Narmada Agrobase Limited, established in 2013 and headquartered in Mehsana, Gujarat, is a manufacturer and supplier of cattle feed and various agro-based by-products. The company has carved a niche in the livestock nutrition sector with its flagship brands, "Churma" and "Gaay Chhaap Narmada Pashu Aahar," which are recognized for their consistent quality. Its operations are strategically based near Ahmedabad, providing excellent infrastructure and transport connectivity. The company adheres to high-quality standards, evidenced by its ISO 9001:2015 certification and in-house quality control processes that ensure the integrity of its raw materials and finished products. Narmada Agrobase has demonstrated a clear growth trajectory in its corporate journey, initially listing on the NSE Emerge platform in 2018 and successfully migrating to the Main Board of both the NSE and BSE in 2022. This progression reflects its expanding operational scale and commitment to higher standards of corporate governance.

Official Website: http://www.narmadaagrobase.com/

• Revenue Growth and Mix: Total income grew significantly by 31.7% from ₹5,039.22 Lakhs in FY24 to ₹6,633.91 Lakhs in FY25. The company's revenue stream is well-balanced between its two primary segments: Cattle feed contributed 48% (₹3,152.48 Lakhs) and Cottonseed products contributed 52% (₹3,415.18 Lakhs) in FY25. A key growth driver is the expansion of exports, which grew from ₹1,012.80 Lakhs (20% of revenue) in FY24 to ₹1,248.29 Lakhs (19% of revenue) in FY25, indicating a sustained focus on international markets.

• Profitability Surge: The company has demonstrated exceptional growth in profitability. Profit After Tax (PAT) surged by 301% from ₹101.94 Lakhs in FY24 to ₹408.80 Lakhs in FY25. Similarly, EBITDA increased by 147% from ₹251.76 Lakhs to ₹623.82 Lakhs over the same period. This highlights strong operational leverage and margin improvement.

• Quarterly Performance: The growth momentum continued into FY26. For Q3 FY26, Total Income increased by 52.86% year-over-year, reaching ₹2,164.31 Lakhs. Profit After Tax for the quarter stood at ₹101.34 Lakhs, a modest 1.35% increase over the prior year's quarter, suggesting some margin pressure in the short term.

• Balance Sheet Strength: The company's financial position has strengthened considerably. Net Worth more than tripled, growing from ₹1,690.15 Lakhs in FY24 to ₹5,586.61 Lakhs in FY25. Concurrently, the Debt-to-Equity ratio improved dramatically from 0.57 in FY24 to a very healthy 0.17 in FY25, indicating a significant reduction in leverage.

• Cash Flow Dynamics: Despite strong profitability in FY25, the company reported a negative Cash Flow from Operating Activities of -₹1,592.67 Lakhs. This was primarily driven by a substantial increase in working capital, specifically inventories (which grew by 134% to ₹2,344.38 Lakhs) and trade receivables (which grew by 43% to ₹1,905.78 Lakhs). The cash position was bolstered by a significant inflow from financing activities (₹3,382.56 Lakhs).

• Return Ratios: Key performance indicators show marked improvement. Return on Equity (ROE) nearly doubled from 6.03% in FY24 to 11.24% in FY25. Return on Capital Employed (ROCE) also improved from 8.64% to 13.04%. Earnings Per Share (EPS) saw a substantial increase from ₹0.63 in FY24 to ₹1.56 in FY25.

The company exhibits robust top-line and bottom-line growth, coupled with a deleveraged balance sheet, though management of working capital remains a key operational focus.

• Strategic Raw Material Procurement: The company employs a proactive procurement strategy to mitigate price volatility. This includes pre-booking contracts during Q1 & Q2 to lock in prices for key materials and maintaining a 20-25% buffer stock to manage supply during peak demand seasons (Q3 & Q4).

• Strong Brand Equity and Client Loyalty: Narmada Agrobase has established strong brand recognition with brands like “Narmada Super”, “Gaay Chhaap”, and “Churma”. This is reflected in a very high client retention rate of 99%, with no significant client concentration risk.

• Efficient and Sustainable Operations: The manufacturing facility is designed with a zero-waste approach, utilizing by-products across other industries like textiles and chemicals. The company also focuses on sustainability through renewable energy and water recycling initiatives.

• Integrated B2B Model: The company operates on a high-volume, low-margin B2B model, serving a network of over 150 wholesalers and 1,000 retail points. This model is supported by ISO 9001:2015 certification and stringent in-house quality control, ensuring product consistency for bulk orders.

Narmada Agrobase's unique strengths lie in its sophisticated procurement strategy, high customer retention, and efficient, sustainable manufacturing processes.

