Avanti Feeds Ltd (AVANTIFEED) Q1 FY27 Results Analysis: Margin Collapses 778 bps, PAT Plunges 42%

Avanti Feeds Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 1,899.86 Cr (+18.32% YoY) and PAT growth of -42.06% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 18.3% YoY, above the annual guidance range, but EBITDA margin collapsed 778 bps to 5.57% due to raw material cost spike, with PAT attributable to owners down 42%. The processed shrimp segment showed margin improvement, but the core feed business remains under severe cost pressure.

Key Investment Insights

Key Positives

• Revenue grew 18.3% YoY to Rs.1,899.86 Cr, above management's FY27 growth guidance of 10-15%.
• Processed shrimp segment EBIT margin nearly doubled to 8.84% from 4.94% YoY, aided by INR depreciation and better product mix.
• Employee costs and other expenses declined as a share of revenue, indicating cost control.

Risk Factors

• EBITDA margin compressed 778 bps YoY to 5.57% due to raw material cost surge.
• PAT attributable to owners declined 42.06% YoY to Rs.103.30 Cr, with EPS dropping 42.05%.
• Feed segment EBIT margin collapsed from 14.79% to 4.18% (1,061 bps compression) due to input cost inflation.