Good afternoon, ladies and gentlemen. I'm Akash, moderator for the conference call.

Welcome to Avanti Feeds Limited Q2 FY26 investors conference call. We have with us today Mr.

C. Ramachandra Rao, Joint Managing Director; Mr.

A. Venkata Sanjeev, Executive Director; Mr.

A. Nikhilesh, Director of Avanti Feeds and Executive Director of Avanti Frozen Foods Private Limited; Mrs.

Shanthi Latha, GM, Finance and Accounts, Avanti Feeds Limited; Mr. B.

V. S.

Satyanarayana, CFO, Avanti Frozen Foods Private Limited; and Mr. K.

S. Reddy, CFO, Avanti Pet Care Private Limited.

As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touchtone telephone.

Please note this conference is recorded. I would now like to hand over the floor to Mr.

C. Ramachandra Rao.

Thank you, and over to you, sir.

Good evening, ladies and gentlemen. I am pleased to extend a warm welcome to all of you for this investors conference call to review the unaudited financial results for Q2 FY26 and for the period ended 30th September 2025.

Mr. A.

Venkata Sanjeev, Executive Director, Avanti Feeds Limited, is joining from the factory. Mr.

Nikhilesh, ED from Avanti, will be joining from factory. Along with me are Mrs.

Shanthi Latha, GM, Finance and Accounts of Avanti Feeds Limited; Mr. D.

V. S.

Satyanarayana, CFO of Avanti Frozen Foods Limited; and Mr. K.

Srinivas Reddy, CFO of Avanti Pet Care Private Limited. To begin with, Mrs.

Shanthi Latha will present highlights of the financial results for the quarter ended 30th September 2025 of feed division and also consolidated financial statements of the company for the same period. Thereafter, Mr.

D. V.

S. Satyanarayana will present the financial highlights of shrimp processing and export division.

Thereafter, Mr. K.

Srinivas Reddy will present the status of pet care project. After presentation by all of them, we will take up question and answer session.

Now I hand over to Shanthi Latha to give her presentation of Avanti Feeds' performance.

Thank you, sir. Good evening.

Now I will take you through the consolidated and standalone financial performance highlights for the quarter ended 30th September and the period ended 30th September 2025. The comparative performance of Q2 FY26 with that of Q1 FY26 and Q2 FY25 along with the comparative performance for six months ended 30th September '25 with that of 30th September '24 have been given in the presentation already circulated.

First, we will review the consolidated financial results for Q2 FY26. The gross income in Q2 FY26 is ₹1,659 crores as compared to ₹1,657 crores in the previous quarter of Q1 FY26, an increase of ₹2 crores by about .12%.

Compared to Q2 FY25 gross income of ₹1,397 crores, there is an increase of ₹262 crores by 18.75%. The PBT is ₹227 crores in Q2 FY26 as compared to ₹249 crores in Q1 FY26, a decrease of ₹22 crores by 8.83%, and compared to Q2 FY25 PBT of ₹162 crores, there is an increase of ₹65 crores by about 40.12%.

Comparison of performance for six months ended 30th September 2025 with that of six months ended 30th September 2024: gross income during six months ended 30th September '25 is ₹3,316 crores as compared to ₹2,932 crores in six months ended September '24, an increase of ₹384 crores by about 13.1%. The PBT for the six months period '26 is ₹476 crores as compared to ₹342 crores in six months period of FY25, an increase of ₹134 crores by 39.18%.

The consolidated results indicate net impact of several factors such as increase or decrease in income, expenditure, and exceptional item relating to feed, frozen, and pet care divisions which have been discussed in the following divisional performance of these units individually. Standalone financial results of feed division: Q2 FY26 results: the gross income of Q2 FY26 is ₹1,200 crores as compared to ₹1,279 crores in the previous quarter of Q1 FY26.

A decrease of ₹79 crores is due to decrease in quantity of feed sold by 10,920 MT, and also that being the main season, the Q1, the sales will be more. The gross income in Q2 FY26 increased to ₹1,200 crores from ₹1,113 crores in the corresponding quarter of Q2 FY25, an increase by ₹87 crores due to increase in sales quantity by 19,747 MT.

