HMA Agro Industries Limited — Q1 FY26 earnings call

Call held 13 Aug 2025

Management summary

HMA Agro Industries reported a strong Q1 FY26 with standalone revenue growing 57% YoY to INR 10,884 million, driven by robust export demand and new market entry into Cuba. However, consolidated PAT declined to INR 5.9 million, and EBITDA margins faced pressure from elevated freight charges and higher raw material costs. The company remains focused on operational efficiency and market expansion despite global economic headwinds.

Highlights

  • Standalone Revenue grew 57% YoY to INR 10,884 million, driven by robust export demand.

  • Consolidated Revenue increased significantly to INR 11,226 million from INR 7,126 million YoY.

  • Secured approval to supply products to Cuba, marking entry into the Latin American market.

  • Proactive marketing efforts including international travel and client engagement to expand market presence.

  • Management expressed aspiration to achieve $1 billion revenue target, showing confidence in Q1 momentum.

Concerns

  • Consolidated PAT declined to INR 5.9 million in Q1 FY26 from INR 7.2 million in Q1 FY25.

  • EBITDA margins contracted due to elevated freight charges and higher raw material (live buffalo) costs.

  • Global economic environment, inflation, high freight costs, and geopolitical restrictions continue to pose challenges to operations and profitability.

Key financials

  1. Standalone Revenue 10,884 Mn +57%YoY
  2. Standalone EBITDA 179 Mn +70.8%YoY
  3. Standalone PAT 70.7 Mn +188.6%YoY
  4. Consolidated Revenue 11,226 Mn +57.5%YoY
  5. Consolidated PAT 5.9 Mn -18.1%YoY

What they filed

Q1 FY27: revenue up 90.4%, net profit up 357.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,367 1,365 1,437 1,088 2,149 +57%1,993 +46%1,538 +7%2,072 +90%
EBITDA28 28 -19 7 37 +32%42 +50%2 +111%-16 −329%
Net profit25 34 -1 7 48 +92%52 +53%19 +2000%32 +357%
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
  • Capex ₹7 Cr
    • Upgradation of technology and increasing of little bit capacity ₹7 Cr
    It's almost around INR 7 to 8 crores in there. And this is only upgradation of technology and increasing of little bit capacity.

Guidance & targets

Revenue

  • Total Revenue Revenue · this year · Low confidence $1 billion
    We are trying our best, and we hope to achieve it as fast as possible... I cannot predict it will be this year, but it has to be achieved because this is, will give us more strong support, insight support to build another next target. But we hope to achieve it very, very soon, and we feel that quarter one has already made us a strong backing that we can do it. We can do it. But touch wood, we really want to achieve it in this year, but let's see how the market responds, and we hope to achieve it as fast as possible.

    — Mr. Gulzeb Ahmed

What to watch in Q2 FY26

Progress towards $1 billion revenue target

Next quarter / FY26
Current Q1 FY26 Standalone Revenue INR 10,884 million
Target Continued strong growth towards $1 billion (approx INR 8,300 crores at 83 INR/USD)

Why it matters

This is an ambitious target, and Q2 performance will indicate if the strong Q1 momentum is sustainable.

We are trying our best, and we hope to achieve it as fast as possible... I cannot predict it will be this year, but it has to be achieved... we really want to achieve it in this year, but let's see how the market responds.

Risks & concerns

  • High freight charges and uncertain shipping costs

    high

    Uncertain shipping costs have made a huge impact on delivery, costing, and margins.

    Management acknowledged

  • Geopolitical restrictions and Red Sea situation

    high

    Geopolitical situation and restrictions in shipping, like the Red Sea, affect product delivery times.

    Management acknowledged

  • Higher raw material costs (live buffalo)

    medium

    The cost of live buffalo, a key raw material, has become expensive, putting a small dent on numbers.

    Management acknowledged

  • Global warming and weather changes

    low

    Global warming and weather changes are seen as a potential challenge.

    Management acknowledged

Q&A highlights

6 direct
Marketing efforts and international travel for growth Direct
our marketing team has traveled to Vietnam, and we have participated in the Vietnam exhibition where we have made many potential clients who bring business to us... we send our marketing staff to meet client on regular time basis, and we also travel to meet the clients in their various countries.

Shows proactive efforts to expand market presence and secure new business, contributing to growth.

Asked by Sanket Sadh

Achieving $1 billion revenue target Partial
We are trying our best, and we hope to achieve it as fast as possible... I cannot predict it will be this year, but it has to be achieved... we really want to achieve it in this year, but let's see how the market responds.

Provides insight into management's ambition and confidence, but also acknowledges market uncertainties for this aggressive target.

Asked by Sanket Sadh

Challenges impacting the business Direct
In India challenges we are still seeing the freight charges because the shipping cost is very uncertain... geopolitical situation... restriction in shipping side also. And also, the global warming we can see will be a challenge if there is a weather change and all.

