Earnings Call Transcript - XNSE:HMAAGRO 2026-11-04

Mohana, Moderator

Good afternoon, ladies and gentlemen. I am Mohana, moderator for the conference call. Welcome to HMA Agro Q2 and H1 FY 2026-27 conference call. As a reminder, all participants will be in lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Do 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. Suyei Saman. Thank you and over to you, sir.

Speaker 1

Thank you. Good afternoon, everyone, and thank you for joining us today. I have with us today the senior management team of HMA Agro Industries Limited, Mr. Guljeb Ahmed, Chief Financial Officer, Mr. Aman Koshif, Senior Associate Finance, Mr. Nikhil Sunjani, CSN Compliance Officer, who will present HMA Agro Industries Limited on the call. The management will be shared with the operating and financial highlights for the quarter and half year in September 30, 2026, followed by a question and other question. Please note, this call may contain some of the forward-looking statements which are completely based upon the company's beliefs, opinions, and expectations as of career. These statements are not a guarantee of the company's future performance in risk and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Nikhil Sundani. Thank you, and over to you, sir.

Nikhil Sundarani, Other

Thank you, Suya Saman. Good afternoon, everyone. We thank you for joining us today and for your continued interest and confidence in HN Agro Industries. Our quarterly interactions are an important platform for sharing the company's progress, discussing its financial performance, and keeping our investors community informed about the developments shaping our business. As we complete the first half of financial year 2026-27, the company has continued to build on its business momentum with a focus on strengthening its core operations, financing operational efficiencies, and pursuing opportunities for sustainable growth. During the second quarter, we continued our efforts towards expanding our market presence, maintaining product quality, and further strengthening our position in the food processing and export business. We believe that consistent execution of our business priorities, coupled with our disciplined approach to operations and growth, will remain important in achieving our long-term objectives and creating sustainable value for all our stakeholders. We remain committed to maintaining high standards of corporate governance, transparency, and regulatory compliance, while keeping our investors informed of the company's performance and progress. With this, I would now like to invite Mr. Gulzev, MS CFO, to take us to the company's financial performance for the second quarter and first half of financial year 2026-27, along with the key business development and management perspective on the company's performance and outlook. Over to you, Gulzev.

