Concall AI

Freshara Agro — Q2 FY26 earnings call

Call held 5 Dec 2025

Management summary

Freshara Agro Exports Limited reported a strong H1 FY26, with robust growth in total income, EBITDA, and PAT, driven by increased volumes and enhanced production capabilities. The company announced the strategic acquisition of a Spanish olive processor, aiming to diversify its product portfolio and expand its global footprint. Management expressed confidence in achieving future growth targets through operational efficiency and market expansion, despite some pricing corrections due to freight cost reductions.

Highlights

Total Income increased by 31.11% YoY to ₹14,089.47 lakhs, driven by strong operational momentum.
EBITDA grew 30.07% YoY to ₹2,437.81 lakhs, maintaining a healthy margin of 18.14%.
PAT increased by 31.04% YoY to ₹1,491.04 lakhs, with a stable PAT margin of 11.10%.
Significant volume growth across key products: Gherkins up 46.41%, Baby Corn up 64.18%, Banderillas up 147.78%.
Strategic acquisition of a Spanish olive processor will expand product portfolio, global reach to over 100 countries, and add substantial revenue capacity (₹400-500 crores).

Key financials

01 Total Income ₹14,089.47 lakh +31.1%YoY
02 EBITDA ₹2,437.81 lakh +30.1%YoY
03 EBITDA Margin 18.1%
04 PAT ₹1,491.04 lakh +31%YoY
05 PAT Margin 11.1%
06 EPS ₹6.35

What they filed

₹ Cr · quarterly

Line item	Q2 FY25	Q4 FY25	Q2 FY26	Q4 FY26
Revenue	104	151	134	179
Expenses	89	126	117	150
EBITDA	15	25	18	29
Margin	14%	17%	13%	16%
Other income	4	3	7	4
Interest	3	4	3	4
Depreciation	1	1	1	2
Profit before tax	15	23	20	28
Tax rate	25%	25%	25%	25%
Net profit	11	17	15	21
EPS	6.69	7.41	6.34	9.07

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

Capex Capex disclosed

There's not much Capex involved, but we're trying to add a few. You know production lines because we have added a new product. We don't run multiple products on the same production line. So there are some small, small requirements which we are doing time and again. Probably a very small Capex may be infused with no either by debt or the funds of the Company?
Debt Debt disclosed

Our debt has considerably reduced.
M&A Spanish Olive Processor Acquisition · Announced

To expand product portfolio, global reach to over 100 countries, and leverage rising demand for health-oriented, probiotic-rich foods. The target company is a large processor and producer of olives in Spain with a strong brand legacy.
The plant is capable of doing at least 400 to 500 crores of revenue. Expected to add at least 200 crores of additional revenue from the plant in FY27. Will help achieve 30-40% year-on-year growth for the Spanish unit. The acquisition is an asset purchase, not taking over liabilities.

There is another announcement that we are looking forward to acquire a company in Spain. It's one of the largest processor and producer and supplier of olives in Spain and it can generate a lot of export market for us this acquisition has we speak, the process is in progress and by December 11th I think we should have a favourable ordering on hand. So, this acquisition will help us increase our product portfolio as well as our global reach to more than 100 plus countries across the world.

Guidance & targets

Revenue

H2 FY26 Revenue Revenue · H2 FY26 · Medium confidence ₹325 crores

Yeah. See, we, I mean we are predicting about 30% growth compared to last year, which we have already achieved in the H1 also. So H2 would be close to you know 325 crores roughly around the same.

— JUNAID AHMED
FY27 Consolidated Revenue (India + Spain) Revenue · FY27 · Medium confidence ₹600 crores

And from the next year, we should have a consolidated number and we are looking at close to 600 combined combining both the companies from India and Spain.

— JUNAID AHMED
Long-term Company Revenue Revenue · next three years · Low confidence ₹1000 crores

So yes, the next three, three years probably down the line, I'm targeting to be 1000 crore company. So this acquisition will help me scale this height.

