1. At a Glance
Avanti Feeds — the company that’s been quietly feeding India’s shrimp obsession since the 90s — just served up a tasty Q1 FY26 with39% YoY profit growthand OPM holding at 13%. While shrimp prices on the global stage have been sloshing around like fish in a tank, Avanti has managed to ride the waves better than most.
2. Introduction
This is the story of a company that makes food for animals you’ll never meet, which are then sold to people you’ll never know, in countries you probably won’t visit — and yet it’s one of the most profitable FMCG-adjacent businesses in India.
Fromshrimp feedtoprocessed seafood exports, Avanti has built a global market footprint while staying almost debt-free and maintaining a healthy dividend habit. And just in case shrimp isn’t your thing? They’ve recently decided to feed your Labrador too, with their newpet care vertical.
3. Business Model (WTF Do They Even Do?)
- Shrimp Feed Manufacturing– The bread and butter (or brine and pellet) of Avanti’s revenue.
- Processing & Export– Frozen shrimp for markets like the US, Japan, and Europe.
- Hatcheries– Producing shrimp larvae for farmers.
- Pet Care– New segment leveraging feed expertise into domestic pet products.
It’s an integrated aquaculture model — from shrimp “cradle” to your sushi roll.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,606 | 1,506 | 1,382 | 6.64% | 16.19% |
| EBITDA (₹ Cr) | 214 | 160 | 177 | 33.75% | 20.90% |
| PAT (₹ Cr) | 185.68 | 133.56 | 157 | 39.08% | 18.22% |
| EPS (₹) | 13.09 | 9.41 | 11.14 | 39.11% | 17.50% |
Commentary:
- Volumes steady, pricing recovery in shrimp feed has helped margins.
- QoQ jump aided by start of export season and lower raw material volatility.
- EBITDA margin improvement is the real hero this quarter.
5. Valuation (Fair Value RANGE only)
Method 1: P/E Approach
- TTM EPS = ₹42.49
- Sector median P/E ≈ 18
- FV = 42.49 × 18 = ₹765
Method 2: EV/EBITDA
- TTM EBITDA ≈ ₹687 Cr
- Sector EV/EBITDA ≈ 12
- Net debt ≈ -₹569 Cr (cash surplus)
- FV/share ≈ ₹780
Method 3: DCF (Basic)
- Avg FCF last 3 years ≈ ₹400 Cr
- Growth rate = 8%
- Discount rate = 10%
- FV ≈ ₹750
Educational FV Range:₹750 – ₹780This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Pet Care Expansion– Could be the