Guljeb Ahmed, CFO

Thank you. Thank you, Nikhil. Good afternoon, everyone. First of all, I would like to thank all the stakeholder, investor, analysts, and participants for joining us today for HMA Agro Industries Limited, our new call for the second quarter and half year ended, 30th, September, 2026. It is my pleasure to take you through the company's financial performance. For the quarter and the first half of the financial year of 2026-27, covering both standalone and consolidated results. The company has delivered an encouraging performance during the period under review with healthy growth in revenue and a significant improvement in profitability. Let me begin with our standalone financial performance for quarter two, financial year of 2026-27. Our standalone revenue for quarter 2 financial year 2026-27 stands at 2733 crores and 11 lakhs. Compare with the 2149 crores 17 lakhs in quarter 2 of last financial year. The year-on-year growth approximately 17.7%. On the substantial basis, the revenue increased from 2,072 crores and 14 lakhs in quarter 1 of financial year 2026-27 to 2,733 crores and 11 lakhs in quarter 2, representing the quarter-on-quarter growth approximately 31.90%. Moving to the operation performance, our standalone EBITDA increased to 130 crores and 35 lakhs compared with the 72 crores and 32 lakhs in the correspondence quarter of previous financial year. There is seeing a strong year-on-year growth of approximately 70.56% on a quarter-on-quarter basis. The data increase from. 55 crores and 28 lakhs in quarter 1 of financial year 26-27 to 123 crores and 35 lakhs in quarter 2, reflecting an impressive growth of approximately 123.13%. The EBITDA margin also improved to 4.51% compared to 3.37% of quarter 2 financial year of last year. And 2.67% of quarter one of this financial aid was in 26 and 27. Comparing to the profitability. The PBT stood 108,41,00,000 compared to 64,46,00,000 in quarter 2 of last year, representing the year-on-year growth approximately a 68.18% compared with the 42,74,00,000 in the preceding quarter. The activity increased by approximately 153.67% of last year. Q1 of 2026 and 27. The PBT margin improved to 2.9% compared with the 2.24% in Q2 of last financial year and 1.45% from the Q1 of financial year 26-27. Now, I would like to give you the half-year figures of performance or standalone for financial year 26-27. The standalone revenue for half-year 26-27 is at 4,805 crore and 25 lakhs compared with the 3,237 crore and 66 lakhs in the half-year of financial year 2025 and 26. Registring a robust year-on-year growth of approximately 48.42%. Our standalone edita increased to 178 crore and 63 lakhs compared with 90 crore and 23 lakhs in the correspondence period of previous year. Representing an impressive growth of approximately 97.98%. This means that the company has nearly doubled its standalone EBITDA during the first half of the current financial year. The PBT increased to 151 crore and 15 lakh compared with 74 crore and 4 lakh in half year of 2025 and 2026, which registered approximately 104%. And the PBT margin also improved to 3.35% compared with the 1.71% in half year financial year of 2025 and 2026. The editor has grown almost 93% quarter to quarter. The consolidated finance performance, I would like to share with you for quarter two of financial year 26, 27. The consolidated revenue for quarter two financial year 2026 and 27 is at. 2,779 crore and 48 lakh compared with the 2,155 crore and 34 lakh from quarter 2 of financial year 25-26, which is year-on-year growth approximately 28.96%. On the consolidated revenue increased This is from 2110 crore, 52 lakhs in quarter one. Financial year 26-27 to 2,779,48,000,000 in quarter, which is reflecting quarter-on-quarter growth of approximately 31.71%. Consolidated EBITDA stood at 153,000,000,000,000. And 54 lakh compared with the 131 crore and 57 lakh in corresponding the quarter of previous financial year, which is the same year on year growth of approximately 16.70%. On quarter on quarter basis, the EBITDA increase from 81 crore, 5 lakh. In quarter 1 of 2026-27 to 153 crore and 54 lakhs in quarter 2, representing a significant growth of approximately 89.44%. The consolidated EBITDA margin stood at 5.25% compared with the 6.10% in quarter 2 of last financial year. However, the margin improved from 3.25%. It's 4% in quarter one of financial year, 2026 to 27th. It's in 2000, in the second quarter of 2026, it is 5.52%. Coming to the profitability, the consolidated TBT short ad. 132 crores and 48 lakhs compared with 117 crore and 2 lakhs in quarter 2 of financial year 2025 and 2026, representing year-on-year growth approximately 13.2 lakhs compared with 62 crore and 51 lakhs in the Q1 of financial year. Further, the consolidated key. P.A.T. stood at 104 crore and 57 lakhs compared with the 89 crore and 79 lakhs in a corresponding quarter of Jesus financial year, registering year and year growth of 16.46%. On quarter-on-quarter basis, the P.A.T. increased from 50 crore and 51 lakhs in quarter-one of financial year 26-27 to 104 crore. 57 lakh in quarter 2 of 10 years, which is a strong growth of approximately 107%. The consolidated PVT, TAT margin is at 3.76% compared with the last quarter of last, second quarter of last year is 4.17% and the 3.9 and the 2.39% of quarter 1 of 2026 and 27. The half-year performance of consolidated revenue of H1 financial year 2026-27 is at 4,889 crore and 80 lakhs. Compared with the last year, last financial year is 3,277 crore and 95 lakhs. This is the same, the ear on ear group. It's 49.17%. Consolidated EBITDA increased to 234 crore and 58 lakhs compared with 148 crore and 19 lakhs in the corresponding half year of Previous financial year, representing the growth of approximately 58.30%. The consolidated EBITDA margin stood at 4.8% compared with the 4.25% in the corresponding period of previous financial year. Consolidated PBT increased to 110. 94 crore and 99 lakhs compared with 118 crore and 44 lakhs in half year of financial year 2026, which is registering year-on growth of 64.53%. Similarly, the consolidated TAT increased to 155 crores and 8 lakhs compared with the 90 crore and 39 lakhs. So, with this figure, I would like to conclude my today's presentation. To summarize, the financial performance of the financial year of 2026-27 reflects an encouraging progress in company's business and financial performance. We believe this performance provides a positive foundation as we enter the second half of the financial year. The growth achieved during the first six months reflects our continued focus. On strengthening the company's business operation and improving the financial performance. With this, I would like to close, and I would like to, once again, thanks all the stakeholders, all the participants of today's call, and this is the shareholder of our company. Thank you. Thank you. Over to Zunitri.

