Apex Frozen Foods posts strong Q2 FY26 earnings amid diversification

Apex Frozen Foods Limited reported a 19% year-on-year increase in net revenue to INR238 crores for Q2 FY26, driven by higher realizations of INR870 per kilo, a 25% year-on-year rise. Gross profit surged by 76% year-on-year to INR96 crores, with a gross margin of 39%, benefiting from stable global shrimp prices and favorable exchange rates. EBITDA grew 284% year-on-year to INR18 crores, achieving a 7.2% margin. Profit after tax reached INR12 crores, up from a loss of INR1.7 crores in the prior year's Q2.

For the first half of FY26, net revenue rose 29% to INR497 crores, with gross profit up 60% to INR184 crores, representing a 36% gross margin. The company's diversification strategy saw non-U.S. business expand to 56% in Q2 FY26, mitigating dependence on a single region. Short-term borrowings decreased significantly to INR40 crores by September 2025, reflecting a strong focus on debt reduction and balance sheet strength.

Despite a marginal decline in sales volumes to 2,606 metric tonnes due to U.S. tariff uncertainties, sales to the European Union market (excluding the UK) grew 18% year-on-year. The company is pursuing market expansion into Australia and Russia, with approvals recently received or in process, expecting to contribute 5-10% of overall business from Australia in the first year.