The PBT for Q2 FY26 is ₹180 crores as compared to ₹224 crores in Q1, a decrease of ₹44 crores by 19.64%. When compared to Q2 FY25 PBT of ₹145 crores, there is an increase of ₹35 crores by about 24.14% due to increase in quantity sold, decrease in raw material cost, and better overhead absorption.

The feed sales decreased to 1,54,644 MT in Q2 FY26 as compared to 1,65,564 MT in Q1 FY26, and increased from 1,34,897 MT in Q2 FY25. Comparison of performance for six months ended 30th September '25 with that of six months ended 30th September 2024: gross income in six months ended FY26 is ₹2,479 crores as compared to ₹2,410 crores in six months FY25, an increase of ₹69 crores by 2.86%.

The PBT is ₹404 crores in six months FY26 as compared to ₹298 crores in six months FY25, an increase of ₹106 crores by about 35.57%. The feed sales increased to 3,20,208 MT in six months FY26 as compared to 2,93,488 MT in six months FY25.

The major raw materials in the feed are fish meal, soybean meal, and wheat flour. The noticeable development in this quarter is increasing trend of two major raw materials, that is fish meal and soybean meal, resulting in profitability when compared with previous quarter.

The prices of these raw materials keep fluctuating since their production is based on agriculture and fish catches from the ocean. The price of fish meal increased to ₹97 in Q2 FY26 from ₹93 in Q1 FY26 and decreased from ₹105 in Q2 FY25.

In case of soybean meal, the prices increased to ₹42 per kg in Q2 FY26 from ₹38 in Q1 FY26 and decreased from ₹49 in Q2 FY25. However, the wheat flour price increased to ₹33 per kg in Q2 FY26 from ₹31 in Q1 FY26 and ₹32 in Q2 FY25.

The present purchase price of fish meal is ₹125 per kg, soybean meal, the high-grade soya meal bean which we procure is around ₹47 per kg, and wheat flour is between ₹32.50 to ₹33 per kg. While on one hand the raw material prices are instrumental in determining the margins, on the other hand the status of aquaculture activity conditions such as climatic changes, diseases, etc., determine the consumption of feed in terms of volume which will have an impact on the overall performance of the company.

As you noticed, the nine months of calendar year 2025 has been a good, profitable period. However, the forecast for the next three months of this year is challenging due to factors like gradual increase of raw material prices and threat of reciprocal tariffs by US.

To sum up, in general, FY25-26 is expected to be a mix of favorable and challenging seasons for the aquaculture industry, both in respect of shrimp production as well as exports from India and global demand for shrimp exports. Update on fish feed: as reported in earlier concall, the company is in the process of importing fish feed from Thai Union Feedmill Company Limited and is conducting trials under Indian conditions and also commercial viability.

Once the product's performance is proved and viable, the production in India will be taken up for domestic sale. Shrimp feed consumption: shrimp production and feed consumption in FY25 and company plans for FY26: shrimp feed consumption: on the basis of estimated shrimp production of about 7 to 8 lakh metric tons in current year in calendar year 2025, the feed consumption is estimated to be about 12 to 13 lakh MT.

The company feed sales during the six months FY26 is 3,20,208 MT against 2,93,487 MT in six months FY25. It is estimated that the feed sales during FY26 would be around 5,75,000 metric tons.

Shrimp processing and export: the export of frozen shrimp during 2024-25 was to the tune of 7,41,529 MT worth US$5,177 million. USA is the largest importer with 3,02,948 MT of frozen shrimp, followed by China 1,36,154, European Union 99,310 MT, Southeast Asia 58,003 MT, Japan 38,917 MT, Middle East 32,784 MT, and other countries 64,403 MT.

Frozen shrimp continue to be the major item of export in terms of quantity and value, accounting for a share of 43.6% in quantity and 69.46% of the total US dollar earnings. Frozen shrimp export during 2024-25 increased by 8.3% in rupee value terms and 6.06% in US dollar terms and 3.56% by volume.

The company's shrimp exports during the FY25 was 14,149 MT as compared to 13,444 MT in FY24, an increase by 682 MT. It is estimated that the exports during FY26 would be around 17,000 MT.

