Sharat Industries Ltd (519397)
📢 Recent Corporate Announcements
Sharat Industries has approved the re-appointment of Mr. Swayze Mani as a Non-Executive Independent Director for a second five-year term, effective from May 16, 2027, to May 15, 2032. The decision, made during a board meeting on August 10, 2026, is subject to shareholder approval at the upcoming 36th Annual General Meeting. Mr. Mani brings over 25 years of experience in Human Resource Management, which supports the company's governance as it targets a revenue milestone of Rs 1,000 Cr by FY28. This is a routine administrative update ensuring board continuity.
- Re-appointment of Mr. Swayze Mani for a second term of 5 consecutive years
- New term effective from May 16, 2027, until May 15, 2032
- Director brings over 25 years of experience in Human Resource Management and employee relations
- Board meeting conducted on August 10, 2026, lasting 3 hours and 50 minutes
Sharat Industries reported a 16.9% YoY increase in net profit to ₹6.28 crore for Q1 FY27, up from ₹5.37 crore in the same quarter last year. Revenue from operations grew 4.4% YoY to ₹120.30 crore, accounting for approximately 23% of its TTM revenue. Alongside results, the company announced the resignation of CFO Balasubramanian R, with Company Secretary Ganesan Nilakanatan taking over the CFO role in a dual capacity. The company's Profit Before Tax (PBT) showed healthy growth, rising to ₹8.86 crore from ₹7.44 crore YoY.
- Net Profit for Q1 FY27 increased by 16.9% YoY to ₹6.28 crore.
- Revenue from operations stood at ₹120.30 crore, compared to ₹115.20 crore in Q1 FY26.
- Profit Before Tax (PBT) improved to ₹8.86 crore from ₹7.44 crore in the year-ago period.
- Inventory of finished goods and WIP increased by ₹10.33 crore during the quarter, indicating stock buildup for future sales.
- New CFO Ganesan Nilakanatan brings over 35 years of experience in finance and secretarial affairs.
Sharat Industries reported a 17% YoY increase in net profit to Rs 6.28 Cr for Q1 FY27, up from Rs 5.37 Cr in the same period last year. Revenue from operations grew 4.4% YoY to Rs 120.30 Cr. Alongside the results, the company announced the resignation of CFO Balasubramanian R due to personal reasons. Ganesan Nilakanatan, the current Company Secretary, has been appointed as the new CFO, bringing over 35 years of experience in finance and secretarial affairs.
- Net Profit for Q1 FY27 increased 17% YoY to Rs 6.28 Cr from Rs 5.37 Cr.
- Revenue from operations rose to Rs 120.30 Cr in Q1 FY27 compared to Rs 115.20 Cr in Q1 FY26.
- Profit Before Tax (PBT) improved to Rs 8.86 Cr from Rs 7.44 Cr in the year-ago quarter.
- New CFO Ganesan Nilakanatan is a qualified CS and Cost Accountant with 35+ years of experience.
- Basic EPS for the quarter improved to Rs 1.60 from Rs 1.39 YoY.
Sharat Industries reported a 16.9% YoY increase in net profit to ₹6.28 Cr for the quarter ended June 30, 2026, up from ₹5.37 Cr. Revenue from operations grew modestly by 4.4% YoY to ₹120.30 Cr, but the company saw a significant recovery in margins compared to the preceding quarter (March 2026), where PAT was nearly zero (₹0.05 Cr). Alongside results, the company announced the resignation of CFO Balasubramanian R, with Company Secretary Ganesan Nilakanatan assuming the CFO role as an additional charge. The results indicate a stabilization of operating margins, which reached approximately 10.7% this quarter.
- Net Profit increased 16.9% YoY to ₹6.28 Cr from ₹5.37 Cr in June 2025
- Revenue from operations rose 4.4% YoY to ₹120.30 Cr from ₹115.20 Cr
- Earnings Per Share (EPS) improved to ₹1.60 from ₹1.39 in the year-ago period
- CFO Balasubramanian R resigned effective August 10, 2026, citing personal reasons
- Ganesan Nilakanatan (CS & Compliance Officer) appointed as CFO in addition to existing roles
Sharat Industries reported a 17% YoY increase in net profit to ₹6.28 Cr for the quarter ended June 30, 2026, up from ₹5.37 Cr. Revenue from operations grew 4.4% YoY to ₹120.30 Cr, showing a significant recovery from the marginal profitability seen in the preceding March 2026 quarter. Alongside results, the company announced the resignation of CFO Balasubramanian R for personal reasons, with Company Secretary Ganesan Nilakanatan assuming the additional role of CFO. The results reflect a stabilization in operating margins compared to the volatile previous quarter.
- Net Profit increased 16.9% YoY to ₹6.28 Cr compared to ₹5.37 Cr in June 2025.
- Revenue from operations reached ₹120.30 Cr, a 4.4% growth over the ₹115.20 Cr reported in the same quarter last year.
- Profit Before Tax (PBT) recovered sharply to ₹8.86 Cr from a low of ₹0.16 Cr in the March 2026 quarter.
- Inventory levels saw a positive change of ₹10.33 Cr, helping offset a ₹10.53 Cr increase in raw material consumption costs.
- Management transition: New CFO Ganesan Nilakanatan brings over 35 years of experience in finance and secretarial affairs.
Sharat Industries has scheduled a board meeting for August 10, 2026, to approve unaudited financial results for the quarter ended June 30, 2026. This follows a weak March 2026 quarter where net profit plummeted to Rs 0.05 crore from Rs 4.74 crore in the preceding quarter. Investors will be monitoring if the company can return to its FY26 average quarterly profit levels of approximately Rs 4 crore. The trading window for insiders remains closed until August 12, 2026.
