Narmada Agrobase Limited — Call Transcript 2025

Aug 28, 2025

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Date : 28[th] August, 2025

To, To, Head - Listing Operations, The Corporate Relations Department BSE Limited, National Stock Exchange of India Ltd. P.J. Towers, Dalal Street, Fort, Exchange Plaza, C-1, Block G, Mumbai – 400 001. Bandrakurla Complex, Bandra (E), Mumbai – 400051.

NSE SYMBOL: NARMADA BSE SCRIP CODE: 543643

Sub: Transcript of Earnings Call for Q1FY26

Dear Sir/ Madam,

We wish to inform you that the transcript of the earnings call hosted by Narmada Agrobase Limited (“the Company”) for the Unaudited financial results of Q1FY26, has been made available on the Company’s website https://narmadaagrobase.com/

We are also attaching the Transcript of the earnings call with this intimation.

Kindly take the same on your records.

For, NARMADA AGROBASE LIMITED

Digitally signed by NEERAJ SURESHCHANDR NEERAJ AGARWAL DN: c=IN, o=Personal, postalCode=380004, SURESHCHANDR st=Gujarat, serialNumber=806E30931DA0E036597741638607 46913925A7AB4A5261D3A16B2C5C115738B6, AGARWAL cn=NEERAJ SURESHCHANDR AGARWAL Date: 2025.08.28 12:52:31 +05'30'

NEERAJKUMAR SURESHCHANDRA AGRAWAL CHAIRMAN AND MANAGING DIRECTOR (DIN: 06473290)

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“Narmada Agrobase Limited Q1 FY '26 Earnings Conference Call”

August 22, 2025

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– MANAGEMENT: MR. NEERAJ KUMAR AGRAWAL CHAIRMAN AND MANAGING DIRECTOR – MODERATOR: MR. HARSHIL GHANSHYANI KIRIN ADVISORS

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Moderator:

Narmada Agrobase Limited August 22, 2025

Ladies and gentlemen, good day and welcome to the Narmada Agrobase Limited Q1 FY’26 Earnings Conference Call hosted by Kirin Advisors Private Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the “*” then “0” on your touch-tone phone. Please note, this conference is being recorded.

I now hand the conference over to Mr. Harshil Ghanshyani from Kirin Advisors. Thank you and over to you, sir.

Harshil Ghanshyani:

Thank you. On behalf of Kirin Advisors, I welcome you all on the conference call of Narmada Agrobase Limited.

From the Management Team, we have Mr. Neerajkumar Agrawal – Chairman and Managing Director. Now, I hand over the call to Mr. Neerajkumar Agrawal. Over to you, sir.

Neerja Kumar Agrawal:

Hello. Good afternoon. Myself, Neeraj Agrawal – Chairman and Managing Director. Thank you for joining us today. It is my great pleasure to welcome you all to Narmada Agrobase Limited Inaugural Conference Call.

Let me begin here with you an update on the company's performance, strategic direction and Industry outlook:

Our company Narmada Agrobase, incorporated in 2013 and headquartered in Mehsana, Gujarat, is a BSE-NSE listed company engaged in the manufacturing and supply of cattle feed and cotton feed based agro products. With more than a decade of experience in ISO 9001-2015 certification, the company has established itself as a trusted name in livestock nutrition. Our flagship brands are Gaay Chhaap, Narmada Super, Churma, enjoy strong recognition in the quality, consistency and reliability across domestic markets. The cattle feed industry continues to offer long-term growth opportunities. Rising demand for high protein and nutrient-rich feed is being driven by increasing dairy consumption. A strong focus on higher productivity and gradual shift towards organized livestock farming in India.

India, with one of the largest cattle feed populations globally, is witnessing growing demand for balanced cattle feed formulation, where we hold competitive edge on the global market. Opportunities in Southeast Asia, the Middle East and Africa are expanding as these regions see cost-effective and non-GMO cattle feed solution areas. Looking ahead, our growth strategy is centered on regional market expansion into Maharashtra, Madhya Pradesh along with the diversification into value-added products such as pelletized cattle feed and cotton seed.

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Narmada Agrobase Limited August 22, 2025

We also have strong potential in export market with target to scale international revenue to 15% to 20% of turnover over the next three years. At the same time, our commitment to sustainability through zero-waste operation, renewable energy adoption and eco-friendly packing remain integral to our strategy.

