Aelea

Aelea Commodities Limited reported a robust H1 FY26, with standalone revenue from operations growing 110.64% year-on-year to INR 17,362.08 lakhs. Standalone EBITDA increased by 99.76% to INR 1,538.30 lakhs, achieving an 8.86% margin. PAT more than doubled, surging 134.65% to INR 883.71 lakhs, with a PAT margin of 5.09%. Consolidated figures also showed strong growth, with revenue up 97.96% to INR 17,369.28 lakhs and EBITDA margin at 8.78%.

The company successfully commissioned and ramped up Unit 2 in Surat, achieving a processing capacity of 140 metric tons per day. In H1 FY26, the unit operated at full capacity for 3.5 months, with management expecting sustained full capacity utilization for the next six months. This expansion is a key driver for the significant revenue growth and improved operating leverage.

Aelea has fully transitioned out of commodities trading in FY26, focusing entirely on processing. The company is advancing Phase 2 for CNSL oil production, with construction expected to resume post-monsoon and complete by end FY26 or early FY27. Additionally, a 100% subsidiary, Aelea Green Energy, has been formed to drive sustainability initiatives, including a 4 MW solar plant, which is expected to reduce power costs by 30-35% with an IRR of 27-28%.

Cashew prices have seen a downward trajectory over the last 12 months, though the pace has slowed. Management acknowledges that gross margins can fluctuate due to the natural product's variations and short-term stock movements, with H1 FY26 gross margins at 15% compared to 20% in H1 FY25. Despite this, the company aims for an average EBITDA margin of 12-13% for the full year, leveraging its scale and cost efficiency as the 'cheapest processor'.

Borrowings have reduced by INR 12 crores compared to March 2025. Management emphasized that this reduction primarily enhances operational flexibility and working capital management, rather than just reducing finance costs. The company's capital allocation priorities for H2 FY26 include achieving full operational efficiency at Unit 2, advancing Phase 2 construction, and expanding its portfolio of high-margin value-added products.

The Indian cashew processing industry is highly fragmented, with approximately 2,000 processors, 95% of which have capacities less than 10 tons per day. Aelea differentiates itself through its larger scale, advanced mechanization, automation, and an integrated value chain vision, which includes converting by-products into high-value items like biochar and activated carbon. The company also sources 60-65% of its raw material from imports, utilizing advanced technologies from China and Europe.