Avanti Feeds reported a 37% year-over-year decline in consolidated profit before tax to INR 157 crore for the first quarter of fiscal 2027, missing analyst expectations as rising raw material costs weighed on margins. Gross income rose 19% to INR 1,966 crore, driven by higher feed sales volumes, but the company’s consolidated PBT margin contracted to 8.0% from 12.5% in the same period last year.
The feed division, which accounts for the bulk of revenue, posted gross income of INR 1,615 crore, up 27% year-over-year and 51% sequentially. Feed sales volume increased 17% to 193,852 metric tons, reflecting continued demand growth. However, profit before tax for the division fell 45% to INR 114 crore as margins compressed to 7.06% from 17% in Q1 FY26. Management attributed the decline to a sharp rise in key input costs, particularly fish meal and soybean meal, which averaged INR 153 per kg and INR 58 per kg respectively in the quarter, up from INR 93 per kg and INR 40 per kg a year earlier.
Shrimp processing and export revenue declined 7% year-over-year to INR 350 crore, though PBT before exceptional items rose 80% to INR 45 crore. The company’s pet care division reported sales of INR 180 lakh, up from INR 151 lakh in the prior comparable period, as it progresses toward a planned INR 175 million investment in a new pet food facility near Hyderabad. Approximately INR 25 million has been spent on land acquisition to date.
Stock reaction was muted, with shares slipping 0.79% in after-hours trading to INR 861.40 from the prior close of INR 868.25. The company’s 52-week range stands at INR 614.25 to INR 1,593.80. Analysts had forecast earnings per share of INR 11.40, but Avanti Feeds reported EPS of INR 7.60, missing estimates by INR 3.80. Revenue of INR 17.72 billion also fell short of the INR 18.10 billion consensus.
Management highlighted the need to balance affordability for farmers with sustainability in the feed industry amid sustained cost pressures. The company reiterated its view of the shrimp sector as an integrated value chain, encompassing farming, feed production, and seafood exports. On trade policy, the CFO noted that reciprocal tariff refunds for seafood remain suspended under ADD and CVD reviews, delaying potential relief from U.S. customs duties.
