Avanti Feeds Limited , a leading player in the aquaculture industry, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of ongoing tariff pressures from the United States.

Financial Highlights

The company posted a consolidated gross income of INR 1,659.00 crores in Q2 FY26, with a profit before tax (PBT) of INR 227.00 crores. Notably, the shrimp processing division showed remarkable growth, with revenues surging by 62% year-over-year to INR 462.00 crores, despite the challenges posed by U.S. tariffs.

Shrimp Processing Division Performance

The shrimp processing division's strong performance was attributed to:

• Increased sales volume, up by 1,439 metric tons compared to Q2 FY25
• Higher average selling price realization
• Favorable foreign exchange rates
• Marginal decrease in ocean freight rates

The division's profit before tax stood at INR 53.00 crores, more than doubling from INR 23.00 crores in the corresponding quarter of the previous year.

Feed Division Outlook

While the feed division continues to perform well, the company expects some pressure on margins in the coming quarters due to rising raw material costs. Key raw material price trends include:

• Fish meal prices increasing to INR 125.00 per kg
• Soybean meal prices rising to INR 47.00 per kg
• Wheat flour prices ranging between INR 32.50 to INR 33.00 per kg

Despite these challenges, Avanti Feeds maintains its feed sales guidance of 575,000 MT for FY26, indicating confidence in sustained demand.

Market Diversification and Government Support

To mitigate the impact of U.S. tariffs, Avanti Feeds is actively pursuing market diversification strategies. The company is exploring new geographies and focusing on value-added products to enhance competitiveness and improve margins.

The Indian government has recently announced an export promotion scheme with a total outlay of INR 25,000.00 crores over five years. This initiative aims to support exporters affected by reciprocal tariffs and is expected to benefit sectors including marine products.

Outlook

Despite the challenges posed by U.S. tariffs, Avanti Feeds remains optimistic about the future. The company cites several factors supporting the industry's stability:

1. Market diversification efforts
2. Consistent global demand for shrimp
3. Shift towards value-added products
4. Government support for domestic market development

The management expects demand for shrimp to continue growing, supported by its position as a versatile, affordable, and widely accepted protein source.

As Avanti Feeds navigates through these dynamic market conditions, its strong performance in Q2 FY26 demonstrates the company's resilience and ability to adapt to changing global trade landscapes.

Avanti Feeds Limited has delivered a strong financial performance for the quarter ended September 30, showcasing significant growth across key financial metrics.

Financial Highlights

The company reported a substantial increase in its consolidated net profit, which rose to Rs 168.79 crore, marking a 38.9% jump from Rs 121.48 crore in the same quarter of the previous year. This growth in profitability underscores Avanti Feeds' ability to enhance its bottom line.

Revenue from operations for the quarter also saw a notable uptick, reaching Rs 160.97 crore, compared to Rs 135.23 crore in the corresponding period last year, representing a 19% year-over-year increase.

Standalone Performance

On a standalone basis, Avanti Feeds posted a net profit of Rs 135.05 crore, up from Rs 106.46 crore in the previous year quarter.

Strategic Developments

Avanti Feeds' Board of Directors has approved a contribution of Euro 10,000 towards subscribing to the issued capital of Sealuxe B.V., Netherlands, a Wholly Owned Subsidiary of the company. Additionally, the Board has given approval to extend an unsecured loan of Euro 40,000 to Sealuxe B.V., Netherlands, for meeting initial revenue expenditures.

Earnings Per Share

The company's earnings per share (EPS) increased to Rs 11.25 from Rs 8.34 on a consolidated basis.

Conclusion

Avanti Feeds' quarterly results, characterized by growth in revenue, profitability, and earnings per share, reflect the company's performance. The expansion into international markets through its Netherlands subsidiary indicates an approach to explore opportunities in the aquaculture industry.