HMA Agro Industries Limited (HMAAGRO) Q4 2026 Earnings Call Transcript

Good afternoon, ladies and gentlemen. I'm Madhuri, moderator for the conference call. Welcome to HMA Agro Industries Limited Q4 and FY26 results conference call. As a reminder, all participants will be in the 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 pressing star and then zero on a touch-tone telephone. Please note this conference is recorded. I would now like to hand out the floor to Mr. Nikhil Sundrani. Over to yourself.

Yeah, thank you. Good afternoon, all ladies and gentlemen. I am Nikhil Sundrani, Company Secretary and Compliance Officer of HNA Agro Industries Limited. It gives me immense pleasure to welcome all our respective shareholders, investors, analysts, and stakeholders to today's earning conference call for quarter and financial year ended, 31st of March, 2026. At the outset, I would like to sincerely thank all of you for your continued trust and confidence in the company. Your support motivates us to continue focusing on transparency, good governance, and long-term value creation. Before we begin, I would like to mention that certain statements made during this call may be forward-looking in nature and are subject to risk and uncertainties. Participants are requested to refer to the disclosures filed with the stock exchange for further details. Joining me today is our Chief Financial Officer, Mr. Gulzey Ramath, along with Mr. Aman Kaushik, Senior Associate Finance. The fourth quarter and overall financial year have been encouraging for the company, marked by strong financial performance, improved operational efficiencies, expansion into new markets, and continued business growth despite global challenges. With this, I would now like to hand over the call to our Chief Financial Officer, Mr. Gulzey Ramath, to take use of the financial and operational highlights of the quarter and year. Thank you, and over to you, sir. Thank you, Nikhil.

A very good afternoon, ladies and gentlemen. I am Gulguer Vahman, Chief Financial Officer of the company, and I warmly welcome all the stakeholders and the investors. It is always a pleasure to interact with all of you and share the progress, performance, and the strategy direction of the company. Today, I am extremely pleased to present our financial results, which mark a historic milestone in the journey of our organization. Financial year 2025 has been the strongest financial year in the history of companies. We'll record performance across revenue, EBITDA, EBITDA, and TAT. Before discussing to the financial performance, I would like to sincerely thank our management team, employees, business partners, customers, stakeholders, investors, and the continued impact that made us achieve possible. Despite challenging global conditions, as we all know, this year was not so quiet. We have a war-like situation in the Middle East where we have a huge challenges for the logistic and trade movement and international trade sentiments. The company successfully managed its operation and continued strong growth tragedy. This demonstrates that our business model, strong customer relationship and discipline execution capacity. Now, I would like to share with you the standalone financial performance for the year of 2025-2026. I'm proud to share that the financial year 2025-2026 has been the best standalone financial year ever drive by the company across all major financial parameters. If we talk about revenue, our standard loan revenue for the financial year 2025-2026 increase. To 67,689 million as compared to 48,640 million in the last financial year. Registered a strong growth of approximately 39.2% year on year. For the quarter four of financial year 2025-26, the revenue stood at the 15,384.83 million as compared to 14,000. 3368.2 million in the last quarter of last year, reflecting a healthy growth of approximately 4%. A strong revenue growth was supported by the higher export volumes, expansion into a new geopolitical market, addition to a new customer, and improved demand across the key business sector. If I share the e-data with you, the standalone e-data grows significantly to 2,109.5 million during the financial year of 2025-2022 as compared to 1,170.2 million in last year, reflecting an impressive growth of approximately 80.3% year on year. The substantial improvement was led by the better operational efficiency, improved product mix, high-capacity utilization, and discipline cost management initiatives taken by the company. The EBITDA margin improved to 3.12% during the financial year of 2025-2022 as compared to approximately 2.4% in financial year of 2025. The improvement in the margin reflects the benefit of operating leverage, better preserving efficiency, and tight control over the operational cost. Profit before tax increased to 1,718.5 million during the financial year of 2025-2026. From 908.2 million in financial year 2024-2022, representing a strong growth of approximately 89.2% year-on-year. The profit after tax at 1,271 million as compared to 601 million in last financial year. Now I would like to share with you the Consolidated Financial Performance for 2025-26, that is a new Consolidated Living for 2025-26 stood at 69,164.95 million compared to 51,330.17 million in last year, registering a robust growth of approximately 34.7%. Consolidated EBITDA is 2,839.59 million as compared to 1,834.9 million in last year. The significant improvement in EBITDA was driving higher capacity utilization, improved pricing, strong product mix. It is a margin. The improve to approximately 4.11% during the current year as compared to approximately 3.57% of last year. Profit before tax consolidated is 2,177 points. 43 million as compared to 1,256.04 million in March. Reflecting a strong growth of approximately 73.4% year-on-year. The profit after tax increased to 1,651.86 million. During the financial year of 2025-2026, as compared to the previous year, higher consolidated profit achieved by the company in the recent year. Now I would like to… I will tell you about the key growth driver in starting business. Strong demand, and we have received strong demand across the business sector. We continue to retain healthy demand across our major business vertical dealing that year. The company saw increasing the demand from both existing customers and the new international buyers. Increasing the clientele and the customer relationship has bring us more order from the With customers and with the delivery and with our product, again, in the market, we are able to get new clientele also. In this year, we have achieved the Malaysian authorities' approval for one of our such employees that has made us to utilize our capacity for that plan and achieve good and achieve that demand and solve them on time with our utilization of capacity. With this, I would like to conclude my speech. In the closing, I would like to say that financial year 2025-2026 has been a very satisfying year for the company. The overall performance reflect not only strong financial growth, but also the hard work commitment and cognitive effects of our entire organization. Over the course of year, we remain focused on execution. Customer relationship, operational discipline, and long-term business stability. This Delink approach has helped us drive stable growth while our strengthening the foundation of the company for the future. We continue to see increasing opportunity across our market and remain confident about the long-term potential of our business. We will not stop and we will not satisfy with the performance. We will Work more harder and harder to achieve more milestones. Your continued support inspires us to perform better every year and move forward in great confidence and responsibility. I would like to thank everyone, our investors, our board of directors, our team, the whole organization who is working to achieve good and strong milestones. for our future. Thank you all. Thanks a lot. Let's get over to you. Hello.

