Apex Frozen Foods LimitedQ1 FY27 Results & Financial Update

U.S. export realizations are higher in dollar terms than European pricing due to the inclusion of Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) components in pricing, whereas European customers bear their own local duties.

Anti-Dumping Duty review results are expected around September (with current ADD at 3.4%), and Countervailing Duty review announcements are anticipated around December, with potential for a 5.77% CVD reduction if GoI tax reimbursement schemes are accepted.

The India-U.K. FTA became effective on July 15, 2026, though non-tariff barriers like 50% mandatory testing of Indian shrimp shipments remain under discussion. The EU FTA is expected to be finalized around December or early January.

Removal of the 50% provisional tariff threat and finalization of a 10% tariff earlier in the year provided U.S. buyers greater operational certainty, leading to increased order placement with Indian suppliers.

Business initiation has commenced for Japan during the quarter, with contributions expected in subsequent quarters. Russia is targeted for Q2 or Q3, while Australia remains at the customer audit discussion stage.

Volume capacity utilization was 38% in Q1 FY27 (similar to 39% in Q1 FY26). Management targets consistent utilization around 35% to 40% for the full year, aiming for full-year production of approximately 12,000 metric tons.

Management expects to scale annual volume toward 14,000 to 15,000 metric tons in subsequent years (FY28/FY29), supported by global trade enhancements and FTAs.

Average realization reached INR 930 per kilo in Q1 FY27 compared to INR 812 per kilo in Q1 FY26, supported by higher dollar unit values, a depreciated rupee, and a richer mix of value-added and RTE products.

Farm gate prices remained stable during Q1 FY27 and have experienced a 6% to 7% increase over the preceding 3 to 4 weeks, providing good comfort to farmers.

The company continues to maintain a lean financial profile with prudently managed debt levels and a continuous focus on disciplined working capital management.

Management maintained its target for the current fiscal year at approximately 12,000 metric tons of production.

The company expects Ready-to-Eat sales volumes to reach a minimum of 18% to 20% of total sales volumes during the current financial year.

Management clarified that Apex Frozen Foods does not engage in feed manufacturing and has no direct exposure to feed price volatility, noting that stable-to-rising farm gate prices have sustained farmer sentiment.

Management stated that the company has not received any tariff refunds to date and noted that there is no legal clarity or confirmation on when or if historical tariff refunds will be distributed.

Customer-specific proprietary RTE and RTC products developed for specific clients are commercialized and currently account for single-digit percentages (approx. 3% to 4%, or 300 to 400 metric tons) of total expected annual sales.