AVANTI FEEDS LTD – CONCALL HIGHLIGHTS
#Q1FY27
Financial Performance
- Consolidated gross income stood at ₹1,966 Cr, up 19% YoY and 30% QoQ.
- Consolidated PBT stood at ₹157 Cr, down 37% YoY and 15% QoQ.
- Feed division gross income increased 27% YoY to ₹1,615 Cr, driven by higher volumes.
- Feed sales volume increased 17% YoY to 1,93,852 MT.
- Feed division PBT declined 45% YoY to ₹114 Cr due to sharply higher raw-material costs.
- Feed PBT margin declined to 7.06% vs 17% in Q1FY26 and ~13% in Q4FY26.
Raw Material Cost Pressure
- Fish meal consumption price increased to ₹153/kg vs ₹93/kg YoY and ₹123/kg QoQ.
- Soybean meal increased to ₹58/kg vs ₹40/kg YoY and ₹49/kg QoQ.
- Current purchase prices: fish meal ₹225/kg, soybean meal ₹71/kg and wheat flour ₹33/kg.
- Rising fish meal and soybean meal prices remain the key profitability concern for the feed business.
- Management expects raw-material prices to stabilize in coming months with fresh crop arrivals and easing El Niño effects.
Feed Volume Outlook
- Shrimp production for CY26 estimated at 8-9 lakh MT, with feed consumption of 11-12 lakh MT.
- FY26 feed sales were around 5.62 lakh MT.
- FY27 feed sales target is around 5.85 lakh MT, implying roughly 4% growth.
- Current shrimp culture activity is described as good, supported by favorable climate and farmgate prices.
- Main concern remains the sharp increase in farmers' production costs.
Feed Pricing
- Company took around 10% price hike during 19-20 June.
- Q2 could remain a pain point before the benefit of price hikes and potential government intervention flows through.
- Pricing decisions remain dependent on farmer affordability, sustainability and government considerations.
- Company is working on formulation and quality improvements to reduce raw-material usage without compromising feed performance/FCR.
Shrimp Processing & Exports
- Processing division gross income was ₹350 Cr, down 7% YoY and 22% QoQ.
- Sales volume declined 16% YoY and ~15% QoQ.
- PBT before exceptional items stood at ₹45 Cr vs ₹25 Cr YoY.
- Profit remained resilient despite lower volumes due to better realization, operational efficiency, favourable FX and higher other income.
- FY26 company shrimp exports stood at 16,976 MT, up from 14,149 MT.
- FY27 export volume is expected at around 19,000 MT.
Global Shrimp Market
- India exported 7,92,647 MT of frozen shrimp worth around $5.62 Bn in FY26.
- US accounted for 33%, China 21%, EU 17% and Southeast Asia 11% of exports.
- US export volume declined 17.9%, while China and EU volumes increased 24% and 36%, respectively.
- Management continues to focus on market diversification as global trade barriers and tariffs remain key risks.
US Reciprocal Tariff
- Refund related to reciprocal tariffs remains pending.
- Entries are under ADD/CVD review and suspension, and CBP will not process the reciprocal tariff amounts until suspension is lifted.
- Company has declared the relevant entries as advised by its legal counsel/customs broker.
Pet Food Business
- Avant First continues to see encouraging response across dog and cat food.
- Q1FY27 sales increased to ₹1.80 Cr from ₹1.51 Cr in Q4FY26.
- Company is expanding from Tier-1 into Tier-2 and Tier-3 cities.
- Products are available through e-commerce platforms including Amazon and Supertail.
- New flavours and variants are planned to broaden the product portfolio.
- Around ₹175 Cr investment is estimated for the pet-food project; land worth around ₹25 Cr has already been purchased near Hyderabad.
- Manufacturing facility construction will begin after required government approvals.
Industry Outlook
- Aquaculture industry is facing pressure from higher feed costs, volatile farmgate prices and global trade uncertainties.
- Feed is the largest operating cost for shrimp farmers.
- Management highlighted the need for a balance between farmers, feed manufacturers and exporters.
- Government and industry stakeholders are working on a potential price mechanism linked to major feed inputs.
- Management expects coordinated policy support and raw-material stabilization to improve industry economics.
KEY TAKEAWAY
- Volumes remain strong, but raw-material inflation is the key near-term margin risk.
August 31, 2026 754 1
