Apex Frozen Foods Limited (NSE: APEX) Q3 2026 Earnings Call dated Feb. 16, 2026
Corporate Participants:
Karuturi Chowdary — Managing Director and Chief Financial Officer
Durga Prasad — finance team
Analysts:
Suyash Samant — Analyst
Deepak Ajmera — Analyst
Nitin Awasthi — Analyst
Unni — Analyst
Harsh Shah — Analyst
Siddharth — Analyst
Sucrit Patil — Analyst
Yogansh — Analyst
Unidentified Participants — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Apex Frozen Foods Limited Q3 and 9 months FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions or after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shreya Samantha from Stellar IR Advisors. Thank you. And over to you sir.
Suyash Samant — Analyst
Thank you. Good morning everyone and thank you for joining us today. We have with us the senior management team of apex Frozen Foods Limited, Mr. Chaudhary Gharuturi, Managing Director and Chief Financial Officer and Mr. Durga Prasad, Senior Manager Accounts who will represent Apex Trojan Foods Limited. On the call, the management will be sharing the key operating and financial highlights for the quarter and nine months ended 31 December 2025 followed by a question and answer session. Please note this call may contain some of the forward looking statements which are completely based upon the Company’s opinions expectations as of today.
These statements are not a guarantee of the Company’s future performance and involve unforeseen risk and uncertainties. The Company also undertakes no obligation to update any forward looking statements to reflect developments that occur after a statement is made. I now hand over the conference to Mr. Chaudhary Karuturi. Thank you. And over to you Sir.
Karuturi Chowdary — Managing Director and Chief Financial Officer
Thank you sir. Good morning everyone and thank you for joining us on this Investor call for Q3FY26. We have uploaded the investor presentation on the website of the stock exchanges and we do hope that you had a chance to go through it. We would like to reiterate that diversification remains a key focus for us. Our non US export business has grown from around 37% in nine months of FY24 to nearly 51% in nine months of FY26 reflecting our continued efforts to expand across geographies and reduce dependence on any one single region. At the same time, the US remains an important market for both India and our company.
While tariffs were increased to 50% in August 2025, Indian shrimp export tariffs have now been reduced to 25% effective 7th February 2026. This development is expected to support an improvement in the volumes going forward. Another key development is the EU opportunity, the proposed India EU FTA indicating tariff reductions in a structurally positive development. It’s a structurally positive development for the industry as well as the company. In specific, while the benefits will accrue gradually, it strengthens the medium to long term growth outlook. Now coming to the financial performance in Q3FY26 the net revenue for the quarter grew 15% year on year to rupees 264 crores, primarily driven by higher shrimp sales to the European Union and improved average realizations.
The improvement in realizations was supported by firm global shrimp prices, a favorable currency exchange rate and also the impact of US tariffs. Sales volumes declined by 5% year on year to 2754 metric tonnes in Q3 FY26 compared to 2,903 metric tons in Q3 last year. Sales to the US declined by 12% year on year. However this was partly offset by a strong 22% year on year growth in sales to the European Union. Coming to the profitability in Q3FY26 lower raw material prices at rupees 327 per kilo in Q3FY26 versus 374 per kilo in Q3 of last year along with other cost and control measures aided the growth in profitability.
Overall EBITDA increased by 147% year on year to rupees 17 crores and the EBITDA margin improved by 344bps year on year to 6.5% in Q3 of FY26. While the previous quarter benefited from low Farmgate prices year on year they remain flat when compared sequentially and witnessing a rising trend in the current quarter. The profit after tax in Q3FY26 increased to rupees 10 crores from approximately rupees 50 lakhs in Q3 of FY25 now coming to nine months FY26 typically a softer quarter like I just mentioned. Sorry. With regard to the 9 months FY26 the net revenue stood at Rupees 761 crores up 23% year on year.
Sales volume increased by 2% year on year to 8373 metric tons. Sales to the European market continued their strong momentum registering a growth of 20% year on year whereas sales to the US declined marginally by 1%. EBITDA grew 143% year on year to rupees 53 crores with EBITDA margin of 6.9%. A growth of 336 bips. Year on year. The profit after tax stood at rupees 31 crores versus rupees 2 crores in nine months of FY25. Looking ahead as we enter Q4, FY26, typically a softer quarter. Sorry, like I just mentioned, we are witnessing an uptick in the farm gate or raw material prices.
Further alongside recent US tariff updates. Realizations may realign in the near term. However, we believe that both the eu, the US and the EU trade developments are structurally positive and will support a stronger and more sustainable demand for the Indian shrimp industry in general. In conclusion, despite the headwinds over the past few quarters and years, we have remained focused on strengthening our fundamentals, reinforcing the balance sheet, reducing debt, maintaining disciplined cost control and diversifying our revenue base to enhance resilience. We continue to position ourselves to benefit from improving market conditions as they unfold. We remain committed to driving sustainable business development and long term growth.
