HMA Agro Industries Limited — Q2 FY26 earnings call

Call held 17 Nov 2025

Management summary

HMA Agro Industries delivered its strongest quarter and half-year performance in Q2 H1 FY26, driven by robust demand and operational efficiencies. Standalone Q2 revenue surged to INR 21,491.68 crores, while consolidated revenue saw a 48% YoY increase with EBITDA margin expanding to 6.10%. The company is actively pursuing product diversification into frozen vegetables and basmati rice, alongside strategic market expansion into Europe and the Indian retail segment, supported by modest CapEx plans for its chicken plant.

Highlights

  • Highest ever standalone revenue in Q2 FY26 at INR 21,491.68 crores.

  • Highest ever standalone total income in Q2 FY26 at INR 21,849.52 crores.

  • Highest ever standalone PBT in Q2 FY26 at INR 644.61 crores.

  • Consolidated Q2 FY26 revenue grew 22% QoQ and 48% YoY to INR 21,553.39 crores.

  • Consolidated EBITDA margin expanded significantly to 6.10% from 1.48%.

Concerns

  • Margins are highly dependent on global demand and supply, and competition, implying potential volatility.

  • Entry into the Indian retail market for frozen products is in a testing phase and will require time to educate consumers on eating habits.

Key financials

  1. Consolidated Revenue ₹21,553.39 Cr +48%YoY
  2. Consolidated EBITDA ₹1,315.71 Cr
  3. Consolidated EBITDA Margin 6.1%
  4. Consolidated PAT ₹879.79 Cr
  5. Standalone Revenue ₹21,491.68 Cr +57.3%QoQ
  6. Standalone PAT ₹482.34 Cr +572%QoQ

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

high confidence
  • Capex ₹10 Cr Mostly internal accruals, potentially with bank funding
    • Chicken plant expansion (working capital and machinery) ₹10 Cr
    For chicken CapEx, somewhere around INR 10 crore will be enough. Internally. Most of them internally or maybe with bank.

Guidance & targets

Capex

  • Chicken Plant Capex Capex · FY2627 · High confidence INR 10 crores
    For chicken CapEx, somewhere around INR 10 crore will be enough.

    — Gulzeb Ahmed

Market Entry

  • Europe Market Access for Buffalo Product Market Entry · next year · Medium confidence Ready to supply
    Once the market access has been provided to the Europe for India products, we will be ready to supply next year.

    — Gulzeb Ahmed

Product Diversification

  • Frozen Vegetables Launch Product Diversification · very soon · Medium confidence Launch
    And we are also planning for very soon to launch our frozen vegetables also.

    — Gulzeb Ahmed

What to watch in Q3 FY26

Progress on Indian retail entry for frozen products

next quarter
Current In testing phase
Target Update on pilot results, expansion plans, or consumer education initiatives

Why it matters

Represents a potential new domestic revenue stream and diversification strategy.

India. We are currently testing the market with our product retail because in India, the eating habit is more of chilled or fresh items. So, we are in the testing phase of retail client with our team. So, we would like to enter in India, and it is a for sure, India is one of the biggest market. But we need to educate the clients regarding the frozen generic of our product. So, it will take time, but we will be working on it.

Risks & concerns

  • Margin volatility due to demand-supply dynamics and competition.

    medium

    Margins for food products are inherently linked to global demand and supply, and competition from overseas can cause fluctuations.

    Management acknowledged

  • Challenges in consumer adoption for frozen products in the Indian retail market.

    medium

    Indian eating habits favor chilled/fresh items, requiring consumer education for frozen products, which will take time.

    Management acknowledged

  • Regulatory hurdles for entering the European market for buffalo products.

    medium

    Market access to Europe depends on government-to-government (G2G) protocols between Indian and European veterinary authorities.

    Management acknowledged

Q&A highlights

4 direct
Entry into retail packaged goods for value-added consumer brands in India. Partial
India. We are currently testing the market with our product retail because in India, the eating habit is more of chilled or fresh items. So, we are in the testing phase of retail client with our team. So, we would like to enter in India, and it is a for sure, India is one of the biggest market. But we need to educate the clients regarding the frozen generic of our product. So, it will take time, but we will be working on it.

Highlights the company's strategic intent for domestic market expansion but also acknowledges the challenges and time required for consumer adoption of frozen products.

Asked by Amit Agicha

Diversification beyond frozen buffalo meat to reduce export concentration risk. Direct
We are currently exporting basmati rice. It's from India. And we are also planning for very soon to launch our frozen vegetables also. And regarding buffalo meat, it has a highest demand of ever red meat available in the market. So, this is our core product, and we always work to make it more stronger and to deliver in many, many other countries.