In Q1 FY’26, we delivered a stable performance, our total income stood at Rs. 11.41 crores. EBITDA for the quarter and was Rs. 1.65 crore, reflecting a Q-O-Q growth of 82% with margin of 14.47%. An expansion of 1.140 bps supported by efficient commercial procurement and cost control. Profit after tax stood at Rs. 1.02 crore, registering a Q-O-Q growth of 31% with margin at 8.93%, an expansion of 630 bps.

The performance underscores the strength of our B2B-focused business model and disciplined operation despite raw material volatility. We started FY’26 on steady notes with our focused approach and strong brand portfolio and expansion plans. We are confident of capturing opportunities in the evolving cattle feed industry and delivering sustainable growth of all stakeholders.

With this, we now open the floor for the question-and-answer session.

Moderator:

Thank you very much sir. We will now begin the question-and-answer session. The first question comes from Vinod Shah, an individual investor. Please go ahead. Vinod Shah, your line has been unmuted. Please go ahead with your question.

Vinod Shah:

Yes, sir. So, the company aims to increase export revenue contribution to like 50% to 20% in next year. So, what steps are being taken?

Neerja Kumar Agrawal: For this, we are getting our registration done on B2B portal as well. We are also talking to the company in Vietnam. So, we will do our best. We are already doing our by-products. So, we will try to do extra in that as well.

Vinod Shah:

Okay. Sir, we are in the original market for key driver expansion. So, which are the new markets where we are expanding? And what will be the contribution? Meaningful contribution from revenue management. Maharashtra, Punjab, Haryana, so, how are we expanding there?

Neerja Kumar Agrawal:

As you know, our company is developing its own brand. So, this cattle feed is used everywhere. So, we are trying to reach everywhere, North Rajasthan, Punjab.

Vinod Shah:

Okay, sir. Sir, the diversification that we are doing in value-added products, like fortified blocks. So, what sales are we expecting in that? And when will it start? And what will be the impact on its top-line and margin?

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Narmada Agrobase Limited August 22, 2025

Neerja Kumar Agrawal: We are doing full R&D for that. We can give you good growth according to the rest of the data. So, you can mail us the perfect data. You can mail us the company's mail id or anything else. We will make a strategy for you.

Vinod Shah: Okay, sir. So, that is all. Thank you.

Moderator: Thank you. The next question comes from Mahesh Seth. Please go ahead. Mahesh, your line has been unmuted. Please go ahead with your question. Mahesh Seth: Hello. Can you hear me?

Moderator: Yes.

Mahesh Seth: So, good afternoon. My first question was that you highlighted that our strong brand recognition for Gaay Chhaap, Narmada Super and Churma. So, how are you planning to further strengthen this brand visibility in new regional market?

Neerja Kumar Agrawal: Please repeat the question.

Mahesh Seth: So, my first question was that you highlighted that our strong brand recognition for Gaay Chhaap, Narmada Super and Churma. So, my first question was that what are you planning to further strengthen this brand visibility in new regional market?

Neerja Kumar Agrawal: Gaay Chhaap has been our family brand since last forty years. And we are going to other areas through our dealer. We are sending advertisement materials everywhere. We are going to put it on social media as well.

Mahesh Seth: So, through dealer?

Neerja Kumar Agrawal: Even our district court has given us brand first status.

Mahesh Seth: Okay sir. Sir, I was saying that if you look at the overall cattle feed industry, it is benefiting a rising demand for nutrient rich formulations. So, how will it affect our Narmada Agrobase product portfolio?

Neerja Kumar Agrawal: Sir, please speak a little louder.

Mahesh Seth:

Sir, I was saying that if you look at the overall cattle feed industry, it is benefiting a rising demand for nutrient rich formulations. So, how will it affect our Narmada Agrobase product portfolio? And what initiatives will we take to meet this evolving nutritional need?