- Board meeting scheduled for August 10, 2026, to approve Q1 results.
- Trading window for designated persons closed until August 12, 2026.
- Company reported TTM revenue of Rs 525 crore with a current market cap of Rs 631 crore.
- Previous quarter (Mar 2026) saw a significant margin drop with net profit at just Rs 0.05 crore.
Financial Performance
Revenue Growth by Segment
Total revenue grew 25.9% YoY to INR 380.53 Cr in FY25. The Export segment grew 32% to INR 292.98 Cr, while Domestic operations grew 10.6% to INR 89.31 Cr.
Geographic Revenue Split
Exports contribute 76.6% of total revenue (INR 292.98 Cr). Within exports, Russia accounts for 67% and the USA accounts for 29%.
Profitability Margins
PAT margin improved from 1.94% in FY24 to 2.62% in FY25. EBITDA margin increased from 7.18% to 7.97% YoY, driven by higher scale and expansion into the Russian market.
EBITDA Margin
EBITDA margin stood at 7.97% in FY25, with absolute EBITDA growing 39.5% YoY to INR 30.32 Cr from INR 21.74 Cr.
Capital Expenditure
The company made substantial capital investments in farming and processing divisions in FY25; however, it is now shifting toward an asset-light merchant export model to reduce future heavy capex requirements.
Credit Rating & Borrowing
Ratings reaffirmed at CRISIL BBB/Stable (Long Term) and CRISIL A3+ (Short Term). Interest coverage ratio improved to 2.49x in FY25 from 2.21x in FY24.
Operational Drivers
Raw Materials
Raw materials include Vannamei and Black Tiger shrimp and feed ingredients. Cost of materials consumed was INR 295.19 Cr, representing 77.6% of total revenue.
Import Sources
Sourced primarily from Andhra Pradesh (Nellore) and Gujarat through a network of 55 farmer partnerships and contract farming.
Key Suppliers
Procurement is managed through 55 farmer partnerships and vetted input partners for seed and feed; specific corporate supplier names are not disclosed.
Capacity Expansion
Current plant utilization is 55%. The company plans to expand utilization to ~90% by FY28 through contract farming and merchant export volumes.
Raw Material Costs
Raw material costs rose 21.1% YoY to INR 295.19 Cr in FY25. Procurement strategy focuses on deep contract farming to stabilize farm-gate prices and ensure quality.
Manufacturing Efficiency
Integrated operations enable seamless coordination and uninterrupted production, mitigating industry-typical seasonality impacts.
Logistics & Distribution
Distribution is managed through processing tie-ups and a new facility in Gujarat (launched August 2025) to access global markets more efficiently.
Strategic Growth
Expected Growth Rate
38%
Growth Strategy
Targeting INR 1,000 Cr export revenue by FY28 by scaling an asset-light merchant export model, diversifying into Black Tiger shrimp, and expanding into China and the EU while maintaining Russian market dominance.
Products & Services
Processed shrimp (16 varieties), shrimp feed, and shrimp seed (hatchery).
Brand Portfolio
Sharat Industries (recently rebranded with a new logo).
New Products/Services
Diversification into Black Tiger shrimp segment and BSF-based feed pilots are expected to contribute to future revenue growth.
Market Expansion
Expansion into China and re-entry into the EU market are planned for FY26-FY28 to balance the export mix.
Market Share & Ranking
Largest Indian exporter to Russia by both volume and value as of FY25.
Strategic Alliances
Partnership with West Coast Frozen Foods to launch merchant export operations in Gujarat.
External Factors
Industry Trends
The industry is seeing a shift toward traceability and sustainability; Sharat is positioning itself through BSF-based feed and traceability systems.
Competitive Landscape
Competes in the fragmented seafood export industry; market dynamics are driven by quality certifications and supply chain reliability.
Competitive Moat
Moat is built on being India's oldest integrated aquaculture company with a 30-year track record and a unique 5km-radius integrated operational setup.
Macro Economic Sensitivity
Highly sensitive to USD/INR fluctuations as 76.6% of revenue is export-based; also sensitive to global inflation impacting consumer demand.
Consumer Behavior
Rising global demand for healthy, protein-rich seafood and health-conscious markets in the US and EU.
Geopolitical Risks
High concentration in the Russian market (67% of exports) poses risks from potential trade restrictions or geopolitical shifts.
Regulatory & Governance
Industry Regulations
Subject to high quality standards in the US, EU, and Russia; removal of government interest subvention is a key regulatory headwind for FY26.
Environmental Compliance
Investing in solar power and sustainable feed (BSF) to meet evolving ESG standards.
Taxation Policy Impact
Tax expenses for FY25 were INR 4.07 Cr, representing an effective tax rate of approximately 29%.
Risk Analysis
Key Uncertainties
Biological risks such as rampant shrimp diseases and climate change could impact farm yields by over 20%.
Geographic Concentration Risk
High geographic concentration with 67% of export sales coming from the Russian market.
Third Party Dependencies
Dependent on 55 farmer partners for raw material supply and West Coast Frozen Foods for Gujarat operations.
Technology Obsolescence Risk
Risk is mitigated by ongoing R&D in disease-resistant shrimp varieties and improved feed formulations.
Credit & Counterparty Risk
Uses customer buyback initiatives and merchant exporter models to mitigate customer default risks.
