Kings Infra — Q1 FY26 earnings call

Call held 20 Aug 2025

Management summary

Kings Infra Ventures reported robust financial performance in Q1 FY26, driven by strategic initiatives including the acquisition of Sriaqua and expansion into the Andhra market. The company saw significant growth in revenue, EBITDA, PBT, and EPS. Operational focus on an asset-light model for aquaculture and increasing crop cycles is aimed at improving efficiency and scaling operations, alongside ambitious international expansion plans and retail brand development.

Highlights

  • Revenue of ₹34.35 crores, up almost 22% YoY.

  • EBITDA of ₹7 crores, up 30% YoY.

  • Profit Before Tax (PBT) of ₹5 crores, up 30% YoY.

  • Earnings Per Share (EPS) at ₹1.48, up 24% YoY from ₹1.20.

  • Strategic acquisition of Sriaqua and strong entry into the Andhra market.

  • Farm area increased by 50% in Q1 FY26, targeting to more than double by year-end.

  • Guidance for 60-65% CAGR in top line and ~20% EBITDA margin for the next three years.

Key financials

  1. Revenue ₹34.35 Cr +22%YoY
  2. EBITDA ₹7 Cr +30%YoY
  3. PBT ₹5 Cr +30%YoY
  4. EPS ₹1.48 +24%YoY

What they filed

Q1 FY27: revenue down 10.8%, net profit down 38.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue30 33 32 34 43 +42%37 +11%47 +46%30 −11%
EBITDA6 7 5 7 8 +26%6 −11%9 +66%5 −26%
Net profit3 4 3 3 4 +22%3 −22%5 +97%2 −38%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence
  • Capex Capex disclosed Mostly by internal approvals
    • Maritech Eco Park Phase 1 (Tuticorin) ₹40 Cr
    • Maritech Eco Park Phase 1 (Tuticorin) ₹50 Cr
    • Bento, Frigo retail expansion (next 18 months) ₹25 Cr
    • Farm expansion (per pond) ₹0.075 Cr
    Maritech Park, original the total CapEx is about INR 200 crore with we got a in-principle approval for a soft loan from Union Bank of India for INR 120 crore and the balance through, there is a separate subsidiary altogether. But now we have phased it out. Only Phase 1, we are doing for about INR 40 crore to INR 50 crore. ... Total budget for Bento, Frigo for the next 18 months is around INR 25 crore, but most of it, we are seeing that as a self-generation because the margins on this product are very good. ... Farm expansion, now we are following the asset-light model. So, it's about INR 7.5 lakh total per pond we'll be investing... Mostly by internal approvals.
  • Debt Debt disclosed
    See, we are we are also looking at supply-chain support from the banks so that some of the burden of the interest will go to our farmers or suppliers. So, we are working on it. ... Yeah. Maybe by next year, we have spoken to our bankers, Punjab National Bank, but they said for any minimum for the supply-chain financing to direct customers who supply to us, provided they are MSME, the overall scheme should be around INR 100 crore. So, we have not reached that scale, but we hope we will reach that scale by the end of the year. So, by next financial year, you can expect the interest cost may grow, but in percentage terms, it will come down.
  • M&A Sriaqua Acquisition · Integrated

    Strategic acquisition to enter Andhra market and boost international business, leveraging Sriaqua's merchant exporter capabilities and order book.

    Sriaqua's order book of more than 100 containers transferred to Kings Infra. Sriaqua's managing partner, Mr. Sreeram, joined as COO for International Business.

    At the core of this is a strategic acquisition of one of the leading merchant exporters, Sriaqua, based out of Vishakhapatnam, where we are going to merge the companies together. We are going to take over Sriaqua and the merger and the works are going on, but we have started working together as a single team and the Sriaqua is now operating as a part of Kings Infra. And the Sriaqua's order book of more than 100 containers with LX Corporation and also with some other leading companies are also transferred to Kings Infra now. And the managing partner of Sriaqua, Mr. Sreeram, has taken over as the Chief Operating Officer for International Business.
  • Liquidity Liquidity disclosed Cash and bank balance is improving as the number of crop cycles increases.
    No. It is improving. As the number of crop cycles are increased, that figures are improving now.

Guidance & targets

Revenue

  • Top line CAGR Revenue · next three years · High confidence 60-65%
    Yes. We are targeting for 60-65% CAGR growth in in top line for the next three years.

    — Lalbert Cherian

Profitability

  • EBITDA Margin Profitability · next three years · High confidence 20%
    It's a margin of about [inaudible 00:52:29] EBITDA. That is what we are projecting. ... So, we could be able to maintain our EBITDA margin almost, about 20%.

    — Lalbert Cherian

Turnover

  • Turnover growth Turnover · in three years · Medium confidence 400%
    Lalbert, CFO, can you take that? Or in absolute numbers, in three years, we are targeting to grow around 400% turnover approximately.

    — Shaji Baby John

Aquaculture

  • Farm area expansion Aquaculture · by the end of the year · High confidence more than double
    And by the end of the year, our farming area is expected to more than double.

    — Shaji Baby John

  • Crop cycles per year Aquaculture · a year · Medium confidence up to five crops
    Now, some of the ponds we are achieving three crops a year. And as we move forward, we'll be targeting to go up to five crops a year.

    — Shaji Baby John

Revenue Mix

  • Aquaculture vs Export ratio Revenue Mix · this year · High confidence 50:50

    From 60:40 today

    See, till the last year, aquaculture was the major portion of the turnover. But with the Andhra processing exports and with the focus more on the export and our distribution, there will be a change in the ratios. This year, we'll target around 50:50.

