NHC Foods signs LOI to buy Agriconnect, a target in revenue decline
The ₹73-cr nano-cap has signed a non-binding LOI to acquire Mumbai-based agri-trader Agriconnect Solutions, whose FY25 revenue fell 67% to ₹117.6 cr. Price not set; three-month due diligence ahead.
— 4 earlier stories on NHC Foods Ltd. →What's new
- NHC Foods signed a non-binding LOI to acquire Agriconnect Solutions Private Limited.
- Agriconnect's FY25 revenue was ₹117.6 cr, down from ₹360.8 cr in FY24, with profit of just ₹2.9 lakh.
- Consideration is undetermined; independent valuation after three months of due diligence.
Why this matters
For a ₹73-cr market-cap company with ₹601 cr in FY26 revenue, this deal could add procurement and distribution scale. But the target's revenue has cratered and profits are negligible. The non-binding LOI means execution is far from certain.
What we're watching
- Whether Agriconnect can stabilise its revenue trajectory during the due-diligence period.
- The implied valuation multiple once an independent valuation is completed.
- How NHC plans to fund this after the recent FCCB conversion and UK subsidiary investment.
The full read
NHC Foods has signed a non-binding Letter of Intent to acquire Agriconnect Solutions Private Limited, a Mumbai-based agri-commodity trader. For NHC, a company with a market cap of just ₹73 crore and FY26 revenue of ₹601 crore, the deal could broaden its distribution reach. Yet the target's audited numbers demand caution. Revenue fell 67% to ₹117.6 crore in FY25, from ₹360.8 crore a year earlier. Profit? A mere ₹2.9 lakh. Consideration is still undetermined, pending three months of due diligence and an independent valuation. The LOI is new information, but it is early and non-binding. Execution risk is high. Hardly a done deal.
Questions answered
- Why is NHC Foods acquiring Agriconnect Solutions?
- NHC expects the acquisition to add procurement and distribution synergies to its existing agri-commodity business and provide working capital to expand the target's operations.
- What is the financial health of Agriconnect Solutions?
- Agriconnect reported audited revenue of ₹117.6 crore in FY25, down 67% from ₹360.8 crore in FY24, with a net profit of only ₹2.9 lakh. The sharp decline raises questions about its operations.
- How much will NHC pay for Agriconnect?
- No consideration has been fixed yet. The parties will obtain an independent valuation after completing a three-month due-diligence period.
- Is the deal binding at this stage?
- No. The Letter of Intent is non-binding. The acquisition is subject to due diligence, valuation, and board approval. NHC expects to complete the acquisition within three months of the LOI.
- Does this deal involve any related party or require regulatory approval?
- The filing states the deal does not involve any promoter-group interest and will not require regulatory approvals.
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All notes on NHCFOODS →- 2 Jul 2026 · 8:03 PM IST NHC Foods signs LOI to buy Agriconnect, a target in revenue decline
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