— JUNAID AHMED
FY26 Revenue (India) Revenue · FY26 · High confidence ₹300-325 crores

See the current year. We are trying to prove it about 300 plus / 325 crores.

— JUNAID AHMED
FY27 Revenue (India) Revenue · next year · Medium confidence ₹400 crores

We are looking to scale freshara to close to 400

— JUNAID AHMED
FY27 Revenue (Spanish Unit) Revenue · next year · Medium confidence ₹200 crores

and about the 200 plus / 200 should come from the Spanish unit

— JUNAID AHMED

Profitability

Spanish Unit Profitability Profitability · year on year · Medium confidence 8-10%

Yes, but we are trying to, you know, ensure that the Spanish unit closes to 8-10% year on year.

— JUNAID AHMED

Volume

New Unit Production Efficiency Volume · coming four months · Medium confidence 70-80%

So, I think in the coming four months being our major gherkin season, we should be able to achieve at least 70 to 80% of efficiency.

— JUNAID AHMED
New Unit Full Capacity Volume · next year · Medium confidence Full Capacity

There's no gherkin supply. We have very good raw material source and in the next year we should be able to you know achieve its full capacity.

— JUNAID AHMED

Market Share

Indian Gherkin Market Share Gain Market Share · quickly · Low confidence 5-10%

We are 15% of Indian market. We want to gain another 5-10% quickly.

— JUNAID AHMED

What to watch in Q3 FY26

Official communication on Spain acquisition

by December 12, 2025

Current Process in progress

Target Official communication released

Why it matters

This will provide definitive details on the acquisition cost, structure, and financial implications, which were not fully disclosed in this call.

I do not have the exact numbers at the moment. I have a period up to December 11 where we are drafting this on an official communication, we will share with the investor and NSE.

Risks & concerns

Climate risk to products
low

Management stated that in Southern India, where they operate, there are no adverse climatic conditions affecting their crops, and they are well-practiced in managing the 90-day crop cycle.

Analyst downplayed
Competitive pressures for Spanish company
low

Management attributed the Spanish company's bankruptcy to internal family issues rather than external competitive pressures, suggesting the core business is sound.

Analyst downplayed
Language barrier for Spanish company's export
low

Management noted the Spanish company's historical lack of export focus due to a language barrier, which Freshara aims to overcome by leveraging its own export expertise.

Management acknowledged
US tariffs impacting exports
low

Management clarified that gherkins are not part of the recently imposed US tariffs and that their US market exposure was historically low, making the impact manageable and temporary.

Analyst downplayed
Russia sanctions risk
low

Management stated that their product is not on the sanctioned list, payments are received in rupees, and the business with Russia is stable and growing.

Analyst downplayed

Q&A highlights

6 direct, 2 evasive

Spain acquisition funding and valuation Evasive

I do not have the exact numbers at the moment. I have a period up to December 11 where we are drafting this on an official communication, we will share with the investor and NSE.

Management deferred specific financial details of the acquisition, indicating that the full picture is not yet public.

Asked by Suyash Mantri

Liabilities of acquired Spanish company Direct

We are not taking over any liabilities because this company has submitted itself in voluntary bankruptcy. So we get, we get the real estate, the machines and the employee contracts.

Clarified that the acquisition is an asset purchase, mitigating concerns about inheriting past liabilities.

Asked by Suyash Mantri

Reason for Spanish company bankruptcy Direct

it's a family-owned company and the the family wouldn't be in good terms to run it. That that's caused a major downfall of the system.

Provided context on the target company's distress, suggesting it was internal issues rather than market-driven competitive pressures.

Asked by Dinesh Kulkarni

Impact of Spanish entity acquisition on exports to Europe/US Direct

Spanish entity will open us a world of opportunities. Spanish brands are welcomed by our American-Canadian customers, even by Russian customers. They all want Spanish olives.

Highlighted the strategic benefit of the acquisition in leveraging the Spanish brand to access new markets and customer segments, particularly in the US and Canada.

