Avanti Feeds Ltd saw its second-quarter net profit plunge 54.9% to ₹69 crore, hammered by sharp operational margin compression despite modest top-line revenue gains. The bottom line had touched ₹153 crore during the identical quarter last year.
The earnings collapse caught market participants off guard.
Revenue from operations told a different story, rising 8.9% to ₹1,752.5 crore from ₹1,609 crore recorded twelve months prior. Yet higher top-line throughput failed to shield profitability against ballooning operational costs.
Operating profitability buckled across the board. Earnings before interest, tax, depreciation, and amortisation (EBITDA) tumbled 59.8% to ₹78 crore compared to ₹194 crore in the prior-year period.
Margins eroded rapidly. The company’s EBITDA margin shrank to 4.45% for the September quarter, down from 12% a year earlier—a steep contraction of over 750 basis points.
| Financial Metric | Q2 FY27 | Q2 FY26 | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹1,752.5 crore | ₹1,609.0 crore | +8.9% |
| EBITDA | ₹78.0 crore | ₹194.0 crore | -59.8% |
| EBITDA Margin | 4.45% | 12.00% | -755 bps |
| Net Profit | ₹69.0 crore | ₹153.0 crore | -54.9% |
Market Context: The steep margin erosion reveals escalating cost pressures in feed conversion and input procurement that could not be absorbed through volume expansion alone, placing immediate scrutiny on pricing power.
Headquartered in Hyderabad, Avanti Feeds ranks among India’s dominant manufacturers of commercial shrimp feed. The company anchors its business on a vertically integrated farm-to-fork network, running aquaculture farms, processing plants, feed mills, and hatcheries. Alongside its domestic base, the company supplies overseas markets, shipping feed products to Sri Lanka and Bangladesh.
The stock traded defensively ahead of AirNews.
On the BSE, shares of Avanti Feeds closed Monday at ₹724.60, shedding ₹6.00, or 0.82%. Investors and institutional desks will now track management's raw material inventory adjustments and export volume realizations over the upcoming quarter to gauge when operational margins might find a floor.