Highlights key external risks (logistics, geopolitics, climate) that could affect operations and profitability.

Asked by Sanket Sadh

Impact of US tariffs on HMA's business Direct
No. We don't have any impact because US was not direct market for our product. And we hope this tariff thing will bring us more business.

Clarifies that US tariffs do not directly harm HMA and could indirectly benefit them by shifting demand from US competitors.

Asked by Sanket Sadh

Contraction in consolidated margins despite revenue growth Direct
This freight cost also the raw material costs. The raw material, which we used to make our product, final product, has become a bit expensive in this quarter. So that may be an impact which you are seeing has put a small dent on the numbers.

Explains the reason for margin pressure, attributing it to higher freight and raw material (live buffalo) costs.

Asked by Sanket Sadh

Discrepancy between HMA's growth and overall Indian buffalo export data Direct
the custom data which you are analyzing, growth of 13-15%, this growth you are analyzing within Indian player only. So, when you calculate you are calculating data of India, and we are calculating data of HMA performance in last quarter and this quarter.

Clarifies that HMA's superior growth is due to its strong brand, existing client relationships, and diversified product portfolio (including rice), which differentiates it from general industry trends.

Asked by Divya Ghelot

New CapEx plans and capacity utilization Direct
It's almost around INR 7 to 8 crores in there... only upgradation of technology and increasing of little bit capacity... Somewhere around 45 to 65% for our main business we are using. And for rice, we are using almost 60 -65%.

Indicates modest CapEx for efficiency and minor capacity increase, with significant headroom in existing capacity for core business.

Asked by Sanket Sadh

Seafood export performance and seasonality Partial
this quarter is not for seafood, basically, because this is not seafood season. So, we can only predict our seafood sale after the seafood season started in late September and October.

Highlights the seasonal nature of the seafood business and indicates that its contribution will be more visible in later quarters.

Asked by Divya Ghelot

3 min read 7 chapters

Detailed narrative

Strong Revenue Growth Driven by Exports

HMA Agro Industries reported a robust Q1 FY26 with standalone revenue increasing 57% year-on-year to INR 10,884 million, up from INR 6,933 million in Q1 FY25. Consolidated revenue also saw significant growth, reaching INR 11,226 million compared to INR 7,126 million in the previous year. This growth was primarily fueled by strong export demand from Southeast Asian, Middle East, and West African markets, alongside the company's established brand reputation and efficient supply chain.

Margin Pressure from Input Costs and Freight

Despite strong top-line growth, consolidated PAT for Q1 FY26 declined to INR 5.9 million from INR 7.2 million in Q1 FY25. This contraction was attributed to higher operating costs, specifically increased freight charges and a rise in raw material prices, particularly live buffalo. Management highlighted that uncertain shipping costs and geopolitical restrictions, such as those affecting the Red Sea, significantly impacted delivery costs and overall profitability.

Strategic Market Expansion and Diversification

The company successfully secured approval to supply products to Cuba, marking its first entry into the Latin American market. This initiative is expected to build a new clientele base and contribute to future growth. HMA Agro Industries also continues to diversify its product portfolio beyond buffalo meat, with contributions from seafood, sheep, goat, and rice, which saw increased turnover in the quarter.

Capacity Utilization and Modest Capex

HMA Agro Industries currently utilizes 45-65% of its capacity for its main business and 60-65% for rice production, indicating significant headroom for future growth without immediate large-scale capital expenditure. The company undertook minor CapEx of approximately INR 7-8 crores in Q1 FY26, primarily for technology upgradation and a slight increase in capacity. Management stated that no substantial CapEx is planned unless new plant opportunities arise.

Differentiating Growth from Industry Trends

Management addressed analyst queries regarding HMA's 57% growth contrasting with the broader Indian buffalo export growth of 15-20%. They explained that HMA's growth is driven by its strong brand, established client trust, faster delivery, and commitment to business continuity, which allows it to capture market share beyond general industry trends. Additionally, the company's sales are booked upon delivery to destination, differing from customs data which records exports upon exit from India.

Geopolitical and Economic Headwinds

The company acknowledged ongoing challenges from the global economic environment, including inflation, high freight costs, and geopolitical restrictions. These factors have created an unstable operating landscape, impacting delivery timelines and overall cost structures. Management also noted the potential long-term challenge posed by global warming and weather changes, which could affect agricultural commodities.

US Tariffs and Competitive Landscape

HMA Agro Industries clarified that it is not directly impacted by US tariffs, as India does not supply meat for human consumption to the US market. Management suggested that US tariffs on other countries could indirectly benefit HMA by redirecting demand from those markets towards Indian suppliers. The company also monitors the pricing strategies of competitors like Brazil, noting that Brazil's pricing might be constrained if its market access is restricted by US tariffs.

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

More Fast Moving Consumer Goods earnings calls