Now I hand over to Mr. D.

V. S.

Satyanarayana to present highlights of shrimp processing and export division.

Thank you, ma'am. Good evening, everyone.

Now I would like to take you through the financial highlights of shrimp processing and export division. Shrimp processing division Q2 FY26 results: gross income for Q2 FY26 is ₹462 crores as compared to ₹378 crores in Q1 FY2026, an increase by ₹84 crores, which is about 22% growth, mainly due to increase in sales quantity by about 639 metric tons, which represents 15% growth.

Gross income in Q2 FY2026 increased to ₹462 crores from ₹284 crores during Q2 FY2025, an increase of ₹178 crores representing 62% year-over-year growth. The sales volume during Q2 FY2026 increased to 4,862 metric tons from 3,423 metric tons in Q2 FY2025, an increase of 1,439 metric tons.

Higher sales in Q2 FY2026 were driven by majorly volume growth, an increase in average selling price realization, and favorable foreign exchange rates. Profit before tax, before exceptional item, for Q2 FY2026 stood at ₹53 crores from ₹25 crores in Q1 FY2026 due to higher sales volume, increase in average sales price realization, and there was a marginal decrease in ocean freight rates as well.

The profit before tax in Q2 FY2026 was ₹53 crores, an increase from ₹43 crores in the corresponding quarter, that is Q2 FY2025, primarily due to higher volume, better sales price realization, favorable foreign exchange rate, and also there was a decrease in ocean freight rates. Comparison of performance for six months ended 30th September 2025 with six months ended 30th September 2024: the gross income for six months during FY2026 was ₹841 crores as compared to ₹527 crores in the corresponding six months period of previous year, that is FY2025, an increase of ₹314 crores in the gross income during six months of FY2026 was mainly due to increase in sales quantity by about 2,880 metric tons, which represents 46% growth.

The PBT in six months FY2026 was ₹78 crores as compared to ₹49 crores in six months FY2025. An increase in PBT by ₹29 crores is mainly on account of higher sales volume, better sales price realization, favorable forex rates, and also there was a decrease in ocean freight rates.

With this, Avanti Frozen results are completed. Now I would like to hand over to Mr.

K. Srinivas Reddy to update the status of pet food project.

Thank you.

Thank you, Mr. D.

V. S.

Satyanarayana. Now I would like to update the pet food project.

As already informed, the company commenced trading in cat food from January 2025 in first product range under Avanti Pet Care brand, that is AvanPurr, in cat food ocean fish flavor. In July 2025, company expanded its cat food portfolio with addition of second flavor, tuna.

In August 2025, the company launched dog food which constitutes the largest share of the pet food industry at around 65%, starting with chicken and vegetable flavor, and more flavors will be planned in the due course. The response from the pet owners from the both cat and dog food has been highly positive and market acceptance across all regions.

During Q2 FY2026, the company recorded a sales ₹95.08 lakhs, reflecting a strong growth from ₹38.17 lakhs in Q1 FY26. The sales movement was driven by the continued increase in patronage through our cat food products as well as newly launched dog food segment.

Under market expansion, company continued to strengthen its presence in tier-2 cities and has initiated expansion into tier-2 and tier-3 markets. E-commerce operations have now commenced.

Our products available on the Supertails platform. Additionally, the company is ready to start trading on Amazon, targeting go-live before end of November 2025.

The company continues to focus on building a strong brand visibility for AvanPurr through the ongoing digital marketing campaigns on Instagram and Facebook. The ID is avanpurr, enhancing consumer awareness and brand engagement across our target audience.

As informed in the previous concall, the company has purchased a land and converted from agriculture to non-agriculture of approximately 30 acres near Hyderabad for setting up state-of-the-art manufacturing facility. Presently, project technical works are discussing with Buhler team, and land development works are in progress.

Upon receiving a required technical inputs, the detailed project report will be prepared and obtain necessary government approvals to commence the construction. This is about pet care project.

Now I hand over to MD, sir, for closing remarks.

Thank you, Mr. K.

S. Reddy.

I am sure that the investors are all happy with the performance of all the three units, that is feed, frozen products, and also pet care during this period, financial year so far. With that, I would like to just throw some light on the recent developments in the sector so that it'll be updated on the future performance of the company.