With that, we can now open the floor for question and answer session. Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Deepak Ajmera with IGE India. Please go ahead. Hello, your line has been unmuted.
Deepak Ajmera
Hello? Am I audible?
operator
Yes sir.
Karuturi Chowdary
Yes.
Deepak Ajmera
So thank you for the opportunity. My question in on side of the. Revenue that considering the Europe FTA and now the tariff has been reduced from the usa, what kind of revenue are we expecting in two years and how. The ramp up of our facility will. Be will be seen from here and on the part of the margin, what margins can we see in near future?
Karuturi Chowdary
So with regard to revenue specifically of course we need to first acknowledge that the recent trade agreements and also the reduction both on the EU as well as the US relaxation in tariffs, definitely it will be boosting the volumes which will, you know, enhance the company’s utilization also of its capacities, which is, you know, and that obviously with increased volumes and with a stable pricing, we definitely expect higher revenues compared to earlier for the past two years. So overall we do expect a higher growth in the revenue with regard to, you know, going into the future, especially with these plus points which are there in the market because of the relaxation of the duties which are there both in the EU and sorry and the tariffs in the US I think that would be, you know, with regards to.
Because of the volume enhancement, obviously that will be enhancing the volume or sorry revenue also over the next two years. So specifically it should be you know like around, approximately, around 1200 plus crores over the next two years. And of course as depends as how the utilization happens. But we are very confident with regard to utilization and growing our volumes and obviously as the volumes grow the revenue also would be picking up margins. We expect a stable pricing in the global export markets. We expect a stable pricing depending, however, depending on our raw material farm gap prices in India the margins would be, you know, will be placed and.
But however at the EBITDA level we are pretty much confident that with these changes in the market at the beta level, the present level would be sustainable going forward. So going into the future that is our idea as of now.
Karuturi Chowdary
Okay, thank you for.
operator
Thank you. The next question comes from the line of Nitin with incorrect research. Please go ahead.
Nitin Awasthi
Hello sir, two questions. Firstly, I want to understand when you say EU and the presentation says eu, do you include UK market in that or do you exclude UK from that?
Karuturi Chowdary
UK is not included in the eu. No. Yeah, it’s only the Europe EU block.
Nitin Awasthi
Understood. So that would be part of others if it.
Karuturi Chowdary
Yeah, others. Okay.
Nitin Awasthi
So now that being clarified, given that both these markets were one previously when there was a lot of blockage for India to export to the whole block which included UK and now at least there is a bifurcation, both are working with their own regulations. Do you see anything happening in a speedier manner in any one of them? Specifically in UK because lesser countries, lesser regulation hurdles.
Karuturi Chowdary
Well see, there is no relaxation with regard to regulations as such. Even though these free trade agreements are being worked out and they are being finalized or they are, they are finalized, regulations will continue. However we will be placed on a level playing field with when compared to our competition, other Asian or South American competition who do not have any tariffs or sorry any duties. So obviously currently India, we Indian shrimp are levied 4.3% of tariff, around 4.3% of duties for import in both into EU as well as UK and so obviously those will be.
We are expecting them to be removed first. It will happen in the UK because as you are all aware that the UK FTA was signed much more in advance compared to the EU which was done recently last month. And the EU would anyway take time for a few months maybe hopefully in FI. But before in FY27 we should be able to see the effect of that. The UK of course as I stated it will be much earlier but the regulatory part is not really going to change. But again certain non tariff barriers to get to the right point may be brought down.
For example with regard to 50% mandatory testing of Indian shrimp consignments into the UK should most likely be relaxed much earlier to answer your question. And, and. And the EU as well would be most likely following suit. But that has. We haven’t yet received clarity on that. But definitely with regard to the these sort of non tariff barriers. Yes there. There could be a relaxation and that will definitely as I state we mentioned earlier we will be placed on a compared to at the same level as the other competitive nations with whom we are competing with.
So yeah that is in one way since we would be on a level playing field that is definitely an advantage to our industry as well as the company. We could focus on growing more volume which we have been losing to others because of these non tariff barriers also apart from tariff barriers.
Nitin Awasthi
Understood sir. So second question. Given that you now have your large archery operator who across the coast of Andhra Pradesh how has been the demand how has been working since January? Were the hatcheries very busy? Because that would kind of give a lead indication as what the farmers are thinking. Because that would be in a way because the first season to anticipate the first season from the farmer side would be you having a very busy January February on the hatchery side.
