Apex Frozen Food

Apex Frozen Foods delivered a robust financial performance in FY26, with revenue growing 14% year-on-year to INR 931 crores. This growth was accompanied by a significant improvement in profitability, as EBITDA surged 145% YoY to INR 73 crores, expanding EBITDA margins by 405 basis points to 7.7%. Profit after tax also saw a remarkable increase of 902% to INR 39 crores, compared to INR 4 crores in FY25. This was supported by stable farm gate prices and ongoing cost efficiency initiatives.

The company's strategy of broadening its global footprint and geographic diversification proved effective in FY26. Non-U.S. export markets, particularly the European Union which grew 19% YoY, became the largest contributor to sales, accounting for almost 52% of the total sales mix. While the U.S. market faced disruptions, the reduction of tariffs to 10% is expected to drive a recovery in volumes. Management anticipates volumes to scale back for the U.S. market, contributing to overall revenue growth in the future.

Apex Frozen Foods significantly strengthened its financial position through disciplined debt reduction and strong cash generation. Total borrowings were reduced from INR 107 crores in March 2024 to just INR 6 crores by the end of FY26, resulting in a negative net debt to equity ratio of 0.02x. Cash flows from operations also improved to INR 96 crores in FY26 from INR 54 crores in FY25, indicating robust internal cash generation. The company also holds INR 18.31 crores in cash and equivalents, with an additional INR 26.47 crores in fixed deposits and receivables.

Q4 FY26 saw a dip in net revenue to INR 168 crores from INR 197 crores in Q4 FY25, with sales volume decreasing to 1,912 metric tons from 2,349 metric tons in the corresponding period. This was attributed to holiday time in India and worker-related issues in January and February. Despite the volume decline, EBITDA for Q4 grew 118% YoY to INR 17 crores, with margins expanding 593 basis points to 9.8%. The company also highlighted ongoing logistics challenges, including marginal increases in ocean freight and issues with shipping line equipment availability due to the Middle East crisis, causing minor shipment postponements.

Management expressed optimism for FY27, projecting an overall volume increase, with an envisaged growth of almost 30% year-on-year. This growth is expected to be driven by the full impact of reduced U.S. tariffs, the upcoming EU Free Trade Agreements (FTAs), and continued market diversification. The company aims to sustain its FY26 EBITDA margins, leveraging its manufacturing capabilities and current capacity utilization of only 30% to capitalize on improving market conditions and expand its footprint into new markets like Russia.