Narmada Agrobase Ltd

Page 2 of 10 Ladies and gentlemen, good day and welcome to the Narmada Agrobase Limited Q1 FY’26 Earnings Conference Call hosted by Kirin Advisors Private Limited.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing the “*” then “0” on your touch-tone phone. Please note, this conference is being recorded.

I now hand the conference over to Mr. Harshil Ghanshyani from Kirin Advisors. Thank you and over to you, sir.

Thank you. On behalf of Kirin Advisors, I welcome you all on the conference call of Narmada Agrobase Limited.

From the Management Team, we have Mr. Neerajkumar Agrawal – Chairman and Managing Director. Now, I hand over the call to Mr. Neerajkumar Agrawal. Over to you, sir.

Hello. Good afternoon. Myself, Neeraj Agrawal – Chairman and Managing Director. Thank you for joining us today. It is my great pleasure to welcome you all to Narmada Agrobase Limited Inaugural Conference Call.

Let me begin here with you an update on the company's performance, strategic direction and

Our company Narmada Agrobase, incorporated in 2013 and headquartered in Mehsana, Gujarat, is a BSE-NSE listed company engaged in the manufacturing and supply of cattle feed and cotton feed based agro products. With more than a decade of experience in ISO 9001-2015 certification, the company has established itself as a trusted name in livestock nutrition. Our flagship brands are Gaay Chhaap, Narmada Super, Churma, enjoy strong recognition in the quality, consistency and reliability across domestic markets. The cattle feed industry continues to offer long-term growth opportunities. Rising demand for high protein and nutrient-rich feed is being driven by increasing dairy consumption. A strong focus on higher productivity and gradual shift towards organized livestock farming in India.

India, with one of the largest cattle feed populations globally, is witnessing growing demand for balanced cattle feed formulation, where we hold competitive edge on the global market.

Opportunities in Southeast Asia, the Middle East and Africa are expanding as these regions see cost-effective and non-GMO cattle feed solution areas. Looking ahead, our growth strategy is centered on regional market expansion into Maharashtra, Madhya Pradesh along with the diversification into value-added products such as pelletized cattle feed and cotton seed.

Page 3 of 10 We also have strong potential in export market with target to scale international revenue to 15% to 20% of turnover over the next three years. At the same time, our commitment to sustainability through zero-waste operation, renewable energy adoption and eco-friendly packing remain integral to our strategy.

In Q1 FY’26, we delivered a stable performance, our total income stood at Rs. 11.41 crores.

EBITDA for the quarter and was Rs. 1.65 crore, reflecting a Q-O-Q growth of 82% with margin of 14.47%. An expansion of 1.140 bps supported by efficient commercial procurement and cost control. Profit after tax stood at Rs. 1.02 crore, registering a Q-O-Q growth of 31% with margin at 8.93%, an expansion of 630 bps.

With this, we now open the floor for the question-and-answer session.

Thank you very much sir. We will now begin the question-and-answer session. The first question comes from Vinod Shah, an individual investor. Please go ahead. Vinod Shah, your line has been unmuted. Please go ahead with your question.

Yes, sir. So, the company aims to increase export revenue contribution to like 50% to 20% in next year. So, what steps are being taken?

For this, we are getting our registration done on B2B portal as well. We are also talking to the company in Vietnam. So, we will do our best. We are already doing our by-products. So, we will try to do extra in that as well.

Okay. Sir, we are in the original market for key driver expansion. So, which are the new markets where we are expanding? And what will be the contribution? Meaningful contribution from revenue management. Maharashtra, Punjab, Haryana, so, how are we expanding there?

As you know, our company is developing its own brand. So, this cattle feed is used everywhere.

So, we are trying to reach everywhere, North Rajasthan, Punjab.

Okay, sir. Sir, the diversification that we are doing in value-added products, like fortified blocks.

So, what sales are we expecting in that? And when will it start? And what will be the impact on its top-line and margin?

Page 4 of 10 We are doing full R&D for that. We can give you good growth according to the rest of the data.

