Avanti Feeds Ltd. reported an improvement in operating margins during FY26, supported by strong growth in its shrimp processing business.
According to the company’s investor presentation, consolidated revenue stood at ₹6,066 crore, while net profit came in at ₹657 crore.
Shares of Avanti Feeds, which has a market capitalisation of ₹14,168.18 crore, were trading at ₹1,039.90, up 0.54 percent from the previous close of ₹1,034.30. The stock trades at a P/E ratio of 17.27.
Processed shrimp business drove growth
Processed shrimp sales reached 16,976 metric tonnes (MT) in FY26, compared with 14,149 MT in FY25, an increase of about 20 percent.
Management attributed the growth to:
- Better selling price realisations
- Improved operational efficiency
- Favourable foreign exchange movements
The processing segment emerged as the company’s main growth driver during the year.
North America remained the largest market
North America accounted for 68.3 percent of processed shrimp revenue in FY26.
Regional revenue distribution was:
- North America: 68.3%
- Europe: 17.4%
- Asia: 13.9%
In FY25, North America contributed 64.5 percent, Europe 15 percent, and Asia 19.5 percent.
During the fourth quarter of FY26, North America represented 63.3 percent of processing sales.
Feed business saw limited volume growth
The shrimp feed segment recorded slower growth.
For FY26:
- Feed production stood at 567,986 MT, up 1.7 percent from 558,476 MT in FY25.
- Sales volume rose to 562,060 MT, compared with 555,248 MT a year earlier.
According to the company, higher prices of key inputs weighed on profitability.
Major raw materials include:
- Soybean meal
- Fish meal
- Wheat derivatives
Q4 feed volumes declined
During the fourth quarter:
- Feed production was 139,407 MT
- Feed sales stood at 123,725 MT
In the corresponding quarter of FY25:
- Production was 140,423 MT
- Sales were 129,711 MT
Production exceeded sales during the quarter, indicating inventory carryover into FY27.
Margin recovery continued
Avanti Feeds’ operating profit margin has improved steadily over the past few years.
- FY22: 6 percent
- FY24: 9 percent
- FY25: 11 percent
- FY26: 12 percent
The company has minimal debt, with interest expenses of around ₹3 crore.
Other income contributed to earnings
Other income stood at ₹199 crore during FY26.
According to the presentation, treasury income accounted for around 22.59 percent of pre-tax profit.
About the company
Founded in 1993, Avanti Feeds operates across the aquaculture value chain, including:
- Hatcheries
- Feed mills
- Aquaculture farms
- Processing plants
The company has a strategic partnership with Thai Union Group and works with more than 16,000 farmers.
TL;DR:
Avanti Feeds reported FY26 revenue of ₹6,066 crore and net profit of ₹657 crore. Processed shrimp volumes rose 20 percent, helping operating margins expand to 12 percent, while higher raw material costs put pressure on the feed business.
AI summary:
- Processed shrimp sales increased 20% to 16,976 MT.
- Consolidated FY26 revenue stood at ₹6,066 crore.
- Net profit came in at ₹657 crore.
- Operating margin improved to 12%.
- North America contributed 68.3% of processed shrimp revenue.
