FMCG Stock Reports 702% Surge In Q4 Net Profit, Approves Rs 100 Cr Credit Facility With PNB

HMA Agro Industries Limited's fourth quarter robust earnings are consistent with its strategic operational and financial initiatives intended to enhance the company's growth prospects.

The firm was able to achieve revenue of Rs 1,499.56 crores in net sales, which is an increment of Rs 1,37 crores on a Y-o-Y basis, representing an 8% growth. Moreover, the firm showed tremendous growth in net profit, posting an amount of Rs 12.35 crore, which is an increment of 702% as compared to Rs 4 crore in Q4FY24. Nonetheless, the company's full performance for the financial year 2025 displayed an increase of 7% in net sales, which reached Rs 5,133.02 crores, along with an achieved net profit of Rs 87.69 crores, which is a decline of 13% compared to 100.58 crores in FY24. This is primarily attributed to the reason for high operating costs and pressure on margins.

To aid the expansion of the company's export activities, the Board of Directors has sanctioned a proposal to obtain Export Packing Credit (EPC) facilities from Punjab National Bank (PNB). Affecting this decision will add credit exposure of Rs 100 crore (pending approvals and documentation), which demonstrates the EPC working capital breach, along with the company's strong financial fundamentals and discipline in working capital.

In a significant intra-corporate restructuring, the company converted a Rs 3.037 crore loan into equity, thereby increasing its stake in HMA Natural Foods Private Limited to 95.66%. This related party transaction, completed on May 15, 2025, is part of a strategy to bolster the captive subsidiary's equity base without new capital injections, although the unit has been inoperative for most of the recent past.

Demonstrating its financial conservatism and low-risk appetite, HMA Agro Industries had its short-term credit rated "CARE A2+" for FY2025-26 by CARE Ratings. As the company's borrowings stand at Rs 502.88 crore as of March 2025, this rating strengthens lender trust in the company.

Founded in 2008, HMA Agro Industries has emerged as a leading Indian food trade company with global reach. The company exports frozen buffalo meat, fruits, vegetables, and cereals under prominent brands like "Black Gold," "Kamil," and "HMA" to over 40 countries. It operates four integrated processing plants in Aligarh, Mohali, Agra, and Parbhani, and has announced plans to set up a fifth plant in Haryana, underscoring its commitment to expansion.

By emphasising value-added export trade, coupled with significant domestic forward integration, HMA Agro Industries harnesses sustained financial discipline and operational flexibility to meet the growing international demand for quality Indian agri-products.