Nikhil Sundarani, Other

Thank you for giving us the brief on the Quarta 2 and H1.

Mohana, Moderator

Thank you, sir. Ladies and gentlemen, we will now begin with the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Participants are kindly restricted to respect with two questions in the initial round and join back the queue for more questions. Ladies and gentlemen, if you have any questions, please press star and one on your keyboard. First question comes from Priya Mehta, an individual investor. Please go ahead.

Priya Mehta, Analyst — Individual Investor

Hi, am I audible? Hello?

Nikhil Sundarani, Other

Yes, yes, you can proceed. You are audible.

Priya Mehta, Analyst — Individual Investor

Hi, good evening, sir. Congratulations on the good set of numbers, and thank you for taking my question. The first question is, given the current elevated logistics and state cost, What steps is the company taking to protect its margin? And as these costs normalized, how do you see profitability evolving over the medium term?

Speaker 4

Am I audible?

Guljeb Ahmed, CFO

Yeah, so your question is regarding the logistic course, right? Yeah, correct. Yeah, as we all know that there is a huge uncertainty in the whole world, especially if we see about the shipping sector, we all know the shipping rate has been increasing from Six times to until 10 times. And this is what we've seen as in our data what we are collecting from the market. This is already at the peak of its... The prices have already reached to the pit until and unless if there is any big thing happen, the crude oil prices change or the shipping line has decided to increase their price again. But when you see when the shipping cost has gone down, it will definitely help us to generate our margins because the sale price what we already offer to our price, we are already habitual with these prices. So we hope when the logistic costs become comfortable for us, it will definitely help us in our margin rate.

Priya Mehta, Analyst — Individual Investor

Okay, okay, understood. And, sir, the company has delivered very strong top-line growth in recent years. What, according to your other factors driving, key factors driving this momentum, and how confident is the management about sustaining a similar growth trajectory over the coming years?

Guljeb Ahmed, CFO

The growth, what we are achieving right now, we are really... Firstly, this growth we achieved from our offering our product to multiple buyers and from multiple countries. So what we are seeing these days, the buying pattern of the buyer has increased because of all these uncertainties. Many countries have already announced that people should have the storage of their food. So when they need the more food. To get storage, to pile up their groceries. So definitely, we feel the growth will be there. And another important thing for the growth perspective, Indian product is much more complicated and good in price rather than the global competitor. If you talk about Australia, New Zealand, Brazil, those people are facing much more challenges than India because That's good. We are in India. The geographical location is in India. We have an advantage to make shipment faster than the New Zealand and Australia and also Brazil. So their cost burden is more than India. And Indian product will be more economical to the consumer. As in, we talk about the red protein industry. So we see the growth momentum will be continued.

Priya Mehta, Analyst — Individual Investor

Okay, okay, got it. And just a follow-up question on that, are there plans to enter new international markets or decent penetration in existing geographies? Which market offers the most promising growth opportunities?

Guljeb Ahmed, CFO

From the growth perspective, we are getting good growth from the Southeast Asia region. That's Africa is one of the countries which is giving us very good response and also from the GCC sector. Because of GCC, the economy is not performing well, so their dependency on Indian product is increasing. So these are the three continents where we see a good growth.

Priya Mehta, Analyst — Individual Investor

Okay, okay, got it. So my next question is, with significant processing infrastructure already in place, how does management see the opportunity to scale volumes through better capacity utilization, and what operating leverage can the company achieve as export volume increases?

Guljeb Ahmed, CFO

As of now, the company has its own capacity where we are only utilizing our 65 to 70 percent. So we still have the opportunity if we receive more volumes, more order. So we are easily able to capable in our own infrastructure.

Priya Mehta, Analyst — Individual Investor

Okay, okay, got it. And just the last question, with India signing new FTA free trade agreements with various countries, how do you see opportunities for SMA to benefit from improved market access or reduced trade barriers, and which markets or categories could emerge as key beneficiaries?

