01 — At a Glance
Prawn Power: The Quiet 47% Return in One Year Nobody Talked About
- 52-Week High / Low₹1,489 / ₹582
- Q3 FY26 Revenue (₹ mn)₹13,835 Mn
- Q3 FY26 PAT (₹ mn)₹1,635 Mn
- Q3 FY26 EPS₹10.96
- TTM EPS₹46.44
- Book Value₹221
- Price to Book5.45x
- ROCE24.0%
- ROE19.5%
- 3-Month Return+47.2%
Opening Jab: Avanti Feeds delivered a Q3 FY26 where PAT rose 16.1% YoY to ₹1,635 Mn, EBITDA margin expanded 270 bps to 17.3%, and the shrimp processing business went full beast mode with 37% revenue growth. The stock has returned 47.2% in three months and 62.8% over one year. While the broader market was debating geopolitics, Andhra Pradesh was quietly growing shrimp. Sometimes the most boring thesis is the best one.
02 — Introduction
Shrimp: Not Glamorous, But Your Portfolio Doesn’t Care
Let’s set the scene. Avanti Feeds is a company that sells shrimp food to shrimp farmers, then processes the shrimp those farmers grow, and ships the frozen results to dinner tables in North America, Europe, and Asia. That’s it. No AI pivot. No blockchain tokenization of prawns. Just shrimp. Feed it. Grow it. Freeze it. Export it. Collect dollars. Repeat.
And yet, here we are — ₹16,421 crore market cap, 50% domestic feed market share, TTM EPS of ₹46.44, and a stock that decided to deliver nearly 63% return in one year while you were probably overthinking your FAANG allocation. The aquaculture business is deeply cyclical, weather-dependent, tariff-sensitive, and geopolitically tangled — but somehow Avanti has been around since the early 1990s and keeps printing cash like Andhra Pradesh has a money press built into its coastline.
Q3 FY26 (Oct–Dec 2025) delivered Revenues of ₹13,835 Mn (up 1.3% YoY), PAT of ₹1,635 Mn (up 16.1% YoY), EBITDA margin expanding to 17.3%, and a processing division that exploded with 37% revenue growth. Meanwhile, they’re also launching cat food in Hyderabad and building a pet care factory near Hyderabad. Because apparently shrimp alone doesn’t keep life interesting enough.
Concall Note (Mar 2026): “Considering the performance during the first 9 months of FI26 as compared to performance during 9 months of FI25, the results are likely to register marginal improvement.” — JMD C. Ramachandra Rao. Translation: We’re doing fine, stop asking us to promise FY27 numbers three months before Q4 closes.
03 — Business Model: WTF Do They Even Do?
They Feed Prawns So You Can Eat Prawns. Circular Economy, Sort Of.
The model is elegantly unsexy. Segment one: Shrimp Feed (~72% of Q3 revenues). Avanti manufactures scientifically formulated shrimp feed under brands like Profeed, Titan, Prostar, and the optimistically named “High Boost.” They supply this to shrimp farmers across Andhra Pradesh — which produces 70% of all Indian shrimp. Five plants, 7.75 lakh MT annual capacity, 50% market share nationally. Their nearest competitor probably cries looking at those numbers.
Segment two: Shrimp Processing & Export (~32% of Q3 revenues, growing rapidly). Through subsidiary Avanti Frozen Foods, they buy shrimp from farmers, freeze-process it, and export to the US (64.5% of processed shrimp volumes in 9M FY26), Europe (14%), and Asia (16%). The Thai Union Group — a Thai seafood multinational — holds 24.21% in the listed entity and 40% in the processing subsidiary. So even the global shrimp mafia is invested here.
Segment three: Pet Care (currently rounding error territory). ₹136.2 lakhs in Q3 FY26 in cat and dog food sales, land bought near Hyderabad, factory drawings being finalized. Management says 12–15 months to production. Right now it’s glorified trading, but the ambition is real. Watch this space — or at least your cat’s bowl.
Feed Mkt Share50%India
Feed Capacity7.75LMT/annum
Processing Cap29,000MT/annum
Export Markets160+Countries (brand)
Raw Material Watch: Fish meal prices jumped from ₹98/kg in Q2 FY26 to ₹117/kg in Q3. Current prices per concall: ₹145/kg. Soya bean meal at ₹56/kg. Wheat flour at ₹32/kg. These three raw materials are essentially deciding Avanti’s margin destiny every quarter. Management is “making representations to government” to limit fish meal exports. That’s a polite way of saying: please stop letting fishermen get rich off our expense.
💬 Have you ever noticed how much of India’s stock market alpha comes from coastal Andhra Pradesh? Shrimp, pharma, cement — what’s in the water down there?
04 — Financials Overview
Q3 FY26: The Numbers That Made Processing Shareholders Happy
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