APEX - Apex Frozen Food
📢 Recent Corporate Announcements
Apex Frozen Foods reported a significant turnaround in Q3FY26, with PAT rising to ₹10 crore from ₹0.5 crore in the previous year, driven by lower raw material costs and improved realizations. Revenue grew 15% YoY to ₹264 crore, supported by a 22% growth in EU sales which helped offset a 12% decline in US volumes. Management highlighted a major regulatory tailwind as US shrimp export tariffs were reduced from 50% to 25% in February 2026. The company has successfully diversified its revenue, with non-US markets now contributing 51% of total sales compared to 37% a year ago.
- Net revenue for Q3FY26 grew 15% YoY to ₹264 crore, while 9M FY26 revenue reached ₹761 crore.
- EBITDA surged 147% YoY to ₹17 crore, with margins expanding by 344 bps to 6.5% due to lower input costs.
- US import tariffs on Indian shrimp reduced from 50% to 25% effective February 7, 2026.
- Raw material prices dropped to ₹327 per kg in Q3FY26 from ₹374 per kg in the same quarter last year.
- Management guided for a revenue target of ₹1,200+ crore over the next two years driven by capacity utilization.
Apex Frozen Foods has officially released the audio recording of its investor conference call held on February 16, 2026. The call focused on the company's un-audited financial results for the third quarter and the nine-month period ending December 31, 2025. This disclosure is part of the company's regulatory compliance under SEBI Listing Obligations. Investors can access the recording on the company's website to understand management's perspective on recent performance and future outlook.
- Audio recording of the Q3 FY26 earnings call is now available on the company website.
- The conference call was conducted on February 16, 2026, at 11:30 AM IST.
- Covers financial performance for the quarter and nine months ended December 31, 2025.
- Compliance with SEBI Regulation 30 and 46(2)(oa) regarding investor disclosures.
Apex Frozen Foods reported a robust Q3FY26 performance with revenue growing 15% YoY to Rs 2,643 Mn, driven by higher realizations and strong growth in the European market. Profitability saw a massive turnaround as PAT jumped to Rs 101 Mn from a low base of Rs 5 Mn last year, supported by lower raw material costs and improved operational efficiencies. While US sales were previously impacted by high tariffs, the recent reduction in US shrimp import duties from 50% to 25% effective February 2026 is expected to boost future volumes. The company maintains a very healthy balance sheet with a net debt-to-equity ratio of just 0.05x.
- Net Revenue for Q3FY26 grew 15% YoY to Rs 2,643 Mn, while 9MFY26 revenue rose 23% to Rs 7,608 Mn.
- EBITDA for the quarter increased 147% YoY to Rs 173 Mn, with margins expanding by 344 bps to 6.5%.
- PAT witnessed a massive recovery, surging 1887% YoY to Rs 101 Mn in Q3FY26 from Rs 5 Mn in the year-ago period.
- EU sales volumes grew 22% YoY in Q3FY26, helping diversify the sales mix as US sales faced tariff headwinds.
- Total borrowings have been consistently reduced, with Net Debt to Equity improving to 0.05x as of September 2025.
Apex Frozen Foods reported a significant YoY turnaround in Q3 FY26, posting a net profit of ₹1,009 Lakhs compared to a loss of ₹22.24 Lakhs in the same period last year. Revenue from operations grew by 14.5% YoY to ₹26,428.71 Lakhs, reflecting improved demand in the shrimp processing segment. For the nine-month period ended December 2025, the company's PAT surged to ₹3,106.09 Lakhs from ₹191.20 Lakhs in the previous year, indicating a strong recovery in profitability. However, on a sequential basis, PAT declined from ₹1,187.23 Lakhs in Q2 FY26 due to higher operational expenses.
- Revenue from operations increased 14.5% YoY to ₹26,428.71 Lakhs in Q3 FY26.
- Net Profit turned positive at ₹1,009 Lakhs vs a loss of ₹22.24 Lakhs in Q3 FY25.
