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.

Narmada Agrobase Limited , a manufacturer of cattle feed and agro-based byproducts, has reported robust financial results for the first quarter, demonstrating significant improvements in profitability and operational efficiency.

Financial Highlights

• Total Income: ₹1,141.34 lakhs
• EBITDA: ₹165.10 lakhs, up 82.01% quarter-on-quarter
• EBITDA Margin: 14.47%, expanding by 1140 basis points
• Profit After Tax (PAT): ₹101.90 lakhs, growing 30.98%
• PAT Margin: 8.93%, improving by 630 basis points

Performance Analysis

The company's performance in Q1 showcases a remarkable improvement in profitability metrics. The EBITDA margin expansion of 1140 basis points to 14.47% is particularly noteworthy, indicating enhanced operational efficiency and cost management.

Neeraj Agrawal, Chairman & Managing Director of Narmada Agrobase Limited, attributed the strong performance to the company's focus on delivering superior quality products and operational excellence. He stated, "Our continued emphasis on producing high-quality, cottonseed-based cattle feed and allied products has helped us maintain customer trust and market relevance."

Company Overview

Narmada Agrobase Limited, incorporated in 2013 and headquartered in Mehsana, Gujarat, specializes in manufacturing cottonseed-based cattle feed and allied products. The ISO 9001:2015-certified company caters to the nutritional needs of livestock across India.

Future Outlook

The company is strategically positioning itself for its next phase of growth, with plans to expand into Asia-Pacific markets. Mr. Agrawal expressed confidence in the company's ability to unlock long-term value for stakeholders through these expansion efforts and continued operational optimization.

Financial Performance Comparison

The table clearly illustrates the significant improvements in the company's financial metrics compared to the previous quarter.

Narmada Agrobase Limited's strong Q1 results underscore its resilient business model and effective quality-first strategy. As the company continues to focus on operational excellence and market expansion, it appears well-positioned for sustained growth in the agri-input sector.