Avanti Feeds (512573) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue for Q1 FY27 was ₹18,999 million, up 18.3% year-over-year, driven by strong volume growth in the shrimp feed segment.

• Net profit for Q1 FY27 declined 37.4% year-over-year to ₹1,163 million, with margins compressing to 6.1% due to elevated raw material costs.

• Shrimp feed revenues grew 26.8% year-over-year, while shrimp processing revenues fell 10% year-over-year due to a 17% drop in sales volume.

• The company completed the divestment of its wind power business, with no material impact on ongoing operations.

• Pet food segment continued to grow, with increased sales and ongoing investment in manufacturing capacity.

Financial highlights

• EBITDA for Q1 FY27 was ₹1,716 million, down 35% year-over-year, with EBITDA margin dropping 750 bps to 9.0%.

• EPS for Q1 FY27 was ₹7.58, down from ₹13.09 year-over-year, a 42.1% decrease.

• Feed division gross income for Q1 FY27 was INR 1,615 crores, up 27% year-over-year.

• Shrimp processing and export division gross income for Q1 FY27 was INR 350 crores, down 7% year-over-year.

• Net debt to equity remains negligible at 0.01x.

Outlook and guidance

• Management highlights margin pressure from raw material inflation but notes improved average selling prices and favorable FX movements in shrimp processing.

• FY27 feed sales are estimated at 585,000 MT, up from 562,060 MT in FY26.

• Shrimp exports for FY27 are projected at 19,000 MT, up from 16,976 MT in FY26.

• Raw material prices are expected to stabilize with favorable monsoon and new crop arrivals.

• The company is closely monitoring the recovery of its associate, Patikari Power, after the impairment loss due to natural disaster.