    — Shaji Baby John

Capex

  • Maritech Eco Park Phase 1 completion Capex · another 12 months · High confidence 12 months
    See, we have started the Eco Park Phase 1 in Tuticorin, which we expected to complete in another 12 months' time because it's a very, very innovative project, fully Al-enabled and with all the electronic measurements of all water quality parameters, everything automated, PLC-controlled indoor cultivation.

    — Shaji Baby John

What to watch in Q2 FY26

Farm area expansion

by year-end FY26
Current Increased by 50% in Q1 FY26
Target More than double by year-end

Why it matters

Indicates the scaling of core aquaculture business and potential for volume growth, a key driver for future revenue.

And by the end of the year, our farming area is expected to more than double.

Risks & concerns

  • Higher working capital requirement due to expanding farming area and longer growing periods

    medium

    Expanding farming area (4-month growing period) leads to higher working capital needs, which management plans to address by increasing crop cycles.

    Analyst acknowledged

  • Manpower and security constraints for scaling up lease farming

    medium

    Scaling lease farming requires significant manpower (one person per pond, trained technician for 20 ponds) and addressing security issues in rural areas, for which a training program (SPEED) is implemented.

    Management acknowledged

  • Lack of control and quality issues in traditional contract farming

    medium

    Past experience with contract farming showed issues with control over harvest timing and product quality, leading to a strategic shift towards a lease farming model.

    Management acknowledged

  • Traceability and source verification for raw materials from external suppliers

    medium

    Ensuring traceability and quality of materials from external suppliers is a challenge, which the company addresses through its SISTA360 protocols and focus on owned/leased farms.

    Management acknowledged

Q&A highlights

8 direct
Working capital optimization Direct
The second new whatever we introduced to reduce the working capital requirement is going for increasing the number of crop cycles and also seeding in a phased manner. So that every month, there'll be at least 30% of the farms getting harvested and new stuffing. So, the cyclic pattern of culture we have introduced, that will also reduce our working capital requirement or increase the turnaround of the working capital as we move forward.

Management outlined specific operational strategies to improve working capital efficiency, which is critical given the longer growing periods in aquaculture.

Asked by Pranav Jain

Interest cost reduction strategy Direct
Maybe by next year, we have spoken to our bankers, Punjab National Bank, but they said for any minimum for the supply-chain financing to direct customers who supply to us, provided they are MSME, the overall scheme should be around INR 100 crore. ... So, by next financial year, you can expect the interest cost may grow, but in percentage terms, it will come down.

Reveals a specific financial strategy (supply-chain financing) to manage and potentially reduce the percentage of interest cost, impacting future profitability.

Asked by Pranav Jain

Farming productivity and scalability constraints Direct
The biggest constraint is that we have to increase our manpower as we take more farms because every pond needs one additional person. And every 20 ponds need a trained technician manager. ... So, we changed that model, and we are going to lease farming so that if taking on a lease the farm, putting our entire team, and we are managing the farm and we are giving a fixed lease and we are giving them some incentive...

Provides a detailed explanation of the operational challenges in scaling aquaculture, the strategic shift from contract to lease farming, and the need for skilled manpower.

Asked by Bhavesh Rathore

Maritech Eco Park completion timeline Direct
See, we have started the Eco Park Phase 1 in Tuticorin, which we expected to complete in another 12 months' time because it's a very, very innovative project, fully Al-enabled and with all the electronic measurements of all water quality parameters, everything automated, PLC-controlled indoor cultivation.

Gives a clear timeline for a significant, innovative capital project that is central to the company's future growth strategy.

Asked by Aditya Bhutra

Aquaculture capacity and contract farming strategy Direct
We are working on a hybrid model. See, our capacity is 1,800 tons in the last year. This year, we have already increased 50% of that. And by the end of the year, we'll have 3,600 tons for this owned plus leased. Our own is 1,800 tons, owned plus leased is earlier, around 600 tons that is going to 1,200 tons now.

Clarifies the current and projected aquaculture capacity and explains the strategic shift towards a hybrid model with more control over farming operations.

Asked by Raj Shah

Processing capacity utilization Direct
I think the average processing capacity utilization in any fisheries industry in seafood processing plant will be only around 20-25%. It's not like other thing because we have to calculate for peak seasonal processing. ... So, in the seafood processing, we cannot exactly go by the machine capacity because it is a batch processing.

Provides crucial industry context for understanding processing plant utilization, explaining why seemingly low numbers are actually typical for the sector.

Asked by Raj Shah

Margin profile of LX International contract Direct
So, the margins are better than any other customers that we have. So, since LX Group have their own distribution channel, so their cost quality specification and the product requirement are different. So, the margins are much better than many other customers.

Indicates that a key new international partnership is contributing positively to profitability, suggesting a favorable impact on overall margins.

Asked by Manpreet Arora

International expansion opportunities (Canada, UK, Middle East) Direct
So, Canada was organically growing in terms of the population, and the country was importing lot of seafood. ... Now, coming to the UK, UK free trade agreement gives us opportunity to export... And Middle-East now having a lot of population moving in from various countries, so the opportunity to have own distribution both in B2B and B2C.

Outlines specific market opportunities and strategic approaches for international growth, highlighting key drivers like trade agreements and demand trends.

Asked by Manpreet Arora

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

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.

Strategic Expansion & Key Hires

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.

Aquaculture Operations & Asset-Light Model

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.

Retail Brands (Frigo & Bento) Strategy

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.

International Business & Export Markets

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).

Capital Expenditure Plans

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.

Working Capital & Debt Management

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.

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