HMA Agro Industries (NSE:HMAAGRO) Q2 2027 Earnings Call

0:00 Good afternoon, ladies and gentlemen. I am Mohona, moderator for the conference call. Welcome to HMA Agro Q2 and H1 FY twenty twenty six-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. Swaye Samant. Thank you, and over to you, sir. 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. Gujeev Ahmad, Chief Financial Officer Mr. Aman Khorshi, Senior Associate Finance Mr. Snekel Sunrani, CS and Compliance Officer, who will represent HMA Agro Industries Limited on the call. The management will be sharing the key operating and financial highlights for the quarter and half year ended 09/30/2026, followed by a question and answer session. 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 today. These statements are not a guarantee of the company's future performance in risks and uncertainties.

1:31 The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made. I now hand over the conference to Mr. Nikhil Sundarani. Thank you, and over to you, sir. Thank you, Suresh Samad. Good afternoon everyone. We thank you for joining us today and for your continued interest and confidence in HMA Agro Industries. Our quarterly interactions are an important platform for sharing the company's progress, discussing its financial performance and keeping our investor community informed about the developments shaping our business. As we complete the first half of financial year twenty twenty six-twenty twenty seven, the company has continued to build on its business momentum with a focus on strengthening its core operations, enhancing operational efficiencies and pursuing opportunities for sustainable growth.

2:27 During the second quarter, we continued our efforts towards expanding our market presence, maintaining product quality and further centering 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. Guzir Ahmed, CFO, to take us through the company's financial performance for the second quarter and first half of financial year twenty six-twenty twenty seven, along with the key business developments and management perspective on the company's performance and outlook.

3:22 Over to you, Hubejjaya. Thank Thank you, Nikhil. Good afternoon, everyone. First of all, I would like to thank all the stakeholders, investors, analysts and participants for joining us today for HMA Agro Industries Limited Earnings Call for the Second Quarter and Half Year Ended 09/30/2026. 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 twenty twenty six-twenty twenty seven, covering both stand alone 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.

4:11 Let me begin with our stand alone financial performance for quarter two financial year of twenty twenty six-twenty twenty seven. Our stand alone revenue for quarter two financial year twenty twenty six-twenty twenty seven stand at INR2733 crore INR11 lakh compared with the INR2149 crore 17 lakhs in quarter two of last financial The year on year growth approximately 17.7%. On the substantial basis, the revenue increased from 2,072 crores and 14 lakh in quarter one of financial year twenty twenty six-twenty twenty seven to 2,733 crores and 11 lakh in quarter two, representing the quarter on quarter growth approximately 31.90.

5:08 Moving to the operation performance, our stand alone EBITDA increased to INR130.35 crores compared with the INR72 crores and 32 lakhs in the corresponding quarter of previous financial year, registering a strong year on year growth of approximately 70.56%. On a quarter on quarter basis, EBITDA increased from INR55.28 lakhs in quarter one of financial year twenty six-twenty seven to INR123 crore and 25 lakhs in quarter two, reflecting an impressive growth of approximately 123.13%. The EBITDA margin also improved to 4.51 compared to 3.37% of quarter two financial year of last year and 2.67% of quarter one of this financial year 2026 and 2027. Comparing to the profitability, the PBT stood crore and 41 crore and crore $46.06 in quarter two of last year, representing the year on year growth approximately a 68.18% compared with the INR42.74 crore in the preceding quarter.

6:36 The activity increased by approximately 153.67% of last quarter one of twenty twenty six and 2027. The PBT margin improved to 2.9% compared with the 2.24% in quarter two of last financial year and 1.45% from the quarter one of financial year twenty six-twenty seven. Now I would like to give you the half year figures of performance of stand alone for financial year twenty six-twenty seven. The stand alone revenue for half year twenty six-twenty seven is at 4,805 crore and 25 lakhs compared with the INR 3,237 crore and 66 lakhs in the half year of financial year twenty twenty five and twenty twenty six.

