At a Glance
IFB Agro, the quiet maker of booze and prawns, delivered a Q1 net profit of ₹18 Cr on sales of ₹293 Cr, with an improved OPM of 8%. The stock, now at ₹834, is up 48% in a year but trades at 1.27× book. Debt? Almost zero. Growth? Flatter than day-old beer.
Introduction
Think of IFB Agro as that party guest who brings quality whiskey but doesn’t say much. The company juggles alcohol bottling, marine exports, and animal feed. Q1 FY26 saw profits double YoY, but sales growth remains slow. With ROE at just 4.3%, it’s like serving champagne in paper cups—fancy but not impressive.
Business Model (WTF Do They Even Do?)
- Alcohol Division: IMFL bottling & bulk alcohol supply.
- Marine Division: Processed seafood exports.
- Feed Segment: Shrimp feed & additives.
Revenue mix: Alcohol 70%, Marine 25%, Others 5%. They make money, but in small sips.
Financials Overview
- Q1 FY26 Sales: ₹293 Cr
- Net Profit: ₹18 Cr (+101% YoY)
- OPM: 8%
- ROCE: 6.8%
- ROE: 4.3%
Verdict: Profit improved, but margins still not party material.
Valuation
- P/E: 22×
- CMP/BV: 1.27×
- Fair Value Range: ₹700–₹850
DCF says “hold my beer”, while market says “meh”.
What’s Cooking – News, Triggers, Drama
- New Auditor Appointed (July 2025): Governance clean-up.
- Zero Debt: Good news, but growth is slow.
- Marine Exports: Demand steady, but global pricing volatile.
- Alcohol Biz: Better margins in branded segment.
Drama level? Low—just routine boardroom yawns.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 631 | 636 | 720 |
| Liabilities | 631 | 636 | 720 |
| Net Worth | 552 | 553 | 612 |
| Borrowings | 16 | 11 | 6 |
Commentary: Balance sheet cleaner than a bartender’s counter.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 34 | -31 | 72 |
| Investing | -17 | -33 | 12 |
| Financing | -7 | -7 | -6 |
Punchline: Positive cash flows, but not raining money.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 4% | 4% | 4% |
| ROCE % | 13% | -2% | 7% |
| D/E | 0.03 | 0.02 | 0.01 |
Verdict: Safe balance sheet, boring returns.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,246 | 930 | 1,059 |
| Net Profit | 51 | -11 | 25 |
Commentary: FY24 loss was a hangover, FY25 recovery is mild.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| United Spirits | 12,069 | 1,630 | 59× |
| Radico Khaitan | 4,843 | 345 | 104× |
| Tilaknagar | 1,434 | 230 | 43× |
| IFB Agro | 1,087 | 35 | 22× |
Humour: Compared to peers, IFB is the sober cousin at a booze party.
Miscellaneous – Shareholding, Promoters
- Promoters: 65% (steady)
- FIIs: 0.7% (tiny sip)
- DIIs: 1.1%
- Public: 33.2%
Promoter holding is strong, but no growth story to hype.
EduInvesting Verdict™
IFB Agro is debt-free and profitable, but growth is stuck in slow motion. For risk-averse investors, it’s a decent sip. For thrill-seekers, better cocktails exist in the market.
Final Word: A safe peg, but won’t get you high.
Written by EduInvesting Team | 28 July 2025
SEO Tags: IFB Agro, Alcohol Stocks, Marine Exports, Distilleries, FMCG
