HMA Agro Industries (NSE:HMAAGRO) Q1 2027 Earnings Call

0:02 Good afternoon, ladies and gentlemen. I am Mohana, moderator for the conference call. Welcome to HMA Agro Industries Limited on Financials of Q1 twenty twenty six to twenty twenty seven 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. 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 HMA Agro Industries Limited, I'm pleased to welcome all our shareholders, investors, analysts and other participants to the company's earnings call for the quarter ended 06/30/2026.

0:56 We sincerely appreciate your time and continued interest in the company. These interactions are an important opportunity for us to keep our investor community informed about our business performance, key developments and direction in which we are taking the company. The first quarter for financial year twenty twenty six, twenty twenty seven has been a constructive period for the company. During the quarter, we remain focused on assessing 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 standard of governance, transparency and compliance.

1:49 Joining us today from the management team are Mr. Gurjeet Ramat, CFO and Mr. Aman Kaurashik, Senior Associate Finance, along with other members of our leadership team. With this, I would now like to invite Mr. Guljit, I'm a 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, Vuljayi. Thank you, Nikhil. A very good afternoon, everyone. I'm Vuljayi Brahma, Chief Financial Officer of HMA Agro Industries Limited. And it is my pleasure to welcome all the shareholder, investor, analysts and all other stakeholders to the earnings call for the quarter ended 06/30/2026.

2:35 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 twenty twenty six, twenty twenty seven has been a strong start to the financial year of HMA Agro Industries Limited. We have delivered a healthy growth across our revenue, EBITDA, PBT and PAT, 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 disciplined execution. With that, let me take you through the financial performance of quarter one financial year twenty twenty six-twenty twenty seven followed by a brief overview of our full year performance for the financial year of twenty twenty five-twenty twenty six.

3:31 Let me share you our first quarter performance for the financial year of twenty twenty six-twenty twenty seven. Starting with our stand alone 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 INR1538.48 crore in the last quarter fourth quarter of last financial year. Our stand alone EBITDA increased by to crore compared with the crore in the corresponding quarter last year, representing the growth of approximately around 200%.

4:30 The EBITDA margin improves from 1.65% to 2.67%. Stand alone PBT stood for crore compared with the INR9.59 crore in the Q1 last year, while PED stood for 31.91 crore compared with the 7.17 crore. The representations at the PAD growth of approximately is around 345% year on year. The PAD margin also improved from 0.66 to 1.54%. On consolidated basis, the revenue stood at INR 2,110.32 crore compared with the INR1122.61 crore in quarter one of last year, reflecting a growth of approximately around 88% compared with the fourth quarter of last financial year, revenue increased by approximately 34%.

5:37 Consolidated EBITDA increased substantially to INR 81.05 crore compared with INR 16.62 crore in the Q1 of last year and INR 30.64 crore in the Q4 of 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 PAT PBT stood INR62.55 crore compared with the INR1.

6:26 $4.02 crore in the Q1 of last financial year, while consolidated pad stood at the 50.51 crore compared with the 0.6 crore in the last correspondence quarter last year and 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 twenty twenty six 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 twenty twenty five-twenty twenty six, the strong full year performance.

7:14 Before concluding, I would also be briefly highlighting the performance of the financial year for twenty twenty five-twenty twenty six, which provide a strong foundation for our current year quarter. On the stand alone basis, the revenue increased to 6,769 crores approximately from INR 4,862 crores approximately in last financial year of 2024 and 2025, representing the growth of approximately 39% in last financial year. Stand alone EBITDA increased by approximately 80% with the EBITDA margin improving from 2.4% to 3.12%.

8:00 The stand alone PAT increased to 127 crore approximately compared to the INR 60 crore approximately from the previous preventive growth is approximately 100%, while PAT margin improves from 1.24% to 1.8%. On consolidated basis, the revenue increased 6,916 crore approximately compared with the INR 5,133 crore approximately in financial year of twenty twenty four and twenty twenty five, representing the growth of approximately 35%. Consolidated EBITDA increased approximately from 3.30.57% to 4.11.