7:36 Registering a robust year on year growth of approximately 48.42%. Our standalone EBITDA increased to INR178 crore and 63 lakh compared with INR 90 crore and INR 23 lakh in the corresponding period of previous year, representing an impressive growth of approximately 97.98%. This means that the company has nearly doubled its stand alone EBITDA during the first half of the current financial year. The PBT increased to 151 crore and INR 15 crore compared with INR 74 crore and INR 4 crore in half year of 2025 and 2026, which registered approximately 104%.

8:27 And the PBT margin also improved to 3.35% compared with the 1.71% in half year financial year of 2025 and 2026. The EBITDA has grown almost 93% quarter over quarter. The consolidated finance performance I would like to share with you for quarter two of financial year twenty twenty six-twenty twenty seven. The consolidated revenue for quarter two financial year twenty twenty six and twenty twenty seven is at crores and 48 crores compared with the INR2155 crores and 34 crores from quarter two of financial year twenty five-twenty six, which is year on year growth approximately 28.96%.

9:16 On the consolidated revenue increased from 2,110 crore, 22 lakh in quarter one financial year twenty six-twenty twenty seven to INR2779.48 lakh in quarter two, which is reflecting quarter on quarter growth of approximately 31.71%. Consolidated EBITDA stood at INR54 lakh compared with the INR131 crore and INR57 lakh in corresponding the quarter of previous financial year, which is when saying year on year growth of approximately 16.70%.

10:01 On quarter on quarter basis, the EBITDA increased from 81 crore 5 lakh in quarter one of twenty twenty six-twenty twenty seven to INR 153 crore and 54 lakhs in quarter two, representing a significant growth of approximately 89.44%. The consolidated EBITDA margin stood at 5.25% compared with the 6.10% in quarter two of last financial year. However, the margin improved from 3.84% in quarter one of financial year twenty twenty six to 2027. In the second quarter of twenty twenty six, it is 5.52%.

10:51 Coming to the profitability, the consolidated PBT stood at crores compared with INR117 crores and INR02 crores in quarter two of financial year 2025 and 2026, representing year on year growth approximately 13.7 compared with 62.51 lakh in the Q1 of current financial year. Further, the consolidated TAT stood at 104.57 lakh compared with the INR 89.79 lakh in the corresponding quarter of previous financial year, registering year on year growth of 16.46%.

11:38 On quarter on quarter basis, the PAT increased from INR50.51 lakh in quarter one of financial year two thousand six hundred twenty seven to INR104.57 lakh in quarter two of ten year, which is a strong growth of approximately 107. The consolidated PAT margin is at 3.76% compared with the last quarter of second quarter of last year is 4.17% and the 2.39% of quarter one of twenty twenty six and twenty twenty seven. The half year performance of consolidated revenue of H1 financial year twenty twenty six, -twenty twenty seven is at 4,889 crore and 80 lakh compared with the last year and last financial year is INR 3,277 crore and 95 lakh.

12:45 Adjusting the year on year growth is 49.17%. Consolidated EBITDA increased to 2 and 34.58 lakh compared with INR148.19 lakh in the corresponding half year of previous financial year, representing the growth of approximately 58.30. Consolidated EBITDA margin stood at 4.8% compared with the 4.25% in the corresponding period of previous financial year. Consolidated PBT increased to INR194.99 compared with INR118 crore and INR14 crore in half year of financial year 2026, which is registered year on year growth of 64.63%.

13:42 Similarly, the consolidated PAT increased to 155 crores and INR 8 lakh compared with the INR 90 crores and INR 39 lakhs. So with this figure, I would like to conclude my today's presentation to summarize the financial of twenty year of twenty twenty six-twenty twenty seven reflecting reflect encouraging progress in company's business and financial performance. We believe this performance provide 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.

