Apex Frozen Foods Ltd (NSE:APEX) Q3 2026 Earnings Call Highlights: Revenue Growth Amidst Market …

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Wed, February 18, 2026 at 10:04 AM GMT+9 4 min read

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**Net Revenue (Q3 FY26):** INR264 crores, up 15% year-on-year.

**Sales Volume (Q3 FY26):** 2,754 metric tonnes, down 5% year-on-year.

**Sales to European Union (Q3 FY26):** Increased by 22% year-on-year.

**Sales to US (Q3 FY26):** Declined by 12% year-on-year.

**EBITDA (Q3 FY26):** INR17 crores, up 147% year-on-year.

**EBITDA Margin (Q3 FY26):** Improved by 344 bps to 6.5%.

**Profit After Tax (Q3 FY26):** INR10 crores, up from INR50 lakhs in Q3 FY25.

**Net Revenue (Nine Months FY26):** INR761 crores, up 23% year-on-year.

**Sales Volume (Nine Months FY26):** 8,373 metric tonnes, up 2% year-on-year.

**EBITDA (Nine Months FY26):** INR53 crores, up 143% year-on-year.

**EBITDA Margin (Nine Months FY26):** 6.9%, up 336 bps year-on-year.

**Profit After Tax (Nine Months FY26):** INR31 crores, up from INR2 crores in Nine Months FY25.

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Release Date: February 16, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Apex Frozen Foods Ltd (NSE:APEX) reported a 15% year-on-year increase in net revenue for Q3 FY26, driven by higher shrimp sales to the European Union and improved average realizations.

The company's non-US export business grew significantly, accounting for nearly 51% of total exports in nine months of FY26, up from 37% in nine months of FY24.

EBITDA increased by 147% year-on-year to INR17 crores, with the EBITDA margin improving by 344 basis points to 6.5% in Q3 FY26.

The reduction in US tariffs from 50% to 25% is expected to support an improvement in volumes and enhance revenue growth.

Apex Frozen Foods Ltd (NSE:APEX) is actively diversifying its market presence, with plans to expand into new markets such as Russia and Australia, which are expected to contribute to future growth.

Negative Points

Sales volumes declined by 5% year-on-year in Q3 FY26, with a 12% decline in sales to the US market.

The company faced increased tariffs in the US, which impacted sales volumes and contributed to higher other expenses.

Despite the revenue growth, sales volumes to the US declined marginally by 1% over nine months FY26.

The company operates at a low capacity utilization of around 32-33%, indicating underutilization of its production capabilities.

Farmgate or raw material prices have been rising, which could impact margins if not managed effectively.

Q & A Highlights

Q: Considering the Europe FTA and the reduced tariffs from the USA, what kind of revenue and margin growth can Apex Frozen Foods expect in the next two years? A: Karuturi Chowdary, Managing Director, stated that the recent trade agreements and tariff reductions will boost volumes and enhance capacity utilization, leading to higher revenues. The company expects revenue to reach approximately INR1,200-plus crores over the next two years. Margins are expected to remain stable, with current EBITDA levels being sustainable going forward.

Story Continues  

Q: Does the EU market include the UK, and how do you see the regulatory environment affecting exports to these regions? A: Karuturi Chowdary clarified that the UK is not included in the EU market. The UK FTA was signed earlier, and tariff reductions are expected sooner there. While regulations will remain, non-tariff barriers like mandatory testing may be relaxed, placing India on a level playing field with competitors.

Q: How has the demand been for hatchery operations, and what does it indicate about future supply? A: Karuturi Chowdary noted that hatchery operations are positive, with improved temperatures and tariff reductions creating momentum among farmers. Stockings are ongoing, indicating a positive supply outlook for the coming months.

Q: What is the impact of tariffs on realizations and other expenses? A: Karuturi Chowdary explained that the average realization for the quarter was INR914 per kilo, inclusive of tariffs. The tariff component for Q3 was INR46 crores. Most tariffs have been absorbed by customers, but they affected volume plans.

Q: How does Apex Frozen Foods plan to manage financial risks, particularly in receivables and working capital? A: Karuturi Chowdary stated that the company ensures timely receivables and maintains low inventory and debtor days. They manage forex risks through forward contracts, and a depreciating rupee supports realizations. The company is focused on efficient working capital management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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