Avanti Feeds

Avanti Feeds reported a consolidated gross income of INR 1,515 crores in Q4 FY26, a 4.77% QoQ increase and a 5.86% YoY increase. However, consolidated PBT for Q4 FY26 stood at INR 184 crores, marking a 17.12% QoQ decrease and a 12.8% YoY decrease, primarily due to rising raw material costs. For the full fiscal year FY26, the company achieved a gross income of INR 6,279 crores, an 8.9% increase YoY, and PBT of INR 882 crores, reflecting a 20% increase YoY, with a PBT margin of 15.5%.

The Shrimp Feed division's Q4 FY26 gross income was INR 1,068 crores, but PBT declined by 19% QoQ to INR 139 crores. This was largely attributed to a steep increase in raw material costs, with fish meal prices doubling from INR 100 to INR 240 per kg and soya bean meal prices rising by 45%. The company is actively preparing for another feed price increase in the coming days to offset these unprecedented^🌐 cost escalations, which are influenced by factors like the Gulf War and El Nino conditions.

The Shrimp Processing and Export Division demonstrated robust growth, with Q4 FY26 gross income at INR 446 crores, a 22.5% YoY increase. For FY26, gross income surged by 43% to INR 1,741 crores, and PBT more than doubled to INR 178 crores. Export volumes increased by 19.98% to 16,976 MTs in FY26. The division continues to focus on value-added products, including ready-to-eat, breaded, and Japanese preparations, which contribute to a better margin structure compared to raw products.

The Pet Care segment, operating under the 'Avant Furst' brand, reported sales of INR 151 lakhs in Q4 FY26, showing sustained growth. The company is expanding its distribution network, now covering 31 distributors in 13 cities, and aims to achieve 800 MTs in sales by the end of the current year. Plans for a state-of-the-art manufacturing facility near Hyderabad are progressing, with land acquired, designs finalized, and construction expected to commence upon receiving necessary government approvals.

A significant positive for the export division is the US Supreme Court's ruling on February 20, 2026, which invalidated IEEPA-based tariffs. This development is expected to lead to refunds of reciprocal tariffs collected since April 1, 2025, with Avanti Frozen Foods estimating a refund of USD 15-20 million. However, a temporary global import surcharge of 10% for 150 days was introduced by the US Administration, with potential for an increase, adding a new layer of uncertainty.

Avanti Feeds, in collaboration with the Feed Manufacturers Association and CLFMA, is actively engaging with the Indian government to address raw material supply issues. They are advocating for regulations on fish meal exports, as 75% of Indian fish meal is exported, and seeking permission to import soybean meal to stabilize prices. These efforts aim to ensure the availability of crucial raw materials for local shrimp feed manufacturers and support the aquaculture industry.

Management expressed confidence in the stability of the shrimp culture and export markets, projecting feed sales of around 5,80,000 MTs and shrimp exports of approximately 19,000 MT for FY27. Despite global uncertainties and raw material volatility, the company targets an overall group growth of 10-15%. This growth is expected to be driven by improved capacity utilization, continued focus on value-added products, and the expansion of the new pet care business.