Yeah, thank you. Thank you, Gurujiji, for giving us the brief on the financial results. Now over to moderator for the same.

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 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. Your participants, if you have any questions, please press star and 1 on a telephone keypad. The first question comes from Kapil Advani from Arts Growth Fund. Please go ahead.

Hello. Hello, David.

Yes, sir.

Hi. So, good afternoon, everyone, and congratulations, sir, for our great shutdown numbers. Sir, my first question is on the geographical split. Can you please bifurcate the geographical split for FY26?

Sir, please stay connected, sir, until we connect with their person. Sir, welcome back, sir. Please go ahead, sir. You can go ahead with the question, sir.

Okay. So, sir, can you please provide the bifurcation for geography split for FI 26 in terms of top 5 geographies?

Hello.

Hello.

Yes. Can you speak a bit louder?

Sir, can you provide the geography bifurcation for FI 26 revenue for the top 5 geographies?

You want us to share the geographical tales of our?

Right.

Okay, no problem. We will be able to email you. Is it possible you will drop us the email and we will send you the geographically continental rise overseas?

Sure, sir. And, sir, our target was 25% for the Philippines for this year. Are we able to? 25% of the sales for the fellow meet in Philippines. So, are we on track with that for FI26?

I didn't get a real question. What was that 25%?

25% of the target was from Philippines, right, this year.

From Philippines?

So, are we on track with that in FI26? Have you achieved our target?

In the last year, the target for the Philippines was not achieved. But we are working very closely with our clients, and we will be planning to go more later in the Philippines market to get the shape. As the Philippines market is not buying all the varieties of the product, they are only collected with a few products. And that we were not able to supply them the only collective items. But we are working with them to increase the demand there and to educate them to use more products rather than to collectively only one or two items.

