Apex Frozen Foods reported a significant improvement in profitability for the first quarter of FY27, with profit after tax (PAT) rising 138% year-on-year to ₹217 Mn. The company’s net revenue remained flat at ₹2,565 Mn, supported by higher shrimp realizations due to improving global prices, sales of value-added products, and favorable currency movements.

The earnings call for the quarter was held on Tuesday, August 18, 2026, at 11:30 AM IST. The conference was led by Karuturi Subrahmanya Chowdary, Managing Director & CFO, and P. Durga Prasad, Sr. Manager, Accounts. Pursuant to Regulation 30 and 46(2)(ao) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the Investors' Conference Call is available on the Company's website.

Financial Performance

Despite the revenue stability, shrimp sales volume declined to 2,624 MT in Q1FY27 from 3,015 MT in the same period last year. Management attributed this drop to labor shortages and war-led transport disruptions, noting that volumes are likely to regain momentum in Q2FY27 subject to logistics availability. Gross margin expanded by 984 basis points to 41.9%, while EBITDA margin widened by 405 basis points to 12.7%. Average shrimp realization grew 15% YoY to nearly ₹930 per kilo.

Note: Net Revenue includes export benefits of ₹128 Mn for Q1FY27.

Geographical and Product Mix

The U.S.A. accounted for 70% of total shrimp sales in Q1FY27, up from 54% in Q1FY26. Shrimp sales to the U.S. increased 13% YoY and 121% QoQ, supported by softening tariff-related uncertainties. The EU and the U.K. together contributed 25% of total shrimp sales, down from 39% in Q1FY26, impacted by war-led transportation disruptions and regulatory testing requirements.

Value-added products, particularly Ready-to-Eat (RTE), constituted 16% of total volume in Q1FY27, up from 15% in the prior year. Management expects RTE sales to reach 18-20% of total volumes in FY27. RTE realization increased from $11.2 per kilo to $12.05 per kilo in Q1FY27.

Balance Sheet and Cash Flow

The company maintains a lean balance sheet with total borrowings at ₹1,068 Mn as of March 2026. Net debt to equity stood at comfortable levels, with cash flow from operations remaining robust. Shareholder funds increased to ₹2,700 Mn, reflecting the company’s continued financial stability.

What the Numbers Show

The divergence between declining shrimp volumes (-13%) and rising PAT (+138%) highlights the impact of pricing power and mix shift towards value-added products. The expansion in gross margin by nearly 10 percentage points underscores the effectiveness of the company’s cost-efficiency measures amidst volatile input costs. Additionally, the shift in geographical mix towards the U.S., which has higher unit realizations due to antidumping and countervailing duties being part of pricing, contributed to overall margin expansion.

Earnings Call Details

Investors can access the audio recording of the conference call on the company's website. The event was facilitated by Stellar IR Advisors Pvt Ltd, with Mr. Suyash Samant and Mr. Hrithik Hattiangadi serving as primary contacts.

Apex Frozen Foods has established a processing capacity of 34,240 MTPA, with its facilities strategically located near Kakinada and Vizag ports.

Capacity and location highlights

The company's processing infrastructure is positioned in proximity to two key port hubs on India's eastern coastline. The table below summarises the key operational detail disclosed:

The proximity to Kakinada and Vizag ports is a notable aspect of Apex Frozen Foods' operational setup, given the significance of these ports for seafood exports from the Andhra Pradesh coast.