Sharat Industries Limited demonstrated strong financial performance in Q3 FY26, showcasing resilience in a volatile aquaculture sector through strategic diversification and operational discipline. The Nellore-based company, which operates across shrimp feed, farming and processing activities, reported encouraging results during its earnings conference call held on February 18, 2026.

Q3 FY26 Financial Performance

The company delivered solid quarterly results with revenue from operations reaching Rs. 142.5 crore. Operating efficiency remained strong with the following key metrics:

Management attributed the performance to improved operating leverage, cost discipline, and continued focus on market mix optimization and value-added product contribution.

Nine-Month FY26 Growth Trajectory

Sharat Industries achieved remarkable growth momentum over the nine-month period, with revenue from operations increasing 42% to Rs. 407.47 crore versus Rs. 286.63 crore in the nine months of FY25. The export business showed particular strength:

This growth was supported by multiple strategic drivers including increased value-added product contribution, stronger quality compliance, process alignment with global standards, and enhanced operational control through backward and forward integration.

Market Diversification Strategy

The company has strategically expanded across multiple geographies to reduce dependence on any single region. Currently, the export mix is well diversified across Russia (50% of exports), United States, China, and other markets. Customer retention rates vary by geography:

• Russia: Over 90% retention rate with strong customer relationships
• China: Over 60% retention rate in this newer market focused on black tiger shrimp
• United States: Around 60% historical retention rate, with higher recent performance due to selective customer focus

Positive External Developments

Management highlighted two significant external factors supporting future growth prospects. Recent indications of U.S. tariff relief are directionally positive for the sector, with any easing expected to improve India's competitiveness versus other exporting nations. Additionally, the India-EU opportunity, including the proposed FTA and broader market potential, represents a structurally positive development with benefits expected to accrue gradually.

Operational Capacity and Future Outlook

The company currently operates at 65% utilization across all divisions, providing substantial headroom for improvement. Management expressed confidence in reaching closer to 90% utilization over the next 24 months. The strategic focus remains on building a more balanced and higher value export mix, improving utilization through contract farming and merchant export initiatives, and scaling operations in an asset-light manner.

For the domestic frozen shrimp market, the company plans to conduct trial experiments to determine appropriate pricing strategies, while maintaining focus on export growth which currently contributes 70-80% of total revenue.

Budget Policy Impact

The recent union budget announcement included favorable measures for the seafood sector, particularly the increase in duty-free import limits from 1% to 3% of prior year FOB exports. This development is expected to improve operating margins as companies import key ingredients for value-added products. Enhanced credit facilities for MSMEs in the seafood sector are also anticipated to support revenue growth in the commoditized shrimp business.

Sharat Industries Limited has filed a mandatory disclosure with BSE Limited regarding promoter share purchases, in compliance with SEBI (Prohibition of Insider Trading) Regulations 2015. The disclosure was submitted on December 26, 2025, under the company's scrip code 519397.

Regulatory Compliance Details

The disclosure was made pursuant to Regulation 7(2)(b) of SEBI (Prohibition of Insider Trading) Regulations, 2015. The company submitted the required Form C documentation to BSE Limited, detailing the equity share purchase transaction by its promoter.

Documentation and Authorization

The disclosure document was digitally signed by N. Ganesan, who serves as the Company Secretary and Compliance Officer for Sharat Industries Limited. The digital signature was applied on December 26, 2025, at 21:57:05 IST, ensuring proper authentication of the regulatory filing.

SEBI Disclosure Requirements

Under Regulation 7(2)(a) of the PIT Regulations, promoters are required to disclose their trading activities to the company. Subsequently, under Regulation 7(2)(b), companies must forward these disclosures to the relevant stock exchanges for public record. This ensures transparency in insider trading activities and maintains market integrity.

The company has requested BSE Limited to take the disclosure on record, completing the mandatory reporting process as required under SEBI regulations for insider trading activities.