FRESHARA - Freshara Agro

📊 NSE: FRESHARA 🏢 Food - Processing - Indian 📅 Last Updated: 12/13/2025 22:10

💰 Financial Performance

Revenue Growth by Segment

Production volume grew at a CAGR of 20.33% (from 21,300 MT in FY23 to 30,755 MT in FY25), while export value grew at a CAGR of 29.53% (from INR 126 Cr in FY23 to INR 250 Cr in FY25). H1 FY26 total income reached INR 140.89 Cr, a 31.11% YoY increase.

Geographic Revenue Split

Other Countries (including Americas, Middle East, and Asia) contributed INR 111.40 Cr, representing 44.45% of total revenue in FY25, reflecting successful expansion into non-traditional markets.

Profitability Margins

FY25 Operating Profit Margin stood at 20.51% and Net Profit Margin at 11.49%. H1 FY26 margins remained stable with EBITDA at 18.14% and PAT at 11.10%, driven by a favorable product mix and improved efficiency.

EBITDA Margin

EBITDA margin was 18.14% in H1 FY26, with EBITDA rising 30.07% YoY to INR 24.38 Cr. FY25 operating profit margin was 20.51%.

Capital Expenditure

The company is acquiring a Spanish unit out of voluntary bankruptcy, which includes real estate, machines, and employee contracts. This unit is expected to contribute INR 200 Cr to revenue in FY27.

Credit Rating & Borrowing

CRISIL assigned 'CRISIL BBB/Stable/CRISIL A3+' ratings for INR 100 Cr of bank loan facilities. Interest coverage ratio stood at 7.521 as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Gherkins and mixed vegetables (including pickled products) are the primary raw materials, sourced through farmer engagement and procurement planning.

Import Sources

Raw materials are primarily sourced domestically from farmers in India, supported by Agri Infra Fund for technology adoption.

Key Suppliers

The company relies on a diversified base of contract farmers and procurement networks rather than specific large-scale corporate suppliers.

Capacity Expansion

Current production capacity is 30,755 MT (FY25). A second plant started recently with a capacity of 75-100 MT per day, contributing approximately 50% of current revenue. Retail packaging capacity is 6,000 jars per day (~30 tonnes).

Raw Material Costs

Not explicitly disclosed as a percentage of revenue, but production volume increased 20.33% CAGR to 30,755 MT to meet rising global demand.

Manufacturing Efficiency

Production efficiency is reflected in the growth of container-wise exports, which rose from 1,044 in FY23 to 1,668 in FY25 (11.20% CAGR).

Logistics & Distribution

Business is heavily dependent on cross-border movement; logistical disruptions in the Red Sea impact the cost and timing of global distribution.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth will be achieved by scaling Freshara to INR 400 Cr and adding INR 200 Cr from the new Spanish subsidiary (total INR 600 Cr target for FY27). Strategy includes expanding retail packaging (6,000 jars/day) and penetrating high-growth markets in the Americas and Asia.

Products & Services

Gherkins, mixed pickled products, and preserved vegetables in bulk and retail jar formats.

Brand Portfolio

Freshara.

New Products/Services

Expansion into retail-ready packaging (6,000 jars/day) to shift from volume-led to value-driven exports.

Market Expansion

Targeting expansion in Europe via the Spanish hub and increasing presence in non-traditional markets which already contribute 44.45% of revenue.

Market Share & Ranking

Not disclosed.

Strategic Alliances

Acquisition of a Spanish company to be operated as a 100% subsidiary of the Indian firm.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward value-added processed vegetables and branded exports. Freshara is positioning itself with a 29.53% CAGR in export value.

Competitive Landscape

The company faces competitive pressures in Europe, noted by the bankruptcy of the family-owned firm it is acquiring.

Competitive Moat

Durable advantages include a network of contract farmers, global certifications (IFS, BRCGS, FDA, Star-K Kosher), and a diversified global footprint.

Macro Economic Sensitivity

Highly sensitive to global trade conditions and currency movements; a retreating rupee and strong dollar are beneficial for export margins.

Consumer Behavior

Rising demand for premium, ready-to-consume preserved vegetables in retail formats.

Geopolitical Risks

Red Sea shipping route issues and EU-Russia trade blocks are primary risks to smooth cross-border movement.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Maximum Residue Limit (MRL) regulations, food safety norms (FSSAI, FDA), and APEDA guidelines is critical for market access.

Environmental Compliance

Focus on reducing food waste and using recyclable packaging materials to align with global sustainability practices.

Taxation Policy Impact

Not disclosed.

Legal Contingencies

The company transitioned from a partnership to a public limited company in November 2023; no specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Susceptibility to climate change affecting crop yields and geopolitical disruptions affecting shipping routes (potential 10-20% impact on scale if sustained).