Narmada Agrobase Limited , a leading player in the manufacturing of cattle feed and agro-based byproducts, has reported its financial results for the second quarter. The company's performance reflects its strong market presence and focus on quality products in the agriculture sector.

Financial Highlights

For Q2, Narmada Agrobase reported:

Revenue Mix and Market Presence

Narmada Agrobase operates with a balanced revenue mix:

• Cattle Feed: 52%
• Cotton Seed: 48%

The company maintains operations across three key markets:

• Gujarat
• Maharashtra
• Madhya Pradesh

Operational Performance

Narmada Agrobase has demonstrated strong performance in Q2, with revenue reflecting its focus on product quality and timely supply to livestock farmers. The company's balanced revenue mix between cattle feed and cotton seed products indicates a diversified approach to its agricultural offerings.

Conclusion

Narmada Agrobase Limited's Q2 results demonstrate the company's solid performance in the agricultural sector. With a total income of ₹1,228.16 lakhs and an EBITDA margin of 13.22%, the company shows resilience in its core business segments. As Narmada Agrobase continues to operate across Gujarat, Maharashtra, and Madhya Pradesh, its balanced product mix may contribute to its market position in the cattle feed and cotton seed markets.

Narmada Agrobase Limited , a leading manufacturer of cattle feed and cotton seed products, has reported robust financial results for the first quarter. The company's performance highlights its strong market position and strategic growth initiatives in the evolving cattle feed industry.

Financial Highlights

Narmada Agrobase reported a total income of Rs. 11.41 crore in Q1. The company's EBITDA saw a significant quarter-on-quarter increase of 82%, reaching Rs. 1.65 crore with an impressive margin of 14.47%. This substantial growth in EBITDA margin, expanding by 1,140 basis points, was attributed to efficient commercial procurement and effective cost control measures.

The company's Profit After Tax (PAT) also showed robust growth, increasing by 31% quarter-on-quarter to Rs. 1.02 crore. The PAT margin stood at 8.93%, representing an expansion of 630 basis points.

Product Portfolio and Market Presence

Narmada Agrobase operates primarily in the cattle feed and cotton seed products segments. The company's flagship brands, including Gaay Chhaap, Narmada Super, and Churma, have established strong recognition in the market for their quality, consistency, and reliability.

Expansion Plans

The company is actively pursuing expansion on multiple fronts:

1. Domestic Expansion: Narmada Agrobase is extending its reach to new regions within India, including Maharashtra, Madhya Pradesh, North Rajasthan, and Punjab.

2. International Markets: The company is targeting international markets in Southeast Asia, the Middle East, and Africa. Management is currently in talks with companies in Vietnam and aims to achieve 15-20% of revenue from exports within the next three years.

3. Product Diversification: The company is focusing on value-added products such as pelletized cattle feed and cotton seed oil to enhance its product offerings.

Operational Capacity and Certifications

Narmada Agrobase currently maintains a monthly production capacity of 4,000 tonnes. The company's current capacity utilization stands at 50%, with expectations to double by FY27. Notably, the company holds ISO 9001-2015 certification, underscoring its commitment to quality standards.

Sustainability Initiatives

During the earnings call, the management highlighted their commitment to sustainability through various initiatives:

• Zero-waste operations
• Adoption of renewable energy sources
• Implementation of eco-friendly packaging solutions

The company is exploring the use of white coal, a waste product used for heat generation in industries, as part of its renewable energy initiatives.

Management Commentary

Neeraj Kumar Agrawal, Chairman and Managing Director of Narmada Agrobase, commented on the results: "We delivered a stable performance in Q1, underscoring the strength of our B2B-focused business model and disciplined operations despite raw material volatility. Our commitment to quality assurance and chemical-free products continues to drive customer loyalty and brand recognition."

Future Outlook

With a strong focus on regional market expansion, product diversification, and international growth, Narmada Agrobase is well-positioned to capitalize on the growing demand for high-quality cattle feed. The company's emphasis on sustainability and quality assurance is expected to further strengthen its market position in the evolving livestock nutrition industry.

As Narmada Agrobase continues to execute its growth strategy, investors and industry observers will be keenly watching the company's progress in expanding its market presence and achieving its ambitious export revenue targets.