14:29 With this, I would like to close, and I would like to once again thank all the stakeholders, all the participants of today's call, the analysts and shareholders of our company. Thank you. Over to you, Nikhil. Thank you, Vivek, for giving us a brief on the quarter two and H1 financial results. Now I hand over the call to moderator for question and answer session. Thank you, sir. Ladies and gentlemen, we will now begin with the question and answer session. Participants are kindly restricted to restrict two questions in the initial round and join back the queue for more questions.

15:36 First question comes from Priya Meta, an individual investor. Please go ahead. Hi. Am I audible? Hello? Yes. Yes. You can proceed. You are audible. Yeah. Hi. Good evening, sir. Congratulations on the good set of numbers, and thank you for taking my questions. Like, 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 normalize, how do you see profitability evolving over the medium term? Hello?

16:29 Hello. Am I audible? Yeah. Yeah. You're audible now. 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 in... If we call... 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 in our data what we are collecting from the market. This is already at the peak of its the prices has already reached to the peak until and unless if there is any big thing happen, the crude oil prices change or the shipping line has decided to increase their credit.

17:20 But when you see when the shipping cost has gone down, it will definitely help us to generate our margins because the same price what we already offered to our client, they are already having trouble with these prices. So we hope when the logistic cost become comfortable for us, it will definitely help us in our margin. Okay. Okay. Understood. And, sir, the company has delivered very strong top line growth in recent years. What according to you are the factors driving... Key factors driving this momentum? And how confident is the management about sustaining a similar growth trajectory over the coming years? The growth, what we are achieving right now, we are, really, firstly, this this growth we achieved from our, offering our product to multiple buyers and from multiple countries.

18:21 So what we are seeing these days, the buying pattern of the buyer has increased because of all these uncertainty. 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, grocery. 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 complete global operator. If you talk about Australia, New Zealand, Brazil, those people are facing much more challenges than India because as would we are in India, the geographical location is in India. We have a advantage to make shipment faster than the New Zealand and Australia and also Brazil. So their cost burden is more than India.

19:19 And Indian, the product will be more economical to the consumer as in we talk about the red red protein industry. So we see the growth momentum will be continue. Okay. Okay. Got it. And just a follow-up question on that. Are there plans to enter new new international markets or decent penetration in existing geographies? Which market offer the most promising growth opportunity? On the growth perspective, we are getting good growth from the Southeast Asia region. That Africa is one of the country which is giving us very good response and also from the GCC sector.

20:08 Because of GCC, the economy is not performing well, so their dependency on Indian product is increasing. So these are the two, three continent where we see, good growth. Okay. Okay. Got it. So my next question is, like, 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? As of now, the company has its own capacity where we are only utilizing our 65 to 70%.

20:56 So we still have the opportunity if we receive more volumes, more order, so we are easily able to capable our own our own infrastructure. Okay. Okay. Got it. And just the last question, with India signing new FTA free trade agreements with previous countries, how do you see opportunities for HMA to benefit from improved market access or reduced trade barriers? And which markets or credit categories could emerge as key beneficiary? Definitely, if there are good trade agreement is happening with India, and India is presenting themselves as a food security partner.

21:45 So if we 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. Okay. Okay, sir. Understood. Okay. That's it from my side. Thank you, sir. Thank you for the opportunity, and all the best. Thank you, ma'am. Thank you. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Participants are kindly requested to restock with two questions in the initial round and join back the queue for more questions. The next question comes from Praveen Gupta. Sorry, sir. He has withdrawn his request.

22:32 He has joined again, sir. The next question comes from Praveen Gupta from the Export Group. Please go ahead. Hello? Hello? Are you able to listen? Yes, sir. I can hear you. The idea that this current scenario...

23:19 G g. Currently, we talk about the current current scenario, the logistic prices, the shipping prices has already reached to its peak. And when we calculate and when we can, 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 can pull it out 1.5 to 2%. There are the chances where are the chances to get margins in premium.

