Summary
HMA Agro Industries Limited - Q3 FY26 Earnings Call Summary Friday, February 13, 2026, 03:30 Hrs
Event Participants
Executives 2 Aman Kaushik (Senior Associate Finance), Nikhil Sundrani (Company Secretary)
Analysts 2 Abin Banerjee (Allana Sons), Kapil Adwani (Aarth Growth Fund)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Consolidated) | ₹2,059.45 crores | +39% YoY; Driven by strong export demand and improved realization per unit. |
| Revenue (Standalone) | ₹1,992.77 crores | +46% YoY; Reflected enhanced operational efficiency and better capacity utilization. |
| EBITDA (Consolidated) | ₹105.13 crores | +81.3% YoY; Significant growth attributed to better cost absorption and volume scaling. |
| EBITDA (Standalone) | ₹82.34 crores | +54.8% YoY; Margin expansion driven by operating leverage as revenues scaled. |
| PBT (Consolidated) | ₹87.85 crores | +112.9% YoY; Profitability growth more than doubled due to subsidiary performance and cost discipline. |
| PBT (Standalone) | ₹71.90 crores | +61.5% YoY; Outpaced revenue growth, demonstrating improved margin management. |
| Raw Material Cost | 84.03% | -138 bps YoY; Prices of buffalo livestock remained stable with a slight downward trend. |
Geographic & Segment Commentary
- International Exports: Export markets remain the primary revenue driver, specifically Vietnam, Egypt, Malaysia, Indonesia, and Iraq. The company noted that improved realizations in these markets and a strong order book have mitigated geographical concentration risks.
- Buffalo Meat: This remains the core segment where the company achieved a slight reduction in raw material costs as a percentage of sales (from 85.41% to 84.03% YoY). Management reported no supply constraints for livestock availability.
- Poultry (Jabalpur Plant): The company is diversifying into the chicken processing segment with a new plant in Jabalpur. Strategic focus is on creating a balanced product mix including hens and chickens to tap into the domestic poultry market.
Company-Specific & Strategic Commentary
- Operational Efficiency: Management highlighted that PBT growth (112.9% Consolidated) significantly outpaced revenue growth (39%), attributed to disciplined working capital management and scale benefits.
- Product Diversification: HMA is actively testing retail products for the Indian domestic market to broaden revenue streams beyond institutional exports.
- Capacity Expansion: The company is focusing on increasing capacity utilization across existing facilities while simultaneously expanding its global footprint.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Jabalpur Plant Completion | End of FY26 | Management expects the chicken processing plant to be operational by the end of the current fiscal year. |
| Revenue Contribution (Poultry) | FY27 Onwards | While operational in FY27, management stated it is too early to provide specific ballpark revenue figures. |
| Market Outlook | Long-term sustainable growth | Management remains confident in demand outlook and focuses on scaling revenue while maintaining margin discipline. |
Risks & Constraints
| Risk | Context |
|---|---|
| Logistics & Freight Costs | Other expenses rose nearly threefold QoQ (from ₹83.4 cr to ₹221.7 cr) due to high demand for refrigerated containers and supply-side constraints in shipping lines. |
| Geographic Concentration | While expanding, the company remains heavily dependent on five key international markets, making it sensitive to trade policy changes in those regions. |
| Raw Material Volatility | Though currently stable, the business model is sensitive to livestock prices, which represent over 84% of the cost structure. |
Q&A Highlights
Logistics and Other Expenses
- Question: Why did other expenses increase nearly threefold on a QoQ basis to ₹221.7 crores? (Abin Banerjee)
- Answer: The primary driver was a surge in freight costs. Specifically, the scarcity of refrigerated containers, which is subject to demand-supply dynamics from shipping lines, led to higher per-unit costs during the quarter (Nikhil Sundrani).
Raw Material and Supply Chain
- Question: What is the trend in livestock availability and raw material costs? (Kapil Adwani)
- Answer: There are no supply constraints for buffalo. Raw material prices have remained stable, actually showing a slight decrease of 1.38% as a percentage of revenue compared to the previous year, which aided profitability (Nikhil Sundrani).
New Initiatives and Retail
- Question: What is the progress on the Jabalpur plant and the retail market entry? (Kapil Adwani)
- Answer: The Jabalpur Chicken Processing Plant is expected to be completed by the end of FY26. The domestic retail product launch is currently in the process of being tested (Nikhil Sundrani).
Key Takeaway
HMA Agro Industries delivered a robust performance in Q3 FY26, characterized by a 39% YoY increase in consolidated revenue to ₹2,059.45 crores and a doubling of consolidated PBT to ₹87.85 crores. The quarter was defined by strong operating leverage, where profitability growth significantly outpaced the top line due to stabilized raw material costs (84.03% of revenue) and improved realizations in key export markets like Vietnam and Egypt. Despite a sharp increase in logistics costs due to refrigerated container shortages, the company maintained its margin trajectory. Strategically, HMA is pivoting toward diversification with the Jabalpur poultry plant slated for completion by FY26-end and ongoing testing of domestic retail products. Looking ahead, the company aims to sustain this momentum by enhancing capacity utilization and expanding its global footprint while managing volatile freight environments.
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