Karuturi Chowdary
Oh yes. With regard onto the. With regard to the hatchery operations we are operating of course in the south currently the major hatchery which is there we are operating there was definitely a lot of conservative approach until the end of 2025 by the farmers because of the various disease related issues and overall market, you know mood being dampened because of these tariffs from USA especially. But however now the temperatures also have improved. This usually stockings happen in January but this year it is a little bit kind of got late because of very cold temperatures in the.
You know almost till the end of January. But that temperature is also improving along with it. The good news that some of these tariff barriers are being removed definitely has created a positive momentum among the farmers also. So currently yes the stockings are going on and definitely like you rightly mentioned the hatchery operations are going in a. In a very in a good way. That is an encouraging point. Come when it comes to. Finally it will come to the. When it comes to the supply side. Like you. Yeah like you are Stating it will be.
It’s a positive sign for the supply going into the future. Let us say in another two to three months when the crop will start will be harvesting sometime around March, April onwards. So it’s a. Yeah. We are looking at a positive impact this time because of these issues which were prevailing last year. Especially the US tariffs, those being squared off and removed. So that definitely that is also creating a positive momentum among the farmers. Yes.
Nitin Awasthi
But you mentioned more operations happening on the southern side of where of course you have one hatchery. You had two close to Orissa on the northern side of Andhra. Those two are not operational or are they operational?
Karuturi Chowdary
We are. We are not operating them. Of course the southern side one is the major. Actually we have two units there actually. So we are operating them in a. In a more of a. In an efficient manner. Of course we are also shipping. We are sorry, we are also shipping from there to other parts of the country and not restricting to Andhra. So more on an operational point of view since we have two large units there, we are operating up from the south.
Nitin Awasthi
Thank you.
Karuturi Chowdary
Thank you.
operator
Thank you. The next question comes from the line of Unni with Gojeeth Investments Ltd. Please go ahead.
Unni
Am I audible?
Karuturi Chowdary
Yeah.
Unni
First of all, thanks for the opportunity. And my question is regarding the realization in sales in terms of dollar and inr and in that how much of the tariff has been passed on to the customers?
Karuturi Chowdary
With regard to the realization in rupees it was for the quarter it is 914 rupees. However, we also need to acknowledge the fact that this is the average realization. However, we need to acknowledge the fact that this also comprises of the tariffs payable to the US government. That’s why it is high. But on an average 9 months it was 864 rupees as far as realized per kilo compared to 711 rupees of last year 9 month FY25. So but this is inclusive of the tariffs and with regard to tariffs from the U.S. charged by the U.S.
most of it. Of course, most of it has been taken care by the customers because these were brought in by the U.S. government. So this is more of a policy from that government. And they have been taken care by the customers. But that did create a dent in their volume plans from us. That’s why our volumes to the US also have dropped until. Until the last quarter. So that we expect again to be stabilizing. So. Yes, 914 rupees, sir.
Unni
Okay. One more question. In case of other expense, how much is the tariff and how much is the percentage amount?
Karuturi Chowdary
See, the tariffs was 50% of the FOB value. So that translated to Prasad error, That was 46 crores. With regard to the tariff component alone.
Unni
This quarter.
Karuturi Chowdary
Yeah. Only this. Yeah. So you want the nine months. Nine months.
Unni
Only this quarter.
Karuturi Chowdary
Only this quarter. Only this quarter. Only this quarter. Okay.
Unni
Sorry.
Karuturi Chowdary
It was 46 crores.
Unni
Okay.
Karuturi Chowdary
For Q3.
Unni
Okay. One more question. So in this quarter, what is the average farm gate price and what is the current outlook of the same?
Karuturi Chowdary
Average purchase price for the company was 327 rupees which was I think stated in the opening remarks. It was 327 rupees for the company based on the sizes which it has purchased during the quarter. Q3. Yeah. And sorry, your, what was your other question?
Unni
Like the current, current situation of the farm guide, is there any increase?
Karuturi Chowdary
There has been an increase, of course, I think which was also stated in our, in our opening remarks, the farm gate prices have increased. They have been increasing even in fact during Q3 itself they have marginally been increasing and currently they are little higher. They have increased by almost 30, 40 rupees roughly per kilo. But again this is more driven by the supply, demand, supply scenario. Presently as a usual, every year it will be around this time. It will be like that around Jan. February. That’s right.
Unni
Okay, one more last question. Like after the EU fta, is there any new orders coming for the ready to eat products?
Karuturi Chowdary
We have been getting the ready to eat orders even before the UFTA and we believe we will be continuing to grow them going forward with the FTA in place.
Unni
So is there an expectation in the volumes in future?
