💰 Financial Performance

Revenue Growth by Segment

Total consolidated revenue grew 12.6% YoY in HY FY26 to INR 3,216.05 Cr. The Shrimp Processing segment showed robust growth of 61.5% YoY (INR 822.65 Cr vs INR 509.46 Cr), while the Shrimp Feed segment grew 2.0% YoY (INR 2,393.40 Cr vs INR 2,345.96 Cr).

Geographic Revenue Split

Not explicitly disclosed in available documents, though the company highlights strong volume growth in the 'export business' as a primary driver for the 19.0% YoY revenue increase in Q2 FY26.

Profitability Margins

Net profit margin improved to 10.5% in Q2 FY26 from 9.0% in Q2 FY25. HY FY26 PAT margin stood at 11.0% compared to 9.1% in HY FY25, driven by higher operational efficiencies and other income.

EBITDA Margin

Consolidated EBITDA margin for HY FY26 was 15.8%, a significant improvement of 270 bps from 13.1% in HY FY25. Q2 FY26 EBITDA margin was 15.1%, up 200 bps YoY.

Capital Expenditure

Historical capital expenditure on Property, Plant, and Equipment including capital advances was INR 152.53 Cr for FY25, compared to INR 131.06 Cr in FY24, representing a 16.4% increase.

Credit Rating & Borrowing

The company maintains a low-debt profile with non-current borrowings of INR 10.46 Cr as of March 31, 2025. Finance costs for FY25 were INR 2.25 Cr, up from INR 1.31 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Principal raw materials (including ingredients for shrimp feed) accounted for a total purchase value of INR 4,258.16 Cr in FY25. These materials are noted for high price volatility based on market conditions.

Raw Material Costs

Cost of Goods Sold (COGS) for HY FY26 was INR 2,332.64 Cr, representing 72.5% of revenue, compared to 77.6% in HY FY25, indicating improved procurement or pricing strategies.

Manufacturing Efficiency

Operating expenses grew 38.7% YoY in HY FY26 to INR 474.98 Cr, while operating profits rose 38.1% YoY to INR 408.43 Cr, reflecting a scale-up in processing activities.

Logistics & Distribution

Other expenses, which include distribution and logistics, were INR 464.45 Cr in FY25, up 17.3% from INR 395.86 Cr in FY24.

📈 Strategic Growth

Expected Growth Rate

12.60%

Growth Strategy

Growth is driven by a strategic shift toward the high-growth Shrimp Processing and Export business, which grew 61.5% YoY in HY FY26. The company is also focusing on maintaining its dominant position in the Shrimp Feed market while optimizing costs to improve EBITDA margins by 270 bps.

Products & Services

Shrimp Feed and Processed Shrimp for export and domestic markets.

Brand Portfolio

Avanti, Avanti Feeds.

Market Expansion

The company is targeting expansion in international markets, evidenced by the 61.5% growth in the shrimp processing and export segment.

Strategic Alliances

The company operates with three subsidiaries and one associate, with the associate contributing a profit of INR 0.25 Cr in FY25.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward value-added shrimp processing. Avanti is positioned to capture this via its processing segment, which now contributes significantly to the 19% YoY quarterly revenue growth.

Competitive Landscape

The company faces competition in both the domestic feed market and the international shrimp processing market.

Competitive Moat

The company's moat is built on its integrated business model (feed and processing) and strong brand equity in the shrimp feed market, allowing it to maintain a 15.8% EBITDA margin.

Macro Economic Sensitivity

Sensitive to the performance of the Indian economy and international markets, particularly the US and other export destinations for processed shrimp.

Consumer Behavior

Demand is driven by global seafood consumption trends and preferences for processed/ready-to-cook shrimp products.

Geopolitical Risks

Exposure to international trade barriers and changes in global shrimp consumption patterns.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to governmental fiscal incentives and international food safety standards for shrimp exports.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 24.5% (INR 180.44 Cr tax on INR 737.49 Cr PBT).

Legal Contingencies

The company has disclosed the impact of pending litigations in its financial statements, though specific case values are not detailed in the provided summary.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and the potential withdrawal of government export incentives are the primary business risks.

Geographic Concentration Risk

High dependence on international markets for the shrimp processing segment, which is the primary growth engine (61.5% YoY growth).

Third Party Dependencies

Dependency on a network of suppliers for raw materials totaling INR 4,258.16 Cr annually.

Technology Obsolescence Risk

The company identifies 'technological implementation and advancements' as a risk factor for future performance.

Credit & Counterparty Risk

Trade receivables stood at INR 3.62 Cr (billed) as of March 31, 2025, showing a significant decrease from the previous year's adjustment of INR 21.97 Cr, indicating improved collections.