As you know that in spite of the recent challenges, including major setbacks caused by US tariffs, the aquaculture industry continues to demonstrate strong and sustainable growth. This stability is supported by several key factors.

The first and foremost is the market diversification. Producers are actively expanding into new geographies and reducing dependence on a single market, which helps stabilize demand and mitigate external risks dependence on one market.

The second one is a consistent global demand for shrimps. Shrimp remains a high-demand protein worldwide, supported by steady consumption trends in both established and emerging markets.

The third one is about value-added products and sustainability initiatives. The ongoing shift towards value-added products and sustainable farming practices enhances the competitiveness, improves the margins, and strengthens long-term industry viability.

As all of our company, Avanti Feeds, has been focusing more on the value-added products so that we would be able to take the advantage of the emerging markets favoring value-added products where the margins are high. The fourth and last but not the least, encouraging domestic market by the government of India.

Recently, the Union Cabinet on 12th November '25, very recently, Wednesday, announced the long-pending Export Promotion Mission for five years with a total outlay of about ₹25,000 crores to help exporters deal with US reciprocal tariffs and increase their competitiveness in the turbulent global market. Under the EPM, priority support will be extended to sectors impacted by the reciprocal tariff escalations, such as textiles, leather, gems and jewelry, engineering goods, and marine products.

The intervention will help sustain export orders, protect jobs, and support diversification, and also help the promotion in the new geographies. Further, honorable Prime Minister Modi Modi's government is promoting domestic shrimp consumption to support farmers and create a stable market driven by rising export tariffs from countries like US.

Key initiatives include government committee under National Fisheries Development Board, NFDB, to develop a robust local market, suggestion to integrate shrimp into government food supply chains like military, and also proposal for promoting shrimp as a healthy, lean protein through nationwide initiatives. The reciprocal tariff situation is expected to stabilize in due course, as the United States and India are making tangible progress in their long-awaited trade negotiations, particularly around tariff structures and oil imports.

We have recently seen the US proposing to reduce some of the food items, dairy products, the tariff almost to zero. We expect that in course of time, the aquaculture sector also will be taken care of in time in respect of tariffs balancing it.

This positive momentum provides optimism that current audit challenges will ease over time, supporting smoother trade flows and greater market stability. We expect demand for shrimp to continue growing and remain sustainable across both global and domestic markets.

Consumption trends remain strong, supported by shrimp's position as a versatile, affordable, and widely accepted protein. Additionally, rising health awareness, expansion of retail and food services channels, and increasing preferences for value-added seafood products are further driving demand.

These factors collectively reinforce a positive outlook for sustained market growth in the near and long-term sustainability of the sector. With this, my remarks, I would like now to take the question and answer session, and I request the investors to give their questions.

Hello. Am I audible?

Yeah. I'd like to congratulate management for such a great result in this turbulent environment.

I have two set of questions. My first question is if the 50% reciprocal US tariff continues through quarter four, what is your quantified expected impact on financial '26 processing volume and EBITDA?

As you mentioned that 17,000 metric ton guidance for shrimp processing, what impact you will see in terms of margin and volume?

I think, Nikhilesh, will you take up this question?

Yes, sir. Hi, thank you for the question.

Just you're asking for the full year, right? Full year '26, what the impact would be?

Yeah.

Yeah.

Okay. As of now, we're in Q3.

The first two quarters continued to be good, the performance has been good. For the rest of the year, we're actively working on diversifying into other markets.

However, if things don't normalize on the duty front come January, then we might relook into the outlook for the year. Right now, we continue to have it stable, hoping that everything falls into place.

Can you give a number or kind of volume reduction if things don't stay same like the tariffs are [there?] ?

It's difficult, it's very speculative, and it's everyone's own opinion there. What we've given is 17,000 is the current forecast.

What we'll stick with.

Okay. Okay.

My second question is, as we mentioned in Q2 financial presentation that EBITDA improvement was supported by higher other income, could you break down the key component of this other income? Importantly, how much of it is recurring or sustainable going forward?

The other income into the P&L account is the break-up, sir, what is operational income and what is the other income.

