Aelea — Q2 FY26 earnings call

Call held 24 Oct 2025

Management summary

Aelea reported robust financial performance in H1 FY26, with standalone revenue and PAT more than doubling year-on-year, driven by the successful commissioning of Unit 2 and a complete shift to processing. The company is strategically expanding into value-added products and green energy through a new subsidiary, while managing commodity price volatility and aiming for full-year EBITDA margins of 11-12%.

Highlights

  • Standalone Revenue from operations grew 110.64% YoY to INR 17,362.08 lakhs in H1 FY26.

  • Standalone EBITDA increased 99.76% YoY to INR 1,538.30 lakhs, achieving an 8.86% margin.

  • Standalone PAT surged 134.65% YoY to INR 883.71 lakhs, with PAT margin at 5.09%.

  • Commissioned and ramped up Unit 2 in Surat to full capacity of 140 metric tons per day.

  • Formed 100% subsidiary Aelea Green Energy to focus on sustainability and value-added products for export markets.

Concerns

  • Cashew prices have been on a downward trajectory for the last 12 months, though the pace has slowed.

  • Gross margins experienced some volatility, with H1 FY26 at 15% compared to 20% in H1 FY25, attributed to natural product variations and short-term stock movements.

Key financials

  1. Revenue (Consolidated) ₹173.693 Cr +98%YoY
  2. EBITDA (Consolidated) ₹15.248 Cr +59.9%YoY
  3. EBITDA Margin (Consolidated) 8.8%
  4. PAT (Consolidated) ₹8.702 Cr +55.9%YoY
  5. EPS (Consolidated) ₹4.27
  6. Revenue (Standalone) ₹173.621 Cr +110.6%YoY

What they filed

Q4 FY26: revenue up 171.4%, net profit up 200.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY24Q4 FY24Q2 FY25Q4 FY25Q2 FY26Q4 FY26
Revenue50 70 82 89 174 +248%190 +171%
EBITDA5 7 8 0 15 +200%25 +257%
Net profit2 4 4 -3 9 +350%12 +200%
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
    • Phase 2 (CNSL oil production) construction
    • 4 megawatt solar plants
    So we completed the capex that was intended for the Phase 1 in the month of May. Soon after that, you had a rain coming in. We have now embarked upon the Phase 2, which is the CNSL stuff. As I have already mentioned previously that we may complete that before end of the year, FY '26 or maximum in a month in FY '27. We have also placed orders for the solar plants, which is around 4 megawatt capacity. And that should also see a similar completion timelines.
  • Debt Debt disclosed
    • Repayment Borrowings reduced by INR 12 crores compared to March 2025, enhancing capacity without working capital constraints. ₹12 Cr
    So, yes, borrowings have reduced that is purely from a rather than only borrowing from a financial interest perspective, it is actually a very long commitment and trust that our supplier shows in us. It allows us to increase our capacity without having any working capital constraints and that helps us far more than only the finance cost.
  • M&A Aelea Green Energy Joint venture · Announced

    To take care of the entire ecosystem in a different way, focusing on sustainability certification, export market (Europe), and carbon credits.

    Now, that is the planned stuff. What is the key difference that we have done is, which was already known to public is that we have formed a subsidiary, 100% subsidiary named as Aelea Green Energy.

Guidance & targets

Capacity

  • Capacity Utilization Capacity · next six months · High confidence 140 metric tons per day
    However, as we say, we are right now utilizing at full capacity. So the next six months will be at full capacity of 140 metric tons.

    — Hozefa Jawadwala

Profitability

  • Average EBITDA Margin Profitability · full year · Medium confidence 12% to 13%
    But yes, what I have explained to you is more or less that you can expect around 12% to 13% on an average EBITDA.

    — Hozefa Jawadwala

Revenue

  • Full Year Revenue Growth Revenue · FY26 · Medium confidence more than doubling
    So typically, we should be more than doubling up what the revenue we have posted.

    — Hozefa Jawadwala

Capex

  • Phase 2 (CNSL) Completion Capex · before end of FY26 or maximum in a month in FY27 · High confidence completed
    We have now embarked upon the Phase 2, which is the CNSL stuff... we may complete that before end of the year, FY '26 or maximum in a month in FY '27.

    — Hozefa Jawadwala

  • 4 MW Solar Plant Completion Capex · similar timelines to Phase 2 · High confidence completed
    We have also placed orders for the solar plants, which is around 4 megawatt capacity. And that should also see a similar completion timelines.

    — Hozefa Jawadwala

What to watch in Q3 FY26

Phase 2 (CNSL oil production) completion

before end of FY26 or maximum in a month in FY27
Current Advanced preparatory stages, construction to resume post-monsoon.
Target Construction completed, commissioning initiated.

