Avanti Feeds Limited is a prominent, vertically integrated player in the aquaculture industry, specifically focused on the shrimp value chain. The company's operations are structured around two core business segments: Shrimp Feed and Shrimp Processing. The Shrimp Feed division is engaged in the manufacturing and distribution of nutritionally balanced feed, which is a critical input for shrimp farming. The Shrimp Processing division focuses on the procurement, processing, and export of shrimp to various international markets. Avanti Feeds positions itself as a key contributor to the aquaculture sector, operating under the principle of "Aiding Sustainability & Reliability to Aquaculture." With its corporate headquarters in Hyderabad and registered office in Visakhapatnam, the company has established a significant presence in India's coastal regions, which are central to the nation's aquaculture activities.

Official Website: http://www.avantifeeds.com/

• Quarterly Performance (Q3 FY26 vs Q3 FY25):

• Revenue: Consolidated revenues from operations saw a modest increase of 1.3% year-over-year (YoY), growing to INR 13,835 million from INR 13,658 million.

• Profitability: The company demonstrated strong growth in profitability. Earnings Before Interest and Taxes (EBIT) rose by 20.9% YoY to INR 2,230 million. Profit After Tax (PAT) grew by 16.1% YoY to INR 1,635 million, compared to INR 1,408 million in the same quarter last year.

• Margins: EBITDA margin expanded significantly by 270 basis points (bps) to 17.3%. Net Profit (NP) margin improved by 150 bps to 11.8%.

• Earnings Per Share (EPS): Basic EPS for the quarter increased to INR 10.96 from INR 9.92 in Q3 FY25.

• Nine-Month Performance (9M FY26 vs 9M FY25):

• Revenue: For the nine months ended December 31, 2025, consolidated revenues grew by 9% YoY to INR 45,996 million.

• Profitability: EBITDA for the period surged by 31% YoY to INR 7,474 million. PAT showed robust growth of 29.5% YoY, reaching INR 5,179 million.

• Margins: EBITDA margin for the nine-month period improved by 270 bps to 16.2%, while the Net Profit margin increased by 170 bps to 10.9%.

• Segmental Performance (Q3 FY26 YoY):

• Shrimp Feed: This segment experienced a revenue decline of 9.6% YoY, with revenues falling to INR 9,442 million from INR 10,447 million.

• Shrimp Processing: This segment was the primary growth driver, with revenues increasing by a substantial 36.8% YoY to INR 4,393 million from INR 3,210 million.

• Balance Sheet and Key Ratios (FY25 vs FY24):

• Financial Health: The company maintains a strong and healthy balance sheet. Reserves and Surplus grew from INR 26,756 million in FY24 to INR 31,612 million in FY25. The company is virtually debt-free, with a Net Debt-to-Equity ratio of just 0.01x.

• Return Ratios: Profitability metrics showed significant improvement. Return on Capital Employed (RoCE) increased to 23.00% in FY25 from 19.77% in FY24. Return on Equity (RoE) improved to 18.99% in FY25 from 15.55% in FY24.

• Working Capital: The cash conversion cycle has extended, with Inventory Days increasing from 60 to 75 and Payable Days increasing from 22 to 31 in FY25.

The company's recent financial performance highlights strong growth in profitability and significant margin expansion, driven entirely by the robust performance of its Shrimp Processing segment, which has more than offset a revenue contraction in the Shrimp Feed business.

• Primary Growth Driver - Shrimp Processing:

• The Shrimp Processing and Export business is the principal engine of growth. Its revenue surged by 37% YoY in Q3 FY26.

• According to management, this growth was primarily driven by improved average selling price realization and favorable foreign exchange rates.

• Contraction in Core Business:

• The Shrimp Feed segment, which constitutes the larger portion of the company's revenue, reported a 9.6% YoY decline in revenue for Q3 FY26. No specific reasons for this decline were provided.

• Profitability-Led Growth:

• Overall growth in the bottom line was substantial, with PAT growing 16.1% YoY for the quarter and 29.5% YoY for the nine-month period. This indicates that growth is currently being driven by higher profitability and operational efficiency rather than broad-based revenue expansion.

The company's growth is concentrated in its value-added Shrimp Processing segment, where higher price realizations have fueled revenue and profit expansion, compensating for a downturn in the larger Shrimp Feed business.

• Consolidated Margin Expansion:

• The company achieved a significant expansion in consolidated margins in Q3 FY26. The EBITDA margin increased by 270 bps YoY to 17.3%, and the PAT margin improved by 150 bps to 11.8%.

• For the nine-month period, the EBITDA margin stood at 16.2%, a 270 bps improvement over the prior year.

• Shrimp Processing Segment Margins:

• This segment was the standout performer. Its EBITDA margin more than doubled, rising to 13.5% in Q3 FY26 from 8.3% in Q3 FY25.

• Management attributes this sharp increase to a combination of higher average selling prices, favorable foreign exchange rates, and a decrease in ocean freight costs.

• Shrimp Feed Segment Margins:

• Despite a decline in revenues, the Shrimp Feed segment also improved its profitability. The EBITDA margin for this segment increased to 19.0% in Q3 FY26 from 16.5% in Q3 FY25, indicating better cost management or pricing power.

The company achieved significant margin expansion across both its key segments in Q3 FY26, with the Shrimp Processing division showing the most dramatic improvement due to favorable market and operational conditions.

• Geographic Sales Mix for Processed Shrimp:

• North America continues to be the dominant market, accounting for 69.8% of processed shrimp sales in Q3 FY26.

• Europe and Asia represented 17.2% and 15.9% of sales, respectively, during the same period.

• The reliance on the North American market has increased compared to the full fiscal year FY25, where its share was 66.9%.

• Shareholding Structure (as of Dec 31, 2025):

• Promoters: The promoter group holds a 43.23% stake in the company.

• Institutional Investors: Foreign Portfolio Investors (FPIs) hold 7.98%, and Domestic Institutional Investors (DIIs) hold 4.16%.

• Public Shareholders: Retail and other public shareholders hold a combined stake of 24.63%.

• Stock Information (as of Feb 25, 2026):

• Market Capitalization: Approximately INR 184 billion.

• Shares Outstanding: 136 million.

• Ticker Symbols: BSE: 512573, NSE: AVANTIFEED.

The company maintains a strong export focus with North America as its primary market, and its ownership is well-distributed among promoters, institutional investors, and the public.