So, you can mail us the perfect data. You can mail us the company's mail id or anything else. We will make a strategy for you. Okay, sir. So, that is all. Thank you.

Thank you. The next question comes from Mahesh Seth. Please go ahead. Mahesh, your line has been unmuted. Please go ahead with your question. Hello. Can you hear me? Yes.

So, good afternoon. My first question was that you highlighted that our strong brand recognition for Gaay Chhaap, Narmada Super and Churma. So, how are you planning to further strengthen this brand visibility in new regional market? Please repeat the question.

So, my first question was that you highlighted that our strong brand recognition for Gaay Chhaap, Narmada Super and Churma. So, my first question was that what are you planning to further strengthen this brand visibility in new regional market?

Gaay Chhaap has been our family brand since last forty years. And we are going to other areas through our dealer. We are sending advertisement materials everywhere. We are going to put it on social media as well. So, through dealer?

Even our district court has given us brand first status.

Okay sir. Sir, I was saying that if you look at the overall cattle feed industry, it is benefiting a rising demand for nutrient rich formulations. So, how will it affect our Narmada Agrobase product portfolio? Sir, please speak a little louder.

Sir, I was saying that if you look at the overall cattle feed industry, it is benefiting a rising demand for nutrient rich formulations. So, how will it affect our Narmada Agrobase product portfolio? And what initiatives will we take to meet this evolving nutritional need?

Page 5 of 10 Sir, the cattle feed that we make is already chemical free. All our products are natural. And our main product is rich in protein and fat. We are a premium brand. Our brand is already a living brand.

Okay. And you mentioned once again that in South-East Asia, Middle-East and Africa, you are looking for opportunities. We are trying our best. Hello. Yes, we are exploring them.

So, I was asking that what is our competitive advantage that we can compete in international markets?

Our main focus is quality assurance. We are already promoting it everywhere. We focus on quality, that is why people have faith in us. We do not use any chemicals. Other brands use urea as well, but we do not use any urea.

Okay. Thank you. I will join the queue for further questions. Thank you.

Thank you. The next question comes from the line of Balwish Kumar. Please go ahead.

Thank you so much, sir. Sir, please tell me about your distribution and dealer strategy. We are expanding to a new geography. So, what will be our distribution strategy?

Mostly, we give goods to wholesalers, the ones who are reputed in every city, like in big towns.

So, we give them goods. Then they sell it to retailers. After investigating only wholesalers sell it to good parties.

Okay. Sir, we are looking towards at international revenue. Can you tell me about the proportion of Asia-specific from international revenue? How much is coming from the Middle East? How much is coming from Africa?

We are still in the developing stage. We are still exploring. In the next two, three years, you will get to see.

Sir, how much revenue is expected from cotton seed oil in the medium term?

Page 6 of 10 Okay. Thank you, sir. That are all the questions. If there are further more questions, I will join the queue again.

Thank you. The next question comes from the line of Aditi Roy. Please go ahead. Hello, sir. Good afternoon. Good afternoon.

Sir, sustainability is our important strategy. Can you tell us Hello. There is some disturbance in the voice. Hello. Is it clear now? Yes.

Sustainability is an important strategy in our operation. So, can you tell us what initiatives are we taking on Zero Waste operation for renewable energy and eco-friendly packaging?

Yes, ma'am. Exploration is going on for that. Our team is working on its R&D Renewable energy, just like white coal, it is a waste product which is used in the industry for heat generation.

Our R&D is going on. We also have orders. We are also thinking about biogas. But it is a different field. It is a different field of diversification. The white coal that is used instead of coal is a natural product.

Okay, sir. My next question is that even though there was a lot of volatility in raw materials, our growth was stable in Q1 FY’26. So, what are the procurement strategies that have helped us to improve our margins? So, what were the strategies?

Sir, we take care of it daily. We have an idea of it. We keep an update of it. We keep purchasing raw materials. There is no issue of volatility.

Okay, sir. Sir, I have one last question is regarding our B2B business model. So, how do you expand your long-term customer retention and client base? What are your strategies?

