Concall AI

Apex Frozen Foods Limited — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Apex Frozen Foods reported strong Q3 FY26 results with a 15% YoY revenue growth to INR 264 crores and a significant 147% YoY increase in EBITDA to INR 17 crores, driven by improved realizations and lower raw material costs. The company's strategic diversification efforts led to non-U.S. exports comprising nearly 51% of 9M FY26 sales. The recent reduction in U.S. shrimp export tariffs from 50% to 25% and the proposed India-EU FTA are expected to boost volumes and strengthen long-term growth, despite an observed uptick in raw material prices and a new increase in US antidumping duty.

Highlights

Net Revenue of INR 264 crores, up 15% YoY in Q3 FY26.
EBITDA of INR 17 crores, up 147% YoY in Q3 FY26.
EBITDA Margin at 6.5%, expanded 344 bps YoY in Q3 FY26.
Non-U.S. export business grew from 37% in 9M FY24 to nearly 51% in 9M FY26.
Indian shrimp export tariffs to the U.S. reduced from 50% to 25% effective Feb 7, 2026.
PAT increased to INR 10 crores in Q3 FY26 from INR 50 lakhs in Q3 FY25.

Concerns

Sales volumes declined 5% YoY to 2,754 metric tons in Q3 FY26.
Sales to the U.S. declined 12% YoY in Q3 FY26.
Uptick in farmgate/raw material prices observed entering Q4 FY26.
Realizations may realign in the near term due to recent U.S. tariff updates.
US antidumping duty increased from 1.35% to 3.5%, effective this week.

Key financials

2 periods

Q3 FY26

Net Revenue
₹264 Cr
YoY +15%
Sales Volume
2,754 metric tons
YoY -5%
EBITDA
₹17 Cr
YoY +147%
EBITDA Margin
6.5%
YoY +3.4%
PAT
₹10 Cr

9M FY26

Net Revenue
₹761 Cr
YoY +23%
Sales Volume
8,373 metric tons
YoY +2%
EBITDA
₹53 Cr
YoY +143%
EBITDA Margin
6.9%
YoY +3.4%
PAT
₹31 Cr
Foreign Exchange Gain
₹11.54 Cr
Tariff Component in Other Expenses
₹86 Cr

What they filed

Q1 FY27: revenue down 0.4%, net profit up 144.4% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	200	231	197	258	238 +19%	264 +14%	168 −15%	257 −0%
Expenses	196	227	191	243	227	251	155	226
EBITDA	4	4	7	15	11 +175%	13 +225%	13 +86%	30 +100%
Margin	2%	2%	3%	6%	5%	5%	8%	12%
Other income	1	2	1	3	9	4	4	3
Interest	3	3	1	2	1	1	1	0
Depreciation	4	4	4	4	4	3	5	4
Profit before tax	-2	0	3	13	16 +900%	13	11 +267%	29 +123%
Tax rate	-19%	5%	30%	30%	24%	24%	30%	24%
Net profit	-2	0	2	9	12 +700%	10	8 +300%	22 +144%
EPS	-0.53	-0.07	0.63	2.91	3.80	3.23	2.49	6.93

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

medium confidence

Debt Debt disclosed
- Repayment Short-term borrowing reduced from INR 140 crores to INR 40 crores. ₹100 Cr
And along with it, utilization of inventories also makes it possible for us to -- that is obviously liquidation of stocks enhances the capital in hand. So definitely, that is another key point, which is there. So within these 3 parameters, we have been reducing our overall debt borrowing -- short-term borrowing from the banks.

Guidance & targets

Revenue

Revenue Revenue · next 2 years · Medium confidence INR 1,200-plus crores

So specifically, it should be like around approximately around INR 1,200-plus crores over the next 2 years.

— Choudary Karuturi

EBITDA Margin

EBITDA Margin EBITDA Margin · currently · High confidence 7-10%

So yes, so in that regard, as stated, it will be between 7%, 10% currently.

— Choudary Karuturi
EBITDA Margin (Ready-to-Eat) EBITDA Margin · future (with more ready-to-eat) · Medium confidence 10% plus

And as we grow more of our ready-to-eat, we should look at 10% plus also.

— Choudary Karuturi

Capacity Utilization

Overall Capacity Utilization Capacity Utilization · by FY '27 · Medium confidence at least 50%

Well, we are current -- of course, we are like earlier, somebody has stated current this year, for the full year, it is around 33%, 35%, but we expect to push it up to by another 10%, 15% and try to take it up to at least 50% by FY '27.

