💰 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.