Avanti Feeds Navigates Q2 FY26 with Robust Growth and Strategic Diversification

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.