Apex Frozen Foods Limited — Q4 FY26 earnings call

Call held 2 Jun 2026

Management summary

Apex Frozen Foods reported a strong FY26 with 14% revenue growth, 145% EBITDA growth, and 902% PAT growth, driven by geographic diversification and favorable market conditions. The company significantly reduced debt and achieved negative net debt to equity. While Q4 FY26 saw a decline in revenue and volumes due to temporary issues, management expressed optimism for FY27, anticipating volume growth and margin sustainability, despite ongoing logistics challenges.

Highlights

  • Healthy revenue growth of 14% YoY in FY26 to INR 931 crores, driven by firm global shrimp prices and favorable currency movements.

  • Significant profitability improvement in FY26, with EBITDA growing 145% YoY to INR 73 crores and PAT increasing 902% to INR 39 crores.

  • Strong financial position achieved through disciplined debt reduction, with total borrowings reduced to INR 6 crores and net debt to equity at negative 0.02x.

  • Successful geographic diversification, with non-U.S. export markets contributing almost 52% of total sales in FY26 and EU growing 19% YoY.

  • US tariffs reduced to 10%, expected to aid volume recovery in the future.

Concerns

  • Q4 FY26 net revenue declined to INR 168 crores from INR 197 crores in Q4 FY25.

  • Q4 FY26 sales volume decreased to 1,912 metric tons from 2,349 metric tons in Q4 FY25, partly due to holiday time and worker-related issues.

  • Logistics issues, including equipment support and shipping vessel schedules, continue to pose a deterrent, exacerbated by the Middle East crisis.

  • Marginal increase in ocean freight costs due to the Middle East crisis.

Key financials

2 periods

Q4 FY26

  • Net Revenue
    ₹168 Cr
  • Sales Volume
    1,912 metric tons
  • EBITDA
    ₹17 Cr
    YoY +118%
  • EBITDA Margin
    9.8%
  • PAT
    ₹8 Cr
    YoY +296%

FY26

  • Revenue
    ₹931 Cr
    YoY +14%
  • Shrimp Sales Volume
    10,286 metric tons
    YoY -2.4%
  • EBITDA
    ₹73 Cr
    YoY +145%
  • EBITDA Margin
    7.7%
  • PAT
    ₹39 Cr
    YoY +902%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue200 231 197 258 238 +19%264 +14%168 −15%257 −0%
EBITDA4 4 7 15 11 +175%13 +225%13 +86%30 +100%
Net profit-2 0 2 9 12 +700%10 8 +300%22 +144%
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
  • Debt -0.0× EBITDA
    Total borrowings reduced significantly from INR 107 crores in March 2024 to INR 6 crores as of FY '26 end. Net debt to equity stood at negative of 0.02x
  • Liquidity Cash ₹18.31 Cr Cash and equivalents include bank balances. Other financial assets of INR 26.47 crores are primarily fixed deposits and receivables.
    The cash on the balance sheet. So what is the cash on the balance sheet? Cash equivalent, basically it is our cash balance includes bank also. ... INR18.31 crores, sir. ... And also, there is some item you just listed. So in the other financial assets, which is just a measure of INR26 crores, what is that item again? ... INR26.47 crores. ... Fixed deposits. ... Sorry, it is the fixed deposits as well as the receivables also.

Guidance & targets

Volume

  • FY27 Volume Growth Volume · FY27 · Medium confidence 30%
    All put together, yes, there should be a better volume growth for FY27. And we have originally envisaged, of course, growth by almost 30% in volume terms.

    — Chowdary Karuturi

  • Planned Volume Volume · Future · Medium confidence ~14,000 metric tons
    And as we also mentioned that currently, we have planned a volume of around roughly around 14,000 metric tons, but we need to see how that goes with other factors influencing our overall productions.

    — Chowdary Karuturi

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 7.7%
    We should be, especially we should be considering that we are also in the earlier years, if you see, we also had some certain provisioning also which were done and all that. Most of it is being done away. It's done. So obviously, the margins hoping that the market remains stable.

    — Chowdary Karuturi

Revenue Mix

  • Ready-to-Eat Category Revenue Mix Revenue Mix · FY26 · High confidence 12%

    Previously 10% → 12%

    For FY26, it was 12%. For FY25, it was 10%.

    — Chowdary Karuturi

Export Benefits

  • Export Benefit Percentage Export Benefits · Ongoing · Medium confidence 5-6%
    We believe it's going to remain around that level between that's between 5%, 5.5% to 6%.

