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Avanti Feeds
Our verdict on Avanti Feeds isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The project is in the pre-construction phase. Land has been purchased and converted for non-agricultural use, and design finalization is underway. Management estimates production will start in 12-15 months. (1 in progress across 1 tracked commitment)
“And when we start our production, maybe in the next one year or 14 or 15 months, so we should be able to start our own production.”
While the document is dated August 29, 2025, it does not explicitly confirm the launch of the dog food product line, though it mentions launching e-commerce operations for Pet Care in September 2025. (1 in progress across 1 tracked commitment)
“The company is also planning to launch a dog food product in August 2025.”
Management expects to maintain stable margins and the same margin profile in the upcoming quarter. — target: Stable margins
“On the margin, I think in the short term, we still look at stable margins and look to have the same profile in the next quarter, at least looking at things today.”
The company is actively diversifying its export markets to Japan, Korea, EU, and Middle-East to reduce dependence on the U.S. market due to high tariffs. — target: Diversification to Japan, Korea, EU, Middle-East
“Keeping this factor in view, the endeavour of the company is to expand its global market to other destinations like Japan, Korea, European Union and Middle-East.”
Management expects to maintain a market share in the range of 52% to 53% in the future. — target: 52%-53%
“And I think we will conƟnue to hold that posiƟon at 52%, 53% in future also.”
See the full cited Management analysis of Avanti Feeds
How durable is the business?
The Asian market share for processed shrimp has expanded significantly, nearly doubling from 6.5% in FY24 to 12.8% in FY25. (5 expanding)
“NORTH AMERICA 64.5%”
The Shrimp Processing and Export division is showing explosive growth, with revenue up 62% year-over-year. This is driven by higher sales volumes (up 46% for the half-year) and better price realization. (1 expanding)
“The gross income in Q2 FY26 increased to INR 462 crores from INR 284 crores during Q2 FY25, an increase of INR 178 crores, representing 62% YoY growth.”
The Shrimp Feed segment showed resilience with a 3.8% increase in annual revenue for FY25, reaching INR 4,563 crores. Profitability improved significantly due to softening raw material prices (fishmeal and soybean meal) and better overhead absorption. (5 expanding across 1 engine)
“Shrimp Processing 4,393.15 3,210.46 36.8%”
The regulatory moat for domestic feed has strengthened as the Indian government reinstated a 15% customs duty on imported shrimp feed, protecting domestic players from cheap imports. (1 expanding)
“The customs duty on imported shrimp feed has been reinstated at 15%, but withdrawing concession duty at 5% given in the budget of the previous year... This step would help domestic feed suppliers to compete with the imported shrimp feed.”
Revenue continues to expand (up 9.1% for FY25), but margins have contracted significantly to 10.2% for the full year (and 7.6% in Q4) due to the impact of countervailing duties (CVD). (4 expanding, 1 contracting across 1 engine)
“Shrimp Feed 9,442.08 10,447.22 -9.6%”
See the full cited Business Model analysis of Avanti Feeds
Where does growth come from?
Overall company profitability is improving steadily, with consolidated EBITDA margins reaching a multi-quarter high of 17.28% in Q3FY26, up from 14.6% a year ago. (1 steady across 1 signal)
“Consolidated... % Blended Margins 14.6 [Q3FY25] 17.28 [Q3FY26]”
The pet food segment is demonstrating rapid early-stage growth, with sales increasing nearly 50% sequentially as the company expands its product portfolio and geographic reach. (2 accelerating, 2 reversing, 1 new trend across 5 signals)
“Shrimp Processing... % Margins... 8.3 [Q3FY25] 13.48 [Q3FY26]”
Feed sales volumes are showing steady growth on a half-year basis, increasing from 2.93 lakh MT to 3.20 lakh MT, despite a slight seasonal dip between Q1 and Q2 of FY26. (1 steady across 1 signal)
“Sales (MT) Shrimp Feed 1,32,049 [Q3FY25] 1,18,127 [Q3FY26]”
Rising costs of key ingredients like fish meal and soybean meal are putting pressure on profit margins for the upcoming quarter. — Fish Meal Price: Steady increase from INR 117 in Q3
“The present purchase price of fish meal is INR 145 per kg... Considering the continued steep increase in prices of major raw material... the PBT for the FY26 is expected to be around 14.5% to 15%.”
Feed sales volume is showing steady growth year-over-year, though Q4 saw a slight seasonal dip compared to Q3. Management expects FY26 volumes to remain stable at current high levels. (2 steady, 1 new trend across 3 signals)
“The feed sales decreased by 2338 MT to 129,711 MT in Q4 FY ’25 as compared to 132,049 MT in Q3 FY ’25, an increase by 7433 MT from 122,278 MT when compared to Q4 FY’24.”
See the full cited Future Growth analysis of Avanti Feeds
What could break the thesis?
The company faces the risk of losing government financial support, which has historically aided its financial performance. [REGULATORY]
“These risks and uncertainties include but are not limited to... withdrawal of governmental fiscal incentives”
This risk remains stable but active; management noted that heavy rains and disease outbreaks caused 'premature harvests' and temporary slowdowns during the current quarter. (1 stable)
“the status of aquaculture activity conditions such as climate, diseases, etc., determine the consumption of feed in terms of volume, which will have an impact on the overall performance of the company.”
The shrimp processing market is highly fragmented with over 100 competitors in India, making it difficult to rapidly gain significant market share. [COMPETITIVE]
“especially in India, it's been very fragmented. They are like 100 plus packers... your market share volume-wise in the last four to five years has been quite stagnant in this division, around the 1%, 2% mark.”
The risk remains stable as the business is still in the 'trading' phase (importing from Thailand). Construction of the Indian manufacturing facility is not slated to begin until late 2025. (2 stable, 1 easing)
“The company is in the final stage of acquisition of land and planning to commence construction from September or October ‘25... presently the company is getting the product manufactured by the collaboration facility in Thailand and importing for trading.”
The risk is EASING as Shrimp Feed revenues grew 4% YoY to Rs 10,353 Mn in Q4FY25, supported by a 6% YoY volume growth. For the full year FY25, sales volume reached 5,55,248 MT, a 4% increase over FY24. (5 easing)
“In Q4FY25, Shrimp feed revenues grew 4% YoY to Rs 10,353 Mn this was on the back of strong volume growth of 6% YoY.”
See the full cited Risk analysis of Avanti Feeds
Read the full thesis on Avanti Feeds
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