Avanti Feeds Q3 FY26: Shrimp Processing Drives Growth Amidst Feed Revenue Dip

Avanti Feeds Limited has reported its consolidated financial results for the third quarter of fiscal year 2026 (Q3 FY26), showcasing a mixed performance with robust growth in its shrimp processing and export business, even as its shrimp feed segment experienced a decline. The company's consolidated revenues from operations grew by 1.3% year-over-year to INR 1,383.52 crore. This growth was primarily fueled by strong volume expansion in shrimp processing and export activities.

Despite the overall revenue increase, the shrimp feed segment saw its revenues drop by 9.6% year-over-year to INR 944.21 crore in Q3 FY26. In contrast, the shrimp processing and export business demonstrated significant strength, with revenues surging by 37% year-over-year to INR 439.32 crore. This impressive performance in processing was largely attributed to improved average selling price realization and favorable foreign exchange rates, which provided a substantial boost to the segment's top line.

Profitability metrics for Avanti Feeds also showed positive trends. The consolidated EBITDA for Q3 FY26 increased by 20.9% year-over-year to INR 239.10 crore, primarily aided by higher other income. The Profit After Tax (PAT) grew by 16.1% year-over-year to INR 163.77 crore, with PAT margins standing at 11.8%. Earnings Per Share (EPS) also saw a healthy increase, growing to INR 11.0 per share from INR 9.92 per share in the corresponding quarter of the previous fiscal year.

Segmental Performance Highlights

The shrimp processing segment's strong performance was further underscored by a significant improvement in its EBITDA margin, which expanded to 13% in Q3 FY26 from 8% in Q3 FY25. This margin expansion was primarily driven by the increase in average selling price realization, favorable foreign exchange rates, and a decrease in ocean freight rates. These factors collectively contributed to enhanced operational efficiency and profitability within the processing division.

Conversely, the shrimp feed segment, despite its revenue decline, maintained strong margins, with EBIT coming in at INR 223.03 crore in Q3 FY26, compared to INR 184.52 crore in the prior year, reflecting a margin of 11.80%. This indicates that while sales volumes might have faced headwinds, the company managed to preserve profitability in this segment.

Outlook and Strategic Focus

Avanti Feeds Limited's Q3 FY26 results highlight the company's ability to leverage its shrimp processing and export capabilities to drive overall growth, even when facing challenges in other segments. The robust performance in processing, supported by favorable market conditions and strategic pricing, underscores the resilience and adaptability of the company's business model. The management's focus on optimizing operational aspects, such as capitalizing on favorable foreign exchange rates and managing freight costs, has clearly contributed to improved margins.

Moving forward, the company will likely continue to focus on strengthening its processing and export footprint while addressing the factors contributing to the decline in shrimp feed revenues. The sustained growth in profitability metrics like EBIT, PAT, and EPS provides a strong foundation for future endeavors. Avanti Feeds remains a key player in the aquaculture sector, demonstrating its capacity to navigate market dynamics and deliver value to its stakeholders through disciplined execution and strategic positioning.