- 9M FY26 PAT grew exponentially to ₹3,106.09 Lakhs compared to ₹191.20 Lakhs in 9M FY25.
- Export benefits contributed ₹1,244.05 Lakhs to the revenue during the quarter.
- Earnings Per Share (EPS) improved to ₹3.23 in Q3 FY26 from negative ₹0.07 in Q3 FY25.
Apex Frozen Foods Limited has scheduled its earnings conference call for Monday, February 16, 2026, at 11:30 AM IST. The call will address the company's financial performance for the third quarter and the nine-month period ending December 31, 2025. Senior management, including the Managing Director and CFO, will be available to discuss results and provide business updates. This is a routine but essential event for shareholders to gauge the company's current trajectory in the seafood export market.
- Earnings call scheduled for February 16, 2026, at 11:30 AM IST.
- Focus on financial results for Q3FY26 and 9MFY26 ended December 31, 2025.
- Management representation includes MD & CFO Mr. Choudary Karuturi.
- Dial-in numbers provided for India (+91 22 6280 1256) and international markets including USA, UK, and Singapore.
Apex Frozen Foods Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of the company's un-audited financial results for the third quarter ended December 31, 2025. The window will remain closed until 48 hours after the financial results are officially declared. This is a standard regulatory procedure to prevent insider trading during the period when sensitive financial information is being finalized.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the Un-Audited Financial Results for the quarter ended December 31, 2025.
- Window will reopen 48 hours after the announcement of Q3 results.
- Restriction applies to Promoters, Directors, KMPs, and designated employees.
Financial Performance
Revenue Growth by Segment
Overall revenue grew 1% in FY25 to INR 813.6 Cr from INR 804.1 Cr in FY24. However, H1FY26 showed a significant recovery with revenue growing 29% YoY to INR 496.5 Cr, driven by higher average realizations and a 19% YoY revenue increase in Q2FY26 to INR 238.3 Cr.
Geographic Revenue Split
The company has successfully reduced its dependence on the USA market, with Non-USA sales increasing to 47% in FY25 from 36% in FY24. The EU market (excluding UK) is a primary driver, growing 41% YoY to account for 39% of total sales in FY25, while the USA share dropped to 53% from 64%.
Profitability Margins
Profitability faced severe pressure in FY25 with Net Profit Margin dropping to 0.5% from 1.8% in FY24. Gross Margins improved significantly in Q2FY26 to 39.2% (up 1200 bps YoY) due to better realizations and stable raw material costs, leading to a PAT of INR 11.9 Cr compared to a loss of INR 1.7 Cr in Q2FY25.
EBITDA Margin
EBITDA margin contracted to 3.6% in FY25 from 5.5% in FY24 due to elevated farmgate prices. However, margins rebounded to 7.2% in Q2FY26 (a 493 bps YoY increase). Management targets a steady-state EBITDA margin of 10-12% through increased value-added production.
Capital Expenditure
The company maintains a strong financial profile with an absence of large, debt-funded capital expenditure. Networth stood at INR 494.5 Cr as of March 31, 2025, and increased to INR 509.2 Cr by September 2025, supported by healthy internal accruals.
Credit Rating & Borrowing
Credit profile remains strong with a gearing ratio of 0.1x in FY25 (down from 0.2x in FY24). Interest coverage ratio was 1.6x in FY25, impacted by lower profitability, but historically maintained above 4x. Long-term borrowings were reduced to INR 1.1 Cr by September 2025 from INR 7.4 Cr in March 2024.
Operational Drivers
Raw Materials
Shrimp (raw aquaculture produce) is the primary raw material, with costs significantly impacting margins; average raw material costs were the primary reason for the margin decline to 3.6% in FY25.
Import Sources
Sourced primarily from local farmers in Andhra Pradesh, India, utilizing the company's own hatcheries for backward integration to ensure quality and supply consistency.
Key Suppliers
Not disclosed in available documents; however, the company utilizes its own hatcheries and maintains long-term relationships with a network of individual shrimp farmers.
