Indian shrimp feed maker Avanti Feeds reports a 19% rise in sales for Q1 FY2027, but profits decline sharply due to escalating costs of fish meal and soybean meal, with margins compression highlighting inflation pressures across the aquaculture sector.
Avanti Feeds posted higher sales in the first quarter of fiscal 2027, but the Indian shrimp feed maker’s profits were hit hard by soaring input costs. In a results update cited by GuruFocus on 27 August, the company said consolidated gross income rose 19% year on year to INR1,966 crore, helped by a 17% increase in feed sales volume to 193,852 metric tonnes. Yet profit before tax fell 37% to INR157 crore as prices for key ingredients, especially fish meal and soybean meal, climbed sharply.
The pressure on margins was most visible in the feed business, where profit before tax margin fell to 7.06% from 17% a year earlier. Company executives said fish meal costs rose to INR153 per kilogram in the quarter from INR93 a year earlier, while soybean meal increased to INR58 per kilogram from INR40. Avanti also said it lifted feed prices by about 10% on 19 June, but management indicated that rising raw material costs had moved faster than pricing could fully offset.
Not all parts of the group weakened. The shrimp processing division’s profit before tax rose to INR45 crore from INR25 crore a year earlier, supported by better realisations and improved efficiency. Independent result trackers, including Cofacto, Alpha Inflection and ICICI Direct, also flagged a steep drop in overall profitability, with net profit falling by about 37% to around INR103 crore and margins compressed by higher operating and raw material costs. Those reports said the processed shrimp segment benefited from a weaker rupee and a better product mix, even as the wider business absorbed heavier cost inflation.
Management struck a cautiously upbeat tone on the outlook, saying it expects raw material prices to ease if the monsoon and fresh crop arrivals improve supply. The company also said shrimp farming activity remains healthy, although farmers are being squeezed by feed inflation, and it warned that the second quarter could remain challenging. Beyond aquaculture, the group’s pet care arm continued to grow, with sales rising to INR180 lakh from INR151 lakh in the previous quarter, while a larger pet food investment programme is still at an early stage after land purchases near Hyderabad and a pending regulatory application.
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