24:12 Okay. Okay. Okay. Okay. How many countries are we exporting right now? Currently, we have a clientele in almost 49 countries, and we are catering in four major continent. So there are 49 countries where we are serving to our client. Okay. Thank you. In another hand, you can also say we are supplying our product to all the countries where the Indian product have market access. Okay. And what is the difference between Australian Australian, what you say, red meat or protein? Or what do you what do you guys say? To Australian market and Indian market, what is the difference between the price?

25:01 The price difference is almost, you can say, double. Because in Australia, they have a farming culture, so they do their cattle rearing and farming. That made their live cattle prices much higher than India. So we... The main difference is Indian products are much cheaper than the Australian, New Zealand, and Brazil. Because of India is 65% to 70% is a... We call it as a agriculture or food economy. So we have a huge support from our agriculture economy perspective. And in India, we have a tradition farmer who are keeping this livestock business as their investment.

25:47 So whoever is in milk industry or whoever in rural area, they have a habit to wear annual in their own villages or town. Okay. As I came to know from Google, like sir. Try to interrupt you, sir. If you have more questions, kindly send an email to [email protected]. Okay. Okay. Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. The next question comes from Deepak Garber, an individual investor. Please go ahead. Hello. Thank you. Am I audible? Yes, sir. Thanks for the opportunity, sir. So my first question is like like HMA exposed to over around 40 countries.

26:38 So what are the key competitive advantage that differentiates the company from other Indian and international meat exporters? And what makes international customers consistently choose us? Firstly, I would like to give you a brief award. We are luckily in the food industry, and when you choose food, you always prefer some brand. So this brand, HMA, we have created with our legacy and the fourth generation in this business. People have trust on us. And, also, if we talk about factoring figure, HMA is one of the strongest and largest producer of red meat in India. So when you are placing your order and you know that you are securing your cycle, Storage distribution.

27:30 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, if we talk about Indian product are much economical than the... Our global competitor. Very good. First then. Josh, can you help me understand, like, how is 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? If you talk about the demand, we are getting from many areas.

28:21 And for the final meet, there is a good article if you want to see in Google also. These days, the new generation or the solution 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 good hormones rather than to our competitor in 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 BCC countries. Also, there is a new emerging market that's coming due to is from the African Continent.

29:20 Egypt and there there are many countries. Did you mention it was African content? Right? Sorry. I lost you in between. Yes. Yes. African content. So Egypt is one of the creative buyer for Buffalo. Mean, Vietnam is one of the biggest buyer, Malaysia, Indonesia. Those are the highly populated area where the Buffalo is doing very well. Correct, sir. Correct. Thank you. Thank you for that response. Can you help... Can can you just help me understand, like, what value addition does HMA undertake across its processing operations, product quality, and packaging compared with other players? For their opportunity to end up product? Mhmm. Yes, sir. Please continue. I just want For for addition and for product, that is in... Know, HMA is using cut to edge technologies, updated technology.

30:16 Our plant are new. We recently two two years before we had a new plan, which is totally with upgraded technology. And regarding value addition, we have recently started the future lead also, which is a high end product and which is for... This is good for hypermarket, supermarket, and all the kind of stuff. So are there, like, still opportunity... Opportunities to improve product realization through higher value offerings? There are there are... When we're going through the chain section, the chain section always get premium because it is a premium product, which is selling in premium. So there are good chances to be get good margins with the premium, valuation.

31:10 So 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 Definitely. Are we positioned to capitalize on that? Definitely, the protein requirement is given from the doctor. There are the nutrition. There are the doctor who's advising there should be minimum means of two gram protein in your body weight. So once you are you are you are involving this meat or protein from the meat source, you need meat. You need meat. And when we see there are another product also for the protein source, which are more expensive than the meat.

32:04 K. So just one last question from my side that I... As I can see in the investor presentation, it highlights other product categories as, you know, chilled 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? 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 January, and it comes to about a complete meal.

