News Earnings Apex Frozen Foods Q3FY26 Revenue Grows 15% YoY to ₹264 Crores, EBITDA Margin Improves to 6.5%Apex Frozen Foods Q3FY26 Revenue Grows 15% YoY to ₹264 Crores, EBITDA Margin Improves to 6.5%
Apex Frozen Foods Limited reported strong Q3FY26 results with 15% YoY revenue growth to ₹264 crores, driven by EU market expansion and improved realizations. EBITDA surged 147% to ₹17 crores with margin improvement to 6.5%. Nine-month performance showed 23% revenue growth to ₹761 crores and 143% EBITDA growth to ₹53 crores. The company benefited from lower raw material costs at ₹327 per kg versus ₹374 per kg previously, while U.S. tariff reduction from 50% to 25% and proposed India-EU FTA create positive long-term outlook.
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Apex Frozen Foods Limited delivered robust financial performance in Q3FY26, demonstrating resilience amid challenging market conditions and benefiting from strategic diversification efforts. The company's earnings conference call held on February 16, 2026, revealed significant improvements across key financial metrics.
Strong Revenue Growth Driven by EU Market Expansion
The company achieved impressive revenue growth in Q3FY26, with net revenue increasing 15% year-on-year to ₹264 crores. This growth was primarily attributed to higher shrimp sales to the European Union and improved average realizations supported by firm global shrimp prices and favorable currency exchange rates.
| Financial Metric | Q3FY26 | Q3FY25 | Growth (%) |
|---|---|---|---|
| Net Revenue | ₹264 crores | ₹229 crores | +15% |
| Sales Volume | 2,754 MT | 2,903 MT | -5% |
| Average Realization | ₹914 per kg | - | - |
| EBITDA | ₹17 crores | ₹7 crores | +147% |
| EBITDA Margin | 6.5% | 3.06% | +344 bps |
| PAT | ₹10 crores | ₹0.50 crores | +1,900% |
Despite a 5% decline in sales volumes to 2,754 metric tons compared to 2,903 metric tons in Q3FY25, the company maintained strong revenue performance through improved pricing strategies and market positioning.
Geographic Diversification Strategy Yields Results
The company's strategic focus on diversification showed positive results, with non-U.S. export business growing from around 37% in 9 months of FY24 to nearly 51% in 9 months of FY26. Sales to the European Union registered strong momentum with 22% year-on-year growth, effectively offsetting the 12% decline in U.S. sales during the quarter.
Nine-Month Performance Demonstrates Sustained Growth
For the nine months ended December 31, 2025, Apex Frozen Foods maintained strong performance across all key metrics:
| Parameter | 9M FY26 | 9M FY25 | Growth (%) |
|---|---|---|---|
| Net Revenue | ₹761 crores | ₹619 crores | +23% |
| Sales Volume | 8,373 MT | 8,205 MT | +2% |
| Average Realization | ₹864 per kg | ₹711 per kg | +22% |
| EBITDA | ₹53 crores | ₹22 crores | +143% |
| EBITDA Margin | 6.9% | 3.54% | +336 bps |
| PAT | ₹31 crores | ₹2 crores | +1,450% |
The European market continued its strong performance, registering 20% year-on-year growth, while U.S. sales declined marginally by 1% during the nine-month period.
Operational Efficiency and Cost Management
The company benefited significantly from lower raw material costs, with average purchase prices at ₹327 per kilo in Q3FY26 compared to ₹374 per kilo in the previous year. This 12.6% reduction in raw material costs, combined with effective cost control measures, contributed substantially to margin expansion.
However, the company noted an uptick in farmgate prices during the current quarter, with increases of approximately ₹30-40 per kilo, which management attributed to typical seasonal demand-supply dynamics.
Trade Policy Developments Create Positive Outlook
Significant trade policy changes have created a more favorable operating environment. U.S. tariffs on Indian shrimp were reduced from 50% to 25% effective February 7, 2026, removing the penal tariff component. During Q3FY26, the company incurred ₹46 crores in tariff expenses, while the nine-month tariff component totaled ₹86 crores.
The proposed India-EU Free Trade Agreement represents another structurally positive development, with management expecting gradual benefits to strengthen medium to long-term growth prospects.
Future Outlook and Strategic Initiatives
Management expressed confidence in maintaining sustainable EBITDA levels of 7-10% going forward, with potential for higher margins as ready-to-eat product volumes increase. The company targets revenue of approximately ₹1,200-plus crores over the next two years, supported by improved capacity utilization and volume growth.
Current capacity utilization stands at 33-35%, with management planning to increase this to approximately 50% by FY27. The ready-to-eat segment, which comprised 11% of total sales in the nine-month period compared to 10% in the previous year, presents significant growth opportunities, particularly in European markets following FTA implementation.
Historical Stock Returns for Apex Frozen Foods
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.27% | +2.47% | +62.90% | +90.55% | +105.85% | +79.10% |
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