Sharat Industrie

Sharat Industries reported a robust FY26, with revenue from operations increasing by approximately 38% to ₹524.7 crores, up from ₹380.5 crores in FY24-25. Export revenue grew by 23%, driven by an 8% increase in volumes. EBITDA for the year rose 26% to ₹36.03 crores, and PAT saw a significant 60% growth to ₹15.90 crores, resulting in an EPS of ₹4.06. For Q4 FY26, revenue grew substantially by 25% year-on-year to ₹117.24 crores, supported by healthy export demand and continued product diversification, despite external challenges^🌐.

The Middle East conflict was a defining external event in Q4, impacting approximately 20 containers of shipments. About half were rerouted to alternate destinations, and five were already in transit, incurring increased logistics costs. The remaining shipments are currently inventory, being reprocessed for other markets. Additionally, sharp increases in key raw materials like fishmeal and soya impacted profit margins in the domestic feed business, leading to higher costs despite inventory arrangements.

Diversification remains central to the company's strategy, with the US and China making up 40% of exports, and Russia, Southeast Asia, Europe, and the Middle East comprising the remaining 60%. The company successfully added two new clients in Russia and penetrated the Chinese market with black tiger shrimp, acquiring five new customers in FY26. The US tariff relief, reducing duties on Indian shrimp from up to 50% to 10% from February 2026, is a positive development expected to scale up US exports significantly in the current fiscal.

The recently signed India-EU Free Trade Agreement is seen as a positive development, with expectations of substantial tariff reductions for seafood exports. The company's EU-certified plant and historical presence position it well to rebuild relationships and increase exports to Europe, with the agreement anticipated to come into full effect later in the calendar year. Domestically, the company is exploring channels to tap into the frozen shrimp market, including sales to Hyperpure for base products, and anticipates increased organization in the market over the next 4-5 years, potentially supported by government subsidies for cold chain solutions.

Sharat Industries is focusing on scaling sustainably and innovation. A one-megawatt solar power plant for captive consumption in its processing division is underway, with part commissioned in Q4 and the balance expected shortly. The feed division is actively researching alternate substitutes for fishmeal, such as insect protein, through pilot farming projects initiated in FY25-26, aiming for more cost-effective and sustainable feed manufacturing.

The company has a medium-term roadmap to FY27-28, targeting annual export revenues of up to ₹1,000 crores, driven by deeper penetration in Russia and China, re-entry into the European Union, and a measured build-out of its domestic and value-added portfolio. Management is hopeful of doubling the contribution of value-added products in terms of percentage by volume in the current fiscal, from the current 7-10% of overall export volume.