FMCG Stock Raises Export Packing Credit (EPC) Facility From SBI & Yes Bank; What Does This Mean?

Exchanges were notified by HMA Agro Industries Ltd. of the results of its December 30, 2025, board meeting, when directors approved major improvements to the company's banking facilities, indicating confidence in export growth and working capital requirements.

The Board authorized the extension of the company's Export Packing Credit (EPC) facility from State Bank of India, which was a significant step. The total sanctioned limit is now Rs 530 crore instead of Rs 430 crore after the EPC ceiling was raised by Rs 100 crore.

Subject to the terms and conditions specified in SBI's authorization letter, this improvement comes after the previous board clearance given in November 2025. It is anticipated that the expanded EPC facility would facilitate higher export volumes and provide liquidity for multinational operations.

Additionally, the Board cleared the enhancement and continuation of credit facilities from YES Bank, aggregating to Rs 350 crore. This includes an incremental enhancement of Rs 110 crore over the previous limit of Rs 240 crore.

The facilities will be availed as per the agreed terms related to interest rates, security cover, margins, and documentation. Management has been authorised to execute all necessary agreements and create or modify charges to operationalise the enhanced limits.

In addition to making financial decisions, the Board authorized the immediate reconstitution of the Corporate Social Responsibility (CSR) Committee. Following the modification, Mohammad Mehmood Qureshi was added to the committee and Ms. Bhawna Jain was no longer a member. Mr. Gulzar Ahmad will now serve as the chair of the reorganized CSR Committee, which also includes Mohammad Mehmood Qureshi and Independent Director Abhishek Sharma.

The enhanced credit facilities demonstrate HMA Agro Industries' emphasis on increasing exports, bolstering working capital flexibility, and fostering future expansion, while the reformation of the CSR committee guarantees ongoing adherence to governance standards.

In terms of finances, HMA Agro's consolidated sales have gone up over time, from Rs 2,742 crore in FY2019 to Rs 5,133 crore in FY2025 (TTM ~Rs 6,232 crore) as per Screener. Despite operating margins remaining low at 2-5% over the past few years, operating profit increased from Rs 23 crore in FY2019 to Rs 106 crore in FY2025.

Other income contributions, which climbed to Rs 81 crore in FY2025, continued to be significant. With a trailing TTM net profit of about Rs 124 crore, net profit jumped from Rs 31 crore in FY2019 to Rs 88 crore in FY2025. Consolidated EPS showed a similar upward trend, posting Rs 1.73 per share in FY2025.

The company's rise in sales is further highlighted by compound growth rates, which show a 5-year CAGR of around 17%, a 3-year CAGR of about 19%, and TTM sales growth of about 29%. With a 5-year CAGR of around 13% and TTM profit growth of over 24%, profit growth likewise displayed a mixed tendency.

Over time, the consolidated balance sheet has significantly strengthened. While reserves went up from Rs 427 crore in FY2023 to Rs 739 crore by FY2025, representing retained earnings and accumulated profits, equity capital stayed steady at about Rs 50 crore over the previous few years.

As one of India's top exporters of processed and frozen products, such as buffalo meat, seafood, and cereals, HMA Agro Industries Ltd. operates in the food and agriculture industry. With an estimated 10-11% export market share, the firm is a star export house.