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Narmada Agrobase Limited August 22, 2025

Neerja Kumar Agrawal: Sir, the cattle feed that we make is already chemical free. All our products are natural. And our main product is rich in protein and fat. We are a premium brand. Our brand is already a living brand. Mahesh Seth: Okay. And you mentioned once again that in South-East Asia, Middle-East and Africa, you are looking for opportunities. Neerja Kumar Agrawal: We are trying our best. Mahesh Seth: Hello. Neerja Kumar Agrawal: Yes, we are exploring them. Mahesh Seth: So, I was asking that what is our competitive advantage that we can compete in international markets? Neerja Kumar Agrawal: Our main focus is quality assurance. We are already promoting it everywhere. We focus on quality, that is why people have faith in us. We do not use any chemicals. Other brands use urea as well, but we do not use any urea. Mahesh Seth: Okay. Thank you. I will join the queue for further questions. Thank you. Moderator: Thank you. The next question comes from the line of Balwish Kumar. Please go ahead. Balwish Kumar: Thank you so much, sir. Sir, please tell me about your distribution and dealer strategy. We are expanding to a new geography. So, what will be our distribution strategy? Neerja Kumar Agrawal: Mostly, we give goods to wholesalers, the ones who are reputed in every city, like in big towns. So, we give them goods. Then they sell it to retailers. After investigating only wholesalers sell it to good parties. Balwish Kumar: Okay. Sir, we are looking towards at international revenue. Can you tell me about the proportion of Asia-specific from international revenue? How much is coming from the Middle East? How much is coming from Africa? Neerja Kumar Agrawal: We are still in the developing stage. We are still exploring. In the next two, three years, you will get to see. Balwish Kumar: Sir, how much revenue is expected from cotton seed oil in the medium term? Neerja Kumar Agrawal: Along with the data, you can email me. I will email you in detail.

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Narmada Agrobase Limited August 22, 2025

Balwish Kumar: Okay. Thank you, sir. That are all the questions. If there are further more questions, I will join the queue again. Moderator: Thank you. The next question comes from the line of Aditi Roy. Please go ahead. Aditi Roy: Hello, sir. Good afternoon. Neerja Kumar Agrawal: Good afternoon. Aditi Roy: Sir, sustainability is our important strategy. Can you tell us Neerja Kumar Agrawal: Hello. There is some disturbance in the voice. Aditi Roy: Hello. Is it clear now? Neerja Kumar Agrawal: Yes. Aditi Roy: Sustainability is an important strategy in our operation. So, can you tell us what initiatives are we taking on Zero Waste operation for renewable energy and eco-friendly packaging? Neerja Kumar Agrawal: Yes, ma'am. Exploration is going on for that. Our team is working on its R&D Renewable energy, just like white coal, it is a waste product which is used in the industry for heat generation. Our R&D is going on. We also have orders. We are also thinking about biogas. But it is a different field. It is a different field of diversification. The white coal that is used instead of coal is a natural product. Aditi Roy: Okay, sir. My next question is that even though there was a lot of volatility in raw materials, our growth was stable in Q1 FY’26. So, what are the procurement strategies that have helped us to improve our margins? So, what were the strategies? Neerja Kumar Agrawal: Sir, we take care of it daily. We have an idea of it. We keep an update of it. We keep purchasing raw materials. There is no issue of volatility. Aditi Roy: Okay, sir. Sir, I have one last question is regarding our B2B business model. So, how do you expand your long-term customer retention and client base? What are your strategies? Neerja Kumar Agrawal: We do not maintain the client because our quality is superior. So, our client does not go away. Once the client comes, they stay with us. Aditi Roy: Okay, sir. Thank you. Moderator: Thank you. The next question is from the line of Vinod Shah. Please go ahead.

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Narmada Agrobase Limited August 22, 2025

Vinod Shah: Sir, in this quarter, EBITDA margins have improved a lot despite raw material volatility. So, what structural changes have you made in the margins due to which the margins are sustaining? Neerja Kumar Agrawal: We have procured more raw materials by taking cash benefits. So, the profit was good. Vinod Shah: Okay, sir. And how is the trend of working capital cycle going on? And what do you think will be the impact of this when the utilization and sales volume will increase more?

Neerja Kumar Agrawal: The WC cycle will reduce; it will reduce more than what it is at present. Our sales are increasing. Vinod Shah: Okay. And climate related risks like erratic monsoon which affects the supply of cotton. How exposed are you to that and what is the contingency measure? Neerja Kumar Agrawal: We have not faced any climate related issues till now.