Demonstrates the company's efforts to broaden its product portfolio and mitigate risks associated with over-reliance on a single product category.

Asked by Amit Agicha

Sustainability of exceptional Q2 margins. Partial
For any food product, the margins are always related to the demand and supply. As you see in quarter two, there is a very high demand globally. So, we will be able to charge the marginal prices. So, it's totally depends, if it is related to our daily used food, it depends on demand and supply. And we also have competitions from overseas. So, if their supply distracts or their supply increases, our margins always change.

Clarifies that high margins are not guaranteed and are subject to external market forces like demand, supply, and competition, indicating potential for margin volatility.

Asked by Amit Agicha

CapEx plan for FY2627, specifically for Jabalpur chicken plant, leather, and pet food divisions. Direct
For our buffalo business, we don't need much CapEx because we already running under capacity. For chicken plant, once we will be entering and increasing, we will need working capital more of the CapEx because most of the machine needs are not that much expensive. For chicken CapEx, somewhere around INR 10 crore will be enough.

Provides specific CapEx figures and rationale for the chicken plant, indicating a focused investment strategy for new growth areas.

Asked by Amit Agicha

Funding source for the chicken CapEx (internal accruals vs. debt). Direct
Internally. Most of them internally or maybe with bank.

Indicates the company's preference for internal funding for its CapEx, suggesting a healthy cash flow position or conservative financial management.

Asked by Amit Agicha

Navigating geopolitical and currency volatility, and exploring new markets (Europe, GCC, East Asia). Direct
East Asia, we are already supplying with our buffalo product. Europe still has time because in Europe, there are certain protocols that need to be signed between Indian veterinary and Europe veterinary. But we are ready from our side. It's the only G2G matter. Once the market access has been provided to the Europe for India products, we will be ready to supply next year.

Outlines the company's strategy for international market expansion and highlights the regulatory challenges in entering the European market.

Asked by Amit Agicha

Expectation for future results stability given strong Q2 performance. Partial
Saurabh Ji, thank you for your question. And as I replied the previous question from Mr. Amit, the food business is totally depending on demand and supply. We always pray to Almighty that we will be having a good demand and a shorter supply from the overseas people. So, we hope as for now, what we got the data from our marketing team, the demand is still there, and we are trying to supply it. And we hope this demand will sustain longer and longer.

Provides management's forward-looking perspective on demand sustainability, linking future performance to market conditions.

Asked by Saurabh Goyal

2 min read 5 chapters

Detailed narrative

Strong Q2 H1 FY26 Financial Performance

HMA Agro Industries reported its strongest quarter and half-year in Q2 H1 FY26. Standalone revenue for Q2 reached INR 21,491.68 crores, marking a significant 57.27% QoQ increase from INR 13,666 crores in the prior quarter. Consolidated revenue grew by 22% QoQ and 48% YoY to INR 21,553.39 crores. This robust top-line growth translated into strong profitability, with consolidated EBITDA expanding to INR 1,315.71 crores and the EBITDA margin improving substantially to 6.10% from 1.48%.

Product Diversification and Market Expansion Initiatives

The company is actively pursuing product diversification beyond its core frozen buffalo meat business. It currently exports basmati rice and has plans to launch frozen vegetables 'very soon.' In terms of market expansion, HMA Agro is already supplying to East Asia and is targeting the European market for its buffalo products by next year, contingent on the resolution of inter-governmental veterinary protocols. These initiatives aim to broaden the revenue base and reduce concentration risks.

Indian Retail Market Entry Strategy

HMA Agro is in the testing phase for entering the Indian retail market with its value-added product range. Management acknowledged that this will be a gradual process, as it requires educating consumers on the benefits of frozen products, given the prevailing preference for chilled or fresh items in India. Despite the challenges, the company views India as a significant long-term market and is committed to developing this segment.

Focused Capital Expenditure Plans

The company has outlined modest capital expenditure plans, primarily for its chicken plant. An estimated CapEx of INR 10 crores is projected for FY2627, mainly to support working capital and acquire necessary machinery as the company expands into this segment. This investment is expected to be funded predominantly through internal accruals, with potential supplementary bank financing, reflecting a prudent approach to capital allocation.

Margin Dynamics and Market Volatility

Management clarified that the exceptional margins achieved in Q2 were a result of high global demand, which allowed the company to charge premium prices. However, they emphasized that margins in the food business are inherently sensitive to demand-supply dynamics and competitive pressures. Fluctuations in global supply or increased competition could impact future margins, indicating a degree of volatility in profitability.

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