Financial Performance Overview
Avanti Feeds Limited reported strong consolidated financial results for FY 2025-26 with revenue growth of 8.9% to ₹6,278.89 crore and profit after tax increasing 17.91% to ₹656.80 crore. The company recommended a dividend of ₹10 per equity share, representing a 25.33% payout ratio. Standalone performance showed revenue of ₹4,375.06 crore with PAT growth of 9.08% to ₹537.86 crore.
Operational Highlights & Challenges
The company navigated significant headwinds including 50% US tariffs imposed through reciprocal trade measures, which prompted accelerated diversification to EU, Japanese, and Korean markets. Processed shrimp revenue surged 43.14% to ₹1,689.46 crore. However, raw material costs doubled in Q4 FY26 with fish meal prices rising from ₹100/kg to ₹230/kg due to export-oriented domestic supply and El Niño concerns. This is expected to pressure FY27 feed margins to 8-10% from 15.50% in FY26.
Strategic Developments
Avanti is pursuing $15-20 million in US tariff refunds following a favorable Supreme Court ruling that invalidated tariff imposition authority. The company established Sealuxe B.V. in Netherlands and a UK subsidiary to leverage India-UK CETA duty-free access. The new Avant Furst Pet Care venture generated ₹42.15 crore revenue in FY26 with a manufacturing facility under development near Hyderabad.
Regulatory & Compliance Matters
The company disclosed ₹2,526.52 lakhs in contingent liabilities from nine ongoing tax and duty disputes across GST, customs, and income tax matters. CSR expenditure showed a shortfall of ₹450 lakhs for FY26, with total spending of ₹592.20 lakhs against a requirement of ₹1,042.20 lakhs. The statutory auditors issued an unqualified opinion with no material weaknesses in internal financial controls.
Corporate Governance & Leadership
The Board proposed special resolutions to reappoint Dr. A. Indra Kumar as Chairman & MD and Sri C. Ramachandra Rao as JMD & CS for five-year terms commencing 2026-2027. The company maintained strong governance standards with 12 directors including 4 independent members and comprehensive committee structures.
Subsidiaries & Associates Performance
Avanti Frozen Foods Private Limited (60% subsidiary) achieved remarkable growth with revenue of ₹1,689.46 crore and PAT of ₹130.30 crore. However, the 25.89% associate Patikari Power suffered a ₹12.97 crore impairment due to cloudburst damage destroying its 16 MW hydel plant. Srivathsa Power Projects remained non-operational due to APM gas non-availability.
Outlook & Guidance
For FY 2026-27, Avanti targets feed volumes of approximately 5,80,000 MT and processed shrimp exports of 19,000 MT. Growth drivers include expected India-EU FTA ratification in early 2027, India-UK CETA benefits, and improved global pricing discipline following Ecuador competition. The company maintains negligible debt with total consolidated borrowings of ₹10.46 crore.