Kings Infra

Kings Infra Ventures reported a strong Q1 FY26, with revenue reaching INR 34.35 crore, marking an almost 22% year-on-year growth. The company achieved an EBITDA of INR 7 crore and a Profit Before Tax (PBT) of INR 5 crore, both reflecting a 30% growth compared to the same period last year. Earnings Per Share (EPS) stood at INR 1.48, a 24% increase from INR 1.20 in Q1 FY25, indicating robust profitability despite global challenges^🌐.

The company made a significant entry into the Andhra market and commenced exporting through Vizag Port. This expansion is underpinned by the strategic acquisition of Sriaqua, a leading merchant exporter from Vishakhapatnam, which is now operating as part of Kings Infra. Mr. Sreeram Inagalla, Sriaqua's managing partner, has taken over as COO for International Business, and Mr. Joseph Raghunath, an experienced businessman, joined as Head of Operations, bringing substantial export experience and a track record of over INR 150 crore turnover.

Kings Infra is expanding its farming business through an asset-light model, leasing farms for 3-5 year periods. This approach, which includes providing technology support, probiotics, minerals, and healthcare products under the Aqua Kings brand, has led to a 50% increase in farm area this quarter, with expectations to more than double by year-end. The company is also focusing on increasing crop cycles, aiming for up to five crops a year to improve working capital efficiency and faster turnaround.

The company's retail brands, Frigo and Bento, which were piloted in Kerala and Bengaluru, are now ready for scaling. Kings Infra aims to transform into a healthy food options and protein space, integrating the entire value chain from farm to processing and retail distribution. The total budget for Frigo and Bento for the next 18 months is around INR 25 crore, with most of it expected to be self-generated due to the very high margins on these products compared to exports.

Kings Infra is actively developing its international business, with a focus on markets beyond traditional Western regions. The company works directly with large corporates like LX Corporation and CP Foods, with LX Group contracts offering better margins due to their distribution channel. New opportunities are being explored in Canada (due to 200% local consumption growth and no tariffs), the UK (benefiting from free trade agreements), and the Middle East (targeting B2B and B2C distribution for high-demand products like shrimp, cuttlefish, and squid).

The Maritech Eco Park, an innovative, AI-enabled indoor cultivation project, is under construction. Phase 1 in Tuticorin is expected to be completed within 12 months with an estimated CapEx of INR 40-50 crore. The total original CapEx for the project was about INR 200 crore, with an in-principle approval for a soft loan of INR 120 crore. Phase 2 is planned for Andhra Pradesh, leveraging better government facilities and tax breaks. Farm expansion under the asset-light model requires approximately INR 7.5 lakh per pond, funded mostly by internal accruals.

The company acknowledges increased working capital requirements due to expanding farming areas and longer growing periods. To mitigate this, they are focusing on increasing crop cycles and implementing a cyclic culture pattern. Regarding interest costs, while they increased year-on-year, management expects the percentage to come down in the next financial year, supported by initiatives like supply-chain financing schemes for MSME suppliers, potentially up to INR 100 crore. Cash and bank balances are reported to be improving with the increase in crop cycles.