Avanti Feeds Navigates Q2 FY26 with Robust Growth and Strategic DiversificationAvanti Feeds Limited has demonstrated a strong financial performance in the second quarter of Fiscal Year 2026, showcasing resilience and strategic agility amidst evolving market dynamics. The company, a prominent player in the aquaculture sector, reported a significant uplift in its consolidated revenues, which climbed 19.0% year-on-year to INR 1,609.7 crore. This growth was underpinned by robust operational efficiency, translating into a 40.3% surge in Earnings Before Interest and Taxes (EBIT) to INR 228.0 crore. Profit After Tax (PAT) also saw a substantial increase of 38.9% year-on-year, reaching INR 168.8 crore, with healthy margins maintained at 10.5%. The results highlight Avanti Feeds' ability to deliver consistent performance while strategically expanding its footprint in new and existing segments.## Segmental Performance and Growth DriversThe company's core business segments, Shrimp Feed and Shrimp Processing, were key contributors to this quarter's success. The Shrimp Feed division recorded revenues of INR 1,158.2 crore, accounting for approximately 71.95% of the total consolidated revenue. This segment continues to be a foundational pillar for Avanti Feeds, maintaining a dominant market share ranging from 51% to 53%.The Shrimp Processing & Export division emerged as a significant growth driver, with revenues soaring by an impressive 64% year-on-year to INR 451.5 crore. This robust growth was primarily fueled by a strong 42% increase in sales volumes, coupled with higher average selling price realizations and favorable foreign exchange rates. The company's strategic focus on diversifying its export markets and enhancing its value-added product offerings has clearly yielded positive results, mitigating risks associated with single-market dependence.### Financial Summary Table| Metric | Q2 FY26 (INR Crore) | Q2 FY25 (INR Crore) | YoY Growth (%) ||---|---|---|---|| Revenues | 1,609.7 | 1,352.1 | 19.0% || EBITDA | 243.3 | 178.0 | 36.7% || PAT | 168.8 | 121.5 | 38.9% || EPS | 11.3 | 8.3 | 36.1% |## Strategic Initiatives and Future OutlookAvanti Feeds is actively pursuing several strategic initiatives to ensure sustained growth and market leadership. A notable development is the progress in its Pet Food project. The company successfully launched cat food (Avant Furst) in January 2025, followed by a second flavor in July 2025, and dog food in August 2025. The initial market response has been highly positive, with pet food sales growing from INR 38.17 lakh in Q1 FY26 to INR 95.08 lakh in Q2 FY26. E-commerce operations have commenced on the Supertel platform, and an Amazon go-live is targeted before November 2025. Furthermore, Avanti Feeds has acquired 30 acres near Hyderabad for a state-of-art pet food manufacturing facility, with construction expected to begin after necessary approvals, aiming for a substantial market presence by the end of FY27.In response to global trade challenges, particularly US reciprocal tariffs, Avanti Feeds is intensifying its efforts to diversify into new international markets for shrimp exports. This proactive approach, coupled with a continued focus on value-added products, aims to enhance competitiveness and mitigate external risks. The company also highlighted significant government support, including an INR 25,000 crore export promotion machine announced by the Union Cabinet for five years, designed to bolster exporters and increase their global competitiveness.### Segment Comparison Table (Q2 FY26 vs Q2 FY25)| Segment | Q2 FY26 Revenue (INR Crore) | Q2 FY25 Revenue (INR Crore) | YoY Growth (%) ||---|---|---|---|| Shrimp Feed | 1,158.2 | 1,076.4 | 7.6% || Shrimp Processing | 451.5 | 275.8 | 63.7% |## Navigating Challenges and Maintaining ProfitabilityDespite the positive performance, Avanti Feeds acknowledges certain headwinds. The prices of key raw materials such as fish meal, soya bean meal, and wheat flour have been on an increasing trend due to various factors, including reduced catches and higher minimum support prices. This upward pressure on input costs is expected to impact margins, with management guiding for a consolidated profitability of around 9-10% for the current year, as increasing feed prices to offset raw material costs remains challenging. However, the company's robust operational structure and strategic responses, including market diversification and a focus on value-added products, are expected to help navigate these challenges. The management's balanced commentary reflects a realistic outlook, acknowledging both the opportunities and the potential obstacles ahead.Avanti Feeds' Q2 FY26 performance underscores its strategic clarity and disciplined execution. The company's ability to achieve robust growth in its core segments, successfully launch and scale new ventures like pet food, and proactively address market challenges through diversification and government support, positions it favorably for continued success. The focus on long-term sustainability, coupled with a strong financial footing, reinforces investor confidence in its future trajectory.
In Q2 FY26, Avanti Feeds reported a 19.0% YoY increase in consolidated revenues to INR 1,609.7 crore. EBIT rose by 40.3% YoY to INR 228.0 crore, and Profit After Tax (PAT) grew by 38.9% YoY to INR 168.8 crore, with margins at 10.5%.
The Shrimp Processing & Export division showed robust growth, with revenue increasing by 64% YoY to INR 451.5 crore in Q2 FY26. This was driven by a 42% volume growth, higher average selling prices, and favorable foreign exchange rates.
Avanti Feeds launched cat food in January 2025 and dog food in August 2025. Pet food sales grew from INR 38.17 lakh in Q1 FY26 to INR 95.08 lakh in Q2 FY26. The company is also planning a state-of-art manufacturing unit by the end of FY27 and targeting Amazon go-live by November 2025.