Karuturi Chowdary
Yeah, that’s. Yes, correct. That’s what we have stated. That’s what we just said. We already have ready to eat orders even from the eu. But now that is going growing in a small, in a slow manner. But now with the fta, when the FTA takes effect and we get the reduced rates applicable from eu, we are confident that our customers are going to place more orders with regard to the ready to eat from the EU customers.
Unni
So is there any volume guidance that you can provide for the future FY27.
Karuturi Chowdary
At this time? Let us wait. We will provide you of course, as we do more ready to eat for the EU market, we will be informing you. But like we also stated to one of the earlier participants, the effectiveness of the EU Trade Agreement FTA hasn’t yet been done. It will take its time. Most likely sometime in the FY27. We don’t know which quarter of FY27. But we are very confident that once that is done, we will be having an uptick in the orders with regard to Ready to eat also. So but for now we are focused on increasing the Ready to Eat products irrelevant and irrespective of the FDA since we have got the approval for the Ready to eat in the beginning of this financial year.
I mean, sorry, during the Q1. Q end of Q1. So we are using that, you know, opportunity and we are focusing on growing the Ready to Eat volume. So we’ll provide you better idea hopefully by the end of the fiscal year as we grow our orders.
Unni
Okay. Okay. Thank you sir. Thank you so much. Thank you.
operator
The next question comes from the line of HER Shah with Seven Rivers Holding. Please go ahead.
Harsh Shah
Yes, good afternoon sir. So my question was that I mean we operated of course quite low capacity at almost 30 to 33% now with tariff related uncertainties reduced significantly and we are obviously guiding much better growth going ahead. So how should we look at margins? I mean I’m not holding on to any number but say if we reach to decent capacity utilization, say something like 65, 70% then what kind of, I mean it may happen two, three years down the line then. But what kind of margins are we looking at? I mean how is the business designed? What kind of margins can it achieve at optimal capacity utilization assuming that the current raw material and shrimp prices prevail?
Karuturi Chowdary
Well, we have stated earlier also that we would be maintaining the present sustainable EBITDA levels. We’ll be able to sustain the present EBITDA levels which is 7% and odd. And of course as volumes pick up going into next year and the year after, we should look at higher margin levels also as we would definitely have the advantage of the scale of operation and also the costs being rationalized overall. So yeah, so that in that regard as stated it will be between 7, 10% currently and as we grow more of our ready to eat, we should look at 10% plus also.
But currently we would state we would be able to sustain these levels and not looking anything lower or looking back of what happened in the past earlier two years.
Harsh Shah
Okay. And US has reduced tariff from 50 to 18%. So is there a specific different tariff for shrimps and aqua product at 25%?
Karuturi Chowdary
No, see the US has reduced from 50 to 20, they removed the penal tariff of 25%. I have removed the penal rate of 25% for Russian oil component and as far as reducing from 25% to 18%, it hasn’t yet taken effect which is what we stated as of 2-7-2026 it has reduced the 25% has been reduced thereby. The net tariff impact on the company or the industry is 25%. That’s what we stated once they would affect the reduced rate of 18 we would obviously you know that will take effect and we will make the changes accordingly.
We will be paying lesser but apart from that you all know that already the anti dumping duty and countervailing duty are there separately. That is always there. So that’s always, that’s been there already this without the tariffs. So but currently we are paying tariff of 25%. That’s what we can see as of now.
Harsh Shah
Understood. And sir, how is the supply from Ecuador, Vietnam and with 25% tariff on US now, how do we compete with them in terms of prices?
Karuturi Chowdary
Well, supply from Ecuador is definitely of course they are the number one producing nation in the world obviously and they have been very strong and they are also of course that is continuing even making their you know, presence felt in the U S market also that will be there. We don’t expect it to be getting any slow or but we are not sure at this point whether they will, they will ramp up any further. As we understand there have been issues with regard to them finding market space, their production beyond certain point. As far as Vietnam is concerned their production has been stable but we haven’t heard any major uptick in their supply side.
So we are, we need to watch how it will be in 2026 scenario. Currently as you know everybody will be going for stocking in the Asian markets. Everybody will be going for stocking after coming out of the winter climate. So we should look, we should see how it will be in the current year. But Ecuador is maintaining its supply of 1.4 1.5 million metric tons I think.
Harsh Shah
Okay. And yeah, in terms of pricing, I mean how do we compare with Vietnam and Ecuador on FOB basis?
Karuturi Chowdary
Obviously FOB basis they would be having a. With regard to Ecuador, their FOB pricing of course is on a higher side. They could get some advantage in the past few months, last six months we can say for the almost five to six months during the time we paid that 25% additional they were definitely getting some advantage. But that whether it will continue going forward or not we are not sure. Now as far as Vietnam is concerned they have some other issues which we don’t have a final confirmation that they are likely to be getting a higher anti dumping duty rate which we do not have the information yet as of Now.
