Avanti Feeds Q1 FY27 Profit Declines 37% YoY

Mr. A. Nikhilesh, Executive Director, Avanti Frozen Foods Private Limited
Mr. C. Ramachandra Rao, Joint Managing Director and Company Secretary, Avanti Feeds Limited
Mr. A. Venkata Sanjeev, Executive Director, Avanti Feeds Limited
Mr. D. V. S. Satyanarayana, Chief Financial Officer, Avanti Frozen Foods Private Limited
Mr. K. Srinivas Reddy, Chief Financial Officer, Avanti PetCare Private Limited
Ms. B. Santhi Latha, Chief Financial Officer, Avanti Feeds Limited

Gross Income: ₹1,966 crores, increased by 30% from Q4 FY26 (₹1,516 crores) and 19% from Q1 FY26 (₹1,657 crores)
PBT: ₹157 crores, decreased by 15% from Q4 FY26 (₹184 crores) and 37% from Q1 FY26 (₹249 crores)

Gross Income: ₹1,615 crores, increased by 51% from Q4 FY26 (₹1,069 crores) and 27% from Q1 FY26 (₹1,279 crores)
PBT: ₹114 crores, decreased by 18% from Q4 FY26 (₹139 crores) and 49% from Q1 FY26 (₹224 crores)
Sales Volume: 193,852 MT, increased from 123,725 MT in Q4 FY26 and 165,564 MT in Q1 FY26
PBT Margin: 7.06% in Q1 FY27 compared to 13% in Q4 FY26 and 17% in Q1 FY26

Fish Meal: Average consumption price increased to ₹153/kg in Q1 FY27 from ₹123/kg in Q4 FY26 and ₹93/kg in Q1 FY26. Current purchase price: ₹225/kg
Soya Bean Meal: Increased to ₹58/kg in Q1 FY27 from ₹49/kg in Q4 FY26 and ₹40/kg in Q1 FY26. Current purchase price: ₹71/kg
Wheat Flour: Decreased to ₹28/kg in Q1 FY27 from ₹31/kg in both Q4 FY26 and Q1 FY26. Current purchase price: ₹33/kg

Gross Income: ₹350 crores, decreased by 22% from Q4 FY26 (₹446 crores) and 7% from Q1 FY26 (₹378 crores)
PBT before exceptional items: ₹45 crores, compared to ₹48 crores in Q4 FY26 and ₹25 crores in Q1 FY26
Sales Volume: Decreased by approximately 15% from Q4 FY26 and 16% from Q1 FY26
Improved profitability attributed to better operational efficiency, improved average selling price realization, favorable foreign exchange rates, and higher other income

Total Frozen Shrimp Exports FY25/26: 792,647 MT worth $5,624.48 million
Market Share: USA (33%), China (21%), European Union (17%), Southeast Asia (11%), Japan (5%), Middle East (3%), Others (10%)
YoY Export Changes: USA (-17.9%), China (+24%), EU (+36%), Japan (+5%)
Overall Growth: 13.16% in rupee value, 8.64% in dollar value, 6.9% by volume

Brand: Avant Furst
Q1 FY27 Sales: ₹180 lakh, increased from ₹151 lakh in Q4 FY26
Market Presence: Growing acceptance across markets, available on Amazon and Supertail e-commerce platforms
Marketing: Targeted digital marketing on Instagram and Facebook
Expansion Plans: New flavors and variants planned
Manufacturing Facility: Land purchased near Hyderabad for ₹25 crores, application for Consent for Establishment submitted, estimated total investment ₹175 crores

Industry Challenges: Significant raw material price increases (fish meal, fish oil, soybean meal, wheat flour) putting pressure on feed manufacturers and aquaculture industry
Price Management: Implemented 10% price hike on June 19, 2026, with ongoing discussions with government and stakeholders about sustainable pricing mechanisms
Government Engagement: Andhra Pradesh government has constituted a committee with a big four consultant to address pricing challenges
Market Diversification: Need to reduce exposure to single market price pressures and trade barriers
Regulatory Update: Reciprocal tariff refunds for US seafood imports remain pending due to suspended ADD and CVD reviews

Expectation of raw material price stabilization with favorable monsoon conditions and fresh crop arrivals
FY26/27 expected to be challenging due to high feed raw material prices and global demand dynamics
Confidence in overcoming challenges with coordinated efforts and policy support for sustainable industry growth