No, he's asking the break-up of other income. Is that what you are asking?

Yeah.

Where is that income coming from, what are the sources? The major income is on the two fronts.

One is in respect of feed, we had deposits. On that we are getting income on mutual funds, FDs, and various portfolios that we are investing the reserves.

That is giving the income. That is treated as a other income.

As far as the frozen is concerned, it is the foreign exchange gain that by booking the forward contracts, we have been able to make significant income out of the fluctuation foreign exchange. That is the other income that is shown in the frozen division.

Thank you. That's it from my side.

All the best for upcoming quarters.

Thanks for the opportunity. Sir, my first question is regarding just a clarification that in the earlier comment when sir was highlighting that CY25 overall feed consumption can be in the range of 12 to 13-odd lakh metric tons.

When we are guiding FY26 feed sales in the range of 5.75 lakh metric tons, are we expecting decline in to the CY26 considering our 50% market share?

Exactly. What happens is whatever the consumption that has been there during Q1, Q2, Q3, Q4 gradually reduces because of the seasonality.

What we estimate is that it will not be on the same level as in Q1 and Q2. That is the reason why we are estimating at 5.75.

It is significantly better than last year's consumption and also our sales. As far as the market share is concerned, definitely we are above 50.

It is ranging from 51% to 53% 51%, 52%, that is the range which we are now operating. I think we will continue to hold that position at 50% to 53% in future also.

Sir. My second question is regarding how the market is responding because the upcoming cultivation season which will start from the January end or February.

What are your sense based on the on-ground feedback, how the farmers are taking all this tariff situation?

See, it's a good question because generally the feeling is that the farmers are very much worried about this tariff, but the situation is not that. The farmers are very confident because they have been able to get the farm gate prices comfortably and they are making money, and more so with the tariff has not really over a period of time slowly the situation is getting adjusted to the market corrections what we can say.

See, not US market, why not other markets? As we explained in our note earlier that we are diversifying into other markets as well as we have focusing more on value-added products, and also we are going for the domestic markets, the government is giving support to that.

With all that, the demand for shrimps continues to be growing sustainably. It is not that suddenly there will be drop.

That is the reason why we have not seen, rather I would say, that in the last maybe six months or so since the tariff has come into force, there has not been a big difference in attitude of the farmers. Though there was a knee-jerk reaction and the farmers apprehending for a fall in the prices and all, but that is no longer there.

They are very confident of that, and the prices are also good, and There has not been any fall in the as far as the aquaculture is concerned. The farmers are pretty confident of continuing the situation for the next year also, '26 also.

Got it, sir. Got it.

Sir, my next question is regarding the diversification strategy. When we are saying that we are trying to diversify, but when I see in our presentation, our saliency for the North America was around 66.4% in Q2 FY25, which is largely similar or rather increased to 66.9% in Q2 FY26.

Can you elaborate the strategy how or are we seeing that part?

I'll take that. Very easy, North America as a country, we did diversify that way, but US in general, our total share volume is coming down.

Okay. Got it.

Got it. Sir, last question regarding the processing division.

The Q2, very solid numbers in terms of 40-odd percent plus kind of the growth, but I assume there is some pre-clearance considering the tariff situation. Now when we are seeing around 17-odd thousand metric ton target for FY26, are we assuming in base case that the tariff is likely to go out in the fourth quarter of FY26?

There was some front loading, but the tariff is already out, starting from April, there were multiple revisions, the last one coming probably September. It's been some time, but we continue to shift across our customers all across the world.

The 17,000, we've just made a scenario on where we felt we would end, but frankly speaking, right now the momentum continues to be strong as it was in the earlier two quarters.

Okay. Understood.

Understood. Sir, last question is on Excuse me, Mr.

Shah, sorry to interrupt you. Request you to join the queue again for more questions, sir.

Just the last question, if you permit. Go ahead, sir.

Yeah. Sir, last question is regarding the recent policy which you are highlighting.

Can you quantify in terms of quantum how it can positively impact the Avanti or the shrimp industry? That's the last question from mine.

Thank you.

This is Export Mission, Promotion Mission. Promotion Mission.

