💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations decreased by 18.14% YoY, falling from INR 339.25 Cr in FY24 to INR 277.70 Cr in FY25. The decline was primarily driven by lower sales volumes in the shrimp feed division and reduced capacity utilization.

Geographic Revenue Split

The company faces high geographic concentration with significant revenue derived from exports to China, the EU, and Japan. Access to the US market is currently restricted, leading to increased pricing pressure as global buyers leverage India's dependence on other regions.

Profitability Margins

Net Profit Margin declined from -3.15% in FY24 to -6.74% in FY25, representing a 114% increase in the loss ratio. This was caused by lower sales and the inability to absorb fixed costs due to reduced scale.

EBITDA Margin

EBITDA worsened significantly from a loss of INR 1.83 Cr in FY24 to a loss of INR 13.96 Cr in FY25. Core profitability is under severe pressure due to lower capacity utilization in the shrimp feed unit and volatile raw material costs.

Capital Expenditure

While specific future INR Cr figures are not disclosed, the company recently completed a processing and export facility using cutting-edge technology to enhance international market presence. Rating agencies monitor for any major debt-funded capex that could further deteriorate the capital structure.

Credit Rating & Borrowing

Credit rating was downgraded in November 2025 to CARE BBB-; Stable / CARE A3 from CARE BBB; Stable / CARE A3+. The downgrade reflects continuous subdued performance and cash losses in FY25 and H1FY26.

⚙️ Operational Drivers

Raw Materials

Key raw materials include ingredients for shrimp feed (such as fish meal and soybean meal) and broodstock for hatchery operations. These represent a significant portion of the cost of goods sold.

Import Sources

Not specifically disclosed in available documents, though the company monitors global price fluctuations and geopolitical factors affecting trade.

Capacity Expansion

The company operates a shrimp feed unit, hatchery, and processing facilities in Nellore, Andhra Pradesh. Current performance is hampered by lower capacity utilization (CU) of the shrimp feed unit, which has directly led to cash losses.

Raw Material Costs

Raw material price volatility is a major constraint. The company uses supplier diversification and strategic procurement to mitigate these costs, which are currently impacting the PBILDT margin (targeted to be above 4% for rating improvement).

Manufacturing Efficiency

Efficiency is currently low due to underutilization of the shrimp feed plant. Improvement in capacity utilization is cited as a key factor for financial recovery.

Logistics & Distribution

The company maintains an established marketing network and distribution chain to serve aqua farmers across India's coastal regions.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth through its integrated business model (hatchery to export), focusing on value-added processing and expanding its presence in international markets like China and the EU. It is also monitoring government discussions to revive US export opportunities.

Products & Services

Shrimp feed, shrimp seeds (hatchery), farm-care and animal health products, and processed/frozen shrimp for export.

Brand Portfolio

Waterbase (integrated aquaculture brand).

New Products/Services

The company continues to innovate in its shrimp feed division and has recently operationalized a value-added processing and export facility.

Market Expansion

Targeting deeper penetration in global markets and leveraging the 'Blue Economy' growth in India.

Market Share & Ranking

The company is described as a pioneer in the Indian aquaculture industry with a long track record, though specific market share % is not provided.

Strategic Alliances

The company is a part of the Karam Chand Thapar (KCT) Group, providing it with strategic foresight and a legacy of ethical business practices.

🌍 External Factors

Industry Trends

The industry is shifting toward safe and traceable food choices. While the medium-term outlook is cautiously optimistic, the industry remains fragmented and difficult to regulate, leading to implementation challenges for standards.

Competitive Landscape

Faces significant competition from other shrimp-exporting countries and unorganized local feed manufacturers who may resort to aggressive marketing.

Competitive Moat

The moat is built on an integrated value chain (hatchery, feed, farm care, and processing) and the backing of the KCT Group. This integration allows for better quality control and traceability, which is a competitive advantage in global markets.

Macro Economic Sensitivity

Highly sensitive to global shrimp prices and international trade policies. Inflation in raw material costs directly impacts the cost of production.

Consumer Behavior

Global consumer demand for sustainable and traceable seafood is growing, positioning Waterbase's integrated model favorably for the long term.

Geopolitical Risks

US-India tariff discussions and anti-dumping duties are critical risks that could further restrict market access or increase costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to biosecurity compliance, export regulations, and international food safety standards. Anti-dumping duties and US import tariffs are major regulatory hurdles.

Environmental Compliance

The company focuses on environmentally sound and sustainable shrimp aquaculture, aligning with India's 'Blue Economy' initiatives.

Legal Contingencies

No applications under the Insolvency and Bankruptcy Code (IBC) were pending as of March 31, 2025. There were no instances of one-time settlements with banks.

⚠️ Risk Analysis

Key Uncertainties

Disease outbreaks in shrimp farms and climate-related disruptions pose high-impact risks to the core feed business. Volatility in global shrimp prices can swing the company from profit to loss rapidly.

Geographic Concentration Risk

High concentration in the Nellore district for manufacturing and heavy reliance on a few international export regions (China/EU/Japan).

Third Party Dependencies

Dependency on quality broodstock suppliers; poor quality inputs can significantly impact farm yields and feed demand.

Technology Obsolescence Risk

The company mitigates this by investing in cutting-edge technology for its new processing and export facility.

Credit & Counterparty Risk

The company faces credit risks in its farm-care and feed distribution network, where working capital is often extended to farmers.