HMA Agro Industries Limited (HMAAGRO) Q1 2027 Earnings Call Transcript

Good afternoon, ladies and gentlemen. I am Mohanav, moderator for the conference call. Welcome to HMA Agro Industries Limited on Financials of Q1, 2026-27 conference call. As a reminder, all participants will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note, this conference is recorded. I would now like to hand over the floor to Mr. Nikhil Sundarani. Thank you, and over to you, sir.

Thank you. Good afternoon, everyone. On behalf of H&I Go Industries Limited, I am pleased to welcome all our shareholders, investors, analysts, Thank you. We remain focused on keeping our operations, improving efficiency, maintaining product quality, and expanding our presence across key markets. At the same time, we continue to work on longer-term growth initiatives with a clear focus on building a stronger and more diversified food business. We remain committed to creating a sustainable value for all our stakeholders while maintaining strong standards of governance, transparency, and compliance. Joining us today from the management team are Mr. Guljiv, MF, CFO, and Mr. Aman Korshik, Senior Associate Finance, along with other members of our leadership team. With this, I would now like to invite Mr. Guljiv, MF, CFO, to take us through the company's financial performance for the quarter, key operational developments, and management outlook for the coming period.

Over to you, Guljiv.

Thank you, thank you, Nikhil. A very good afternoon, everyone. I'm Gulvi Rahmat, Chief Financial Officer of HMA Agro Industries Limited, and it is my pleasure to welcome all the shareholder, investor, investors, and all other stakeholders to the arming call for the quarter ended 30th, June 2026. I'm pleased to have this opportunity to interact with you and share our performance, key development, and progress. We are making toward our strategic objectives. The first quarter of financial year 2026-27 has been a strong start to the financial year of HMA Agro Industries Limited. We have delivered a healthy growth across our revenue, EBITDA, PDT, and PAD, both on the year-on-year and substantial basis. Importantly, this growth has also been compared by the meaningful improvement in our profitability margin, reflecting the benefit of scale, operational efficiency, and discipline execution. With that, let me take you to the financial performance of quarter 1, financial year 26-27, followed by a brief overview of our full year performance for the financial year of 2025-26. Next. Let me share you our first quarter performance for the financial year of 26-27. Starting with our standalone performance, the revenue for Q1 is stood for 2,072.14 crore compared with the 1,088.49 crore in the last quarter of last year. Resisting a growth of approximately 90% year on year. On the substantial basis, the revenue grown by 35% from the 1538.48 crore in the last quarter, fourth quarter of last financial year. Our stand annual EBITDA increased to 55.28 crore compared with the 17.91 crore in the correspondence quarter last year. Representing the growth of approximately around 200%, the EBITDA margin improves from 1.65% to 2.67%. Sandalone PBT stood for 42.74 crore compared with the 9.59 crore in the Q1 last year, while PED stood for 31.91 crore compared with the 7.17 crore. The representations at the PED growth of approximately is around 345% year-on-year. The PED margin also improved from 0.66% to 1.54%. On a consolidated basis, the revenue stood at the 2,110.32 crore compared with the 1,122.61 crore in quarter one of last year. Reflecting a growth of approximately around 88% compared with the fourth quarter of last financial year with any increase by the approximately 34%. Consolidated EBITDA increased substantially to 81.05 crore compared with 16.62 crore in the Q1 of last year and 13.64 crore in the Q4 of last year. Last financial year, the represent of year-on-year growth approximately 388% and substantial growth of approximately 165%. As a result of consolidated EBITDA margin improved to 3.8% compared with the 1.48% of Q1 last year and 1.94% of Q4 of last financial year. Our consolidated pair PBT stood 62.55 crore compared with the 1.42 crore in the Q1 of last financial year, while consolidated pair stood at the 50.51 crore compared with the 0.6 crore in the last correspondence pattern last year and 8.22 crore in the Q4. The consolidated margin improved significantly to the 2.39% compared with the 0.5% in Q1 of last year. Overall, the first quarter of financial year 2026 has been a quarter of strong top-line growth, significant operating leverage, and substantial improvement in the profitability. Let me give you the brief about the full financial year of 2025-26, the strong full-year performance. Before concluding, I would also be briefing highlighting the performance of the financial year for 2025-26, which provide a strong foundation for our current year quarter. On the standalone basis, the revenue increased to 6769 approximately crores from 4862 approximately in last financial year of 2024 and 2025, representing the growth of approximately 39% in last financial year. Standalone EBITDA increase by approximately 80% with the EBITDA of margin improving from 2.4 to 3.12%. The standalone PED increase to 127 crore approximately compared to the 60 crore approximately from the previous presenting growth is approximately 100% while PED margin improves from 1.24% to 1.8%. On consolidated basis, the revenue increased to 6,916 crore approximately, compared with the 5,133 crores approximately in financial year of 2024 and 2025, representing the growth of approximately 35%. Consolidated EBITDA increased approximately from 3.57% to 4.11%. Consolidated PED increased approximately 88% and the PED margins improved from 1.7% to 2.39%. Before 2025 was not only a year of revenue, but also a year of meaningful improvement and operating efficiency and profitability. Closing, I would, I would just with closing the mark of my presentation, I would say the performance of 2025-26 and the strong start of 2026-27 Give us confidence in the strength of our business and the opportunities ahead. Going forward, our focus will remain on sustainability, sustaining this growth and momentum, improving operational efficiency, strengthening our market presence, optimizing profitability, and maintaining discipline financial management. We believe that the initiative being undertaken across the company will help us continue delivering profit and sustainable growth. I would like to take this opportunity to thanks our shareholder, investor, customer, business partner, and most importantly, our employees for their continued trust, support, and contribution to what the company's growth. We remain committed to maintain the momentum we have built, and we continue to work toward achieving the strong performance, greater scale, long-term value creation for all our stakeholders. With this, I conclude my remarks. Thanks once again for your continued confidence in HMA Group. I would now be happy to take your question. And now, over to you, Nikhil. Hello. Thank you, Gozerji, for giving us the brief regarding the financial performance and developments of the company. Now, I would like to hand over to moderator for the question and answer sessions.

