2026.

Dematerialisation certificate status

• Certificate from registrar confirms dematerialisation of share certificates for the reporting period.

FY26 results

• Revenue from operations rose 38% to Rs. 524.7 crore in FY26.
• EBITDA increased 26% to Rs. 36.03 crore in FY26.
• PAT grew 60% to Rs. 15.90 crore in FY26.
• Q4 revenue grew about 25% year-on-year to Rs. 117.24 crore.
• Export revenue grew 23%; export volumes rose almost 8%.

Drivers and outlook

• Q4 profitability was hit by Middle East disruption, rerouted cargo, and higher logistics costs.
• Fishmeal and soya price spikes pressured feed margins in Q4.
• US shrimp tariffs fell from 50% to 10% from February 2026.
• Management expects US exports to scale up in FY27.
• FY27-28 target is annual export revenue up to Rs. 1,000 crore.

Operations and strategy

• US and China contribute roughly 40% of exports; other regions contribute 60%.
• Russia added two new clients; China added five clients for black tiger shrimp.
• Value-added products were 7-10% of export volume in FY26.
• Management hopes to double value-added volume share if markets normalize.
• One-megawatt solar plant is being set up for captive consumption; part was commissioned in Q4.

Q&A Highlights

• Analysts asked about West Asia disruption; management said about 20 containers were affected and inventory is being reprocessed.
• Analysts asked about FY26 PAT outpacing EBITDA; management cited diversification, higher utilization, and value-added products.
• Analysts asked about Europe; management said the India-EU FTA has improved sentiment and demand outlook.
• Analysts asked about the PD Curl control product; management said it adds over 5% to almost 10% incremental EBITDA margins.
• Analysts asked about market share; management said shrimp export share is 0.5%-0.75%, and feed share is below 2%.
• Analysts asked about raw material inflation; management said it is using insect protein substitution and seeking government relief.
• Analysts asked about domestic shrimp demand; management said organized players and cold-chain subsidies could expand the market.
• Analysts asked about future risks; management cited geopolitics, tariff stability, raw material volatility, and erratic weather.