Avanti Feeds is actively diversifying its shrimp processing and export business into new markets and focusing on value-added products to reduce dependence on a single market and mitigate the impact of US tariffs. The company also expects to benefit from the Indian government's INR 25,000 crore export promotion scheme.
Prices of key raw materials like fish meal, soya bean meal, and wheat flour are increasing. Management expects margins to come down to around 9-10% for the current year, as it is generally not possible to increase feed prices to fully offset rising raw material costs.
Avanti Feeds estimates its feed sales for FY26 to be around 575,000 metric tons. For shrimp exports, the company estimates around 17,000 MT for FY26.
Yes, the Union Cabinet announced an INR 25,000 crore export promotion machine for five years to help exporters deal with US reciprocal tariffs. Additionally, the government is promoting domestic shrimp consumption to support farmers and create a stable local market.
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Avanti Feeds Navigates Q2 FY26 with Robust Growth and Strategic DiversificationAvanti Feeds Limited has demonstrated a strong financial performance in the second quarter of Fiscal Year 2026, showcasing resilience and strategic agility amidst evolving market dynamics. The company, a prominent player in the aquaculture sector, reported a significant uplift in its consolidated revenues, which climbed 19.0% year-on-year to INR 1,609.7 crore. This growth was underpinned by robust operational efficiency, translating into a 40.3% surge in Earnings Before Interest and Taxes (EBIT) to INR 228.0 crore. Profit After Tax (PAT) also saw a substantial increase of 38.9% year-on-year, reaching INR 168.8 crore, with healthy margins maintained at 10.5%. The results highlight Avanti Feeds' ability to deliver consistent performance while strategically expanding its footprint in new and existing segments.## Segmental Performance and Growth DriversThe company's core business segments, Shrimp Feed and Shrimp Processing, were key contributors to this quarter's success. The Shrimp Feed division recorded revenues of INR 1,158.2 crore, accounting for approximately 71.95% of the total consolidated revenue. This segment continues to be a foundational pillar for Avanti Feeds, maintaining a dominant market share ranging from 51% to 53%.The Shrimp Processing & Export division emerged as a significant growth driver, with revenues soaring by an impressive 64% year-on-year to INR 451.5 crore. This robust growth was primarily fueled by a strong 42% increase in sales volumes, coupled with higher average selling price realizations and favorable foreign exchange rates. The company's strategic focus on diversifying its export markets and enhancing its value-added product offerings has clearly yielded positive results, mitigating risks associated with single-market dependence.### Financial Summary Table| Metric | Q2 FY26 (INR Crore) | Q2 FY25 (INR Crore) | YoY Growth (%) ||---|---|---|---|| Revenues | 1,609.7 | 1,352.1 | 19.0% || EBITDA | 243.3 | 178.0 | 36.7% || PAT | 168.8 | 121.5 | 38.9% || EPS | 11.3 | 8.3 | 36.1% |## Strategic Initiatives and Future OutlookAvanti Feeds is actively pursuing several strategic initiatives to ensure sustained growth and market leadership. A notable development is the progress in its Pet Food project. The company successfully launched cat food (Avant Furst) in January 2025, followed by a second flavor in July 2025, and dog food in August 2025. The initial market response has been highly positive, with pet food sales growing from INR 38.17 lakh in Q1 FY26 to INR 95.08 lakh in Q2 FY26. E-commerce operations have commenced on the Supertel platform, and an Amazon go-live is targeted before November 2025. Furthermore, Avanti Feeds has acquired 30 acres near Hyderabad for a state-of-art pet food manufacturing facility, with construction expected to begin after necessary approvals, aiming for a substantial market presence by the end of FY27.In response to global trade challenges, particularly US reciprocal tariffs, Avanti Feeds is intensifying its efforts to diversify into new international markets for shrimp exports. This proactive approach, coupled with a continued focus on value-added products, aims to enhance competitiveness and mitigate external risks. The company also highlighted significant government support, including an INR 25,000 crore export promotion machine announced by the Union Cabinet for five years, designed to bolster exporters and increase their global competitiveness.### Segment Comparison Table (Q2 FY26 vs Q2 FY25)| Segment | Q2 FY26 Revenue (INR Crore) | Q2 FY25 Revenue (INR Crore) | YoY Growth (%) ||---|---|---|---|| Shrimp Feed | 1,158.2 | 1,076.4 | 7.6% || Shrimp Processing | 451.5 | 275.8 | 63.7% |## Navigating Challenges and Maintaining ProfitabilityDespite the positive performance, Avanti Feeds acknowledges certain headwinds. The prices of key raw materials such as fish meal, soya bean meal, and wheat flour have been on an increasing trend due to various factors, including reduced catches and higher minimum support prices. This upward pressure on input costs is expected to impact margins, with management guiding for a consolidated profitability of around 9-10% for the current year, as increasing feed prices to offset raw material costs remains challenging. However, the company's robust operational structure and strategic responses, including market diversification and a focus on value-added products, are expected to help navigate these challenges. The management's balanced commentary reflects a realistic outlook, acknowledging both the opportunities and the potential obstacles ahead.Avanti Feeds' Q2 FY26 performance underscores its strategic clarity and disciplined execution. The company's ability to achieve robust growth in its core segments, successfully launch and scale new ventures like pet food, and proactively address market challenges through diversification and government support, positions it favorably for continued success. The focus on long-term sustainability, coupled with a strong financial footing, reinforces investor confidence in its future trajectory.
