Avanti Feeds Q1FY26 net profit falls 49% to ₹116 crore on margin squeeze
Avanti Feeds reported Q1FY26 consolidated net profit of ₹116.3 crore, sharply lower than ₹185.7 crore in Q1FY25, even as revenue grew 18.3% YoY to ₹1,899.9 crore. EBITDA fell to ₹105.1 crore from ₹214.2 crore, with the EBITDA margin contracting to 5.57% from 13.33%. The Shrimp and other Feeds segment revenue rose 26.8% YoY to ₹1,561.7 crore, though its segment result dropped to ₹65.3 crore from ₹182.2 crore, while the Processed Shrimp segment result improved to ₹29.5 crore from ₹18.3 crore.
*this image is generated using AI for illustrative purposes only.
Avanti Feeds reported a sharp decline in quarterly profitability for Q1FY26, with consolidated net profit falling to ₹116.3 crore compared to ₹185.7 crore in the same period last year. Despite this drop in bottom-line earnings, the company's topline performance showed growth, with revenue increasing to ₹1,899.9 crore from ₹1,605.7 crore YoY.
The divergence between revenue growth and profit contraction was driven by a significant compression in operating margins. EBITDA stood at ₹105.1 crore for the quarter, down from ₹214.2 crore in the prior year period. Consequently, the EBITDA margin contracted to 5.57% from 13.33% recorded in the corresponding quarter of the previous fiscal year.
Segment performance
The Shrimp and other Feeds segment, the company's core business, saw revenue rise 26.8% YoY to ₹1,561.7 crore. However, the segment result dropped significantly to ₹65.3 crore from ₹182.2 crore in Q1FY25, indicating severe margin pressure in the feed business. The Processed Shrimp segment revenue declined 10.1% YoY to ₹333.7 crore, while its segment result improved to ₹29.5 crore from ₹18.3 crore.
Financial highlights
The table below summarises key financial metrics for Q1FY26 against Q1FY25:
| Metric: | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Revenue: | ₹1,899.9 crore | ₹1,605.7 crore | +18.3% |
| EBITDA: | ₹105.1 crore | ₹214.2 crore | -50.9% |
| EBITDA Margin: | 5.57% | 13.33% | -7.76 ppts |
| Net Profit: | ₹116.3 crore | ₹185.7 crore | -37.4% |
The Board of Directors approved the unaudited financial results at its meeting held on August 13, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Tukaram & Co LLP.
What the numbers show
The data reveals a distinct divergence between volume and revenue expansion on one hand, and operational efficiency on the other. While Avanti Feeds managed to grow its revenue base approximately 18%, its ability to convert that revenue into operating profit deteriorated markedly. The EBITDA margin contracted by nearly 8 percentage points, suggesting that while sales volumes or prices supported higher turnover, input costs or other operating expenses rose disproportionately, eroding the core profitability of the feed business.
Historical Stock Returns for Avanti Feeds
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +6.43% | +1.51% | -7.66% | -28.15% | +29.32% | +50.15% |
What specific input cost drivers, such as raw material prices or logistics, are primarily responsible for the 7.76 percentage point contraction in EBITDA margins?
How does Avanti Feeds plan to address the severe margin pressure in its core Shrimp and other Feeds segment while maintaining its 26.8% revenue growth trajectory?
Given the decline in Processed Shrimp revenue, what strategic initiatives is the company pursuing to stabilize this segment's contribution to overall profitability?
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