Prime Fresh - Prime Fresh

📊 BSE: 540404 🏢 Other Agricultural Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company operates in two main segments: Fruits and Vegetables (F&V), which contributes 80% of revenue, and Services, which contributes 20%. Overall consolidated revenue grew 38.6% YoY to INR 206.77 Cr in FY25 from INR 149.21 Cr in FY24.

Geographic Revenue Split

Revenue is diversified across 15 states and over 80 districts in India. The company is currently expanding its footprint in North India (Lucknow DC) and South India (Bengaluru DC) to reduce regional concentration.

Profitability Margins

Net PAT margin stood at 4.50% in FY25, a slight decrease from 4.74% in FY24. However, Q1FY26 saw a margin expansion to 5%, driven by operational leverage and efficiencies.

EBITDA Margin

EBITDA margin was 6.53% in FY25 (INR 12.86 Cr), down from 6.82% in FY24 (INR 9.77 Cr). The margin improved to 7.34% in Q1FY26 due to better pricing formulas and procurement efficiencies.

Capital Expenditure

The company maintains an asset-light model but plans debt-funded capex for integrated supply chain initiatives, including potential Mega Food Park projects. Specific historical capex included INR 6.68 Cr in FY24 and a net investing inflow of INR 7.14 Cr in FY25.

Credit Rating & Borrowing

CRISIL upgraded the long-term rating to 'CRISIL BBB/Stable' from 'CRISIL BBB-/Stable' in September 2024. Borrowing remains low with a gearing of 0.06x and total bank loan facilities of INR 10 Cr.

⚙️ Operational Drivers

Raw Materials

Primary raw materials are fresh Fruits and Vegetables (F&V), with a specific strategic focus on Tomatoes, which represent a significant portion of the procurement volume across multiple states.

Import Sources

Sourcing is entirely domestic, primarily from states including Madhya Pradesh, Uttar Pradesh, Karnataka, Himachal Pradesh, and Gujarat.

Key Suppliers

Procurement is handled through a network of over 1.1 lakh farmers, 85 agriculture markets, and 2,400 trade partners rather than a few large corporations.

Capacity Expansion

Current sales capacity reached 80,000 TPA in FY25. The company operates 4,00,000 sq. ft. of warehouse space and recently added new Distribution Centres in Bengaluru and Lucknow.

Raw Material Costs

Raw material costs are volatile due to climatic factors; however, the company uses a pre-determined pricing formula to maintain operating margins, which were 6.41% in FY25.

Manufacturing Efficiency

The asset-light business model ensures higher capital productivity, reflected in a 5-year average ROCE of 21%.

Logistics & Distribution

Distribution is spread across 80+ districts; the company uses end-to-end tracking from farm to shelf to ensure food safety and reduce transit wastage.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be driven by the migration from the SME board to the Main Board of BSE, expanding the Distribution Centre network into North and South India, entering the organic food market, and implementing backward integration through structured contract farming.

Products & Services

Sourced, graded, sorted, and branded fresh fruits and vegetables; ripening and packaging services; and manpower management for the agri-supply chain.

Brand Portfolio

Prime Fresh

New Products/Services

Entry into the organic food market and expansion of tomato operations across four new states are expected to contribute to higher-margin revenue streams.

Market Expansion

Targeting deeper penetration in North, North-East, and Southern India through new regional sourcing hubs and distribution centers.

Market Share & Ranking

The company operates in a INR 25 Lakh Cr industry where organized players hold only 8-13% market share, providing significant room for growth.

Strategic Alliances

The company is exploring government grants under the Mega Food Park Scheme and potential equity dilution through QIPs for future large-scale projects.

🌍 External Factors

Industry Trends

The industry is shifting from unorganized to organized trade (currently 8-13% organized). PFL is positioning itself as a market leader in the fresh produce ecosystem through technology and branding.

Competitive Landscape

Competes with both unorganized local traders and emerging agri-tech startups in a highly fragmented market.

Competitive Moat

Durable advantages include a massive network of 1.1 lakh farmers, 20+ years of promoter experience, and an asset-light model that allows for rapid scaling without heavy debt.

Macro Economic Sensitivity

Highly sensitive to agricultural GDP and monsoon performance, as these directly impact the supply and pricing of F&V.

Consumer Behavior

Increasing consumer preference for food safety, branded produce, and organic options is driving demand for PFL's quality-checked products.

Geopolitical Risks

Trade disputes and supply chain disruptions impact global trade flows for the company's international agricultural trade segment.

⚖️ Regulatory & Governance

Industry Regulations

Adheres to Accounting Standards for financial reporting and food safety norms for farm-to-shelf tracking and compliance.

Environmental Compliance

Not specifically disclosed in INR values.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 28.3%, with INR 3.50 Cr in tax expenses on a PBT of INR 12.35 Cr.

Legal Contingencies

Secretarial audit for FY25 confirmed compliance with the Companies Act 2013, SCRA, and SEBI regulations; no major pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Climatic unpredictability and volatile agricultural commodity pricing are the primary risks, with the potential to impact operating margins by 100-200 basis points.