Avanti Feeds

Avanti Feeds reported a consolidated gross income of INR 1,447 crores for Q3 FY26, a 12.78% decrease QoQ but a 2.99% increase YoY. Consolidated PBT stood at INR 222 crores, a 2.2% QoQ decrease but a 20.65% YoY increase. For the nine months ended December 31, 2025, consolidated gross income reached INR 4,761 crores, up 9.67% YoY, with PBT increasing significantly by 32.7% to INR 698 crores compared to the previous year.

The Shrimp Feed division's gross income for Q3 FY26 was INR 993 crores, a 17.25% QoQ decrease, primarily due to a 23.61% QoQ decline in sales volume to 1,18,127 MT, as Q2 is the main season. PBT for the division was INR 172 crores, down 4.44% QoQ. Raw material prices, particularly fish meal (up to INR 117/kg in Q3 from INR 98/kg in Q2) and soya bean meal (up to INR 44/kg from INR 43/kg), saw steep increases. This is expected to compress the full-year FY26 PBT margin for the feed division to 14.5-15% from the 16% achieved in the first nine months.

The Shrimp Processing & Export division demonstrated robust growth, with Q3 FY26 gross income increasing 39% YoY to INR 455 crores, despite a 1.5% QoQ decrease. PBT for the quarter surged by 188.88% YoY to INR 52 crores. For the nine-month period, gross income grew 51.57% to INR 1,296 crores, and PBT increased 91.17% to INR 130 crores. This growth was attributed to higher sales volumes (28% increase in quantity), improved average selling price realization, and favorable foreign exchange rates. The division's processing capacity stands at 28,000 MT.

The Avanti Pet Care brand, 'Avant Furst', recorded sales of INR 136.2 lakhs in Q3 FY26, a 43.24% QoQ increase from INR 95.08 lakhs in Q2 FY26. Dog food accounts for 60-65% of sales. The company is focusing on product quality, expanding its portfolio with additional flavors, and strengthening its presence in Tier-1, Tier-2, and Tier-3 cities, including e-commerce platforms like Supertails and Amazon. A state-of-the-art manufacturing facility is planned, with land purchased and development underway; capex estimates are expected in the next 1-2 quarters, with own production anticipated in 14-15 months.

The US Supreme Court's ruling invalidated IEEPA-based tariffs, leading to the cessation of collection of unlawful tariffs from February 24, 2026. However, the US Administration introduced a new temporary global import surcharge of 10%, potentially rising to 15%, which effectively replaces the IEEPA tariffs. On a positive note, the customs duty on imported shrimp feed has been reinstated at 15% (from 5%), which is expected to help domestic feed manufacturers compete. The company is also monitoring the implementation of UK and EU trade deals, which are expected to improve market access in 6-9 months.

Management anticipates a minimum of 10% growth in feed volume for the upcoming year, driven by positive farmer sentiment and increased aquaculture activity. The company aims for FY26 feed sales of around 5,55,000 MT and shrimp exports of approximately 16,500 MT. While raw material price volatility remains a concern, the company is actively working on expanding into new global markets, including the Middle East, to diversify its export base and leverage improved trade environments.