Narmada Agrobase Limited: Sustained Growth and Strategic Diversification in H1 FY26

Narmada Agrobase Limited, a prominent player in the cattle feed and agro-based products sector, has reported a stable and encouraging financial performance for the first half of fiscal year 2026 (H1 FY26). The company, known for its strong brand presence and diversified product portfolio, continues to focus on strategic expansion and operational efficiencies. For H1 FY26, Narmada Agrobase recorded a total income of ₹23.6951 crore, with an EBITDA of ₹2.6151 crore, reflecting an EBITDA margin of 11.04%. Profit After Tax (PAT) stood at ₹2.0456 crore, achieving a net margin of 8.63%. These figures underscore the company's resilient operational model and its ability to sustain transactions across its core segments.

The company's business mix remains well-balanced, with cattle feed contributing 52% and cottonseed products accounting for 48% of the total revenue in FY25. This diversified structure is a strategic advantage, mitigating risks associated with single-category concentration and helping to maintain consistent margins despite fluctuations in raw material prices. Narmada Agrobase's flagship brands, including 'Gaay Chhaap', 'Narmada Super', 'Kala Sona', and 'Churma', continue to enjoy strong trust and recall among farmers and distributors, supported by an ISO 9001:2015 certified manufacturing facility in Mehsana, Gujarat.

Strategic Growth Initiatives

Narmada Agrobase is actively pursuing several strategic initiatives to drive future growth. The company is broadening its value-added product portfolio to include pelletized cattlefeed, molasses-enriched feed blocks, and cottonseed oil. These offerings are designed to provide superior high-margin potential and stronger differentiation, aligning with the evolving preferences of farmers towards scientifically formulated, high-efficiency feed variants. This move is expected to enhance overall profitability and market positioning.

In terms of market expansion, the company is strengthening its domestic network across high-demand cattle feed markets in Maharashtra, Madhya Pradesh, Punjab-Haryana, and Rajasthan. Simultaneously, Narmada Agrobase is scaling its export footprint into Southeast Asia, the Middle East, and Africa. This export diversification strategy aims to capitalize on the rising global demand for non-GMO, high-protein, and cost-effective livestock feed, positioning India as a key supplier in these regions.

Operational Excellence and Sustainability

Operational efficiency is a cornerstone of Narmada Agrobase's strategy. The company plans CAPEX investments in production automation, capacity expansion, and logistics infrastructure. These enhancements are expected to improve operational efficiency, support volume growth, and ensure consistent nutritional quality and uninterrupted performance, even during seasonal fluctuations. The company's rigorous raw material procurement model, which includes pre-booking contracts for cottonseed, molasses, and feed additives, helps mitigate price volatility and ensures supply security.

Sustainability is also a key focus, with the manufacturing facility designed with a zero-waste approach. By-products are utilized across textile, paper, and chemical industries, and the company incorporates renewable energy and water recycling initiatives to enhance eco-efficiency. This commitment to sustainable practices aligns with broader environmental goals and enhances the company's corporate responsibility profile.

Outlook and Management Commentary

Looking ahead, Narmada Agrobase's management anticipates continued growth, expecting FY26 revenue to surpass the previous year's results, with a stronger performance in the second half. Operating margins are projected to remain intact, reflecting confidence in their cost management and value-added product strategy. The company is also committed to launching farmer education and advisory programs to increase the scientific adoption of its feed variants, fostering greater trust and usage among its customer base.

While the company demonstrates strong operational and strategic clarity, some financial aspects warrant attention. The increase in working capital and borrowings in FY25, primarily due to inventory buildup, led to negative operative cash flow. Management has acknowledged this and indicated plans to reduce the working capital cycle. Despite these points, Narmada Agrobase's disciplined operating framework, strong brand backbone, and diversified product portfolio position it well to build on the momentum achieved in FY26 and strengthen its leadership in the livestock nutrition and agro-based product sector.