32:50 So we are looking very strong we are looking at a very strong perspective on these products. And for rice, seafood, it is the initial stage for us. We're still growing it, and market is adapting us because of our company name, brand value. So they are giving us good chances. Okay. And just can you... Would you would you be able to highlight the revenue contribution currently? Yes. We will be able to email you once you send it on those figures and everything. I will share you on email. Sure, sir. Sure, sir. Thank you. Thank you so much for your time, and all the best for your time. Thank you, mister. Thank you, sir. Ladies and gentlemen, if you have any question, please press 1 on one telephone keypad.

33:54 The next question comes from Adherva Gul Gandhi, an individual investor. Please go ahead. Hi, team. Congratulations on a good set of numbers. I just wanted to understand revenue growth that we're seeing in the past couple of quarter. What what aspect of it would you attribute to volume growth with having the value growth? Can you repeat it, please? Sir, I want to understand the revenue growth that we are seeing for the past couple of quarters. What part of it would be volume led or value led? The revenue growth here, what you've seen in two quarters, it is both. It is in volume also and it is in value also. As I told you that the price, the product is becoming more value because of the extra cost of logistic and extra cost of handling.

34:47 So it is in both in volume and also in value, both revaluation. So if I understand correctly, then all these costs are passed through for us. And, so what would be... Possible to say what is the average price that we're looking at? The average price is basically depend on average cuts, what we are saving to different market. But roughly, the average price will depend totally how far we are shipping, what are the shipping condition, is it with cost and freight or only cost or SUV. It depend on basically cuts and the demand of that particular cuts. So there are the seasons where premium cuts are more valuable.

35:33 There are the seasons when the secondary cuts are more valuable. Understood. If I look at your balance sheet for the year, I can see there's some increase in our, that. So is there any additional key things that will be more additional market that you're entering at the moment? Is that is there anything that's on the drawing board? Is there? Is there anything that is on the drawing board at the moment? With what? I am not able to. I just wanted to understand if there are any CapEx that we're doing, additional CapEx that we're doing or additional geography that we're planning to enter? Planning to enter where? Any new geographies that we're entering or any additional CapEx in terms of facility that we're setting up?

36:24 Cap... CapEx requirement. Right? Yes, sir. As of now, we are not making any huge CapEx requirement because all as I told in the first question, which was asked in the same call, that we are already using our 70% of the capacity. So the big CapEx is right now not required. The only CapEx or some we need the working capital. If the more orders are coming, there will be a need of working capital only. There is no CapEx requirement for the existing product. That's more like a base of small machine and all, those are the routine work.

37:13 Understood. And what would this routine CapEx be on or off note? And secondly, sir, if I look at your ex... Other expenses as a part of your sales, we can see that there have been a sharp reduction over the years. So what exact component of are we looking at over here? That I need to rechange with the data. And is it okay if we email you that? Sure, sir. Sure. We can do that. Yes, mister HMA. Sir, would it be possible to share, what percentage of revenue, do we make, extra for the bulk sales? That's only shared. Sorry. We will we will look. We will we will check with the team, and we will share it.

38:03 Sure, sir. Thank you. I'll join back in the queue. Thank you. Thank you. Thank you, sir. Ladies and gentlemen, if you have any question, There are no further questions. Now I hand over the floor to Mr. Nikhil Sundarani for closing comments. Thank you, for taking us through the financial performance and the key development of the company. On behalf of HMA Agro Industries Limited, I would like to sincerely thank all the shareholders, investors, analysts and other stakeholders for taking the time for joining today's earning call and for conducting their continued trust and confidence in the company.

39:03 Now I would also like to thank our management team and employees for their continued efforts and contribution towards the growth. With this, I conclude today's earning call. Thank you once again for your valuable time and participation. Thank you, sir. Thank you. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using DuSabad's conference call service. You may disconnect your Thank lines you, and have a pleasant day. Thank you.