Harsh Shah
Okay. And so it’s been a week. I mean 7th of February is what you’ve mentioned in the PPT that tariff has come down from 50 to 25%. I know it’s still early days but it’s been like eight to 10 days. But have you. Have you seen any significant increase in order inquiries from. From US market specifically?
Karuturi Chowdary
Yes. Yes.
Harsh Shah
Okay. Okay. Okay. That’s quite good. Thank you. Thank you so much.
Karuturi Chowdary
Thank you.
operator
The next question comes from the line of Siddharth with I thought pms. Please go ahead.
Siddharth
My question is like on a nine month basis the top the revenue is up BY Almost. Let’s say 20 percentage. Right. And 23 percentage. Right. But out of this increase the volume is just up 2 percentage. So how much of this is sheerly driven by the tariff component? Tariff and like forex component.
Karuturi Chowdary
Nine months. The usa looks. I think you already. See on the. See for the nine months. If we see almost. We have. The US has been around 49%. So of course whether it is 10% extra tariff or 25% tariff or subsequently it was 50% now which is again coming down. Roughly 49% of the sales was meant for the US which is also stated in our presentation. Now with regard to the exchange rate. As far as the exchange rate is concerned. Average difference between the exchange rate of.
Siddharth
390 crores. 9 months. Yes.
Karuturi Chowdary
390 crores.
Siddharth
Yes sir.
Karuturi Chowdary
No, that is 390 crores. But because of tariffs that has grown in regard to the realization of US sales. But then again at the same time the even the pricing were also remaining stable. In general between Q1 and Q2 in the nine months period Q1 and Q2 the unit value at FOB level also was higher. Especially so mainly the only the US sales was affected because of the tariffs. But the other markets didn’t get affected because of the tariffs component. It is the overall market pricing itself remains stable. And apart from that the exchange rate.
Foreign exchange. 3 crores. No, no. 9 months.
Siddharth
11 crore 54 lakhs.
Karuturi Chowdary
In the 9 months there was 11 crore increase. Mainly because on the. On the account of foreign exchange difference.
Siddharth
Okay.
Karuturi Chowdary
Hello. Yeah. Yeah. Nine months. It is 11 crores only on the exchange. With regard to the exchange fund because the depreciating rupee.
Siddharth
Okay, so like another like related to this like the other expenses for nine months. Right. It is up by almost 75 percentage. Like is that because of the tariffs? Yes, yes.
Karuturi Chowdary
Yes. In the nine months the tariff component alone whether it is 10%, 25% or 50% all put together. Only the tariff component.
Siddharth
86 crores are 42%.
Karuturi Chowdary
86 crores was the total tariff component in the nine months. Whatever rate it is 10% part of the sales, 25% some sales and also 50%.
Siddharth
So at the same time for nine months of last year that 86 crores will be almost zero, right?
Karuturi Chowdary
Yeah. It was not there, right? Last year nine months that was not there.
Siddharth
Okay, so one more question I have is like now that the tariff is reduced, do you like, what do you think will be the realization going forward in the U.S.
Karuturi Chowdary
Well, the realization of course in the. In the case of US it will get corrected because of the same way. At the same time the tariff expenditure also would not be there. So that you by now it is very. We should understand here that whatever increase in the case of realization was there, it was also offset with regard to the tariff payable in the expenditure side. Like you rightly asked, in the other expenses component, even tariff was there. So that now I think from this quarter with the tariffs being at 25%, obviously the realization for the US sales to that extent 25 on FOB it will be getting reduced compared to, you know, earlier period.
Earlier nine months. Sorry, earlier three, four. I think it was around four, four or five months between August, August to December, August to January. Almost six months. Sorry, almost six months. It was the 50% effective rate was there.
Siddharth
Okay, so like how. What would be the price difference between India and Ecuador for your product categories in the US right now with the 25 percentage tariff.
Karuturi Chowdary
See the customers with regard to the currently the European Ecuador and Indian pricing both are would be obviously there are. The customers are willing to pay and at least buy from India in the reduced tariff regime. Because earlier it was 15% and 50%. But yes, Ecuador pricing was much higher which we stated earlier. Also they were able to get some advantage. Not some. They were able to get some good advantage. Good advantage because of the tariffs on India until recently they were able to get higher pricing for the demand which was there, which could not be taken up from India because of these high tariffs.
Now the tariffs being reduced from 50 to 25%. Definitely there is certain. You know, with the positivity among the customers also would want to go back to India and place the orders. So currently yes, Ecuador will likely be trying to charge higher. But at the same time India which is a very consistent and reliable with regard to deliveries. The customers are looking towards buying from India in a. You know, back looking back at India rather than go, you know having to deal with any lesser dependable sources, whichever they are, any part of the world, not specific to Ecuador.
