AVANTIFEED - Avanti Feeds
📢 Recent Corporate Announcements
Avanti Feeds reported a robust 9M FY26 performance with consolidated PBT rising 32.7% YoY to ₹698 crores, supported by a 9.67% growth in gross income. For Q3 FY26, consolidated PBT grew 20.65% YoY to ₹222 crores, though revenue saw a seasonal QoQ decline of 12.78%. The shrimp processing division showed significant improvement, with Q3 PBT jumping to ₹52 crores from ₹18 crores YoY due to better realizations and lower freight costs. However, management cautioned that sharp spikes in raw material prices, particularly fish meal (up to ₹145/kg), will likely compress Q4 margins.
- Consolidated 9M FY26 PBT reached ₹698 crores, a 32.7% increase over the previous year's ₹526 crores.
- Shrimp processing revenue for 9M FY26 grew 52% YoY to ₹1,296 crores, driven by a 28% volume growth.
- Feed sales for 9M FY26 stood at 4,38,335 MT, with management targeting 5,55,000 MT for the full year.
- Raw material costs are rising sharply; fish meal increased from ₹117/kg in Q3 to a current price of ₹145/kg.
- Management revised FY26 PBT margin guidance to 14.5%-15% due to the recent surge in input costs.
Avanti Feeds reported a steady Q3 FY26 with consolidated revenue growing 1.3% YoY to ₹13,835 million, primarily driven by a robust 36.8% growth in the shrimp processing and export segment. While the shrimp feed segment saw a 9.6% decline in revenue, overall profitability improved significantly with PAT rising 16.1% YoY to ₹1,635 million. EBITDA margins expanded by 270 basis points to 17.3%, aided by better price realizations in processing and favorable foreign exchange rates. For the nine-month period (9M FY26), the company demonstrated strong momentum with a 31% growth in PAT reaching ₹5,179 million.
- Consolidated PAT grew 16.1% YoY to ₹1,635 million in Q3 FY26, with EPS increasing to ₹10.96.
- Shrimp Processing segment revenue surged 36.8% YoY to ₹4,393 million, driven by higher selling prices and favorable FX.
- EBITDA margins expanded significantly from 14.6% to 17.3% YoY due to lower ocean freight and operational efficiencies.
- 9M FY26 performance remains strong with total revenue of ₹45,996 million and PAT of ₹5,179 million.
- Shrimp feed revenue declined 9.6% YoY to ₹9,442 million, though the segment maintained healthy EBIT margins of 11.8%.
Avanti Feeds Limited has issued a voluntary revision to its Q3 and nine-month financial results for the period ended December 31, 2025, to correct an inadvertent error in the Earnings Per Share (EPS) reporting. The corrected basic EPS for continuing operations for Q3 FY26 is ₹10.97, while the consolidated net profit for the quarter remains unchanged at ₹16,347.35 lakhs. Total revenue from operations for the quarter stood at ₹1,38,352.27 lakhs, compared to ₹1,36,562.69 lakhs in the previous year. The company confirmed that all other financial parameters and the Limited Review Report remain unaffected by this specific EPS correction.
- Corrected Q3 FY26 Basic EPS for continuing operations is ₹10.97 vs ₹9.94 YoY
- Consolidated Net Profit for Q3 FY26 reported at ₹16,347.35 lakhs, up 16% YoY
- Revenue from operations for Q3 FY26 stood at ₹1,38,352.27 lakhs
- Nine-month (9M FY26) Basic EPS for continuing operations corrected to ₹35.27
- Shrimp Feed segment remains the primary revenue driver contributing ₹94,502.06 lakhs in Q3
Avanti Feeds Limited reported a steady performance for Q3 FY26, with consolidated revenue from operations reaching ₹1,383.52 crore. The company's net profit for the quarter grew by 16% year-on-year to ₹163.47 crore, up from ₹140.81 crore in the same period last year. For the nine-month period ended December 31, 2025, the company showed robust growth with net profit surging nearly 30% to ₹517.95 crore. Additionally, the board approved a small strategic investment of ₹25 lakhs for a 0.8% stake in Quanta People Solutions, an AI-powered HR tech startup, to explore cognitive-tech solutions for workforce management.
- Consolidated Q3 FY26 Revenue from operations stood at ₹1,383.52 crore compared to ₹1,365.63 crore YoY.
- Net Profit for Q3 FY26 increased by 16% YoY to ₹163.47 crore.
- 9M FY26 Net Profit surged 29.5% to ₹517.95 crore against ₹399.86 crore in the previous year.
- Total income for the nine-month period reached ₹4,761.26 crore, up from ₹4,341.28 crore YoY.
- Approved investment of ₹24,99,975 for a 0.8% stake in Quanta People Solutions Private Limited.
Avanti Feeds Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations for the quarter ended December 31, 2025. The certificate, issued by its Registrar and Share Transfer Agent (RTA), KFin Technologies Limited, confirms that share certificates received for dematerialization were processed according to regulatory standards. This filing ensures that the company is adhering to the mandatory timelines for updating the register of members and cancelling physical certificates. As a routine administrative disclosure, it does not impact the company's financial fundamentals or operations.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation provided by Registrar and Share Transfer Agent (RTA) KFin Technologies Limited.
- Dematerialization requests were processed and the register of members updated within the mandatory 15-day window.
- Physical security certificates were mutilated and cancelled after due verification by the depository participant.
Avanti Feeds Limited has announced the closure of its trading window effective January 1, 2026, as per SEBI (Prohibition of Insider Trading) Regulations. This closure is in anticipation of the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are declared. This is a standard regulatory procedure followed by listed companies in India to prevent insider trading during sensitive periods.
- Trading window closure starts from January 1, 2026
- Closure pertains to the financial results for the period ending December 31, 2025
- Window to reopen 48 hours after the official declaration of results
- Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015
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.