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    Avanti Feeds

    AVANTIFEED
    Fast Moving Consumer Goods·29 Aug 2025
    Management Summary

    Avanti Feeds reported strong Q1 FY26 results with significant growth in consolidated gross income and PBT, driven by increased feed sales volume and shrimp processing revenue. The company is actively expanding its Pet Care segment and diversifying export markets to mitigate the impact of the newly imposed 50% US reciprocal tariffs on shrimp. Raw material price volatility and temporary slowdowns in aquaculture due to weather remain key watch areas.

    Highlights

    5

    • Consolidated Gross Income for Q1 FY26 increased by 15.7% QoQ to INR 1,657 crore.

    • Consolidated PBT for Q1 FY26 increased by 38% YoY to INR 249 crore.

    • Feed sales volume for Q1 FY26 increased to 1,65,564 metric tons from 1,29,711 metric tons in Q4 FY25.

    • Shrimp Processing division's gross income grew by 56% YoY to INR 378 crore in Q1 FY26.

    • Pet Care project recorded sales of INR 38.17 lakh in Q1 FY26, showing steady growth from INR 25.79 lakh in Q4 FY25.

    Concerns

    3

    • The US reciprocal tariff of 50% on shrimp exports, effective August 27, is a significant challenge, potentially impacting the company's processing division which derives over 60% of its revenue from the US market.

    • Raw material prices for fish meal, soybean meal, and wheat flour have shown recent increases and volatility, which could impact profitability.

    • Aquaculture activity temporarily slowed due to heavy rains, premature harvest, and diseases in the current quarter.

    What Changed1

    vs Q2 FY26

    Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    02 metrics
    1. 01Consolidated Gross Income₹1,657 Cr+7.7%YoY
    2. 02Consolidated PBT₹249 Cr+38.3%YoY

    Segment breakdown

    Gross IncomePBT
    Feed Division (Standalone)₹1,279 Cr₹224 Cr
    Shrimp Processing Division₹378 Cr₹25 Cr
    Pet Care Project——
    Heatmap· 2 shared metrics

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    5
    CategoryTargetPriority
    Volume
    Shrimp Feed Sales Volume
    560,000 metric tons
    		High
    Volume
    Shrimp Exports Volume
    17,000 metric tons
    		High
    Revenue
    Pet Care Revenue
    INR 10 crore
    		High
    Capacity
    Pet Care Plant Construction Start
    by end of this year
    		High
    Capacity
    Pet Care Plant Construction Duration
    a year and a half or so
    		High

    Stabilization of key raw material prices (soybean, wheat flour, fish meal)

    Next quarter (with new crop arrivals in Oct/Feb-Mar)
    CurrentVolatile and increasing (Fish meal ~INR 105, Soybean meal ~INR 47, Wheat flour ~INR 35)
    TargetStabilization or decrease

    Why it matters

    Raw material prices are crucial for Feed Division's profitability and margins.

    So, we expect that the prices of soybean meal would stabilize by then because as of now, the crop is growing well, and we are expecting a good crop this year also just as in the last year. Similarly, in the wheat flour, wheat flour was about INR 31 in the Q1 FY26, but now it is around INR 35. So, this price has also gone up. And the fresh crop comes around end of February and March. So, we expect that some stabilization would take place in respect of wheat flour.

    How to verify

    detailed_narrative[title='Raw Material Price Trends and Volatility']

    Risks & concerns

    3
    RiskSeverity

    US Reciprocal Tariffs (50%) on Shrimp Exports

    The U.S. levied reciprocal tariffs of 50% on shrimp exports, effective August 27, significantly impacting the processing division. — Management acknowledged

    high

    Raw Material Price Volatility

    Prices of key raw materials like fish meal, soybean meal, and wheat flour are volatile and have recently increased, impacting profitability. — Management acknowledged

    medium

    Climatic Changes and Diseases in Aquaculture

    Heavy rains, premature harvest, and diseases temporarily slowed aquaculture activity, affecting production. — Management acknowledged

    medium

    Q&A highlights

    8

    “So, to answer that, I think that's a very broad question, and there would be a lot of speculation, and everybody's opinion would differ. In my opinion, yes, there's definitely going to be an inflation in the price of shrimp in the U.S. because all the producers have duty. So, the minimum is 15% for Ecuador and going up to all almost 50% for India, which is the major supplier to the U.S. So, there is definitely a price increase.”