Siddharth
Thank you. And all the best.
Karuturi Chowdary
Thank you.
operator
Thank you. The next question comes from the line of Sukhru D. Patil with Eyesight Fin Trade Private Limited. Please go ahead.
Sucrit Patil
Good afternoon to the team. I have two questions. My first question is, you know, beyond the guidance which you have given, just want to understand your view on the growth outlook. How will Apex Foods manage risk and uncertainty in its core business particularly revolving around global shrimp demand, export market volatility and raw materials cost. What strategic choices will help the company stay strong, you know, even if there are some external pressures on. Thank you. That’s my first question. I’ll ask my second question after this.
Karuturi Chowdary
With regard to, you know, export markets, obviously diversification is the key which we are, which have been, which we have been doing and we, we will continue to put in our efforts so that we are not. We are insulated from any one individual market effect like we had in the beginning of this. Since we have, we have had it since the beginning of this year because of this tariffs. That’s one of the reason why we have been pushing more volume to other markets than ever before. Obviously when we have our, you know, our stakes placed in different markets obviously we would be insulating ourselves from any major hits or any major issues like this with regard to the raw material.
Obvious as stated definitely in a stable shrimp market environment. Now one of the, for example recently with the guidance being given by the nutritionists, even by the US FDA example specifically with regard to seafood and shrimp, there is always. We expect better demand to be growing overall because of the average consumption per capita consumption also growing over the next, you know, into the future because of these guidances being given against rather promoting more white meat like seafood, you know, so that obviously will have its relative impact at the sourcing side with regard to production at the farm level because steady demand also enables for a stable production at the farm level.
So that way I think that that company will by diversifying itself to different markets will insulate itself from any one specific issue. That’s one of the. That’s we have proven by growing our volume into other markets also this year especially. And so I think that answers with regard to the company as well as on the supply side as we stated just now, the demand being stable and it also picking up by increase in consumption overall in different markets that will also create a positive environment for the. For a stable production at the farm level. Farming level.
Sorry. And of Course for us, we will continue to grow our network and relationships with our farmers even more by supporting them at the primary production area whether by. Whether it is the seed from our hatcheries or in other. In other ways that can enable us to have a stable supply say also for our company. Yeah, I think.
Sucrit Patil
Thank you. Thank you. My second question to Mr. Prasad is beyond the margin commentary. How will Apex manage financial risk and uncertainty in areas like receivables, working capital and forex? And forex. What set of rules will ensure earnings quality stay even, even in certain volatile conditions? Want to understand your point of view and plan of action on this. Thank you.
Durga Prasad
The work with regard to receivables, actually we don’t have any, we don’t have any issues as such. We of course have been more prompt in ensuring that our receivables are received in a timely manner both within the country as well as from the customers outside the current one minute. The current. If you see our. Both our inventory days as well as our data days are also maintaining low overall of course our total working capital days is currently at 108 as of September. But of course that is even coming down even further because both our data days as well as our inventory days are also coming down.
And with regard to forex risk of course we do cover our risks by way of forward contracts which are supporting our realizations to the extent required. So. But in a depreciating rupee environment, definitely the market is also very supportive for our realizations as stated earlier. So that that way we are able to manage these risks with, you know, by in an efficient manner, working capital. The data cycle observed.
Sucrit Patil
Thank you and best wishes.
Karuturi Chowdary
Thank you.
operator
Thank you. The next question comes from the line of Yogansh with Mittal Analytics. Please go ahead.
Yogansh
Hi. Thanks for the opportunity sir. Most of the questions have been answered. Just one question. I had the last phone call you had mentioned about our efforts in developing newer markets like Russia and Australia. If you could just broadly talk about our efforts over there and how those are yielding any benefits or what is the kind of volume that you’re expecting from a market like Australia and Russia and any other key markets that we are seeing coming up for us, we.
Karuturi Chowdary
Are, we are continuing to pursue those and I think by the end of this financial year we would be able to start our sales there. If not, or at least early April. We are continuing our discussions in that regard. There are certain regulatory restrictions with regard to Australia which we are discussing with our customers and we are working in mitigating them by Ensuring that we are meeting those standards, their expectations at the. You know, at the border with regard to their health authorities and with their testing. So we are confident that both those two markets which you have specifically mentioned, we will be able to start volume even in a smaller manner.
