This article first appeared on GuruFocus .
Release Date: March 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Avanti Feeds Ltd ( BOM:512573 ) reported a year-on-year growth of 39% in gross income for the shrimp processing and export division in Q3 FY26.
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The company achieved a significant increase in profit before tax for the shrimp processing division, rising from 18 crores in Q3 FY25 to 52 crores in Q3 FY26.
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The pet food segment showed promising growth, with sales increasing from INR 95.08 lakhs in Q2 FY26 to INR 136.2 lakhs in Q3 FY26.
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The company is expanding its market presence in Tier 2 and Tier 3 cities and has initiated e-commerce operations on platforms like Super Tail and Amazon.
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Avanti Feeds Ltd ( BOM:512573 ) is optimistic about the impact of reduced tariffs in the EU and UK, expecting increased market access and demand for shrimp exports.
Negative Points
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The gross income for the shrimp feed division decreased by 12.78% in Q3 FY26 compared to the previous quarter, primarily due to a decrease in the quantity of feed sold.
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The company faces challenges with increasing prices of major raw materials like fishmeal and soybean meal, impacting profitability.
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The shrimp processing and export division experienced a decrease in sales quantity by 1,095 metric tons in Q3 FY26, representing a 23% drop.
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There is uncertainty regarding the implementation timeline of trade agreements with the UK and EU, which could delay potential benefits.
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The company anticipates a decrease in profit before tax margins for the full fiscal year due to rising raw material costs, expecting it to be around 14.5% to 15%.
Q & A Highlights
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Q: With the implementation of the UK's trade deal and the EU trade deal, do you see the market in the EU expanding for shrimps due to reduced tariffs? A: Yes, the market access into the EU and UK would improve, leading to higher demand from these markets due to reduced duties. (Respondent: Unidentified_7)
Q: How is the El Nino weather condition expected to impact fishmeal, a core raw material, in India and Ecuador? A: Fishmeal availability depends on ocean catches, which vary yearly. Last year was not favorable, but this year has seen better catches in Chile and Peru. However, demand from East Asia has increased, raising prices. We are working with the government to ensure adequate domestic availability. (Respondent: Unidentified_2)
Q: What is the outlook for shrimp processing for FY27, considering the new trade agreements? A: We expect better market access due to improved bilateral trade agreements. However, the exact impact on guidance will depend on the finalization of tariff structures. (Respondent: Unidentified_7)
Q: Can you provide insights into the pet food business, particularly regarding market penetration and competition? A: We are focusing on product quality and expanding our portfolio with new flavors. The response has been positive, and we are strengthening our presence in Tier 1 and Tier 2 cities, as well as on e-commerce platforms like Super Tails and Amazon. (Respondent: Unidentified_12)
Q: How do you see the feed business evolving in FY27 and FY28, and can we expect a mid to high single-digit growth rate in feed sales volume? A: Growth depends on climatic conditions and aquaculture activity. We expect a minimum 10% growth in feed volume consumption, assuming favorable conditions and increased culture area. (Respondent: Unidentified_2)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