Why it matters

This project is key for expanding into value-added products and achieving an integrated value chain, enhancing future profitability.

We have now embarked upon the Phase 2, which is the CNSL stuff. As I have already mentioned previously that we may complete that before end of the year, FY '26 or maximum in a month in FY '27.

Risks & concerns

  • Commodity price volatility

    medium

    Cashew is a natural product, and its prices are dynamic, influenced by quality, moisture, origin, and nut count. Prices corrected 17-18% in the last 12 months.

    Management acknowledged

  • Gross margin volatility

    medium

    Gross margins can fluctuate due to short-term stock movements (e.g., 3-day stock) and variations in natural product output. H1 FY26 gross margins were 15% compared to 20% in H1 FY25.

    Management acknowledged

  • Competition in fragmented market

    low

    The industry has ~2,000 processors, mostly small (<10 tons/day). Aelea believes its scale, mechanization, and cost structure make it the 'cheapest processor' and resilient to 'cutthroat competition'.

    Management acknowledged but downplayed

Q&A highlights

7 direct
Current and future capacity utilization Direct
So, as you may be aware that we actually in the H1 operated at the full capacity only for the 3.5 months... However, as we say, we are right now utilizing at full capacity. So the next six months will be at full capacity of 140 metric tons.

Clarifies the operational ramp-up in H1 FY26 and provides a clear outlook for sustained full capacity utilization in H2 FY26.

Asked by Jai Chauhan

Absence of trading volumes in FY26 Direct
FY '26 we do not have any trading business... In '26, we do not have any trading volumes.

Confirms the company's strategic shift away from commodities trading to a pure processing model, impacting the revenue mix and focus.

Asked by Jeet Gala

Full year revenue guidance and EBITDA margin expectations Partial
So typically, we should be more than doubling up what the revenue we have posted... But yes, what I have explained to you is more or less that you can expect around 12% to 13% on an average EBITDA.

Provides management's outlook on top-line growth (qualitative) and profitability (quantitative) for the full year, with a caveat on commodity price volatility.

Asked by Jeet Gala

Capex plans for Phase 2 (CNSL) and solar plants Direct
We have now embarked upon the Phase 2, which is the CNSL stuff... we may complete that before end of the year, FY '26 or maximum in a month in FY '27. We have also placed orders for the solar plants, which is around 4 megawatt capacity. And that should also see a similar completion timelines.

Details the timelines for key strategic projects aimed at value addition, cost reduction, and sustainability.

Asked by Jeet Gala

Benefits and payback of solar power Direct
So, around processing, 27% I could say. 27% is the power bill that we pay... typically the power that you have from a captive solar is almost at 30%-35% of the grid power... it has its payback which is typically around an IRR of 27%, 28%.

Quantifies the expected cost savings and financial attractiveness of the solar investment, highlighting its strategic importance beyond just numbers.

Asked by Shiv Mattoo

Impact of reduced borrowings on operating profit Direct
So, yes, borrowings have reduced that is purely from a rather than only borrowing from a financial interest perspective, it is actually a very long commitment and trust that our supplier shows in us. It allows us to increase our capacity without having any working capital constraints and that helps us far more than only the finance cost.

Explains that the primary benefit of reduced borrowings is enhanced operational flexibility and working capital management, not solely lower interest expenses.

Asked by Suresh Kumar

Cashew processing input/output ratios Direct
The general thumb rule is that you will have roughly 100 kgs of raw cashew nuts going in. You will have 70 kgs of cashew shell and 30 kgs of cashew with the skin... typically you will get 23 kgs as your edible cashew. From the 70 kgs of the shell... the oil would be around 22%, which is 14.4 kgs from a raw cashew nuts equivalent.

Provides crucial operational details for understanding the value chain, product yields, and by-product generation, which are key to the integrated strategy.

Asked by Jeet Gala

Competitive landscape and Aelea's differentiation Direct
Now, but because, there are 2,000 cashew processors and they are typically ones which are less than 10 tons, 95% of them would be less than 10 tons per day capacity. Their mechanization levels are not up to the levels that we have... Aelea Commodities Limited is well positioned to... scale, mechanization, automation, integrated value chain, sustainability vision.

Highlights the fragmented nature of the industry and Aelea's competitive advantages in terms of scale, technology, and integrated value chain approach.

Asked by Jeet Gala

2 min read 6 chapters

Detailed narrative

Strong H1 FY26 Financial Performance

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%.

Operational Ramp-up and Capacity Expansion

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.

Strategic Shift to Value-Added Products and Green Energy

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%.

Commodity Price Trends and Margin Management

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'.

Reduced Borrowings and Capital Allocation Priorities

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.

Competitive Landscape and Differentiators

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.

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