Starting from most likely, if not by Q4, by Q1, that is next fiscal FY27, Q1 onwards. We should be able to start our sales in a slow manner. But as we. Because this is the first time market also the customers also have to test the product as they. We see a huge good potential, to be precise, in both those markets we see a good potential. And definitely that will be an added boost for the company in FY27. Especially with these two markets. Apart from there are a few more markets which we don’t want to stated at this time.
But we are confident that this will help us going into the future. Especially next year, in the next one quarter onwards.
Yogansh
Right, sir. So one more question. Sorry if it has been already answered. I got dropped in between so I might have missed it. Any numbers that you can share on the capacity utilization scale up that you are expecting for FY27?
Karuturi Chowdary
Well, we. We are current, of course we are like earlier somebody has stated it’s current this year. For the full year it is around 33, 30. But we expect to push it up to by another 10, 15% and try to take it up to at least 50% by FY27. So we will see how we. How that goes. But currently we are planning for that as of now. As far as the utilization is concerned. Capacity utilization is concerned.
Yogansh
Got it. And so still this major scale up would be from our normal capacity and the ready to eat and ready to cook which is for the European market. That will follow up in the later half of DFY27, right?
Karuturi Chowdary
No, that will. It is part of that. When I. When we mentioned. Yeah, yeah, it is part of that.
Yogansh
That’s it. From my cycle. Thank you. And all the very best to you and your team.
operator
Thank you. We have a follow up question. It’s on the line of Siddhartha with I thought bms. Please go ahead.
Siddharth
Hi sir. So I just had one question. Like for the this quarter and for nine months, what would be the capacity utilization of the ready to eat in comparison to the last year?
Karuturi Chowdary
Last year. Okay. As far as the current quarters ready to eat sales was there. As far as sales is concerned, there has been a drop by 1% because of of course the US sales not coming into play and the Europe still picking up that was at around 7%. Last year’s Q3FY25 we did around. We did around 8% and on a full but however, of course during the first two months we did some good quantity. Sorry, first Q2 quarters. So on a nine month basis last year it was 10% for nine months and this year it was 11.
It increased marginally by 1%. As far on ready to eat especially.
Siddharth
What would be the utilization be.
Karuturi Chowdary
Utilization would pretty. That is what on the ready to eat especially we have. Oh, that’s on the total sale. Sorry, with regard to the utilization that would be currently around. One minute please. It’s around. That is around currently. Yeah, sorry, that was currently it is around 11% and with on the. Yeah, currently it was around 11% of ready to eat and there is a good headroom for us to grow a lot on that. Only on the ready to eat capacity what we have utilized as of this year, it’s only around 11%.
Siddharth
So what was the same last nine months?
Karuturi Chowdary
10%. 10%. 10%. It was lower last year.
Siddharth
Okay, thank you.
operator
Thank you. The next question comes from the line of M. Srinivas, an individual investor. Please go ahead.
Unidentified Participants
Good afternoon sir. Thanks for providing this opportunity. So from the recent news that I’ve been listening to like the most of the farmers are shifting to Black Tiger because of this global uncertainty. Did you see any outage in the supply going forward?
Karuturi Chowdary
No, both. I mean there are of course farmers who are switching to Black Tiger in some areas, but vannamei is still there. Apart from those disease issues, it’s good that there are an alternative species as such Black tiger also. So we did not see a major issue with regard to vanname production dropping down significantly because parallel this is especially in the state of Andhra Pradesh, lot of quite a number of farmers. We shouldn’t say a lot. There are farmers in certain areas who have been switching over to Black tiger. But parallel there has been vanname growth in other states.
Okay, yeah, that has also been happening parallelly. And now venomy or shrimp farming is not restricted to the coastal states any longer. This has gone more inland also. Aquaculture is being done more in inland also. Some of the northwestern states also have been increasing, especially into Haryana and Rajasthan. But again in Orissa, Bengal and Gujarat also the Vaname has been there. It has also been increasing. So overall definitely Black Tiger has increased in the state of Andhra Pradesh compared to earlier years because of, you know, certainty increasing for certain farmers or they’re based on their strategy.
But however, vannamei hasn’t seen a significant drop with regard to the supply as such it is because as I stated in other states also vannamei has been growing overall so that way Black Tiger did not. Black Tiger crop as our supply did not really reduce the vanname supply if that is what you are trying to find out.
Unidentified Participants
Okay. My second question is regarding this anti dumping duty. I think US government is reviewing the anti dumping duty and they are coming up with a retrospective effect. So did you see any such big fit in the P and L in Q4? Q sorry 23:24 I think some review has been conducted by US Department FDA and they are playing anti dumpling duty with the cross sector effect. I think there is an increase in the pricing like earlier it is 1.35% now they have been revised to like 3.86 or like 3.6 right?
Karuturi Chowdary
Okay. Yes.
Unidentified Participants
In the upcoming quarter we should be seeing. We.