Capacity Expansion
Current capacity utilization is low at approximately 30%. The company aims to unlock this capacity over the next 2-3 years by diversifying into new markets and expanding its customer base.
Raw Material Costs
Raw material costs are highly volatile; farmgate prices began to correct toward the end of FY25 due to USA tariff uncertainties. Stable raw material prices in Q2FY26 were a key factor in the 1200 bps gross margin improvement.
Manufacturing Efficiency
Focusing on increasing the 'value-added' component of production to improve realizations per unit and offset the lower margins found in baseline commodity shrimp products.
Logistics & Distribution
Distribution is handled through integrated logistics; export benefits included in net revenue amounted to INR 25.2 Cr for H1FY26.
Strategic Growth
Expected Growth Rate
29%
Growth Strategy
Growth will be achieved by increasing capacity utilization from 30% to higher levels over 3 years, shifting the product mix toward high-margin value-added products (targeting 10-12% EBITDA), and expanding the Non-USA market share (already 47% of sales) to mitigate USA tariff risks.
Products & Services
Frozen shrimp, including baseline commodity products and value-added shrimp variants (processed/ready-to-cook).
Brand Portfolio
Apex Frozen Foods (primarily operates as a B2B exporter to global retail and food service brands).
New Products/Services
Increased focus on value-added output as encouraged by government initiatives to enhance export value and margin stability.
Market Expansion
Aggressive expansion into the European Union (excluding UK), which saw 41% growth in FY25, and other global markets to negate USA-specific tariff issues.
Market Share & Ranking
Recognized as a Star Export House by the DGFT; specific market share percentage not disclosed.
External Factors
Industry Trends
The Indian seafood industry is shifting from commodity exports to value-added processing. APEX is positioning itself by diversifying geographically (EU share up to 39%) to counter regional regulatory shifts.
Competitive Landscape
Competes with other Indian seafood exporters and international suppliers from Ecuador and Vietnam, particularly in the high-volume USA market.
Competitive Moat
Moat is built on three decades of promoter experience and a fully integrated business model (hatcheries to cold storage), which provides a cost and quality advantage over non-integrated peers.
Macro Economic Sensitivity
Highly sensitive to global demand trends, particularly in the USA and EU, and international trade policies regarding seafood imports.
Consumer Behavior
Shift toward ready-to-cook and value-added seafood products in Western markets is driving the company's strategic pivot away from baseline commodities.
Geopolitical Risks
Trade barriers such as countervailing duties in the USA and global uncertainties affecting demand are primary risks to the business model.
Regulatory & Governance
Industry Regulations
Subject to stringent international food safety standards and USA Department of Commerce regulations regarding anti-dumping and countervailing duties.
Environmental Compliance
Maintains certified processes and quality standards required for EU and USA exports; specific ESG spend not disclosed.
Taxation Policy Impact
Effective tax expense was INR 7.6 Cr in H1FY26 on a PBT of INR 28.6 Cr, representing a tax rate of approximately 26.5%.
Legal Contingencies
The company has disclosed pending litigations in Note 47 of the FY25 financial statements; auditors confirm these are disclosed but specific INR values for all claims are not aggregated in the summary.
Risk Analysis
Key Uncertainties
Volatility in farmgate prices and USA tariff regimes (CVD) are the primary uncertainties, which caused EBITDA margins to fluctuate between 2.3% and 7.2% within one year.
Geographic Concentration Risk
Geographic risk is moderate but improving; 53% of revenue still comes from the USA, though this is down from 64% in the previous year.
Third Party Dependencies
Low dependency on third-party suppliers for raw materials due to backward integration into hatcheries and owned farming operations.
Technology Obsolescence Risk
Low risk; focus is on processing technology and cold chain maintenance rather than rapid digital disruption.
Credit & Counterparty Risk
Debtors turnover ratio of 7.0x indicates efficient collection; current ratio of 3.4x suggests high liquidity and low counterparty risk.