Avanti Feeds faces a challenging Q1 FY27 as it navigates an unprecedented surge in raw material costs against a seasonally soft export backdrop. Investors will be looking for management's ability to protect margins through price hikes and the potential cash flow boost from pending US tariff refunds.
| Results date | August 13, 2026 |
|---|---|
| Quarter | Q1 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,467.72 Cr |
| Previous quarter PAT | Rs. 125.11 Cr |
| Previous quarter EBITDA margin | 13.6% |
| Market cap | Rs. 11516.17 Cr |
| CMP | Rs. 845.25 |
The board will meet on August 13, 2026, to consider the unaudited financial results for Q1 FY27.
The primary narrative for the quarter is the significant compression of feed margins driven by a May-June spike in fish meal prices, which management noted doubled to Rs. 240/kg. While the company implemented a price hike in February 2026, the timing of a second anticipated hike relative to the raw material surge will determine the extent of margin erosion in the feed segment. Conversely, the processing segment is expected to benefit from a favourable FX environment, with the rupee averaging weaker than the Rs. 86 level seen a year ago, supporting export realisations. Furthermore, the potential validation of a USD 15-20 million tariff refund from the US subsidiary serves as a material liquidity cushion that could offset operational headwinds. The upcoming call will likely focus on the quantum of feed price pass-throughs and the progress of the pet care business, which is targeting Rs. 10 Cr in revenue for FY27.
Feed segment margin and pricing: Management's ability to mitigate raw material inflation through price hikes is the central margin driver.
Export performance and tariff status: Export volumes and the status of US tariff refunds remain critical for cash flow.
Pet care business progress: Scaling of the new business segment remains a key strategic focus.
Regulatory and operational headwinds: Management is actively engaging with policy makers regarding raw material availability.
Management reported an unprecedented price increase in May and June 2026, with fish meal prices doubling to Rs. 240/kg and soybean meal prices rising by approximately 45%. This input cost inflation significantly pressured the feed division's profitability.
The US subsidiary is currently validating tariff refund claims estimated at USD 15-20 million. These funds are expected to bolster cash flow and provide a cushion against margin pressures.
Management has set a target of approximately 19,000 MT for processed shrimp exports in FY27. This follows a strong FY26 where the company achieved export volumes of approximately 17,000 MT.