Ladies and gentlemen, I am pleased to extend a warm welcome to all of you for this investor conference call of Avanti Feeds Limited to review the unaudited consolidated and standalone financial results for Q1 FY27. Sri A.

Nikhilesh, Executive Director, Avanti Frozen Foods Private Limited, has joined from the processing plant, and along with me here are Mr. C.

Ramachandra Rao, Joint Managing Director and Company Secretary of Avanti Feeds Limited; Sri A. Venkat Sanjeev, Executive Director of Avanti Feeds Limited; Mr.

D.V.S. Satyanarayana, CFO of Avanti Frozen Foods Private Limited; and Mr.

K. Srinivas Reddy, CFO of Avanti Pet Care Private Limited.

To begin with, I will present highlights of financial results for the quarter ended 30th June 2026 of shrimp feed division and also consolidated financials of the company for the same period. Thereafter, Mr.

D.V.S. Satyanarayana will present the financial highlights of shrimp processing and export division, and after that, Mr.

K. Srinivas Reddy will present the status of pet care project.

After the presentation by all of us, Mr. C Ramachandra Rao, Joint Managing Director and Company Secretary of Avanti Feeds, will give current situation and highlights of the industry.

Post that, we will take up question-answer session. The comparative performance of Q1 FY27 with that of Q4 FY26 and Q1 FY26 have already been given in the presentation circulated.

First we'll go through the consolidated financial results for Q1 FY27. The consolidated gross income in Q1 FY27 is ₹1,966 crores as compared to ₹1,516 crores in the previous quarter of Q4 FY26, an increase of ₹450 crores by about 30%.

Compared to Q1 FY26 gross income of ₹1,657 crores, there is an increase of ₹309 crores by about 19%. The PBT is ₹157 crores in Q1 FY27 as compared to ₹184 crores in Q4 FY26, a decrease of ₹27 crores by 15%.

Compared to Q1 FY26 PBT of ₹249 crores, there is a decrease of ₹92 crores by about 37%. The consolidated results indicate net impact of several factors such as increase or decrease in income, expenditure, and exceptional items relating to both feed and frozen divisions, which have been discussed in the individual performance of these units.

Standalone financial results of feed division: Feed division Q1 FY27 results: The gross income for Q1 FY27 is ₹1,615 crores as compared to ₹1,069 crores in the previous quarter of Q4 FY26, an increase of ₹546 crores representing 51%, mainly due to increase in quantity of feed sold by 70,126 MT. The gross income in Q1 FY27 increased to ₹1,615 crores from ₹1,279 crores in the corresponding quarter of Q1 FY26, an increase of ₹336 crores representing 27%, due to increase in sales quantity by 28,287 MT.

The PBT for Q1 FY27 is ₹114 crores as compared to ₹139 crores in Q4 FY26, a decrease of ₹25 crores by about 18%, mainly due to increase in raw material prices. The feed sales increased to 1,93,852 MT in Q1 FY27 as compared to 1,23,725 MT in Q4 FY26.

The PBT in Q1 FY27 has declined by ₹110 crores from ₹224 crores in Q1 FY26 to ₹114 crores in Q1 FY27, representing 45%. The feed sales increased to 1,93,852 in Q1 as compared to 1,65,564 MT in Q1 FY26.

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

The prices of these raw materials keep fluctuating since their production is based on agriculture and fish catches from the ocean. The average consumption price of fish meal increased in Q1 to ₹153 per kg from ₹123 per kg in Q4 FY26 and increased from ₹93 per kg in Q1 FY26.

In place of soya bean meal, their prices increased to ₹58 per kg in Q1 FY27 from ₹49 in Q4 FY26 and increased from ₹40 in Q1 FY26. However, the wheat flour price decreased to ₹28 per kg in Q1 FY27 from ₹31 per kg in Q4 and Q1 FY26.

The present purchase price of fish meal is ₹225 per kg, soya bean meal is ₹71 per kg, and wheat flour is ₹33 per kg. While on one hand, the raw material prices are instrumental in determining the margin, 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. The PBT during the quarter stood at 7.06% on revenues as compared to about 13% during Q4 FY26 and 17% during Q1 FY26.

The combination of higher input costs, supply-side constraints, and fears of further price escalation is putting considerable pressure on shrimp feed manufacturers and on the overall aquaculture industry. However, due to favorable monsoon across India, El Niño effects are expected to ease, and raw material prices of shrimp feed are expected to stabilize in coming months upon the arrival of fresh crops.

To sum up, in general, FY26-27 is expected to be a challenging season for the aquaculture industry in respect of shrimp production due to steep increase in feed raw material prices as well as exports from India and global demand for shrimp exports. Shrimp production and feed consumption in FY26 and company plans for FY27: On the basis of estimated shrimp production of about 8 to 9 lakh metric tons in calendar year 2026, the feed consumption is estimated to be about 11 to 12 lakh metric tons.

The company feed sales during FY26 is 5,62,060 MT against 5,55,247 MT in FY26. It is estimated that the feed sales during FY27 would be around 5,85,000 metric tons.

Shrimp processing and export division: The export of frozen shrimp during 2025-26 was to the tune of 7,92,647 MT worth USD 5,624.48 million USD. USA was the largest importer with 33% of frozen shrimp, followed by China 21%, European Union 17%, Southeast Asia 11%, Japan 5, Middle East 3, and all other countries put together 10%.