— Choudary Karuturi

New Market Entry

Sales Commencement (Russia, Australia) New Market Entry · next fiscal, FY '27, Q1 onwards · Medium confidence Q4 FY26 or Q1 FY27

So we are confident that both those 2 markets, which you have specifically mentioned, we will be able to start volume even in a smaller manner, starting from most likely, if not by Q4, by Q1, that is next fiscal, FY '27, Q1 onwards, we should be able to start our sales in a slow manner.

— Choudary Karuturi

What to watch in Q4 FY26

Revenue Growth & Realizations

Next quarter (Q4 FY26)

Current Q3 FY26 revenue grew 15% YoY; realizations may realign in near term.

Target Sustained revenue growth, stable realizations post US tariff reduction.

Why it matters

To assess the actual impact of reduced US tariffs and potential realignment of realizations on top-line growth.

Further, alongside the recent U.S. tariff updates, realizations may realign in the near term.

Risks & concerns

Uptick in farmgate/raw material prices
medium

Farmgate prices increased by INR 30-40 per kilo, impacting near-term realizations.

Management acknowledged
Realignment of realizations due to US tariff updates
medium

While tariffs reduced, realizations might adjust, impacting revenue per unit in the near term.

Management acknowledged
Increased US Antidumping Duty
medium

Antidumping duty increased from 1.35% to 3.5%, effective this week, which will marginally increase costs for US exports and impact Q4 FY26.

Both acknowledged
Competition from Ecuador and Vietnam
medium

Ecuador is a major producer, but India's improved tariff situation and reliability are expected to attract orders, leveling the playing field.

Analyst acknowledged

Q&A highlights

8 direct

Future Revenue & Margin Outlook post Tariff Reductions & EU FTA Direct

So specifically, it should be like around approximately around INR 1,200-plus crores over the next 2 years. ... However, at the EBITDA level, we are pretty much confident that with these changes in the market, at the EBITDA level, the present level would be sustainable going forward. So going into the future, that is our idea as of now.

Provides specific revenue guidance for the next two years and outlines the expected sustainability and potential for improvement in EBITDA margins due to trade agreements.

Asked by Deepak Ajmera

Impact of US Tariff Reduction (50% to 25%) and Competition Direct

No. See, the U.S. has reduced from 50% to 25%. They removed the penal tariff of 25% removed the penal rate of 25% for the Russian oil component. ... But currently, we are paying tariff of 25%. That's what we can say as of now.

Clarifies the exact tariff reduction, its effective date, and the current tariff rate, which is crucial for understanding US market competitiveness and volume.

Asked by Harsh Shah

Capacity Utilization and Future Margin Potential Direct

So yes, so in that regard, as stated, it will be between 7%, 10% currently. And as we grow more of our ready-to-eat, we should look at 10% plus also.

Provides a clear range for sustainable EBITDA margins and links margin expansion to increased capacity utilization and ready-to-eat product growth.

Asked by Harsh Shah

Raw Material Price Trends and Hatchery Demand Direct

There has been an increase, of course, I think which was also stated in our opening remarks. The farm gate prices have increased. They have been increasing even -- in fact, during Q3 itself, they have marginally been increasing. And currently, they are a little higher. They have increased by almost INR30, INR40 roughly per kilo.

Addresses the critical input cost trend, confirming an increase in farmgate prices and linking it to seasonal supply-demand dynamics, which impacts profitability.

Asked by Nitin

Impact of US Antidumping Duty Review Direct

We should be seeing -- we will be knowing about that more, yes, in the Q4 once because they have made that effective, I think, this week onwards, they announced it last -- middle of last week. ... means there will be a marginal increase on the antidumping duty from -- not marginal, sorry, from 1.35 to 3.5%, like you rightly stated.

Highlights a new potential cost increase (antidumping duty) that will impact Q4 FY26 and future quarters, affecting profitability.

Asked by M. Srinivas

Debt Reduction and Working Capital Management Direct

So obviously, they are -- have been more prompted in this year, especially over the past 2 to 3 quarters, we have been pursuing them, and we have been receiving them much earlier. ... So that both together from the government side as well as certain new customers also are prompting for improvement.

Explains the drivers behind the significant reduction in short-term debt, attributing it to improved receivables collection and new customer payment terms.

Asked by M. Srinivas

New Market Expansion (Russia & Australia) Direct

So we are confident that both those 2 markets, which you have specifically mentioned, we will be able to start volume even in a smaller manner, starting from most likely, if not by Q4, by Q1, that is next fiscal, FY '27, Q1 onwards, we should be able to start our sales in a slow manner.

