Aquaculture feed manufacturer Avanti Feeds Ltd reported a 56.21% year-on-year decline in net profit to ₹73.92 crore for the second quarter of FY27, compared with ₹168.79 crore in the corresponding quarter last year. According to the latest financial results filed on November 10, 2026, the significant profit decline occurred despite higher operational revenues, highlighting severe margin compression across the company's integrated aquaculture operations. The company's consolidated net profit dropped to ₹73.92 crore from ₹168.79 crore YoY, demonstrating the substantial impact of rising input pressures on profitability despite revenue growth.
Revenue from operations increased 8.93% to ₹1,752.52 crore from ₹1,608.87 crore a year ago, as reported in the latest Q2 FY27 results filed on November 10, 2026. However, this growth in top-line revenues failed to protect the company from the severe impact of rising input pressures on profitability. The revenue increase demonstrates the company's ability to expand its business despite challenging market conditions, with consolidated revenue expanding approximately 8.93% YoY to ₹1,752.52 crore compared to ₹1,608.87 crore in the prior-year period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 59.73% year-on-year to ₹78.02 crore from ₹193.72 crore, according to the latest financial results. The EBITDA margin contracted significantly to 4.2% in the September quarter from 10.5% in the year-ago period, indicating severe margin pressure across the company's operations. This dramatic margin compression reflects the impact of rising input costs on the company's profitability, with the EBITDA margin contracting by 630 basis points YoY to 4.2% from 10.5%, highlighting the severe deterioration in operational efficiency. The net profit margin also narrowed substantially to 4.2% from 10.5% in the comparison quarter, demonstrating the company's inability to maintain profitability levels despite revenue growth.
The Hyderabad-based company is a leading producer of shrimp feed and operates with a coherent supply chain and farm-to-fork model using a vertically integrated infrastructure of aquaculture farms, feed mills, hatcheries and processing plants. As reported by CNBC TV18, the company also exports feed products to Sri Lanka and Bangladesh, demonstrating its international market presence in the aquaculture sector. Despite revenue resilience with topline expanding to ₹1,752.52 crore, the company faced severe operational challenges as cost inflation or product mix shifts severely affected operating leverage. The latest quarterly results show quarterly net profit has been volatile, ranging from ₹73.92 crore to ₹168.79 crore over the last 5 quarters, with the current quarter sitting at the lower end of this range.
On Monday (November 9), shares of Avanti Feeds Ltd ended at ₹724.60, down by ₹6.00, or 0.82%, on the BSE, according to CNBC TV18. The stock decline reflects investor concerns about the company's profitability challenges and margin compression despite revenue growth. The market reaction suggests investors are pricing in the impact of rising input costs on the company's near-term earnings potential, with the divergence between topline growth and profitability decline indicating market concerns about operational efficiency and cost management challenges. The latest results show the company's inability to maintain profitability levels despite revenue growth, with the net profit margin of 4.2% compared with 10.5% in the comparison quarter highlighting the severity of operational challenges.