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on our telephone keypad and wait for a turn to ask the question. If you would like to withdraw a request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any question, please press star and one on our telephone keypad. The first question comes from Abin Banerjee from Indigo Investor. Please go ahead.

Hi. First of all, I would like to thank you for sharing the details. Very nice performance. I've got some questions. I just go through the questions once and then I would be really happy if I am given an answer for that. So the first question goes, I've seen that the other income has increased tremendously. So I want people to understand the breakup of how such a huge increase in other income has happened, number one. Second question I've seen is the recipe from operations is increasing by around 88% quarter-on-quarter. So it would be very nice if I can have a breakup of that in terms of value and volume growth. Question number three that I've got, I wanted to understand that does HMA sell certificates from its plants to other exporters and which is getting recorded in other income? Question number four, which I have got is that does H&A has a subsidiary or do business in Vietnam? And in Vietnam, when we are doing this business, whether you are also including the Brazilian beef business under H&A or any other subsidiary there? Thank you so much.

Okay, sir. Thank you. The next question comes from Sudhanshu Sekar, an individual investor. Please go ahead.

Hi, sir. Congratulations for the great set of results and the improvement in margins. So, if you can just put some light on how this improvement in margins has happened and what are the contribution of value-added products? Also, I would want to like to know that how is the value-added product market moving for HMA Agro, and what is the future of all the segments that we are doing, like pet food or other value-added brands that you have, that we are exporting? Thank you.

Hello, sir.

Yes. Hello.

Hello.

Please, please. Yes, sir.

Yes, my question is over.

Thank you. No further questions. Now, hand over the floor to Mr. Nikhil Sundarani for closing comments. There are no further questions, sir.

Thank you. Thank you. We got a few questions from the few people. Mr. Benergy was there who have a very good overview on our company, and we really appreciate Mr. Benergy is an individual investor, and he has good information. So regarding other income, as he asked me about the other income, so this other income is the income, as we all know, like HMA is doing make a chunk of his business from the export, and this other income we have earned basically from the foreign exchange gain, it also from the duty drawback, and also from the interest earned or the FDs what HMA have with the certain banks. And he also asked about the revenue from operations. The revenue from operation, basically the biggest part of revenue from operation, we are generating from the export of the fellow products. And this is our main core business, which is helping us to create this growth, this momentum, and this revenue. And regarding, he is looking for the breakup, my team will be make a separate follow-up with Mr. Benazir because the call is a very short time period and we have to take another question in the replies also. Regarding, there was a second question from Mr. What was the name? Nikhil?

Yeah, regarding.

No, no, the name, I forget. Mr. Amit or what? Oh, should I say that? So, the second question from Mr. Sudanshu Sekhin. Mr. Sudanshu, really thanks, really thanks for your question, and we really appreciate your good work, gave us a stand to give a good improvement work, where hard to achieve the thing. Regarding value addition, as of now, the value addition in the main product is not showing a good response to the market, because in value addition, when we are changing the generation, It is called value addition. So we are still focusing on our main product, which is a buffalo meat. And you also raise the concern about the pet food. Yes, pet food market is good, and it's growing globally. We see a good opportunity in the pet food market, and we are working on a separate research team for product development to see the more possibility here we can increase our export, where we can have our new clients. So this is related to our business because the byproduct of our activities are used in the pet food industry. So, we have a very close eye on this sector also. And we are in the initial stage of pet food industry. So, it is a very basic stage to give you a proper figure that what will be going in future is not the right time, but it is this industry have a good caliber. Thank you.

Thank you, sir.

So, we got two questions, I think, and we have already shared the overview, if there is any concern. So, we will be always there to help our investors, our stakeholders to grow with us. I think there are no more questions. So, now we can conclude the call.

Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. Thank you for your participation and for using DoSaba's conference call service. You may disconnect your lines now. Thank you and have a pleasant day.