    — Chowdary Karuturi

What to watch in Q1 FY27

US Market Volume Recovery

Next quarter / FY27
Current Volumes maintained close to last year's levels (10,300 MT in FY26), US tariffs at 10%
Target Scaling back to historical levels (e.g., 700 crores revenue equivalent)

Why it matters

US market is important for Apex, and its recovery post-tariff reduction is crucial for overall volume and revenue growth.

The volumes should be scaling back for the U.S. market... Now with the tariffs being brought down to a lower level of around 10%. So yes, that eventually it will result in a scaling back of revenue also.

Risks & concerns

  • US market disruptions (tariffs, war-led logistics)

    medium

    The US market faced disruptions in FY26 due to initial tariffs and later war-led logistics issues, though tariffs have since reduced.

    Management acknowledged

  • Logistics and shipping line support issues

    medium

    Logistics, including equipment support, vessels, and schedules, continue to be a deterrent, with marginal increases in ocean freight and challenges in getting shipping line equipment due to the Middle East crisis.

    Management acknowledged

  • Global uncertainties and trade dynamics

    medium

    Management is optimistic but cautious due to increasing uncertainties and sudden incidents/events changing overall trade dynamics.

    Management acknowledged

  • Worker-related issues impacting Q4 volumes

    low

    Q4 FY26 volumes were impacted by holiday time in India and worker-related issues in January/February.

    Management acknowledged

Q&A highlights

5 direct
US market recovery and tariff impact Direct
The volumes should be scaling back for the U.S. market, to answer your question. The revenue, of course, is of course, determined based on the realization, the unit values, of course, in dollar terms as well as the currency realization. But definitely, the volumes to the U.S. will be scaling back as in the past. Now with the tariffs being brought down to a lower level of around 10%. So yes, that eventually it will result in a scaling back of revenue also.

Clarifies the expectation for US market recovery and the impact of reduced tariffs on future revenue and volume growth.

Asked by Sharan Yash

Sustainability of EBITDA margins Direct
We should be, especially we should be considering that we are also in the earlier years, if you see, we also had some certain provisioning also which were done and all that. Most of it is being done away. It's done. So obviously, the margins hoping that the market remains stable.

Management confirms the sustainability of the improved FY26 EBITDA margins, which is a key investor concern.

Asked by Sharan Yash

FY27 volume and margin outlook Direct
Yes. FY27, we expect to have an, of course, increase in volumes overall, definitely. For now considering that no new issues come up. And with EU FTA also coming into play soon, we expect growth of volumes in multiple markets and also retaining, as we have mentioned to an earlier participant, also regaining the volume with regard to U.S. post reduction of tariffs. All put together, yes, there should be a better volume growth for FY27. And we have originally envisaged, of course, growth by almost 30% in volume terms.

Provides specific guidance for FY27 volume growth and reiterates the strategy for market diversification and US recovery.

Asked by Bhaskar Khandar

Impact of Middle East crisis on logistics and margins Partial
There are some marginal costs on the freight. It's marginal for now. There has been a marginal increase on ocean freight, but because of the point what you have mentioned. But at the same time, we hope very soon they will stabilize. And more than the cost increase, it is becoming a little bit of challenge with regard to support from the shipping lines, with regard to the equipment, as they are not available and because of the crisis in the Middle East.

Highlights an ongoing operational challenge (logistics) that could impact future shipments and costs, even if the direct margin impact is currently marginal.

Asked by Bhaskar Kanrar

Farm gate prices and raw material availability Direct
Comparing India's farm gate pricing to many other countries, we are still higher, actually, at this point. And it could be that certain individual persons are not happy or whatever it is. But end of the day, definitely, we have information of our Indian farm gate prices overall being in a good level compared to other countries also in the present market scenario -- market situation.

Addresses concerns about raw material pricing and supply, indicating that Indian farm gate prices are competitive globally despite some local dissatisfaction.

Asked by Akshata Telisara

Current farm gate prices and realization Direct
Well, we would just say that we still have an average realization price of still holding at around level, $9.5 per kilo roughly, approximately, but between market & depending on the products, what we do. And as far as the farm gate prices are concerned, on an average, it would be for the full year last year it was INR327. But at this time, currently, maybe it's around the same. Last quarter, Q4, it was INR348 for us, average. It will be around maybe INR340 this quarter, roughly, in the Q1.

Provides specific current and historical data points for key operational metrics (realization price and farm gate prices).

Asked by Karan Gupta

2 min read 5 chapters

Detailed narrative

Strong Financial Performance in FY26 Driven by Margin Expansion

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.

Strategic Diversification and US Market Recovery

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.

Strengthened Balance Sheet and Capital Allocation

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 Performance and Operational Challenges

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.

Optimistic Outlook and Growth Drivers for FY27

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.

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