Q2 FY27 results analysis · November 12, 2026
Avanti Feeds Q2 FY27 Results Analysis: PAT Plunges 55%, EBITDA Margin Compresses (AVANTIFEED)
−56.2%PAT year on year, Rs. 73.92 Cr
Source: Quarterly results filing (BSE)
Quick summary
Avanti Feeds Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,752.52 Cr (+8.93% YoY) and PAT growth of -56.21% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 10, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,752.52 Cr (+8.93% YoY) |
| PAT (Q2) | Rs. 73.92 Cr (-56.21% YoY) |
| EBITDA margin | 7.33% (-775 bps YoY) |
| EPS (Q2) | Rs. 5.06 (-55.02% YoY) |
Quarter Snapshot
Q2 FY27 delivered the margin-crush management pre-flagged: revenue grew 8.93% YoY but EBITDA halved (−47.07% YoY, margin 7.33% vs 15.08%) as materials costs hit 85.30% of revenue, and a fresh Rs.17.12 Cr US anti-dumping provision pushed owners' PAT down 55.02% to Rs.68.95 Cr. H1 revenue growth of 13.62% remains within the company's 10–15% FY27 guidance, with the June 2026 feed price hike expected to flow through in H2. A debt-free Rs.1,682 Cr net-cash balance sheet cushions the downturn, but margin recovery timing and the ADD appeal outcome are the key swing factors.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue "likely ahead YoY, seasonally softer QoQ" | Rs.1,752.52 Cr; +8.93% YoY, −7.76% QoQ | Played out |
| Feed margin "likely stays under severe pressure rather than recovering" | Feed margin 3.19% vs 4.18% Q1 / 12.03% YoY | Played out |
| Processing margin "supported but with new tariff friction" | Processing margin 1.79% vs 8.84% Q1 / 9.34% YoY; ADD provision booked | Contradicted on margin support; tariff friction materialized as the Rs.17.12 Cr provision |
| "Anti-dumping duty rate hike" friction | Confirmed in the filing: rates 1.35% → 3.76%/5.53%, Rs.17.12 Cr provision | Played out |
| 10–15% growth path "looks intact on volume evidence" | H1 +13.62% | Played out |
| Margin-recovery timeline "at risk" (El Niño persistence) | No recovery visible in Q2; feed margin still falling QoQ | Played out |
| Watch: feed volumes vs 5.8 lakh MT; USD 15–20 mn refund; AP pricing committee | Not addressed in the filing — remains open for the call | Not observable |
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| 10–15% FY27 revenue growth | FY27 budgeting, stated on the Q4 FY26 earnings call | H1 FY27 +13.62% YoY (Rs.3,652.38 Cr) | On Track |
| Feed sales ~5,80,000 MT | Q4 FY26 earnings call | Q2 volume not disclosed in the filing (Q1: 1,93,852 MT, +17.09% YoY) | Too Early |
| Frozen shrimp exports 19,000 MT | Q4 FY26 earnings call | Q2 volume not disclosed in the filing | Too Early |
| Feed margin recovery post June-19 price hike | Q1 FY27 call (Aug 27, 2026) | Feed segment margin 3.19% vs 4.18% Q1 / 12.03% Q2 FY26 — benefit expected H2 | Too Early |
| Pet care 800 MT by year-end | Q1 FY27 call | Not disclosed in the filing | Too Early |
| Q2 FY27 "can be again a larger pinpoint before the benefit of the price hike… will play out" (confirmed by JMD C. Ramachandra Rao) | Q1 FY27 earnings call, Aug 27, 2026 | EBITDA margin troughed at 7.33% (Q1 9.03%); feed margin 3.19% | Confirmed |
| Windmill divestment "has no material impact on ongoing operations" | Company filing, results notes | Discontinued operations nil in Q2 FY27 | Confirmed |
| Raw-material inflation is the dominant cost story | Q1 FY27 call / prior calls | Cost of materials +35.03% YoY; 85.30% of revenue | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| Shrimp feed sales (MT) | 1,54,644 | 1,18,127 | 1,23,725 | 1,93,852 | not disclosed |
| Shrimp processing sales (MT) | 4,862 | 3,767 | 4,124 | 3,520 | not disclosed |
Key Investment Insights
Key Positives
- Consolidated revenue grew 8.93% YoY to Rs.1,752.52 Cr; Shrimp & other Feeds revenue rose 18.94% YoY to Rs.1,374.41 Cr
- H1 FY27 revenue of Rs.3,652.38 Cr grew 13.62% YoY, tracking within management's 10–15% FY27 guidance
- Shrimp Hatchery revenue grew 120.8% YoY to Rs.4.05 Cr; hatchery segment loss narrowed to Rs.0.11 Cr from Rs.1.31 Cr
- Net cash of ~Rs.1,682 Cr (Rs.1,691.13 Cr liquidity vs Rs.9.07 Cr total borrowings); finance cost just Rs.0.40 Cr
- Employee costs fell 5.21% YoY and other expenses were flat (−0.25% YoY)
- Free cash flow of Rs.74.44 Cr in H1 (CFO Rs.121.92 Cr minus capex Rs.47.48 Cr)
Risk Factors
- EBITDA fell 47.07% YoY to Rs.128.44 Cr with margin down ~775 bps to 7.33%; ex-other-income operating margin was 4.45% vs 12.01% a year ago
- Cost of materials consumed grew 35.03% YoY, reaching 85.30% of revenue vs 68.81% in Q2 FY26
- Owners' PAT fell 55.02% YoY to Rs.68.95 Cr; even normalized for the ADD provision, owners' PAT was down 49.88%
- Feed segment margin compressed to 3.19% (from 4.18% QoQ and 12.03% YoY); Processed Shrimp margin fell to 1.79% from 9.34% YoY on a 17.08% YoY revenue decline
- Rs.17.12 Cr exceptional ADD provision booked after US ADD rates were revised from 1.35% to 3.76%/5.53%; appeal pending before the CIT, USA
- Inventory build of Rs.67.78 Cr (Rs.125.03 Cr negative YoY swing) and CFO/PAT of 0.64× signal working-capital strain
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Companies on this page
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.