See, this has been announced very recently that they are yet to formulate the mechanism how they would like to give this support, the ₹25,000 crores set apart in the budget for this expenditure, and we are expecting sometime in maybe next couple of months, one or two months, we should be able to get which will be I think coincide with the next season, next 2026, that will be helpful for us to avail the benefits whatever that is going to be announced by the government. Okay?

Thank you. Thank you, sir.

Hi. Thanks, and congratulations on the amazing performance.

I have a very quick question. We just heard from the Supreme Court of US, I think they are also reviewing the petition.

In case they find or declare that the tariffs were invalid or illegal, are you going to get any kind of refund in that case at all? If that is the final verdict from the US Supreme Court.

Nikhilesh, would you like to take this question? Yeah.

I think, yeah, this is quite speculative to be very frank. Nobody really knows where this is going.

In terms of refund, as Avanti, we've been able to pass on the tariff. Whether getting the refund, I'm not sure.

I don't think we'll actually get the refund. We have to give it back to the customer, I guess.

I can add just that unless these whatever that illegal or whatever it is is with retrospective effect, is it whatever is done already very difficult to regulate that, as Nikhilesh said. It's very difficult.

It's a remote possibility.

Anyway, I'll just restate my answer. It's quite speculative, and we need to see what happens, because right now there's not enough information on how it's going to go forward.

Once it does, then the government, the US government itself will give directions for us that we need to go with. We need to wait and watch, it's too early to speculate right now.

Sure, thank you.

my question is regarding the CVD or the anti-dumping duty. First I want to know the update on what is the current prevailing rate based on India and the relative larger competitor.

Second question is regarding how we are realigning our costs. From the numbers I can see that EBITDA per kg has improved significantly over the last four or five quarters, which shows that we have passed on certain part of that to the end consumer.

Can you clarify on that part as well?

I'll take this question. On the first point, I think this information is quite publicly available, what are the CVD rates of India versus other countries.

A simple Google search or ChatGPT can help out on how we figure and it will give you the demarcation for ADD and CVD and the total, etc.

The Sir, my question is regarding that is there any update because the government is likely to review the rate, on that part.

No update right now. Only preliminary assessments done, the final review hasn't come out yet.

Okay. From our end, how we have adjusted or passed on to the end consumer, can you highlight that?

To the end consumer, the duty itself, 50%, is too high. It's not possible for the supply chain to absorb so much percentage.

Essentially we've been able to pass on the cost to the consumer till now. We just are waiting and reviewing how it affects the consumption.

Sir, just to build up on that, can you highlight how the order process goes on? For example, for the third quarter or the fourth quarter, whether the US-based customer has placed order, or if yes, then how the pricing has set up?

The penal and the whole tariff part has been embedded into the order cost or how it works?

That's essentially how we did it. Whatever orders we have had in our books and so we worked with our customers to add on the tariff rate.

Whatever new orders that we've confirmed since the tariff were on the rates that the US government kind of levied. That's how in general, everything that we priced was including the tariff.

Okay. Understood.

Understood. Sir, last question is on

Just the last question, if permit.

Yeah. Sir, last question is regarding our venture into the fish and the pet feed part.

Sir, in terms of the quantitative terms, can you highlight because it's been a few quarters since we are evaluating the market, have we got certain feedback from the market or the research reports which you were evaluating, what is the market, how large is the market, and how we can position ourselves?

See, the first point is about fish feed. Because the fish feed is a bit challenging area because the prices keep fluctuating, and there are different species and the feed also differs for each species.

We'll have to keep trying and see the areas which type of fish is being reared, cultured, we'll have to give the feed according to that. A lot of efforts are being made by importing the feed from Thai Union and making trials here to find out which suits the Indian market.

That is number one. Coming to the pet food, see, the pet food is very challenging market, and we have started, I would say that, with a very good beginning because the first we launched our cat food with the praise which has been accepted by the market right from the day one.

We have got very good response. As you know that these are the products which take time, and there are very strong players, long-term players in this, like Mars with Pedigree and Drools.

These players are very strong, and it takes time for us to really build the market. Because we are making all efforts at different types.

We could do about a 7 to 8 months of cat food, and then later on we started with dog food, and dog food has also very good response. There are several marketing channels that we are now trying to explore each and every one, not only the simple distributors, but e-commerce and the different types.

