Detailed Rationale Crisil Ratings has assigned its ‘Crisil BBB+/Stable/Crisil A2’ ratings to the bank facilities of HMA Agro Industries Ltd (HMA; part of the HMA group).
The ratings reflect the group’s established market position and healthy financial risk profile. These strengths are partially offset by low operating profitability. |
Analytical Approach Crisil Ratings has combined the business and financial risk profiles of HMA and its subsidiaries/ wholly owned subsidiaries in the same business: Federal Agro Industries Pvt Ltd, HMA Food Export Pvt Ltd, FNS Agro Foods Ltd, HMA Natural Foods Pvt Ltd, Swastik Bone and Gelatines Pvt Ltd, Laal Agro Food Pvt Ltd, United Farm Products Pvt Ltd, JFF Export Pvt Ltd, Reliable Agro Foods and Indus Farmers Food Co LLP. These entities, together referred to as the HMA group, have common management and operational and financial linkages.
Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation |
Key Rating Drivers - Strengths
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Key Rating Drivers - Weaknesses
The operating margin has remained volatile over the years due to fluctuations in livestock prices and increased freight costs, which are typically passed on to customers with a lag of several weeks. This has contributed to quarter-on-quarter margin volatility, with margins of 0.47% in the first quarter of fiscal 2026, but a subsequent recovery to 4.4% within the first nine months of fiscal 2026, driven by the timely pass-through of these fluctuations. Nevertheless, in light of the current Middle East crisis, the affected region accounts for 20-22% of the group's revenues. The impact of container shortages leading to increased freight and insurance costs is partially mitigated by the group's efforts to negotiate with customers to absorb the increased charges under Free on Board (FOB) terms, as well as the stable consumer demand for buffalo meat. However, any adverse impact on business performance due to a prolonged crisis and continued increases in livestock prices could affect the earnings profile. The ability to sufficiently and timely pass on any price increases, supported by economies of scale leading to operating margins above 4%, remains a key rating sensitivity factor. |
Liquidity Adequate Bank limit utilisation was moderate at around 53% for the 12 months through September 2025. Cash accrual is expected to be Rs 170-200 crore against term debt obligation of Rs 13-15 crore annually over the medium term; and the rest will cushion liquidity. Current ratio was healthy at 1.21 times as on March 31, 2025. Strong gearing and moderate networth support financial flexibility and provide the financial cushion against any adverse condition or downturn in the business. |
Outlook Stable Crisil Ratings believes the HMA group will continue to benefit from the extensive experience of its promoters and established relationships with clients. |
Rating sensitivity factors Upward factors
Downward factors
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About the Group HMA Agro was established in 2008 under the Companies Act, 1956. HMA has been dealing in livestock and meat export Industry for four decades. HMA Agro reinforced its position as a trusted global supplier of high-quality, protein-rich food. With a footprint across 40+ countries, HMA remained committed to food security, nutrition, and the core belief of HMA Group is “We Believe in Quality.” Being recognised as a Five Star Export House, HMA continued to deliver safe, reliable, and affordable protein solutions, backed by advanced facilities, strong sourcing networks, and a sustainability-first approach. HMA along with its Group Companies operating through a robust network of 11 state-of-the-art facilities strategically located across five Indian states—Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, and Maharashtra with a Daily production capacity of 1,472 MT. The company derives most of its revenue through top five export markets i.e. Vietnam, Malaysia, Egypt, Saudi Arabia and Indonesia. HMA’s shares are listed on the National Stock Exchange and the Bombay Stock Exchange. |
Key Financial Indicators
Crisil Ratings Adjusted Numbers |
Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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Annexure - List of Entities Consolidated
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| Annexure - Rating History for last 3 Years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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* - Issuer did not cooperate; based on best-available information
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||
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Criteria Details
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