    Confirms price inflation in the US market due to tariffs and clarifies the company's understanding of dumping regulations.

    asked by Nitin Awasthi

    3 min read7 chapters

    Detailed Narrative

    01

    Q1 FY26 Consolidated Performance Overview

    Avanti Feeds reported a robust consolidated performance for Q1 FY26. Gross income increased by 15.7% quarter-on-quarter to INR 1,657 crore, and by 7.7% year-on-year compared to Q1 FY25. Profit Before Tax (PBT) saw an 18% QoQ increase to INR 249 crore and a significant 38% YoY increase from INR 180 crore in Q1 FY25, indicating strong profitability improvements.

    02

    Feed Division Performance Highlights

    The Feed division's gross income for Q1 FY26 was INR 1,279 crore, a 19.8% increase from Q4 FY25, primarily due to higher sales volume during the main season. PBT for the division rose by 15.5% QoQ to INR 224 crore and a substantial 46% YoY, driven by decreased raw material costs and better overhead absorption. Feed sales volume reached 1,65,564 metric tons in Q1 FY26, up 27.6% QoQ and 4.4% YoY.

    03

    Shrimp Processing & Export Division Performance

    The Shrimp Processing division recorded a gross income of INR 378 crore in Q1 FY26, an increase of 4% QoQ and a significant 56% YoY. Sales volume increased to 4,223 metric tons, up 51.7% YoY. PBT for the division stood at INR 25 crore, showing a 38.9% QoQ increase, driven by higher sales volume, improved average sale price realization, and favorable foreign exchange rates, despite a slight YoY decrease in PBT.

    04

    Pet Care Project Update and Expansion

    The Pet Care project, operating under the 'Avant Furst' brand, commenced cat food trading in January 2025 and achieved sales of INR 38.17 lakh in Q1 FY26, a 47.9% QoQ growth. The company expanded its cat food portfolio in July 2025 and launched dog food in August 2025. Market expansion is underway in Tier-1 and Tier-2 cities, with e-commerce operations planned from September 2025 and Quick Commerce from December 2025. A state-of-the-art manufacturing facility is planned near Hyderabad, with construction expected to begin by the end of this year.

    05

    Raw Material Price Trends and Volatility

    Raw material prices, a crucial factor for the Feed Division, have shown recent volatility and increases. Fish meal prices rose to around INR 105 per kg (from INR 93-94), soybean meal to INR 47 per kg (from INR 38-39), and wheat flour to INR 35 per kg (from INR 31 in Q1 FY26). These increases are attributed to factors like the government's minimum support price announcement and fluctuations in agricultural and fish catches. Management hopes for stabilization with the arrival of new crops later in the year.

    06

    Impact of US Tariffs on Shrimp Exports and Mitigation

    The US has imposed a 50% reciprocal tariff on Indian shrimp exports, effective August 27, posing a significant challenge. This tariff is being passed on to customers, who are adjusting their purchasing strategies. The company is actively diversifying its export markets to countries like Japan, Europe, Canada, and the Middle-East to reduce dependence on the US. The Indian government is also working on measures to support the marine products export sector and promote domestic consumption to mitigate the adverse impact.

    07

    Future Growth Avenues (Fish Feed & Pet Care)

    Avanti Feeds is exploring new growth avenues. Trials for imported fish feed from Thai Union Feedmill Company Limited are underway, with plans for domestic production in India upon approval. For the Pet Care segment, a manufacturing facility is planned, with construction starting by year-end and taking approximately 1.5 years. The company aims for INR 10 crore revenue from Pet Care this year and is looking into contract manufacturing opportunities for larger players once the plant is ready.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.