Saptarishi Agro - Saptarishi Agro

📊 BSE: 519238 🏢 Other Agricultural Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Trading (Mushrooms) generated INR 1366.99 Lakhs as of March 31, 2025. The Land Sale segment in Tamil Nadu contributed INR 5.60 Lakhs. The upcoming Frozen Fruits & Vegetables (FFV) project is projected to generate INR 6570.56 Lakhs in revenue.

Geographic Revenue Split

The company operates across three distinct regions: Jodhpur (Mushroom Trading), Tamil Nadu (Land Development), and Gujarat (Manufacturing and Trading of Frozen Fruits & Vegetables).

Profitability Margins

The Net Profit Ratio declined by 45.55% to 2.69% in FY25 from 4.95% in FY24. Return on Equity (ROE) decreased by 23.11% to 24.77% in FY25 compared to 32.21% in FY24, driven by a decrease in overall profit margins.

EBITDA Margin

Return on Capital Employed (ROCE) fell by 38.12% to 12.28% in FY25 from 19.84% in FY24. The Profit before Interest and Tax for the Mushroom Trading segment was INR 362.05 Lakhs, while the Land Sale segment reported a loss of INR 110.63 Lakhs.

Capital Expenditure

Not explicitly disclosed in absolute INR Cr, but the company secured new bank borrowings during FY25 to support ongoing operations and the expansion into the Frozen Fruits & Vegetables and Real Estate sectors.

Credit Rating & Borrowing

The Debt-Equity ratio increased significantly by 98.38% to 1.40 in FY25 from 0.71 in FY24, following the acquisition of new bank loans for project expansion.

⚙️ Operational Drivers

Raw Materials

Mushrooms (for trading and processing), land (for residential plot development), and various fruits and vegetables for the new FFV brand.

Import Sources

The company utilizes a technology tie-up with Dalsem Veciap B.V. from the Netherlands for climate-controlled mushroom production. Domestic sourcing is centered in Tamil Nadu, Rajasthan, and Gujarat.

Key Suppliers

The company operates as a joint venture with the Tamil Nadu Industrial Development Corporation (TIDCO).

Capacity Expansion

Phase 1 of the 'Growth Town' land development project was launched in H1 FY26, with Phase 2 scheduled for H2 FY26. The FFV manufacturing project in Gujarat is poised for immediate launch.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company noted that seasonal and climate-related fluctuations in raw material supply pose a key risk to operational costs.

Manufacturing Efficiency

Not disclosed in specific percentage terms; however, the company is transitioning from pure trading to integrated manufacturing in the FFV segment.

Logistics & Distribution

The company highlights the need for efficient cold chain logistics to manage the 8-10% projected growth in mushroom demand and mitigate perishability risks.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth will be achieved through diversification into the real estate sector via the 'Growth Town' project and entering the FMCG market with a new brand of Frozen Fruits & Vegetables. The FFV segment alone is projected to contribute INR 6570.56 Lakhs in revenue.

Products & Services

Fresh and canned mushrooms, residential plots (real estate), and frozen fruit and vegetable snacks.

Brand Portfolio

Growth Town (Real Estate).

New Products/Services

Launch of a new brand for Frozen Fruits & Vegetables and the rollout of residential plot sales in Tamil Nadu.

Market Expansion

Expansion into the Gujarat region for manufacturing and the Tamil Nadu region for real estate development.

Strategic Alliances

Joint venture with Tamil Nadu Industrial Development Corporation (TIDCO) and technology tie-up with Dalsem Veciap B.V., Netherlands.

🌍 External Factors

Industry Trends

The global mushroom industry is growing at 8-10% CAGR through 2030, driven by plant-based nutrition and functional foods. The Asia-Pacific region, led by China and India, is a production leader.

Competitive Landscape

The company faces competition from both fresh and canned mushroom alternatives and speculative land markets.

Competitive Moat

The company possesses a first-mover advantage as a pioneer in India's mushroom cultivation sector (established 1994) and maintains a strategic JV with a government entity (TIDCO).

Macro Economic Sensitivity

The real estate segment is highly sensitive to infrastructure growth (airports, expressways) and urban expansion in Tamil Nadu.

Consumer Behavior

Rising demand for healthy, ready-to-eat, and preservative-free frozen produce is driving the shift toward the FFV segment.

Geopolitical Risks

The company notes that exporters must navigate strict international regulations and certification requirements for mushroom trading.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to strict regulatory compliance regarding land acquisition, environmental concerns, and international food safety certifications for exports.

Environmental Compliance

Not disclosed in absolute INR.

Legal Contingencies

The company identifies risks related to title disputes and unclear land ownership in the real estate sector, though specific case values are not provided.

⚠️ Risk Analysis

Key Uncertainties

The 98.38% increase in debt and the 45.55% drop in net profit margins represent significant financial uncertainties. Real estate projects face risks from regulatory delays and farmer protests.