We do not maintain the client because our quality is superior. So, our client does not go away.

Once the client comes, they stay with us. Okay, sir. Thank you.

Thank you. The next question is from the line of Vinod Shah. Please go ahead.

Page 7 of 10 Sir, in this quarter, EBITDA margins have improved a lot despite raw material volatility. So, what structural changes have you made in the margins due to which the margins are sustaining?

We have procured more raw materials by taking cash benefits. So, the profit was good.

Okay, sir. And how is the trend of working capital cycle going on? And what do you think will be the impact of this when the utilization and sales volume will increase more?

The WC cycle will reduce; it will reduce more than what it is at present. Our sales are increasing.

Okay. And climate related risks like erratic monsoon which affects the supply of cotton. How exposed are you to that and what is the contingency measure?

We have not faced any climate related issues till now.

Okay, sir. That is all. If I have more questions, I will join the queue. Thank you.

Thank you. The next question comes from Abhishek Sharma. Please go ahead. Abhishek Sharma, your line has been unmuted. Please go ahead with your question.

So, my question is what is your planned CAPEX allocation for financial year 2026-27 and how much will be directed towards capacity expansion versus efficiency improvement? Pardon. I cannot understand. Hello. Yes, sir.

My question is that the CAPEX allocation which you have planned, how much capacity will be used in financial year 2026-27?

It is going on, actually we will get improvement in that. It will start completely from next year.

Okay. Sir, we have achieved sustainable growth in financial year 2026. So, how will the internal milestones and KPI be tracked closely? What did you want to ask?

Sustainable growth, how will we closely track its internal milestones and KPI management.

Page 8 of 10 Sir, I will provide you with a detailed response. You may also write to the company’s official email address or to Kirin Advisors’ official email address, and they will share the detailed information with you. Alright.

The next question comes from the line of Mahesh Seth. Please go ahead.

So, I have one more question. What strategies are we deploying to increase the stickiness of our dealership and to reduce the distribution churn in the competitive market. What strategies are we deploying?

We are doing full marketing. We meet new dealers. We take care of the wholesalers. We do not even have bad debts. Okay. We take references from new dealers. Okay. And the next question is... Please speak a little louder.

Sir, I wanted to ask, the growth that is coming from the wholesalers and our retail presence in India, How do you balance that? Say it again.

The growth that is coming from the wholesalers and our retail presence across India. How are we balancing our wholesale and retail business?

Mainly we give focus to communication and advertising. Our brand detail goes to every retailer.

We keep spreading awareness about our brand.

Okay. Are you exploring any digital sales channels?

We have started an online B2B platform for export.

Okay. You have started an online platform for export. Okay.

Thank you. The next question is from the line of Abhishek Sharma. Please go ahead.

Page 9 of 10 Hello, sir. My question is, what is your current capacity and utilization?

We have a capacity of 4,000 tonnes per month. We are at 50% right now.

Okay. My second question is as the business scales up in new geographies. What do you think how its working capital requirements will change? It is manageable.

Okay. Can you provide guidance on margin sustainability for financial year 2026, especially on cotton seed prices?

You can send us an email on this matter. We will reply you in detail. Okay. Thank you.

The next question is from the line of Isha. Please go ahead. Isha, your line has been unmuted. Please go ahead with your question.

Hello, sir. My question is, can you share the impact on customers, like cotton oil as a diversification product? Can you explain about the approval of production of cotton oil currently? My second question is your products like mineral enriched nutrition products, are you investing in them? Are you doing research and development for specialized nutrition products?

Yes, we already have good quality products. And we keep up to date.

Are you investing in nutrition and mineral products?

I cannot understand your question. Please email us.

Okay, thank you.

It seems you’re a bit unclear about what exactly you’d like to ask.

Thank you. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Harshil for closing comments.

Yes, thank you. Thank you everyone for joining the conference call of Narmada Agrobase Limited. If you have any queries, you can write us at the research@kirinadvisors.com. Once again thank you for joining the conference call.

Page 10 of 10 Thank you on behalf of Kirin Advisors Private Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.