Understood. Understood. Got it. And sir, on the buffalo meat pricing, how does our prices are there as compared to the peers that are selling there domestically? What is the difference between our price and their prices? In the geographies that we sell, like Vietnam, Philippines, Malaysia.

In Vietnam, Malaysia, you are talking about the Southeast Asia region. The economic prices are still higher because they don't have livestock availability. Their dependency is more on the imported products. So, till now, the prices are working very well, whatever we are offering them. And we hope surprises what we're going to share to them from India.

Okay. Sir, can you provide a ballpark figure in percentage terms that we are 10% cheaper, 20% cheaper in their markets?

That we will be able to search and develop this. No problem.

No worries, sir. I'll share an email with the questions.

Thank you, sir. Dear participants, if you have any questions, please press star and one on a telephone keypad. Dear participants, if you have any questions, please press star and one on a telephone keypad. So the follow-up question comes from Kapil Advani from Artsworth Fund. Please go ahead.

Thanks. Sir, how are the current geopolitical conditions affecting our operation?

As we all know, the situation in the Middle East, we have no final conclusion. So, the only biggest challenge what we are facing is the logistic enterprises of the freight. Is this geopolitical situation not normalized? Sooner, it will really give a very bad hit on our product prices. Because the prices from the shipping time or the transportation charges have been increasing as a big number in multiple ports. So if the prices for freight is further going to increase, it will definitely bring strong pressure on our product. And not only our products, all the show communities. That's the only thing. But as we are lucky, we are in the food industry, and people are choosing food rather than another corner. So we hope that people will be able to cope with the prices and the costs.

Okay, sir, and then, uh, What exactly are the factors that cause the increase in our input cost? Like what factor causes inflation in Buffalo? And since we are not able to pass on the rise in our input cost to the customers to remain competitive, do you see any other increase in input cost?

I think the main factor for any product costing is demand and supply. If there is a demand, we can match the cost. If the demand is getting slow down due to the increasing in the operational cost, transportation costs, then it will impact on the product pricing also.

Okay, but sir, I just wanted to understand that what are the factors that affect the rise in price of our input cost, like what factors are there to increase the price of the buffalo, which is our input cost.

Local price for the procurement.

Right.

It's weather also, because if we have bad weather conditions, like very hot, it's very hard for the suppliers to make transportation, because they are worried about the health of their livestock. So they need to load their livestock accordingly, like before, if there is a capacity of any car, they need to go it for half. And then to make the traveling, the cost has been increased, and also if there is a good seasonal harvesting, so farmer was restricted, and they asked for the more prices for their livestock. So climate is there, and the cost of transportation is there. These are the factors which impact directly. So, this is one of the livelihoods of the farmer. When they have livestock, they're created as their investment. So, it depends how it's, like, if there is a good demand and overfill. And we have a good opportunity to make production. So, we have to follow the pricing, what the seller wants, like the farmer wants to sell their portfolio. We cannot nourish it very strongly.

Understood.

Thank you, Sam. The next question comes from Mojasvi Mota, an individual investor. Please go ahead.

Hello, sir. Am I audible? So, sir, congratulations on good set of numbers as well as getting a step closer to your vision of getting a 10,000 crore revenue in FF27.

Thank you, sir. And congratulations to you also as I am able to understand you are the investor.

Yeah, so I just have a question. You mentioned that you are not being able to increase your prices of exports due to the reason that countries like Brazil and New Zealand are not increasing their export prices. But you said that you are expecting that they are going to increase their prices and as a result of which you will also be able to increase your prices and thus we will get better margins. So what is your take on that?

Now, I would like to give you a brief about our product. We are the best choice for the people who are looking for the nutrition or the non-vegetarian diet. So, New Zealand and Australia, they are role in the pricing. It is correct. But when there are the situation, when New Zealand and Australia have its higher costs, so they also have to increase their pricing. So, we will be having a room to increase our prices. And also, when we have a good pricing in India, so we are able to produce more quantity because we will get more demand from the market. So, once we are able to supply, to produce more, our operation cost is also good. So, we have markets there.

Okay. Okay, sir. Thanks.

That's all from my side. Thank you.