Yes, all those things that we are working out on that. We are very confident that though the initial expenditure is more and we gradually increase the sales volume, and also by the time we start our manufacturing unit by end of the '27, FY27, we should be able to fully have the market under substantial market to our company.

This is a time-taking process. I think initially, we'll have to do a lot of work for marketing our products withstanding the competition from the long-term players.

Thanks a lot for all the

My question is as we have seen that fish meal, SBM, and wheat prices raw material prices are rising after quarter one. Can you quantify the feed margin sensitivity for every one ₹1 increase in key raw material prices?

Based on current raw material level, should we expect our financial '26 feed EBIT margins to revert towards historical 10-12% or remain closer to H1 levels?

It will be around, see, it's very difficult to tell for the next Q4, Q3 and Q Q3 and Q4, because the prices of these raw materials are increasing very significantly for various reasons. See, for example, fish meal is going up because the Peru has very, less catches this year, and even the Chile.

When these countries, Chile and Peru, are the major countries supplying the fish meal, the when their the production reduces, automatically global fish meal rate increases. The demand for Indian fish meal for export increases.

The Indian fish meal manufacturers prefer to export because they get a better price. For example, the fish meal the locally 60% protein is being sold at ₹125, ₹130, whereas they are able to get ₹175, ₹160-₹175 range they are able to get.

Moreover, they get some incentives also for exports. This is a they are tempted to export than to supply to the domestic market.

We expect that Chile has not yet announced its total quota available for the export. Once it comes, I think we are expecting that prices get stabilized around It will not be less than about ₹125, ₹130.

That is the fish meal situation. Coming to the soya, soya has to face impact.

One is that this year because of the excess rains, the the production has come down by about 10%. That is the one reason there is likely to be a slight shortage of soya production, soya seed production.

At the same time, the government of India has announced increase in minimum support price by about ₹3 per kg. These two factors have really influenced to increase the to the prices to go up.

Particularly the states like Maharashtra, they have made it a mandatory thing for all the processors, soya processors, to buy from the farmer only at the MSP, and they are not allowed to buy less than MSP. That is the impact.

We see that soya now, for example, the best quality which we use is about ₹46,500 per metric ton, which was around 42, 43 has gone up to 46,500. Similarly, normal soya as well as hypro, all the prices have gone up.

We'll have to see how Now the government will start procurement from now on. The so when there is a procurement, definitely the market availability, open market availability of soya will be less.

When the government procures for their food security, then naturally the prices will go up. We can expect next couple of months the prices will keep on the high side, and thereafter we'll have to see once the government exhausts its quota of purchase, the prices also may likely to stabilize, and we'll have to wait for that from the maybe around February-March.

That's what we are expecting. Similarly, the the soya dependent marketers products like soya lecithin will also go along with the price.

Coming to the the wheat flour also is having the same situation. Because the normally the wheat this crop comes in the month of February-March, we'll have to see.

As of now, there is a lot of the, expectation of a high production of wheat this year. Very recently, in fact, a couple of days back, the government has in principle permitted 1 million tons of wheat products for export.

Till now, it was banned. The wheat and wheat products are banned for export.

A couple of days back, the government of India, the agriculture department, has permitted in principle 1 million tons and directed the Director General of Foreign Trade to prescribe the procedure for export of these products. As we know once we start the production exports, then the prices again will go up.

We are now around ₹32,000 to ₹33,000 per metric ton, and we'll have to wait and see what is going to be the impact of these, export permission given by the government of India. Cumulatively, we see that these things will definitely increase the price of the raw material cost, the raw material cost.

At the same time, the chances of increasing the feed price is not there. It's very remote.

It's not generally it's not possible to increase the price of the feed. The margins are naturally it's likely to come down to maybe around we are expecting around it to be 9% and 10%.

So 10% is a good, achievable profitability for the this current year overall. Now that till now we have been doing very well, but we'll have to see the next these two quarters and see how the profitability would be, depending upon the raw material prices.

Thank you, sir. That's a very elaborate description.

All the very best for upcoming quarters. Thank you, sir.

Okay. Then we can conclude.