But as per concall , Ecuador is more into commodity shrimps and avanti is into more of value added shrimp like tempura.Also Ecuador doesnât do much of value added shrimp due to their lower population (it requires lot of labour to make value added shrimps as per concall). The value of shrimp exported to US is around 770cr out of their total revenue of 5500 cr . Also they have been concentrating on higher value added shrimp which donât attract duty ( but have to check how tariff ll affect it ).They were also reducing exposure to US by diversifying to other countries like Europe & Middle East .
Also their current profitability majorly was because of lower raw material cost except for wheat flour which is also trending lower now with the arrival of new crop .
The Indian shrimp feed market reached $1.7 billion in 2023. It is expected to reach $7.1 billion by 2032
at a growth rate of 17.21% CAGR during the period, according to researchandmarkets.com.
Few takeaways from concall:
- Finished Feed prices is decreased by 3 rupees per kg, due to global uncertainty .
- MSP of soya is increased by government, which will increase raw material prices.
- Ecuador is having edge when it comes to overall duty (Antidumping, CVD, Flat tariff imposed by Trump). Management continue to emphasis on value added shrimp category, which Eucador cannot able to supply. How much this translate into numbers is still debatable?
- Aims to go for 10 crore revenue for newly launched Pet care division (Cat feed)
Disclaimer: Not holding
Any updates from the company with the 50% US tariff coming into play.
Key takeaways from the Q1 FY26 earnings call (about US tariff impact)
Management commented that they are passing tariffs to customer as 50% is something they can not absorb
Inflation to follow in the price of shrimp in the U.S., as minimum is 15% for Ecuador to 50% for India
50% is a very big number for any supply-chain to take in
News are negative.
https://www.financialexpress.com/business/industry-andhra-50-export-orders-cancelled-shrimp-export-losses-pegged-at-rs-25000-cr-3978597/
Waiting for clarity
We are part of this discussion to understand Avanti Feedsâ evolving business model, financial strength, and diversification into new segments. The aim is to evaluate whether the companyâs growth story remains structurally intact despite industry volatility.
Avanti Feeds was founded in 1993 and has a vertically integrated aquaculture supply chain with feed mills, hatcheries, farms, and processing facilities. Its subsidiary AFFPL caters to shrimp processing and exports, offering a fully traceable farm-to-fork supply chain to destinations such as Europe, the USA, Japan, Korea, China, Russia, Canada, and the Middle East. The companyâs specialty lies in scientifically formulated, nutritionally balanced shrimp feed aided by worldwide technical services and compliance with international quality standards.
In FY25, revenue increased to âš560.03 crore from âš536.89 crore in FY24, evidencing sustained demand in the face of market stress. EBITDA widened to âš79.85 crore (14.2%) from âš59.44 crore (11.1%), and PAT rose significantly to âš55.71 crore (9.9%) from âš39.38 crore (7.3%), with EPS increasing from 26.2 to 38.8. Growth indicates enhanced profitability led by operational efficiencies, better other income, and improved export performance.
The one, three, and five-year CAGR is 9.3%, 13.5%, and 8.5%, respectively, indicating medium-term growth consistently. On balance, Avanti Feeds has a robust core shrimp business going hand in hand with prospective opportunities in the pet care and fish feed businesses, driving sustainable revenue growth in the face of risks emanating from tariff fluctuations and hatchery operating cycles.
Shrimp feed remains the highest revenue earner with strong growth in volumes, with processed shrimp exports sustaining steady volume expansion. The hatchery business witnessed a downfall due to operational cycles, and power and ancillary earnings, though lower, witnessed gains in efficiency. For FY26, the company anticipates feed sales of approximately 5.6 lakh MT and shrimp exports of 17,000 MT, with management having moderate confidence because of volatility in tariffs, while long-term outlook continues to be positive through diversification in domestic markets.
Avanti Feeds has also ventured into the pet care segment strategically through its Avant Furst brand. It introduced cat food in January 2025, and then tuna cat food and dog food (chicken and vegetable) in July - August 2025. Q1 FY26 sales of the segment were decent with a target of âš10 crore in FY26, indicating an emphasis on high-margin, long-term growth. The company is targeting e-commerce business from September 2025, fast commerce from December 2025, and a new 30-acre manufacturing plant in proximity to Hyderabad, with completion within 18 months. Trials of fish feed are currently being conducted under Indian conditions with local production as a medium CapEx project on the anvil.
Would like to hear membersâ thoughts on Avanti Feedsâ growth sustainability and diversification strategy.
- Can EBITDA margin improvement sustain amid tariff and raw material risks?
- Is pet care (Avant Furst) a serious long-term growth driver or just an experiment?
- Does the farm-to-fork integration provide a durable moat in the global shrimp market?
Positive for Avanti Feeds as this move can help the company diversify its exports: Australia clears shrimp exports from Andhra Pradesh
Short summary Avanti Earnings call( there may be some error as summarised with a day lag post listening)
- â Company has been able to pass the tariff to customers and will impact if tariff issues persist beyond JAN 26. Mitigation plan is to diversify EU n APAC markets
- Primary raw material for feed is wheat flour and soya flour and both prices trending up due to Indian govt allowed a million ton of wheat for export driving prices up in domestic market and may impact margins.
- â good response to Cat Food introduced in Jan 25. Introducing new flavour. Also launching new flavours in Cat food and dog food as well. Products are well received among pet owners looking for quality products. Currently imported from partner Thai Union(If I recall correctly)
- â 30 Acre land converted from agri to set up pet food factory in Hyd. Expected to start production with tech from Thai Union by end of FY 27. Company expect to garner good market share prior to that.
- â some resolution of trade issues in Russia EU n Oz markets provides alternative to US trade at risk due tariffs
- â
https://avantipetcare.com/
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Disc: Invested