/** slug: pajson-fy26 title: Pajson Agro FY26: Growth Delivered, Margins Tested, Capacity Expansion Next shortTitle: Pajson Agro FY26 growth and expansion plan coverImageDescription: Ultra-realistic corporate financial cover image showing a clean desk setup with a laptop displaying a dashboard: a line chart rising from FY24 to FY26 for total income (96, 187, 257 crore), bar charts for EBITDA and PAT growth, and a gauge showing plant utilization at 86%. In the background, a subtle industrial processing facility silhouette and stacked raw cashew sacks to represent sourcing and processing. Neutral lighting, professional finance aesthetic, no logos or text labels. */

Pajson Agro FY26: Growth Delivered, Margins Tested, Capacity Expansion Next

Pajson Agro India Limited closed FY26 with a sharp step-up in scale. Standalone total income rose to ₹256.92 crore from ₹187.28 crore in FY25. EBITDA increased to ₹37.82 crore and PAT to ₹24.78 crore.

The year also mattered for a different reason. The company listed on the BSE SME platform in December 2025, and FY26 became the first period where the business had to balance growth execution with public market reporting discipline.

In H2 FY26, the company reported total income of ₹138.54 crore versus ₹100.85 crore in H2 FY25. EBITDA increased to ₹16.76 crore, while PAT rose to ₹10.57 crore. But profitability ratios softened in the second half. EBITDA margin declined to 12.10% (from 14.00%) and PAT margin to 7.63% (from 9.61%). Management attributed the compression mainly to raw cashew price movements, forex impact on imports, and IPO-related expenses.

A kernel-led business, with early brand optionality

Pajson Agro’s revenue is overwhelmingly driven by cashew kernels. In FY26, cashew kernels contributed 93.49% of product revenue mix, while raw cashew nuts contributed 4.65%, by-products 0.85% and others 0.97%.

A small but notable developing thread is the consumer brand Royal Mewa, which sells packaged dry fruits online. The investor presentation shows Royal Mewa revenue growing from ₹66.13 lakh in FY25 to ₹432.96 lakh in FY26. Even after that jump, the brand’s contribution is still modest at 1.68% of FY26 revenue. But the pace of growth is meaningful because it signals the company’s intention to add a B2C layer to a business that is largely B2B.

Management also reiterated that the company is focused on institutional and distribution channels. Segment mix has shifted over time: institutional revenue contribution rose to 33.96% in FY26 from 20.88% in FY25, while distributors contributed 65.21%.

Financial snapshot and what changed in H2

Pajson Agro’s FY26 results show strong topline momentum and profitability at the full-year level, but H2 margins show the sensitivity of the model to input costs and currency.

In H2 FY26, the company’s total income grew 37.38% year-on-year to ₹138.54 crore. EBITDA grew 18.68% to ₹16.76 crore and PAT grew 9.04% to ₹10.57 crore. The slower PAT growth relative to revenue is consistent with the margin compression discussed in the call.

Management framed the decline in H2 EBITDA margin and PAT margin as a combination of currency movement, raw material price impact, and one-time listing-related costs. On the call, management also explained that FX risk sits on the procurement side because raw material is imported.

Working capital also needs monitoring. The cash flow statement shows operating cash flow at -₹13.91 crore in FY26, while investing cash flow was -₹71.54 crore and financing cash flow was +₹83.99 crore. The balance sheet shows inventories rising to ₹37.59 crore and trade receivables to ₹18.24 crore at FY26 end. Management explained that receivables increased because of a higher push towards institutional customers, which typically involves more credit.

Capacity, sourcing, and the next leg of growth

Pajson Agro operates a cashew processing unit in Andhra Pradesh with installed capacity of 18,000 MTPA and stated utilization of about 86% in FY26. The company has a sourcing network across multiple African origins such as Ghana, Ivory Coast, Nigeria, Guinea-Bissau, Tanzania, Togo and Burkina Faso.

On the earnings call, management stated that in FY26 about 93% to 94% of raw cashew nuts were imported and only 6% to 8% came from domestic Indian crop. This import dependence improves access to scale but increases exposure to INR movement. The company stated it is initiating hedging mechanisms with banks and exploring longer-term arrangements with shipping lines to reduce logistics volatility.

The central strategic project is the greenfield expansion at Vizianagaram, Andhra Pradesh. The investor presentation highlights land acquisition of 7.73 lakh sq. ft. and an incremental 35,000 MT capacity addition, alongside a longer-term target of 65,000 to 70,000 MT by FY30. On the call, management indicated a similar FY30 ambition, referring to 70,000 MT.

The timeline and ramp-up guidance were clearly discussed in Q&A. Management guided for trial production in November or December FY27, commercial production from Q4 FY27, and utilization of around 15% in FY27, 65% to 70% in FY28, and 85% to 90% thereafter.

The company also quantified potential scale from the additional capacity. Management stated peak revenue from the incremental capacity could be about ₹475 crore at 85% utilization.

Capex visibility is also relatively transparent for a small-cap expansion story. The investor presentation states that site clearing and land leveling have been completed and foundation work is ongoing. It also discloses that as of 31 March 2026, purchase orders of ₹39.53 crore were issued and advances of ₹10.47 crore were paid, with ₹25 crore of further POs planned in Q1 FY27. On the call, management stated total capex for the new capacity is about ₹76 crore, excluding land.

What to track from here

Two themes stand out from the FY26 documents.

First, the business is scaling fast, but it remains a commodity-linked model with currency exposure. Management’s steady-state margin guidance is 15% to 16% EBITDA, with an expectation of improvement later as scalability benefits come through, though without giving an exact number.

Second, the company is placing a large bet on automation-led scale through its greenfield unit. Management described the new unit as enabling more automation due to a clean-slate design, compared to the existing facility that was expanded progressively over time. The ramp-up guidance into FY28 makes FY27 more of a transition year, with meaningful impact expected later.

Royal Mewa remains early but adds an additional narrative lever. Management has signaled brand investment, but also stated it will not trade off profitability just to grow visibility. If the company can grow branded revenue while keeping the core institutional and distributor engine running, it could create a more diversified earnings profile over time.

The near-term investor checklist is straightforward: commissioning timelines, utilization ramp, operating cash flow improvement, and margin stability as hedging and pass-through measures take effect. FY26 established the base. The next two years will test execution.