NARMADA - Narmada Agrobase

📊 NSE: NARMADA 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 10:18

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 30.5% YoY to INR 66.34 Cr in FY25. The business mix is well-balanced with Cattle Feed contributing 52% of financial quantified revenue and Cotton Seed by-products contributing 48%.

Geographic Revenue Split

Domestic operations are concentrated in Gujarat (Mehsana HQ), Maharashtra, and Madhya Pradesh. The company is actively scaling its export footprint across Asia-Pacific and non-GMO markets globally.

Profitability Margins

Net profit ratio increased by 207.25% to 6.22% in FY25 from 2.03% in FY24. Return on Equity (ROE) improved 86.28% to 11.24% due to increased shareholder funds and earnings.

EBITDA Margin

EBITDA for FY25 was INR 6.24 Cr. Operating margins are expected to remain intact for FY26 despite raw material price fluctuations due to the buffer stock policy.

Capital Expenditure

The company operates a strategically located 40,000 ton per annum semi-automatic production facility in Mehsana, Gujarat. Specific future CapEx values for planned expansions were not disclosed.

Credit Rating & Borrowing

Debt-equity ratio improved by 70.41% to 0.17 in FY25. Debt service coverage ratio (DSCR) increased 162.18% to 6.54, reflecting significantly improved earnings and lower leverage.

⚙️ Operational Drivers

Raw Materials

Cottonseed, Gwar Korma, and Maize Meal are the primary raw materials, with cottonseed and allied inputs being the largest cost components.

Import Sources

Raw materials are primarily sourced domestically from Gujarat and surrounding agricultural regions to support the Mehsana manufacturing hub.

Capacity Expansion

Current installed capacity is 40,000 Metric Tons Per Annum (TPA). Capacity utilization was reported at ~50% for H1 FY26, providing significant headroom for volume growth.

Raw Material Costs

EBITDA margins faced pressure from elevated cottonseed costs. The company manages this via a buffer stock policy of 20%-25% to mitigate monsoonal and seasonal price volatility.

Manufacturing Efficiency

The facility uses modern semi-automatic production lines with batching flexibility, which has eliminated operational bottlenecks and improved consistency.

Logistics & Distribution

The distribution network includes over 150 wholesale points and an active dealer base across high-demand markets like Maharashtra and Madhya Pradesh.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth will be achieved by increasing capacity utilization from 50% to higher levels, expanding the domestic dealer network in Maharashtra and MP, and diversifying exports into dairy-deficit Asia-Pacific markets.

Products & Services

Cottonseed-based cattle feed, cottonseed by-products (oil cake, hulls), and high-nutrition livestock formulations.

Brand Portfolio

Gaay Chhaap, Narmada Super, Kala Sona, and Churma.

New Products/Services

Launching premium and specialty nutrition feeds including mineral blends and high-fat feeds to enhance value-added revenue contribution.

Market Expansion

Targeting dairy-deficit and non-GMO markets globally with a specific focus on the Asia-Pacific region and deeper penetration in Central India.

🌍 External Factors

Industry Trends

Farmers are transitioning to precision feeding and customized feed formulations to increase milk yield, favoring Narmada's high-nutrition product portfolio.

Competitive Landscape

The livestock feed field is becoming aggressive; Narmada positions itself through quality reliability and a semi-automated manufacturing edge.

Competitive Moat

Sustainable advantages include ISO 9001:2015 certification, 40+ years of domain expertise in leadership, and the strong 'Gaay Chhaap' brand trust among farmers.

Macro Economic Sensitivity

Highly sensitive to the global cattle feed market, which is projected to grow at a 3.8% CAGR to USD 193.7 billion by 2035.

Consumer Behavior

Rising global demand for beef and dairy products is driving increased livestock populations and demand for specialized animal nutrition.

Geopolitical Risks

Trade barriers and non-GMO certification requirements in export markets could impact the planned Asia-Pacific expansion.

⚖️ Regulatory & Governance

Industry Regulations

Operations comply with the Companies Act 2013 and ISO 9001:2015 manufacturing standards. Secretarial audits confirm adherence to statutory provisions.