AI-generated · cited to primary sources · not investment advice · How we research
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 company implemented a higher price cut of INR 4 per kg in April 2025, exceeding the previously mentioned 3 rupee target to support farmers. (2 exceeded, 1 met across 3 tracked commitments)
“So, 10% is a good achievable profitability for this current year overall.”
Management confirmed that trading for dog food (chicken and vegetable flavor) commenced in August 2025 as planned. (3 met, 2 exceeded across 5 tracked commitments)
“EBITDA margin raised to 13% in Q3FY26 from 8% in Q3FY25, primarly due to increase in average selling price realisation, favourable Fx rates and decrease in Ocean freight rates.”
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.”
See the full cited Business Model analysis of Avanti Feeds
Where does growth come from?
Shrimp processing revenue is showing strong growth, with Q4 FY25 revenue increasing 22% year-over-year, significantly higher than the full-year growth of 9%. (5 accelerating across 5 signals)
“Shrimp Processing [Revenue] 4,393.15 [Q3FY26] 3,210.46 [Q3FY25] 36.8% [Y-o-Y]”
Pet food sales are accelerating rapidly from a small base, growing 149% sequentially in Q2 FY26 following the launch of the dog food segment in August 2025. (2 accelerating across 2 signals)
“Processed Shrimp Sales % By Regions... Q3FY25 ASIA 14.2%... Q3FY26 ASIA 19.5%”
See the full cited Future Growth analysis of Avanti Feeds
What could break the thesis?
The risk is STABLE as the business has transitioned from planning to active trading. Avanti Pet Care commenced trading in Cat Food in January 2025, but it remains in the early execution phase. (1 stable, 1 intensifying, 1 high-severity)
“In Q3FY26, Shrimp feed revenues dropped by 9.6% YoY from Rs.9442 Mn.”
The risk is intensifying as the U.S. has implemented a complex 'reciprocal tariff' structure. India faces a total tariff of 33.12% (including ADD and CVD), which is significantly higher than competitors like Ecuador (13.8%). (3 intensifying, 2 easing, 1 high-severity)
“NORTH AMERICA 64.5% [under Q3FY26 Processed Shrimp Sales % By Regions]”
See the full cited Risk analysis of Avanti Feeds
Read the full thesis on Avanti Feeds
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