Provides a timeline for entry into new markets, indicating future growth drivers and the cautious approach to initial sales.

Asked by Yogansh

Freight Charges Trend Direct

No, there was no change. See the price -- the freight rates have -- freight charges have been lower this whole year. ... This is very, very low and very at a reasonable level to be precise as far as the freight rates are concerned.

Confirms that freight costs have remained low and stable, which is a positive for cost management and overall profitability.

Asked by Anthony Joy

3 min read 8 chapters

Detailed narrative

Q3 & 9M FY26 Financial Performance Overview

Apex Frozen Foods delivered a robust Q3 FY26, with net revenue growing 15% year-on-year to INR 264 crores, primarily driven by increased shrimp sales to the European Union and improved average realizations. This performance was supported by lower raw material prices, which stood at INR 327 per kilo compared to INR 374 per kilo in the prior year. Consequently, EBITDA surged by 147% year-on-year to INR 17 crores, with the EBITDA margin expanding by 344 basis points to 6.5%. For the nine months ended December 31, 2025, net revenue increased 23% year-on-year to INR 761 crores, and PAT grew significantly to INR 31 crores from INR 2 crores in the corresponding period last year.

Strategic Market Diversification and US Tariff Impact

The company's strategic focus on diversification has yielded results, with non-U.S. export business growing from approximately 37% in 9M FY24 to nearly 51% in 9M FY26, reducing dependence on any single region. While sales to the U.S. declined 12% year-on-year in Q3 FY26, the recent reduction in Indian shrimp export tariffs to the U.S. from 50% to 25%, effective February 7, 2026, is expected to significantly improve volumes going forward. Management noted that the previous 50% tariff was largely absorbed by customers but impacted volumes.

EU Trade Agreement and Long-Term Growth Outlook

The proposed India-EU Free Trade Agreement (FTA) is viewed as a structurally positive development for the industry and the company, indicating tariff reductions that will strengthen the medium- to long-term growth outlook. Although the benefits are expected to accrue gradually, with the EU FTA likely taking effect sometime in FY27, it will enhance the company's competitiveness and support increased volumes, particularly for ready-to-eat products. The company anticipates higher revenues, potentially reaching INR 1,200-plus crores over the next two years, driven by these trade relaxations.

Raw Material Price Trends and Hatchery Operations

Farmgate prices for shrimp have shown an uptick, increasing by approximately INR 30-40 per kilo in the current quarter, a trend observed seasonally around January-February. This rise in raw material costs is expected to impact realizations in the near term. Despite earlier conservative approaches by farmers due to disease issues and U.S. tariffs, improved temperatures and the removal of tariff barriers have created positive momentum. The company's hatchery operations in the South are running efficiently, indicating a positive supply outlook for the upcoming harvest season starting March-April.

Capacity Utilization and Ready-to-Eat Product Focus

Apex Frozen Foods is currently operating at around 33-35% capacity utilization for the full year. The management aims to increase this by another 10-15%, targeting at least 50% utilization by FY27. The company is actively focusing on growing its ready-to-eat product volumes, irrespective of the EU FTA, leveraging existing approvals. While ready-to-eat sales currently represent about 11% of total sales, there is significant headroom for growth, especially with the anticipated benefits from the EU FTA.

New Market Expansion and Competitive Landscape

The company is actively pursuing expansion into new markets like Russia and Australia, with sales expected to commence in Q4 FY26 or Q1 FY27. While regulatory restrictions in Australia are being addressed, management sees significant potential in these markets. In terms of competition, while Ecuador remains a dominant player, the reduction in U.S. tariffs for Indian shrimp is expected to level the playing field, allowing India to compete more effectively on price and leverage its consistency and reliability in deliveries.

Debt Reduction and Financial Prudence

Apex Frozen Foods has significantly reduced its short-term debt, bringing it down from INR 140 crores to INR 40 crores. This reduction is attributed to improved receivables management, including faster collection from government departments and new customers with favorable payment terms. The company maintains a disciplined approach to cost control and revenue diversification, reinforcing its balance sheet and enhancing resilience against market headwinds.

US Antidumping Duty Increase

Management confirmed that the U.S. antidumping duty on shrimp has increased from 1.35% to 3.5%, effective from the current week. This change will result in a marginal increase in costs for prospective payments related to U.S. exports and is expected to impact the Q4 FY26 financial performance. The company will monitor the full implications of this revised duty.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript