💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 25.9% YoY to INR 380.53 Cr in FY25. The Export segment grew 32% to INR 292.98 Cr, while Domestic operations grew 10.6% to INR 89.31 Cr.

Geographic Revenue Split

Exports contribute 76.6% of total revenue (INR 292.98 Cr). Within exports, Russia accounts for 67% and the USA accounts for 29%.

Profitability Margins

PAT margin improved from 1.94% in FY24 to 2.62% in FY25. EBITDA margin increased from 7.18% to 7.97% YoY, driven by higher scale and expansion into the Russian market.

EBITDA Margin

EBITDA margin stood at 7.97% in FY25, with absolute EBITDA growing 39.5% YoY to INR 30.32 Cr from INR 21.74 Cr.

Capital Expenditure

The company made substantial capital investments in farming and processing divisions in FY25; however, it is now shifting toward an asset-light merchant export model to reduce future heavy capex requirements.

Credit Rating & Borrowing

Ratings reaffirmed at CRISIL BBB/Stable (Long Term) and CRISIL A3+ (Short Term). Interest coverage ratio improved to 2.49x in FY25 from 2.21x in FY24.

⚙️ Operational Drivers

Raw Materials

Raw materials include Vannamei and Black Tiger shrimp and feed ingredients. Cost of materials consumed was INR 295.19 Cr, representing 77.6% of total revenue.

Import Sources

Sourced primarily from Andhra Pradesh (Nellore) and Gujarat through a network of 55 farmer partnerships and contract farming.

Key Suppliers

Procurement is managed through 55 farmer partnerships and vetted input partners for seed and feed; specific corporate supplier names are not disclosed.

Capacity Expansion

Current plant utilization is 55%. The company plans to expand utilization to ~90% by FY28 through contract farming and merchant export volumes.

Raw Material Costs

Raw material costs rose 21.1% YoY to INR 295.19 Cr in FY25. Procurement strategy focuses on deep contract farming to stabilize farm-gate prices and ensure quality.

Manufacturing Efficiency

Integrated operations enable seamless coordination and uninterrupted production, mitigating industry-typical seasonality impacts.

Logistics & Distribution

Distribution is managed through processing tie-ups and a new facility in Gujarat (launched August 2025) to access global markets more efficiently.

📈 Strategic Growth

Expected Growth Rate

38%

Growth Strategy

Targeting INR 1,000 Cr export revenue by FY28 by scaling an asset-light merchant export model, diversifying into Black Tiger shrimp, and expanding into China and the EU while maintaining Russian market dominance.

Products & Services

Processed shrimp (16 varieties), shrimp feed, and shrimp seed (hatchery).

Brand Portfolio

Sharat Industries (recently rebranded with a new logo).

New Products/Services

Diversification into Black Tiger shrimp segment and BSF-based feed pilots are expected to contribute to future revenue growth.

Market Expansion

Expansion into China and re-entry into the EU market are planned for FY26-FY28 to balance the export mix.

Market Share & Ranking

Largest Indian exporter to Russia by both volume and value as of FY25.

Strategic Alliances

Partnership with West Coast Frozen Foods to launch merchant export operations in Gujarat.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward traceability and sustainability; Sharat is positioning itself through BSF-based feed and traceability systems.

Competitive Landscape

Competes in the fragmented seafood export industry; market dynamics are driven by quality certifications and supply chain reliability.

Competitive Moat

Moat is built on being India's oldest integrated aquaculture company with a 30-year track record and a unique 5km-radius integrated operational setup.

Macro Economic Sensitivity

Highly sensitive to USD/INR fluctuations as 76.6% of revenue is export-based; also sensitive to global inflation impacting consumer demand.

Consumer Behavior

Rising global demand for healthy, protein-rich seafood and health-conscious markets in the US and EU.

Geopolitical Risks

High concentration in the Russian market (67% of exports) poses risks from potential trade restrictions or geopolitical shifts.

⚖️ Regulatory & Governance

Industry Regulations

Subject to high quality standards in the US, EU, and Russia; removal of government interest subvention is a key regulatory headwind for FY26.

Environmental Compliance

Investing in solar power and sustainable feed (BSF) to meet evolving ESG standards.

Taxation Policy Impact

Tax expenses for FY25 were INR 4.07 Cr, representing an effective tax rate of approximately 29%.

⚠️ Risk Analysis

Key Uncertainties

Biological risks such as rampant shrimp diseases and climate change could impact farm yields by over 20%.

Geographic Concentration Risk

High geographic concentration with 67% of export sales coming from the Russian market.

Third Party Dependencies

Dependent on 55 farmer partners for raw material supply and West Coast Frozen Foods for Gujarat operations.

Technology Obsolescence Risk

Risk is mitigated by ongoing R&D in disease-resistant shrimp varieties and improved feed formulations.

Credit & Counterparty Risk

Uses customer buyback initiatives and merchant exporter models to mitigate customer default risks.