Avanti Feeds Limited

Avanti Feeds reported a consolidated gross income of INR 1,659 crores in Q2 FY26, marking an 18.75% increase compared to INR 1,397 crores in Q2 FY25, and a slight 0.12% increase from INR 1,657 crores in Q1 FY26. The consolidated PBT for Q2 FY26 stood at INR 227 crores, a significant 40.12% rise from INR 162 crores in Q2 FY25. However, PBT saw an 8.83% QoQ decrease from INR 249 crores in Q1 FY26, indicating some sequential pressure on profitability.

The Feed Division's gross income for Q2 FY26 was INR 1,200 crores, an increase of 7.82% YoY from INR 1,113 crores in Q2 FY25, but a 6.18% QoQ decrease from INR 1,279 crores in Q1 FY26. PBT for the Feed Division was INR 180 crores, up 24.14% YoY from INR 145 crores, but down 19.64% QoQ from INR 224 crores. This decline is attributed to a decrease in feed sales volume to 154,644 MT in Q2 FY26 from 165,564 MT in Q1 FY26, coupled with rising raw material costs. Fish meal prices increased to INR 97/kg in Q2 FY26 from INR 93/kg in Q1 FY26, and soya bean meal to INR 42/kg from INR 38/kg, impacting margins.

The Shrimp Processing and Export division demonstrated robust growth, with gross income reaching INR 462 crores in Q2 FY26, a substantial 62.68% YoY increase from INR 284 crores in Q2 FY25, and a 22.22% QoQ increase from INR 378 crores in Q1 FY26. PBT for this division surged to INR 53 crores in Q2 FY26, up 130.43% YoY from INR 23 crores and 112% QoQ from INR 25 crores. This strong performance was driven by higher sales volumes of 4,862 MT in Q2 FY26 (up from 3,423 MT in Q2 FY25), improved average selling price realization, and favorable foreign exchange rates, alongside a decrease in ocean freight rates.

The Pet Food project, operating under the 'Avant Furst' brand, showed significant progress. Sales in Q2 FY26 reached INR 95.08 lakh, marking a 149.19% QoQ increase from INR 38.17 lakh in Q1 FY26. The company expanded its product portfolio with cat food (ocean fish and tuna flavors) and launched dog food in August 2025. E-commerce operations have commenced, with Amazon go-live expected by the end of November 2025. Land has been purchased for a state-of-the-art manufacturing facility near Hyderabad, with commissioning targeted by the end of FY27, pending detailed project report and government approvals.

Management noted that despite recent challenges, including US tariffs, the aquaculture industry continues to demonstrate strong and sustainable growth, supported by market diversification, consistent global demand for shrimps, and a focus on value-added products. The Union Cabinet recently announced an export promotion scheme of INR 25,000 crores over five years to aid exporters. Additionally, the government is promoting domestic shrimp consumption, and the reciprocal tariff situation with the US is expected to stabilize as trade negotiations progress.

The company highlighted significant volatility and upward pressure on key raw material prices. Fish meal, currently at INR 125/kg, is expected to stabilize around INR 125-130/kg. Soya bean meal, currently at INR 47/kg, has seen prices rise due to reduced production and increased MSP, with further increases expected in the coming months^⏳. Wheat flour prices are also impacted by export permissions. These factors are expected to increase raw material costs, making it difficult to raise feed prices. Consequently, feed margins are projected to moderate to 9-10% for the current financial year.