Karuturi Chowdary
We will be knowing about that more. Yes. In the Q4 once because they have made that effective. I think this week onwards they announced it last middle of last week they will be. They made it effective this week so that will be there for a prospective payments. Yes. Means there will be a marginal increase on the anti dumping duty from. Not marginal sorry from 1.35 to 3.5 like you rightly stated that will be there. That will be effective from this mostly in this week onwards. Yes. So going forward it will be effective. That’s what you were asking?
Unidentified Participants
Yeah. My last question is on the debt side sir. I think when I was observing the balance sheet there is a significant decrease in the short term borrowing.
Karuturi Chowdary
Yeah.
Unidentified Participants
Almost like 140 crores to 40 crores. But there is no impact on the receivable days or turnover days. Like what made such a significant downsizing of the debt.
Karuturi Chowdary
No sorry there is. Receivables of course have also been prompt. But at the same time our receivables mainly from government departments including GST input, all those credit those also have been typically receivables which are there. Our data are only pertaining to our receivables. Right. Our. Whereas receivables from the government are also there. So obviously they are have been more prompt in this year, especially over the past two to three quarters we have been pursuing them and we have been receiving them much earlier. That is how it is. But at the same time there are. We have also increased certain customers who are.
Who also pay in much earlier period. So based on the terms which we are negotiating with them though that is the new set of business which has been brought in this year in FY26. So that both together from the government side as well as certain new customers also are prompting for improvement. And as along with it utilization of inventories also you know makes it possible for us to. You know that is obviously liquidation of stocks enhances, you know, the capital in hand. So definitely that is another key point which is there. So within these three parameters we have been reducing our overall debt for borrowing short term borrowing from the banks.
Okay.
operator
Thank you. The next question comes from the line of Harsha with Seven Rivers Holding. Please go ahead.
Unidentified Participants
Hi sir, thanks for the follow up. Responded to a book on bookkeeping site. What was the export incident for nine months?
Karuturi Chowdary
3. 37.62 crores.
Durga Prasad
37.
Unidentified Participants
37. Okay, okay, got it. Sure. Thanks.
operator
Thank you. The next question comes from the line of Anthony Joy, an individual investor. Please go ahead.
Karuturi Chowdary
Yes please.
operator
Anthony, can you please use your handset please?
Unidentified Participants
Hello sir, can you hear me right now?
Karuturi Chowdary
Yes please.
Unidentified Participants
Okay. In the last call you were saying that the inventory level in US has come down. Is the inventory level in the US. Is still low at this moment?
Karuturi Chowdary
No, sorry. See in the inventory level in the US at that time was lower because of all these factors where certain imports also got delayed. Shipments got delayed because of these tariffs confusion and all that. That was that. But we. But in the case of Q3 we need also need to factor in the holiday sales also play a major role and how you know the sales happen in. In that market post tariff regime is a very important part. We need to see whether the consumption is at the same rate at that high pricing, you know, at the.
At the retail level or at the restaurant level that also will have an impact. We need to see how that would be. But as of now we don’t see any shortage of inventories at the. On the US side. But of course wherever any. The requirements overall from India have been increasing slowly. Inquiries have been picking up like we stated to another participant earlier post tariff reduction. But as with regard to the inventories it is more dependent on how the holiday sales have happened. Especially during Christmas and New year and this month we should see how it will be.
This is the Lent season typically where a lot of consumers move towards white meat and avoid red meat altogether. It’s especially in the U.S. europe. So we need to see how that would be affecting the overall mintries. So we are not having a clear picture of that at this. As of at this point to answer your question. Right sir.
Unidentified Participants
Another question is how about the freight charges? Have they come down after the tariff.
Karuturi Chowdary
No, there was no change price. The freight rates have, freight charges have been lower this whole year. There have been no increases in freight rates. In fact, they have been, yes, they have been coming down in phases, but they are pretty much at among the lowest levels. I mean, pretty much at the lowest levels. When we compare it to Covid time or during the pandemic time. This is very, very low and very at a reasonable level to be precise as far as the freight expense, freight rates are concerned. Thank you.
Unidentified Participants
Thank you so much.
Karuturi Chowdary
Thank you.
operator
Thank you, ladies and gentlemen. That was the last question for today. I now hand the conference over to Mr. Chaudhary for closing comments.
Karuturi Chowdary
Thank you one and all for making it to our Investor call for Q3FY26 results. And you may always reach out to us for any queries or clarifications on irpexfrozenfoods.com that is email address irapex frozenfoods.com thank you. And we thank the stellar team also for supporting us on this. Thank you. Have a nice day.
operator
Thank you. On behalf of apex Frozen Foods Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank. You.