Asked by Mr. Amit

Funding working capital and management bandwidth for Spain acquisition Direct

we have a very good team there, in this bankruptcy that helped us, help them at least to remove the the the legacy cost, basically, as I mentioned they have a problem of legacy cost.

Addressed concerns about operational integration and funding, stating that the existing team and asset-purchase structure would facilitate a smooth transition and growth.

Asked by Sagar Gokani

B2C margins vs B2B and export focus Direct

B2C is, is is never rosy as your B2B in the sense. Yeah, I mean I'll compare it to as domestic export to your domestic sales to our global export. Global export has a pretty steady margin where you don't have too much of you know you have some headway in prices.

Explained the company's preference for export markets due to better and more stable margins compared to competitive domestic B2C markets.

Asked by Bala Kumar

US tariffs and impact on Freshara Direct

No. So, their tea became expensive, so they removed the tariff on tea maybe. However it's it's just on a day-to-day basis it keeps changing, but the gherkins is not a part of it. US is a large market.

Clarified that gherkins are not impacted by recent US tariffs and that the company's exposure to the US market was limited, minimizing the impact of such changes.

Asked by Hafi

Dividend policy for shareholders Evasive

It's a talk in progress and we'll discuss in the future meetings.

Management did not provide a clear stance on future dividend payouts, leaving investors uncertain about shareholder returns.

Asked by Vishal Shah

2 min read 6 chapters

Detailed narrative

H1 FY26 Financial Performance Highlights

Freshara Agro Exports Limited demonstrated robust financial growth in H1 FY26. Total Income surged by 31.11% year-on-year to ₹14,089.47 lakhs. This strong top-line performance translated into healthy profitability, with EBITDA increasing by 30.07% YoY to ₹2,437.81 lakhs, maintaining an 18.14% margin. Net profit (PAT) also saw a significant rise of 31.04% YoY to ₹1,491.04 lakhs, with a PAT margin of 11.10%, and EPS stood at ₹6.35.

Strategic Acquisition of Spanish Olive Processor

A key development for Freshara is the announced acquisition of a Spanish olive processor, a company with a strong brand and legacy in Europe. This asset-only purchase, avoiding liabilities, is expected to significantly expand Freshara's product portfolio into olives and global reach to over 100 countries. The acquired plant has a revenue capacity of ₹400-500 crores and is projected to add at least ₹200 crores in revenue by FY27, with a target of 8-10% profitability for the Spanish unit.

Operational Expansion and Efficiency

The company's second processing and packaging unit is now fully operational, scaling efficiently and contributing meaningfully to volumes. Management aims to achieve 70-80% efficiency at this new unit in the coming four months, with full capacity utilization targeted for the next year. This expansion supports the increased production from 10,412 MT to 15,625 MT YoY, enabling the company to meet growing global demand.

Market Diversification and Product Strategy

Freshara's export performance was strong, with Gherkins volume growing 46.41% and significant increases in Baby Corn (64.18%) and Banderillas (147.78%). The company is also diversifying its product strategy by introducing Premium Pickled Beetroot to cater to health-oriented food trends. The Spanish acquisition will further enhance market diversification, particularly in Europe and the US, by leveraging the acquired brand's strong B2C presence.

Agricultural Ecosystem and Sustainability

At the core of Freshara's operations is a robust agricultural ecosystem, comprising over 4,000 contract farmers across 22 districts. The company emphasizes sustainable farming practices, providing necessary inputs and support to improve farmer yields and income. This strong network ensures consistent quality and supply of raw materials, mitigating risks associated with climatic conditions and single-region dependency.

Financial Outlook and Future Growth Targets

For H2 FY26, Freshara anticipates standalone India revenue to be around ₹325 crores. Looking ahead to FY27, the company targets a consolidated revenue of ₹600 crores, with ₹400 crores from India and ₹200 crores from the Spanish unit. Management also expressed an aspiration to become a ₹1000 crore company within the next three years, driven by the synergies and expanded market access from the Spanish acquisition.

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

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