Vinod Shah: Okay, sir. That is all. If I have more questions, I will join the queue. Thank you. Moderator: Thank you. The next question comes from Abhishek Sharma. Please go ahead. Abhishek Sharma, your line has been unmuted. Please go ahead with your question. Abhishek Sharma: So, my question is what is your planned CAPEX allocation for financial year 2026-27 and how much will be directed towards capacity expansion versus efficiency improvement? Neerja Kumar Agrawal: Pardon. I cannot understand. Abhishek Sharma: Hello. Neerja Kumar Agrawal: Yes, sir. Abhishek Sharma: My question is that the CAPEX allocation which you have planned, how much capacity will be used in financial year 2026-27? Neerja Kumar Agrawal: It is going on, actually we will get improvement in that. It will start completely from next year. Our capacity utilization will double in 2026-27. Abhishek Sharma: Okay. Sir, we have achieved sustainable growth in financial year 2026. So, how will the internal milestones and KPI be tracked closely? Neerja Kumar Agrawal: What did you want to ask? Abhishek Sharma: Sustainable growth, how will we closely track its internal milestones and KPI management.

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Narmada Agrobase Limited August 22, 2025

Neerja Kumar Agrawal: Sir, I will provide you with a detailed response. You may also write to the company’s official email address or to Kirin Advisors’ official email address, and they will share the detailed information with you.

Abhishek Sharma: Alright.

Moderator: The next question comes from the line of Mahesh Seth. Please go ahead.

Mahesh Seth: So, I have one more question. What strategies are we deploying to increase the stickiness of our dealership and to reduce the distribution churn in the competitive market. What strategies are we deploying?

Neerja Kumar Agrawal: We are doing full marketing. We meet new dealers. We take care of the wholesalers. We do not even have bad debts. Mahesh Seth: Okay.

Neerja Kumar Agrawal: We take references from new dealers. Mahesh Seth: Okay. And the next question is... Neerja Kumar Agrawal: Please speak a little louder.

Mahesh Seth: Sir, I wanted to ask, the growth that is coming from the wholesalers and our retail presence in India, How do you balance that?

Neerja Kumar Agrawal: Say it again.

Mahesh Seth: The growth that is coming from the wholesalers and our retail presence across India. How are we balancing our wholesale and retail business?

Neerja Kumar Agrawal: Mainly we give focus to communication and advertising. Our brand detail goes to every retailer. We keep spreading awareness about our brand.

Mahesh Seth: Okay. Are you exploring any digital sales channels?

Neerja Kumar Agrawal: We have started an online B2B platform for export. Mahesh Seth: Okay. You have started an online platform for export. Okay. Moderator: Thank you. The next question is from the line of Abhishek Sharma. Please go ahead.

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Narmada Agrobase Limited August 22, 2025

Abhishek Sharma: Hello, sir. My question is, what is your current capacity and utilization? Neerja Kumar Agrawal: We have a capacity of 4,000 tonnes per month. We are at 50% right now. Abhishek Sharma: Okay. My second question is as the business scales up in new geographies. What do you think how its working capital requirements will change? Neerja Kumar Agrawal: It is manageable. Abhishek Sharma: Okay. Can you provide guidance on margin sustainability for financial year 2026, especially on cotton seed prices? Neerja Kumar Agrawal: You can send us an email on this matter. We will reply you in detail. Abhishek Sharma: Okay. Thank you. Neerja Kumar Agrawal: The next question is from the line of Isha. Please go ahead. Isha, your line has been unmuted. Please go ahead with your question. Isha: Hello, sir. My question is, can you share the impact on customers, like cotton oil as a diversification product? Can you explain about the approval of production of cotton oil currently? My second question is your products like mineral enriched nutrition products, are you investing in them? Are you doing research and development for specialized nutrition products? Neerja Kumar Agrawal: Yes, we already have good quality products. And we keep up to date. Isha: Are you investing in nutrition and mineral products? Neerja Kumar Agrawal: I cannot understand your question. Please email us. Isha: Okay, thank you. Neerja Kumar Agrawal: It seems you’re a bit unclear about what exactly you’d like to ask. Moderator: Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Harshil for closing comments. Harshil Ghanshyani: Yes, thank you. Thank you everyone for joining the conference call of Narmada Agrobase Limited. If you have any queries, you can write us at the research@kirinadvisors.com. Once again thank you for joining the conference call. Neerajkumar Agrawal: Thank you.

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Moderator:

Narmada Agrobase Limited August 22, 2025

Thank you on behalf of Kirin Advisors Private Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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