Avanti Feeds Limited a leading player in the aquaculture sector, reported robust financial and operational performance for the fourth quarter and full year ended March 31, 2025. The company’s continued momentum in both the shrimp feed and shrimp processing segments highlights its strategic growth, increased volumes, improved margins, and entry into new product categories. Below is a comprehensive analysis of the company’s FY25 results, operational updates, and business outlook.
Avanti Feeds Financial Performance Overview
Q4FY25 Consolidated Financials
- Revenue: ₹13,851 million, up 7.9% YoY from ₹12,835 million.
- EBITDA: ₹2,266 million, showing a 36.5% increase from ₹1,660 million in Q4FY24.
- EBITDA Margin: Improved to 16.4% from 12.9%.
- PAT: ₹1,572 million, up by 39.6% YoY.
- EPS: ₹11.1 vs ₹7.6 in Q4FY24, a strong 46.6% growth.
This performance was primarily driven by volume growth in both business segments, a rise in other income, and effective cost management.
FY25 Consolidated Financials
- Total Revenue: ₹56,123 million, up 4.5% YoY.
- EBITDA: ₹7,988 million, a 34% YoY increase.
- EBITDA Margin: Rose to 14.2% from 11.1% in FY24.
- PAT: ₹5,571 million vs ₹3,938 million in FY24, representing a 41.5% jump.
- EPS: ₹38.8 compared to ₹26.2 in the previous year.
Avanti Feeds Segment-Wise Highlights
Shrimp Feed Business
- Revenue: ₹44,319.9 million in FY25, a 3.4% increase YoY.
- EBITDA Margin: Rose sharply to 15.3% from 10.1% in FY24.
- Volume Sold: 5,55,248 MT, up 4% YoY.
- Q4FY25 EBITDA: ₹1,999 million with an industry-leading margin of 19.3%.
The growth was supported by strong domestic demand, improved product mix, and an uptick in other income.
Shrimp Processing & Export Business
- Revenue: ₹11,802.7 million in FY25, up 9.1% YoY.
- Volume Processed: 16,248 MT in FY25, a 23% increase over FY24.
- Volume Exported: 14,149 MT, up 5% YoY.
- Q4FY25 Revenue: ₹3,498 million, a strong 22% YoY growth.
Despite the robust volume and revenue growth, EBITDA margin declined to 8% in Q4FY25 from 14% in Q4FY24 due to countervailing duty impacts on exports.
Avanti Feeds– Geographic Sales Distribution
In Q4FY25, North America remained the largest market for processed shrimp exports with an 83.4% share, followed by Europe (10.1%) and Asia (6.5%). The continued dominance of North America underscores Avanti’s strong position in developed markets.
Operational Highlights
Production Trends (FY25)
- Shrimp Feed Production: 5,58,476 MT, up from 5,39,074 MT in FY24.
- Shrimp Processing Production: 16,248 MT, marking a 23% YoY growth.
Sales Trends (FY25)
- Shrimp Feed Sales: 5,55,248 MT, a 4% increase.
- Shrimp Processed Sales: 14,149 MT, growing 5% YoY.
The company effectively scaled operations, maintained supply chains, and optimized costs to meet rising demand.
Avanti Feeds – New Business Development
Avanti Pet Care Private Limited, a subsidiary, ventured into the pet food segment by launching cat food under the brand “Avant Frust” in January 2025. This marks a strategic diversification into a high-growth consumer vertical, indicating management’s intent to tap into evolving lifestyle and pet-care markets.
Balance Sheet & Key Financial Ratios
- Total Assets (FY25): ₹36,827 million (up from ₹30,982 million in FY24).
- Net Debt to Equity: Maintained at a minimal 0.01x, reflecting a strong balance sheet.
- ROCE: Improved to 23% in FY25 from 19.77% in FY24.
- ROE: Increased to 18.99% from 15.55% YoY.
Inventory days rose slightly to 75, but receivables and payables remained well-managed, indicating healthy working capital control
Investor Metrics and Stock Snapshot
- Market Capitalization (as of May 28, 2025): ₹117 billion.
- Shares Outstanding: 136 million.
- Promoter Holding: 43.23%
- FPI Holding: 6.42%
- Retail Shareholding: 21.08%
Avanti Feeds has demonstrated consistent stock performance relative to the BSE Sensex, buoyed by operational efficiency and healthy profit margins.
Management Commentary
The management remains optimistic about the continued demand for shrimp feed and processed shrimp exports. In FY25, despite global trade headwinds and regulatory challenges, the company recorded commendable margin improvement, particularly in the feed segment.
The entry into the pet food category is expected to support future growth and diversification. However, margin pressures in the export business remain a concern due to duties and pricing volatility.
Outlook
With a firm grip on operational efficiency, increasing exports, and diversified revenue streams, Avanti Feeds is poised for sustainable growth. The company’s strategic expansion into consumer pet products, coupled with robust financial health and scalable production, sets a strong foundation for FY26.
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