Avanti Feeds has announced that Kotak Mahindra Mutual Fund has crossed the 5% shareholding threshold in the company, prompting the fund house to file mandatory disclosures under SEBI's Substantial Acquisition of Shares and Takeovers (SAST) Regulations. The acquisition represents a strategic investment by one of India's prominent mutual fund houses in the aquaculture and animal feed company.

Transaction Details

The mutual fund acquired 62,044 equity shares of Avanti Feeds through open market transactions completed on March 10, 2026. This acquisition increased Kotak Mahindra Mutual Fund's total shareholding in the company from 6,781,738 shares to 6,843,782 shares.

Regulatory Compliance

The acquisition triggered disclosure requirements under Regulation 29(1) of SEBI's SAST Regulations, as the fund's holding exceeded the 5% threshold. Kotak Mahindra Asset Management Company Limited, acting as the investment manager for Kotak Mahindra Mutual Fund, filed the necessary documentation with the Bombay Stock Exchange on March 12, 2026.

Investment Structure

The shares were acquired through various schemes managed by Kotak Mahindra Mutual Fund, with the fund house clarifying that it does not belong to the promoter or promoter group of Avanti Feeds. The investment was made entirely through equity shares carrying voting rights, with no encumbrances, warrants, or convertible securities involved in the transaction.

Company Overview

Avanti Feeds Ltd. maintains a total equity share capital of 13,62,45,630 equity shares of Rs. 1 each. The company's shares are listed on both BSE Limited and the National Stock Exchange of India Limited, providing liquidity for institutional investors like mutual funds.

Market Implications

The acquisition demonstrates institutional confidence in Avanti Feeds' business prospects, with Kotak Mahindra Mutual Fund's investment representing a significant stake in the company. The open market acquisition method indicates the fund house's systematic approach to building its position in the stock over time.

Avanti Feeds has released its detailed Q3 FY26 financial results through an earnings conference call held on March 03, 2026, providing comprehensive insights into the company's performance across its feed and processing divisions.

Consolidated Financial Performance

The company reported mixed quarterly results with revenue pressures offset by improved profitability metrics. Key consolidated performance indicators demonstrate the impact of seasonal variations and market dynamics on overall business operations.

For the nine months ended December 31, 2025, consolidated gross income reached ₹4,761 crores compared to ₹4,341 crores in the corresponding period, representing a 9.67% increase. PBT for nine months stood at ₹698 crores versus ₹526 crores, marking a significant 32.7% improvement.

Feed Division Performance

The standalone feed division experienced volume-driven revenue fluctuations while maintaining stable profitability. Feed sales decreased to 1,18,127 MT in Q3 compared to 1,54,644 MT in Q2 FY26, reflecting typical seasonal patterns in aquaculture operations.

For nine months FY26, the feed division achieved PBT of ₹576 crores compared to ₹465 crores in the previous year, representing a 23.87% increase. Feed sales volume increased to 4,38,335 MT from 4,25,537 MT in nine months FY25.

Raw Material Cost Pressures

The company highlighted significant increases in key raw material prices during Q3 FY26. Fish meal prices rose to ₹117 per kg from ₹98 in Q2 and ₹93 in Q3 FY25. Current purchase prices have escalated further, with fish meal at ₹145 per kg and soya bean meal at ₹56 per kg.

Processing Division Growth

The shrimp processing and export division demonstrated robust performance with significant year-over-year improvements. Q3 FY26 gross income reached ₹455 crores compared to ₹328 crores in Q3 FY25, representing 39% growth driven by improved pricing realization and favorable foreign exchange rates.

Market Outlook and Projections

Management projects PBT margin of 14.5-15% for FY26, down from the 16% achieved in nine months due to rising raw material costs. The company estimates feed sales of around 5,55,000 MT for FY26 and shrimp exports of approximately 16,500 MT.

The removal of reciprocal tariffs by the U.S. and implementation of trade agreements with UK and EU are expected to improve export prospects. However, uncertainty remains regarding the 10% import surcharge potentially increasing to 15%.

Pet Care Division Progress

The pet food business under the "Avant Furst" brand recorded sales of ₹136.2 lakhs in Q3 FY26 compared to ₹95.08 lakhs in Q2 FY26. The company is developing manufacturing facilities near Hyderabad with land development works currently in progress.