Guljeb Ahmed, CFO

Definitely, if there are good trade agreement is happening with India, and India is presenting themselves as a food security partner. So, if we've got good trade agreement with Europe, and once the trade agreement finish, there are the chances that in few European countries, India will get the new market access, which is not yet India is having for our product.

Priya Mehta, Analyst — Individual Investor

Okay. Okay, sir. Understood. Okay, that's it from my side. Thank you, sir. Thank you for the opportunity and all the best.

Mohana, Moderator

Thank you, ma'am.

Priya Mehta, Analyst — Individual Investor

Thank you. Thank you.

Mohana, Moderator

Ladies and gentlemen, if you have any questions, please press star and one on our telephone keypad. Participants are kindly requested to restrict with two questions in the initial round and join back the queue for more questions. The next question comes from Praveen Gupta. Sorry, sir. Yes, we've done this request. Please join in again, sir. The next question comes from Praveen Gupta from export group. Please go ahead.

Speaker 4

Hello. Hello. Are you listening?

Guljeb Ahmed, CFO

Yes, sir. I can hear you.

Praveen Gupta, Analyst — Export Group

Are you listening? Yes, sir. Please watch it. I just wanted to know that in our logistics, like you said, there is a lot of money in the logistics. So, when do you think that the logistics will impact and the war will stop or the war will stop? So, how can the margin increase in logistics?

Guljeb Ahmed, CFO

If we talk about the current analytics. In the current scenario, the logistic prices, the shipping prices has already reached to its peak. And when we calculate and when we data analysis, in the last two months, there is no major increase in the logistic charges. So what we are feeling, once this all war situation and the tension in the Middle East region has been finishing or diluting, we hope that the charges what we were paying before. At least we will be able to secure the half of it. So it will definitely increase our margin and roughly we calculate about 1.5% to 2%. There are the chances to get margins.

Praveen Gupta, Analyst — Export Group

Okay. Okay. Okay. How many countries are we exporting right now?

Guljeb Ahmed, CFO

Currently, we have a clientele in almost 49 countries and we are catering in 4 major continents.

Nikhil Sundarani, Other

So, there are 49 countries where we are serving to our clientele.

Speaker 4

Thank you.

Guljeb Ahmed, CFO

In another hand, you can also say we are supplying our products to all the countries where the Indian products have market access. Okay, and what is the difference between Australian,

Praveen Gupta, Analyst — Export Group

what you say, red meat or protein or what you guys say, to Australian market and Indian market, what is the difference between the price?

Guljeb Ahmed, CFO

The price difference is almost you can say double because in Australia, they have a farming culture. So they do their cattle rearing in farming that made their live. Kettle prices much higher than the India. So we, the main difference is Indian products are much cheaper than the Australian New Zealand and Brazil because of India is a 65 to 70% is a we call it as a agriculture or rural economy. We have a huge support from our agriculture economy perspective, and in India, we have a tradition farmers have treated this livestock business as their investment. So whoever is in milk industry or whoever in a rural area, they have a habit to wear annual in their own villages or town.

Praveen Gupta, Analyst — Export Group

Okay.

Mohana, Moderator

As I came to know from Google, if you have more questions, kindly send an email to cs.jami.ac.uk. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on our telephone keypad. The next question comes from Deepak Garba, an individual investor. Please go ahead.

Deepak Garba, Analyst — Individual Investor

Hello, thank you. I'm audible. Yes, sir. Thanks for this opportunity, sir. So my first question is like HMA exports to over around 40 countries. So what are the key competitive advantages that differentiates the company from other Indian and international meat exporters? And what makes international customers consistently choose us?

Guljeb Ahmed, CFO

Firstly, I would like to give you a brief about, we are luckily in a food industry, and when you choose food, you always prefer somebody. So this brand, HMA, we have created with our legacy. I am the fourth generation in this business. People have trust on us. And also, if we talk about fact and figure, HMA is one of the strongest and largest producers of red meat in India. So when you are placing your order and you know that you are securing your. Cycilla, storage, distribution. So people only trust to the company who have a good reputation in market, who have a strong infrastructure in their hand, who can deliver their quality and quantity on time. And another important thing in the longer global perspective is we talk about Indian products are much economical than the our global competitive.

