Sharat Industries Ltd Q2 FY26 Results: Shrimp Exports Soar 49% YoY, PAT up 54%, but Debtors Growing Faster Than the Prawns
1. At a Glance
If you thought shrimp farming was a slow business, Sharat Industries Ltd (SIL) just slapped that notion with a wet prawn. The ₹543 crore aquaculture player clocked a Q2 FY26 revenue of ₹149.73 crore, up a delicious 49% YoY, while net profit marinated up 54% to ₹5.74 crore. The stock’s sizzling at ₹138, up 150% over the last year, proving once again that shrimp can swim faster than mutual funds.
Operating margin stands at 7.97%, which for seafood veterans is like saying “we didn’t drown in diesel prices.” PAT margin hovers around 3.83%, while the company’s P/E ratio at 38x looks a bit salty compared to the industry average of 30x — but investors clearly think these prawns are premium.
With a return on equity of 9.02% and debt of ₹120 crore, Sharat is walking the tightrope between ambition and appetite. The only catch? Debtor days are 93, which means the prawns are gone, but the payments haven’t arrived yet.
2. Introduction
The seafood sector in India is like a family wedding buffet — there’s too much competition, lots of flash, and someone always ends up overcooked. Sharat Industries, however, has managed to stay in the main course. Born in 1990, this Andhra Pradesh-based company has evolved from a small hatchery operator into a vertically integrated shrimp empire — from seed to feed to freezer.
At ₹138 a share, the market seems to believe these prawns can keep dancing. But here’s the twist: while the share price is sizzling, the margins still feel like they’re cooking on low heat. With exports making up nearly 69% of revenues, Sharat is more global than it looks, but global markets can be as unpredictable as a monsoon election.
This quarter’s 49% revenue jump was the kind of growth seafood exporters dream of — especially in a year when freight, feed, and forex are all doing the tango. Yet, one look at the working capital tells you: Sharat’s management probably prays to the gods of receivables every night.
3. Business Model – WTF Do They Even Do?
Sharat Industries doesn’t just farm shrimp — it creates shrimp ecosystems. Think of it as the Reliance Jio of prawns. The company has five business divisions: Hatchery, Farm, Feed Mill, Processing Plant, and Cold Storage. It’s like an all-you-can-eat buffet where they own the kitchen, the chef, and even the prawns on your plate.
Let’s break it down (with sauce):
Hatchery: Produces around 500 million seedlings of Vannamei shrimp annually. It’s basically a maternity ward for seafood.
Farm: A 500-acre aqua Disneyland that churns out roughly 2,000 tons of shrimp per year.
Feed Mill: A 22,500-tonne feed plant, churning out branded feed under Vannastar and Aquaastar.
Processing Plant: Over 60,000 sq. ft. of FDA, HACCP, and BRC-certified space where the shrimps get their final corporate grooming before being shipped off to Russia, China, Europe, and the UAE.
Cold Storage: Keeps the prawns fresher than most corporate promises.
This vertical integration shields them from the whims of input costs, though not entirely — remember, shrimp feed prices are like Bollywood remakes: always rising, rarely justified.
4. Financials Overview
Metric
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
₹149.73 Cr
₹100.34 Cr
₹115.20 Cr
+49.2%
+29.9%
EBITDA
₹11.94 Cr
₹9.21 Cr
₹11.24 Cr
+29.6%
+6.2%
PAT
₹5.74 Cr
₹3.73 Cr
₹5.37 Cr
+53.9%
+6.9%
EPS (₹)
1.46
0.94
1.38
+55.3%
+5.8%
Commentary: Revenue is jumping like prawns in boiling water — 49% YoY growth! The company’s EBITDA margin holds near 8%, which is decent given the volatility in global seafood prices. PAT margin’s steady improvement shows they’re learning how to swim through rough seas, but the finance costs (₹2.8 crore this quarter) remind us that aquaculture doesn’t come cheap.
5. Valuation Discussion – Fair Value Range Only
Let’s whip up a valuation cocktail:
A. P/E Method Current EPS (TTM): ₹3.65 Industry P/E: ~30x → Fair Value Range (P/E basis): ₹110 – ₹150
B. EV/EBITDA Method EV: ₹649 Cr EBITDA (TTM): ₹36.8 Cr → EV/EBITDA = 17.6x (premium to peers like Apex Frozen ~14x)