• Cattle Feed Market: The Indian animal feed market, valued at ₹1,110 Billion in 2024, is projected to reach ₹2,025.1 Billion by 2033, growing at a CAGR of 6.9%. This growth is driven by India's position as the world's largest milk producer (24.76% of global output) and a structural shift towards scientific feed formulations, supported by government programs like the National Livestock Mission.

• Cottonseed Market: The India cottonseed market is valued at USD 0.87 billion in 2025 and is expected to grow to USD 1.16 billion by 2030, at a CAGR of approximately 5.9%. India is a global leader in cotton cultivation and one of the largest producers of cottonseed oil cake, a key by-product used as cattle feed.

The company operates in two distinct but related markets, both of which are projected to experience steady, long-term growth driven by fundamental agricultural and livestock trends in India.

• Geographic Expansion: The company is actively expanding its domestic footprint beyond its strongholds in Gujarat, Rajasthan, and MP. The next phase of growth targets key markets such as Maharashtra and the Punjab-Haryana region, supported by strengthening its dealer network.

• Export Diversification: A significant growth lever is the expansion into international markets. The company is targeting opportunities in Southeast Asia, the Middle East, and Africa for its cattle feed and cottonseed products.

• Value-Added Product Portfolio: To enhance profitability, the company is launching new value-added products. These include Pelletized Cattlefeed, Molasses-Enriched Feed Blocks, and Cottonseed Oil, which are expected to command higher margins.

Growth is being pursued through a clear, multi-pronged strategy focusing on domestic market penetration, export diversification, and margin-accretive product innovation.

• Tapping Global Demand: The push into exports allows the company to capitalize on rising global demand for non-GMO and organic feed. As a cost-effective Indian supplier, Narmada Agrobase is well-positioned to serve these markets.

• Margin Enhancement: The strategic shift towards value-added products like specialized feeds and cottonseed oil presents a clear opportunity to move up the value chain and improve overall profit margins.

• Operational Leverage: With current capacity utilization at only 50%, the company has significant headroom to scale production and meet growing demand without immediate, large-scale capital expenditure, creating an opportunity for substantial operating leverage.

The primary opportunities lie in leveraging its existing capacity to capture new markets and enhance profitability through a richer product mix.

• Existing Capacity and Utilization: The company's manufacturing facility in Mahesana, Gujarat has a total installed capacity of 40,000 Tons per annum (TPA). The current capacity utilization is approximately 50%, which provides substantial scope for volume growth in the near to medium term.

• Future Capex Plans: Narmada Agrobase has planned capital expenditure investments aimed at enhancing operational efficiency. These plans include production automation, targeted capacity expansion, and improvements to its logistics infrastructure to support future growth.

The company possesses significant unused capacity to fuel immediate growth, with future capex focused on efficiency and strategic expansion rather than necessity.

• Strategic Roadmap: The company's forward-looking strategy is centered on three core pillars: executing planned CAPEX for automation and infrastructure, aggressively pursuing export diversification into dairy-deficit and non-GMO markets, and maintaining a continuous focus on launching value-added products to enhance margins.

Narmada Agrobase's future plans are clearly defined, aiming to build a more efficient, geographically diversified, and profitable business.

• Significant Margin Expansion: The company has achieved a remarkable improvement in its profitability margins. The EBITDA margin more than doubled, increasing from 4.03% in FY23 to 8.40% in FY25.

• PAT Margin Growth: The Profit After Tax (PAT) margin saw an even more dramatic rise, expanding from 1.30% in FY23 to 6.16% in FY25. This indicates that the company is not only growing its revenue but is doing so more profitably.

• Drivers of Improvement: This margin expansion is driven by a combination of factors, including better operational efficiencies, cost management through its procurement strategy, and an improving product mix with the introduction of higher-margin, value-added products.

The company has successfully translated revenue growth into superior profitability, with a clear upward trend in both its operating and net profit margins.

• Raw Material Price Volatility: Like any agro-based business, the company is exposed to fluctuations in the prices of its key raw materials such as cottonseed and molasses. While its pre-booking and buffer stock strategy is designed to mitigate this, it remains an inherent industry risk.

• Working Capital Management: The negative operating cash flow in FY25, caused by a significant build-up in inventory and receivables, highlights a potential risk. Effective management of the working capital cycle is critical to ensure that profitability translates into healthy cash flow.

The primary risks are external price volatility and internal working capital discipline, both of which require continuous management focus.

• Shareholding Pattern: As of December 31, 2025, the promoter and promoter group hold a 50.30% stake in the company. The remaining 49.70% is held by the public, indicating a balanced ownership structure.

• Corporate Maturity: The company's migration from the SME platform to the Main Board of the NSE & BSE in 2022 is a significant milestone. It reflects a higher level of compliance, governance, and scale, which can increase investor confidence and liquidity.

The company has a stable shareholding structure and has successfully graduated to the main stock exchange boards, signaling its maturation as a public entity.