Thank you, sir. Dear participants, if you have any questions, please press star and one on your telephone keypad. Participants are kindly requested to ask two questions in the initial round, and may join the queue for more questions. The next question comes from Kapil Advani from R2F1. Please go ahead.

Am I audible? Yes, sir. So, sir, can you share the update on the RISE business? Is there any progress? How are we doing?

We are working very hard with the RISE business and we have a good client in now and we are getting repeat orders from the RISE business also. But as we all know, the RISE community, we have many other challenges available. So, Rice business in India depends on the pricing also, but we work very closely with all our clients, and we are retaining the clients, and slowly, slowly, but steadily. We have a growth of rice export also.

Okay, and how much was the split contribution from the RISE business in FY26?

It's a small one, and if I'm not wrong, I didn't have the perfect figure. I will ask my team to check it correctly and we will share with you. But it's not a big figure, but it will be a big figure because we are now creating basket. And we will, we have a very strong belief that we will be able to get a good share of RISE business also in the end of the year.

Understood, sir. And sir, are we in line with the 10,000, sorry, 1 billion of revenue in FI27?

We are, we are, Mr. Kabul. And that's what our all team is working on the same direction. We are working very hard to achieve this target as soon as possible before the target deadline, what we have said, and we hope we will achieve it very soon, and it will give us an immune pleasure to all our stakeholders, our team, that we will be entering into the 1 billion organizations.

Okay, that's great to hear, sir, and all the best.

Thank you.

And sir, are we looking to expand our product portfolio, like adding any type of meat, shim, et cetera?

We are working on many products, and we are also thinking to add price to our market, but there is a very initial stage. Very initial, I will be not able to comment any volumes or any numbers, but we are hoping that this is a same generation where we have a same clientele. And we feel that the same clientele can bring us entry ticket for the same sector. So we are working on it. And we are also working very closely with the chicken because chicken is the next substitute. Of the meal and people have choices. So we want to give a good choices to all our customers. So we are working on those areas.

Sorry Serge, can you please repeat the product? French fries and chicken.

Okay, got it. French fries?

Yes. Okay, it's a frozen-generated product. And there is a very good relation between our frozen product and french fries. So we are planning to enter in this segment also. But this is very initial exchange. And we are working on the market foundation and everything. And we will definitely want to go in this segment.

Understood. And for one last question on the current state that we have divested. So what was the criteria for determining the price of the divestment? Could you please share?

For the divestification, the main motive is to bring a big basket, big food basket.

Sorry to interrupt, sir, but I was asking about the divestment that we have made, the OFS that we have done at 18. So, what was the criteria for determining the price?

Determining the?

Price of the OFS.

Of the price? Yeah, Kapilji, I am interrupting between. You are saying about the OFS. I mean, OFS means that now we have completed our minimum, achieved the minimum public shareholding.

That OFS you were saying. Sir, the price, what led to the determination of the price?

Basically, the price, actually the. As we were already on the board, the price has been decided where only after the exchange board, right, Mr. Giffin? Yeah, yeah. Basically, it was decided on the basis of current market value price. Floor price the board decided. The floor price which was decided by the board because we have gone achieve the minimum public shareholding by a way of stock exchange mechanism to a window, separate window. Okay.

So the floor price was decided by the management. It is the selling price. Right, right. So, I was wondering what was the criteria because the price at that time was around 20 rupees and we did the OSS at 18, right? Yes, yes. So, okay. So, it was decided in the board meeting. Got it.

Yeah, actually, it is decided as per the Sevy Circular. In Sevy Circular, the definition of price is written as price decided by the seller. Seller can sell at any price.

Okay, okay, okay. Got it.

Dear participants, if you have any questions, please press star and one on your telephone keypad. Dear participants, if you have any questions, please press star and one on your telephone keypad. There are no further questions. Now I hand over the floor to Mr. Nikhil Sundrani for closing comments.

Yeah, thank you, all the investors and analysts for joining us for the call, and we appreciate your continued trust over the company, over the Chinatown Industry Limited, and we truly appreciate your confidence in the company. Thank you.

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