Avanti Feeds Q1FY27 Results: Net profit falls 37% to ₹116 crore
- Consolidated revenue grew 18.3% YoY to ₹18,999 crore in Q1FY27
- Net profit declined 37.4% to ₹1,163 crore due to raw material cost pressures
- Shrimp feed volumes surged 17% to 193,852 MT, but margins compressed
- Processing segment EBITDA margin improved to 16.0% despite lower sales
- Net debt-to-equity ratio remains minimal at 0.01x
*this image is generated using AI for illustrative purposes only.
Avanti Feeds reported a significant divergence between top-line growth and profitability in its Q1FY27 results. Consolidated revenues rose 18.3% year-on-year to ₹18,999 crore, driven by strong volume expansion in the shrimp feed segment. However, net profit after tax (PAT) declined 37.4% to ₹1,163 crore, reflecting pressure from elevated raw material costs that compressed operating margins.
Financial Performance
The company’s consolidated EBITDA contracted 35.2% to ₹1,716 crore, with margins slipping 750 basis points to 9.0%. This margin compression occurred despite an 18.3% increase in revenue, indicating that cost inflation outpaced pricing power or volume gains in the aggregate.
| Metric | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Revenue | ₹18,999 crore | ₹16,064 crore | +18.3% |
| EBITDA | ₹1,716 crore | ₹2,653 crore | -35.2% |
| EBITDA Margin | 9.0% | 16.5% | -750 bps |
| Net Profit | ₹1,163 crore | ₹1,857 crore | -37.4% |
Segment Dynamics
Shrimp feed revenues grew 26.8% to ₹15,662 crore, supported by sales volumes reaching 193,852 metric tonnes, up from 165,564 metric tonnes in Q1FY26. Despite this volume surge, the segment’s PBT margin narrowed to 5.3% from 18.1% in the prior year quarter, directly attributed to rising input prices.
Conversely, the shrimp processing segment saw revenues decline 10.1% to ₹3,337 crore, driven by a 17% drop in sales volumes to 3,520 metric tonnes. However, the processing unit demonstrated resilience in profitability, with EBITDA margins improving to 16.0% from 9.1% in Q1FY26. This improvement was aided by favorable foreign exchange movements and better average selling price realizations.
What the Numbers Show
A critical observation is the decoupling of operational scale from profitability in the core feed business. While shrimp feed sales volumes increased by approximately 17% (from 165,564 MT to 193,852 MT), the segment’s contribution to overall profit efficiency eroded sharply. The 750 basis point contraction in blended EBITDA margins suggests that raw material cost pass-through mechanisms may be lagging behind input price hikes, creating a temporary squeeze on operating leverage despite strong demand execution.
Balance Sheet Position
As of June 30, 2026, Avanti Feeds maintained a robust balance sheet with total assets at ₹42,604 crore. The company’s net debt-to-equity ratio remained negligible at 0.01x, providing financial flexibility. Return on capital employed (RoCE) stood at 22.30% for FY26, while return on equity (RoE) was recorded at 19.09%, indicating efficient capital utilization despite the quarterly margin pressures.
Historical Stock Returns for Avanti Feeds
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.51% | -3.07% | -14.07% | -38.06% | +31.71% | +48.17% |
How long is Avanti Feeds expected to face margin compression before raw material cost pass-through mechanisms fully stabilize EBITDA margins?
Will the company adjust its pricing strategy for shrimp feed to protect margins, and what impact might this have on future volume growth in a competitive market?
Given the 17% drop in shrimp processing volumes, are there emerging geopolitical or demand-side risks affecting export markets that could persist into Q2FY27?
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