| Long track record of operations and experienced management
Being in the industry for more than a decade, company has established a significant track of operations in the domestic and international markets. The company sells their products under its own brand ‘Megaa’ and ‘Megaa Delight’ which are exported globally and also available in retail/wholesale chains in the domestic market majorly in the northeastern region of India. Further, the company’s established relationships with the West Bengal farmers provides them with ease of raw material procurement. The management, including Mr. Yogesh Gupta and Mr. Shankar Ramalingam, of MMPL have an extensive experience of more than two decades in the trading and export in the shrimp industry.
Acuité believes that the long-standing experience of the management shall continue to benefit the company going forward, resulting in steady growth in the scale of operations.
Diversified export presence supported by strong certifications
The company is recognized as a three star export house under Ministry of Commerce and Industry, Govt. of India. Further, the company is registered with Marine Products Export Development Authority (MPEDA), Export Inspection Agency (EIA), British Retail Consortium (BRC), Food Safety Standard Authority of India (FSSAI), US-FDA and other authorities globally. The company benefits from a diversified geographical presence with exports across Europe (54% of revenues in FY2026 (E)), Asia (29%), Middle East (10%) and North America (8%). Despite a decline in contribution from North America from 24% in FY2025 to 8% in FY2026 (E), the company has been able to partially offset the impact by strengthening presence in other geographies.
Acuité believes that such diversification and regulatory approvals support access to global markets and enhance the company’s credibility with large international customers.
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| Decline in operating performance in FY2026
The company reported a significant decline in operating income to Rs.183.12 Cr. in FY2026 (E) from Rs.244.12 Cr. in FY2025, reflecting a contraction of ~25% over FY2025. This decline was primarily driven by sharp increase in US tariffs, resulting in reduced exports to the US and decline in sales volume to 2,825 tons in FY2026 (E) from 4,174 tons in FY2025. Capacity utilisation also moderated to 51.75% in FY2026 (E) as against 72.43% in FY2025. While EBITDA margin improved marginally to 6.48% in FY2026 (E) from 5.72% in FY2025 and 5.81% in FY2024, PAT margin declined to 0.88% from 1.22% and 1.43% in the respective years due to lower operating leverage.
Acuité believes that the company remains exposed to external trade disruptions and demand fluctuations in key export markets.
Moderate financial risk profile
The company’s financial risk profile remains moderate, marked by elevated leverage and weakening debt protection metrics. Although gearing improved to 2.03 times as on March 31, 2026 (E) from 2.24 times in FY2025 and 2.36 times in FY2024, it continues to remain high. Further, coverage indicators weakened with interest coverage ratio declining to 1.77 times in FY2026 (E) from 1.93 times in FY2025. The debt service coverage ratio stood at 1.08 times in FY2026(E) and FY2025. Further, Total Debt/EBITDA deteriorated to 7.25 times in FY2026 (E) (FY2025: 6.70 times; FY2024: 6.66 times).
Acuité believes that improvement in profitability and deleveraging will remain key monitorables.
Intensive working capital operations
The company’s operations remain working capital intensive, with gross current asset (GCA) days increasing sharply to 248 days in FY2026 (E) from 190 days in FY2025. This was primarily driven by elevated inventory days of ~173 days in FY2026 (E) compared to 117 days in FY2025 due to slower inventory liquidation amid demand disruption. Debtor days remained moderate at ~60–65 days, although largely backed by letters of credit. The average utilisation of fund-based limits stood at ~78.58% over the past seven months ended March 2026, indicating continued reliance on bank borrowings.
Acuité believes that efficient inventory management and stabilisation in exports will be crucial to improve the working capital cycle.
Exposure to regulatory changes, tariff volatility and raw material price fluctuations
The company remains exposed to external factors such as regulatory changes in importing countries, fluctuations in tariff regimes and volatility in raw material prices. During FY2026 (E), a sharp increase in US tariff rates (which rose to elevated levels before being rationalised to ~10% in February 2026) significantly impacted export demand and led to a decline in revenue to Rs.183.12 Cr. from Rs.244.12 Cr. in FY2025. Such abrupt changes in trade policies highlight the inherent vulnerability of the company’s business model to geopolitical and regulatory developments.
Additionally, shrimp procurement prices are dependent on seasonal availability and aquaculture output, resulting in volatility in input costs. Given the fragmented nature of the industry and limited bargaining power, the company has limited ability to pass on cost increases to customers in a timely manner.
Acuité believes that the company’s profitability and scale of operations are likely to remain susceptible to changes in global trade policies, tariff structures and raw material price movements.
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