Deepak Garba, Analyst — Individual Investor

Josh, can you help me understand like how the demand for buffalo meat evolving across international markets like which geographies are currently witnessing like strong demand and where do you see the biggest opportunities for growth?

Guljeb Ahmed, CFO

If we talk about the demand, we are getting from many areas, and for the follow meet, there is a good article if you want to see in Google also. These days, the new generation or the junction what we are having right now in the global aspect are more preferred to their protein intake and nutrient, natural, organic product. Buffalo is 100% organic. In India, there is no habit of giving growth hormones rather than to go over complicated in the global market. So Indian product, you can say by default is organic. It is economical, and we are having a good demand, good response from our Southeast Asian region, from our MENA region, and GCC countries. Also, there is a new emerging market is coming these days, is from the African continent, Egypt, and there are many countries.

Deepak Garba, Analyst — Individual Investor

Did you mention it was African continent, right? Sorry, I lost you in between. Yes, yes.

Guljeb Ahmed, CFO

So Egypt is one of the creative buyers for buffalo meat. Vietnam is one of the biggest buyers. Malaysia, Indonesia. Those are the highly populated areas where the buffalo meat is doing very well.

Deepak Garba, Analyst — Individual Investor

Thank you. Thank you for that response. Can you just help me understand what value addition does HME undertake across its processing operations, product quality, and packaging compared with other players? Yes, please.

Guljeb Ahmed, CFO

For value addition and for product packaging and all, HMA is using cut-to-edge technologies, updated technology. Our plants are new. We recently, two years before, we had a new plant, which is totally with upgraded technologies. And regarding value addition, we have recently started vacuum chilled meat also, which is a high end product, and which is for this good for hypermarket, supermarket, and all the kind of stuff.

Deepak Garba, Analyst — Individual Investor

So, are there still opportunities to improve product realization through higher value offerings?

Guljeb Ahmed, CFO

Here are, there are, when we are going to the trade section, the trade section always get premium because it is a premium product which is selling in premium places. So there are good chances to be get good margins with these premium value additions.

Deepak Garba, Analyst — Individual Investor

As, like, sir, you were mentioning, like, consumers are increasingly shifting towards high-protein diets. So, do you see this trend acting as a long-term demand driver or for buffalo meat and other protein products? And how well are we positioned to capitalize on this?

Guljeb Ahmed, CFO

Definitely the protein requirement is given from the doctor. There are the nutrition, there are the doctor who is advising there should be minimum means of 2 gram protein in your body weight. So once you are involving this meat or protein from the meat source, you need meat, and when you see there are another product also for the protein source which are more expensive than the meat.

Deepak Garba, Analyst — Individual Investor

So just one last question from my side that, as I can see in the investor presentation, it highlights other product categories as, you know, children, meat, seafood, rice, and fruits. So could management share the current revenue contribution from these categories and how you see their growth potential evolving in the next two to three years?

Guljeb Ahmed, CFO

There are good chances to get growth from these products because we are trying to complete our basket. We are trying to serve our existing customer and new customer a basket of food what they are looking, rice, meat. Seafood are one same generic and it comes to about a complete meal. So we are looking very strong. We are looking at a very strong perspective of these products. And for rice, seafood, it is the initial stage for us. We are still growing it and market is adapting us because of our company name, brand value. So they are giving us good chances.

Deepak Garba, Analyst — Individual Investor

Okay, just can you, would you be able to highlight the revenue contribution currently?

Guljeb Ahmed, CFO

Yes, we will be able to email you once you send those figures and everything. I will share you on email.

Deepak Garba, Analyst — Individual Investor

Sure, sir. Sure, sir. Thank you. Thank you so much for your time and all the rest for your time. Thank you, Mr. Deboe. Thank you, Mr. Deboe.

Mohana, Moderator

Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on our telephone keypad. Ladies and gentlemen, if you have any questions, please press star and one on our telephone keypad. The next question comes from Adarwa Kulkandi, an individual investor. Please go ahead.