Avanti Feeds Q1 FY27 Results: Revenue Rises 18%, While Profit Falls 37% on Higher Raw Material Costs

BY ADMIN • FILED 26 Aug 2026, 5:45 PM

Avanti Feeds Limited has reported a strong increase in revenue for the first quarter of FY2026-27, supported by robust growth in its shrimp feed business. However, profitability came under pressure due to elevated raw material prices, resulting in a significant decline in EBITDA and net profit margins.

For Q1 FY27, consolidated revenue from operations increased 18.3% year-on-year to ₹1,899.86 crore, compared with ₹1,606.36 crore in Q1 FY26. The growth was primarily driven by the shrimp feed segment, where revenue increased 26.8% YoY to ₹1,566.16 crore from ₹1,235.21 crore. In contrast, shrimp processing revenue declined 10.1% to ₹333.71 crore, reflecting a decline in processing sales volumes.

Profitability Under Pressure Despite Strong Revenue Growth

The sharp increase in revenue did not translate into similar growth in profitability. Consolidated EBITDA declined 35.3% YoY to ₹171.57 crore from ₹265.35 crore, while the EBITDA margin fell to 9.0% from 16.5% in Q1 FY26.

The company attributed the pressure mainly to higher raw material prices. EBIT declined 36.8% YoY to ₹157.15 crore, compared with ₹248.54 crore in the corresponding quarter last year. Profit before tax also declined 36.8% to ₹156.67 crore.

Consolidated PAT fell 37.4% YoY to ₹116.31 crore, compared with ₹185.68 crore in Q1 FY26. The net profit margin declined to 6.1% from 11.6%, while EPS dropped to ₹7.58 from ₹13.09.

Shrimp Feed Business Delivers Strong Volume Growth

The shrimp feed business remained the key growth driver during the quarter. Shrimp feed production increased to 176,316 MT in Q1 FY27, compared with 153,203 MT in Q1 FY26. Sales volumes increased significantly to 193,852 MT, compared with 165,564 MT in the year-ago quarter.

Shrimp feed revenue consequently rose 26.8% to ₹1,566.16 crore. However, profitability was impacted by higher input costs. EBITDA from the segment stood at ₹118.14 crore, with the EBITDA margin declining to 7.5%, compared with 18.8% in Q1 FY26.

The segment’s PBT stood at approximately ₹111.2 crore, with margins at around 5.3%.

Shrimp Processing Revenue Declines, But Margins Improve

The shrimp processing and export business experienced a weaker quarter in terms of revenue. Revenue declined 10.1% YoY to ₹333.71 crore, compared with ₹371.16 crore in Q1 FY26. The company said the decline was primarily due to a 17% reduction in sales volume.

Despite lower revenue, profitability improved. EBITDA from shrimp processing increased to ₹53.44 crore, compared with ₹33.78 crore in Q1 FY26, while EBITDA margin improved substantially to 16.0% from 9.1%.

The improvement was supported by favourable foreign exchange movements, better average selling price realisation and a higher contribution from other income.

Q1 FY27 Operational Performance

Avanti Feeds reported strong operational growth in shrimp feed during the quarter. Shrimp feed production increased from 153,203 MT in Q1 FY26 to 176,316 MT in Q1 FY27, while sales increased from 165,564 MT to 193,852 MT.

Shrimp processing production also increased to 4,442 MT, compared with 4,500 MT in Q1 FY26, while sales declined to 3,520 MT from 4,223 MT.

On a consolidated basis, Q1 FY27 revenue reached ₹1,899.86 crore and EBITDA stood at ₹171.57 crore, resulting in a blended EBITDA margin of 9.03%.

Long-Term Financial Performance Remains Strong

Despite the near-term margin pressure, Avanti Feeds has delivered significant improvement in its financial performance over the longer term. Consolidated revenue increased from ₹5,600.32 crore in FY25 to ₹6,067.29 crore in FY26.

FY26 EBITDA stood at ₹947.64 crore, compared with ₹798.76 crore in FY25, while the EBITDA margin improved to 15.6% from 14.3%.

PAT increased to ₹656.80 crore in FY26, compared with ₹557.05 crore in FY25. The company’s FY26 PAT margin stood at 10.8%, while EPS increased to ₹44.5 from ₹38.8.

Strong Balance Sheet and Low Debt

The company continues to maintain a strong balance sheet. As of FY26, reserves and surplus stood at approximately ₹3,694.4 crore, while total assets were ₹4,260.4 crore.

Avanti Feeds reported virtually no net debt, with the net debt-to-equity ratio at just 0.01x in FY26. RoCE stood at 22.3%, while RoE was 19.09%.

Interest coverage remained extremely strong at around 320x, highlighting the company’s comfortable financial position.

Key Takeaway for Investors

Avanti Feeds’ Q1 FY27 performance presents a mixed picture. Revenue growth was strong, particularly in shrimp feed, but profitability declined sharply because of higher raw material costs. The shrimp feed segment delivered strong volume growth, while the shrimp processing business saw lower revenue but a meaningful improvement in margins.

The key factors investors may monitor going forward are raw material prices, shrimp feed volumes, pricing realisation, export demand, shrimp processing margins and the company’s ability to recover EBITDA margins.

The company’s strong balance sheet, low leverage and established position in the shrimp feed and processing industry provide financial stability, although the near-term earnings trajectory will depend significantly on input-cost movements and margin recovery.

Source: Avanti Feeds Limited Q1 FY27 Results Presentation dated August 26, 2026. The figures and management commentary above are based on the company’s presentation.

Disclaimer

This article is for informational and educational purposes only and is based on information disclosed by the company. It is not investment advice, a recommendation to buy or sell any security, or a guarantee of future performance. Investors should conduct their own research and consult a qualified financial adviser before making investment decisions.