Avanti Feeds Ltd Q3 FY2025-26 Earnings Conference Call
•March 4, 2026
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Why It Matters
Avanti’s earnings reveal strong shrimp export momentum and pet‑food expansion, but rising feed input costs and evolving U.S. tariffs could pressure margins and shape its FY26 growth outlook.
Key Takeaways
- •Q3 FY26 gross income fell 12.8% QoQ, rose 3% YoY.
- •Feed division profit margin pressured by rising fish and soy meals.
- •Shrimp export revenue surged 39% YoY, boosting overall PBT.
- •Pet food brand AAN First expands to Tier‑2/3 markets online.
- •US tariff relief aids shrimp exports, yet new surcharge remains uncertain.
Summary
Avanti Feeds Ltd held its Q3 FY26 earnings conference call, reviewing unaudited results for the quarter ended 31 December 2025 and the nine‑month period. The discussion covered the consolidated performance of the feed, shrimp processing and export, and pet‑food divisions, as well as macro‑economic factors such as raw‑material price volatility, U.S. tariff developments and the recent Indian fisheries budget.
Consolidated gross income fell to ₹4,447 crore, a 12.8% decline from Q2 but a 3% increase year‑on‑year, while profit before tax rose 20.6% YoY to ₹222 crore. The feed segment saw a 21% QoQ drop in gross income to ₹993 crore, driven by lower volumes and higher fish‑meal (₹117 kg⁻¹) and soy‑meal (₹43 kg⁻¹) costs. Despite this, nine‑month PBT margin improved to 16% from 13.3% a year earlier. Shrimp processing revenue jumped 39% YoY to ₹455 crore, with PBT climbing to ₹52 crore, reflecting higher selling prices, favorable FX and reduced ocean freight rates.
Pet‑food brand AAN First recorded Q3 sales of ₹136.2 lakh, up from ₹95.1 lakh in Q2, and is expanding into Tier‑2/3 cities and e‑commerce platforms like Amazon and Superstore. The company also highlighted a land acquisition near Hyderabad for a new manufacturing plant, pending government approvals. On the trade front, the U.S. Supreme Court struck down the 25% reciprocal shrimp duties, but a temporary 10‑15% surcharge has been introduced, leaving some uncertainty for export margins.
The mixed results underscore Avanti’s growth trajectory in shrimp processing and pet‑food while exposing feed margins to volatile raw‑material costs. Continued tariff relief in the U.S. could bolster export earnings, but the pending surcharge and raw‑material price trends will be key determinants of Q4 profitability and the company’s ability to meet its FY26 feed‑sales target of 5.55 lakh tonnes.
Original Description
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