8:49 Consolidated PAT increased approximately 88% and the PAT 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 just with the closing remark of my presentation, I would say the performance of twenty twenty five, twenty twenty six and the strong start of twenty twenty six, twenty six, twenty twenty seven give us confidence in the strength of our business and the opportunities ahead. Going forward, our focus will remain on sustaining this growth and momentum, improving operational efficiency, strengthening our market presence, optimizing profitability and maintaining disciplined financial management.

9:48 We believe that the initiatives being undertaken across the company will help us continue delivering profit and sustainable growth. I would like to take this opportunity to thank our shareholder, investor, customer, business partner and most importantly our employees for their continued trust support and contribution toward 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 HMAA Group. I would now be happy to take your question. And now over to you, Nikhil.

10:38 Hello? Thank you, HMAAGRO 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 session. 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 return to ask the question. If you would like to withdraw a request, The first question comes from Abid Banerjee from Indigio Investor. Please go ahead.

11:29 Hi. First of all, I would like to thank you for sharing the details. Very nice performance. I've got some questions. I'll just go through the questions once and then I would be really happy if I have given an answer for that. So the first question goes, I've seen that the other income has increased tremendously. So I wanted to understand the breakup of how such a huge increase in other income has happened, number one. Second question I have seen is the revenue 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.

12:22 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 HMA has a subsidiary or do business in Vietnam. And in Vietnam, when we are doing this business whether we are also including the Brazilian beef business under HMA or any other subsidiary there. Thank you so much. Okay, sir. Thank you.

13:10 The next question comes from Sudhanshu Segar, an individual investor. Please go ahead. Hi, sir. Congratulations for the great set of results and the improvement in margin. 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, would want to like like to know that how is the value added products market moving for HMA AGRO? And what is the future of all the segments that we are doing like tech, food or other value added brands that you have which we are exporting? Thank you. Hello, sir? Yes.

13:57 Hello? Hello? Please, do have a moment? Yes. Yes, You are Yes. My question is over. Okay, sir. Thank you. Dear participants, if you have any question, please press star and one on our telephone keypad. Dear participants, if you have any question, please press star and one on a telephone keypad. There are no further questions. Now I hand over the floor to Mr. Nikhil Sundarani for closing comments.

14:47 There are no further questions, sir. Thank you. Thank you. We got a few questions from the few people. Mr. Benaji was there who have a very good overview on our company. And we really appreciate Mr. Benaji is an individual investor and he has a good information. So regarding other income as he asked me about the other income, so this other income is the income what as we all know like HMA is doing native chunk of its 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 on the FDs what HMA Agro have with the certain banks.

15:35 And you also asked about the revenue from operations. The revenue from operation basically is the biggest part of revenue from operation we are generating from the export of buffalo 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. Benesir because the call is a very short time period and we have to take another question on the replies also. Regarding there was a second question from Mr. What was the name, Mitchell? Yes. Regarding? No, no. Name I forget.

16:23 Mr. Anwar or what? Shudanshu Shethar. So the second question from Mr. Sudanshu Shekhan. Mr. Sudanshu, really thanks for your question and we really appreciate your good work. You gave us a strength to give a good improvement work where hard to achieve the things. 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 generic of any product, it is called value addition. So we are still focusing on our main product, which is Buffalo Meat. And you also raised the concern about the pet food. Yes, pet food market is good and it's growing globally.

17:13 We see a good opportunity in pet food market and we are working on a separate research team for product development to see the more possibility where 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 pet food industry. So we have a very close eye on this sector also. And we are in very initial stage of pet food industry. So it is a very basic stage to give you a proper figure that what will be doing in future is not the right time, but it is this industry have a good caliber.

18:00 Thank you. 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 Doosaba's conference call service. You may disconnect your lines now. Thank you, and have a pleasant day.