On a year-on-year basis, export volume to the US declined by 17.9%, whereas exports increased by 24% to China, 36% to EU, and 5% to Japan in metric tons. Frozen shrimp continued to be the major item of export in terms of quantity and value, accounting for a share of 40% in quantity and 67% of the total US dollar earnings.

During FY26, frozen shrimp exports registered a growth of 13.16% in rupee value, 8.64% in dollar value, and 6.9% by volume. The company's shrimp exports during FY26 was 16,976 MT as compared to 14,149 in FY25, an increase by 2,827 MT.

It is estimated that the exports during FY27 would be around 19,000 metric tons. 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. Q1 FY2027 results: The gross income for Q1 FY2027 was ₹350 crores as compared to ₹446 crores in Q4 FY2026, that is immediately preceding quarter, a decrease by ₹96 crores representing 22%, mainly due to decrease in sales volume by about 15%.

However, the average selling price realization decreased in Q1 FY2027 as compared to Q4 FY2026, following the withdrawal of reciprocal tariffs effective from 21st February 2026. The gross income in Q1 FY2027 decreased to ₹350 crores from ₹378 crores during Q1 FY2026, that is corresponding quarter in the previous year, a decrease of ₹28 crores representing 7%, mainly due to decrease in sales volume by 16%.

Though volumes were decreased by 16%, the value decreased only by 7%, mainly because of the improved average selling price realization in the current quarter. The PBT before exceptional item for Q1 FY2027 stood at ₹45 crores compared to ₹48 crores in Q4 FY2026.

Despite the decline in sales volume in Q1 FY2027, profit before tax remained at the same level as the previous quarter, primarily due to better operational efficiency. The profit before tax in Q1 FY2027 was ₹45 crores, an increase from ₹25 crores in the corresponding quarter in Q1 FY2026, reflecting a significant increase primarily due to improved average selling price realization, favorable foreign exchange rates, and higher other income recorded in Q1 FY2027.

Now I hand over to Mr. K.

Srinivas Reddy to update the status of pet food project.

Thank you, Mr. D.V.S.

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

During Q1 FY26-27, the company continued to strengthen its presence in the pet food segment under pet care brand Avant Pet. The response from the pet food owners to both the cat food and dog food products remain encouraging, with a growing acceptance across the various markets, reflecting the strong potential and the promising growth prospects of the business.

Q1 FY26-27 sales increased to ₹180 lakhs compared to ₹151 lakhs in Q1 Q4 FY25-26, reflecting continued both in both cat food and dog food segment. The company continued to expand its market reach by strengthening its presence in tier 1 cities and gradually expanding into tier 2 and tier 3 markets.

The products are also available on leading e-commerce platforms, including Amazon and Supertails, thereby improving accessibility and expanding company's reach to a customer across the country. The company continued to strengthen the Avant Pet brand through the targeted digital marketing initiatives on Instagram and Facebook at Avant Pet.

The company planning to expand its product portfolio by introducing a new flavors and variants to cater evolving consumer preferences and further strengthen its market presence. As informed earlier, the company has purchased a land near Hyderabad, converted from agriculture to non-agriculture use for setting up state-of-the-art pet food manufacturing facility.

The company has submitted application to consent for establishment to the concerned government authorities, and the approval process is currently underway. Construction activity will commence one one commence upon receipt of the necessary approval.

Now I handover to JMD sir for closing remarks.

Good evening, ladies and gentlemen. My colleagues have shared the performance of group companies during the first quarter of FY27, and I am sure you are all pleased with overall performance, particularly against the backdrop of global economic stress prevailing across industries today.

As you are aware, factors such as continuing inter and intermittent Gulf geopolitical situation, the intensifying El Niño impact, and other global uncertainties have significantly affected economies across the world, with India being no exception. The aquaculture industry, one of the most promising sectors contributing to India's export earnings, is also currently under considerable stress.

On the on one hand, Indian seafood exports have been consistently growing and registered an all-time record in financial year 2025 and '26. On the other hand, the consistency of profitability and sustainability of growth are increasing increasingly coming under pressure.

One of the most serious emerging concerns in shrimp culture is the steep increase in shrimp feed cost. As feed constitutes the single largest operating cost in shrimp farming.

The prices of major raw materials used in feed manufacturing, such as fish meal, fish oil, soya bean meal, and wheat flour, have increased significantly, resulting in a substantial rise in the feed cost. While ensuring a reasonable return, feed manufacturers also need to consider the affordability and long-term sustainability of shrimp farming farmers.

At the same time, farmgate prices are highly volatile and largely influenced by the global prices of the processed shrimp. This volatility can significantly impact the margins and economic viability of the farmers.

Therefore, there is a need for a meticulous balance between the interests of the farmers, feed manufacturers, and exporters to ensure the long-term and sustainable growth of the aquaculture industry. At this juncture, the industry looks to government for appropriate policy support to address these emerging challenges.

It may be necessary to view the shrimp industry as an integrated value chain rather than treating shrimp farming, feed manufacturing, and seafood exports as separate activities. Some of the policy interventions that could be considered include: one, monitoring the availability of availability and prices of key raw materials, particularly fish meal, fish oil, soya bean meal, and wheat flour; examining whether the excessive exports of critical feed ingredients like fish meal are affecting the domestic availability and contributing to price pressures; creating an appropriate mechanism to monitor abnormal increases in the prices of essential feed raw materials; encouraging greater market diversification so that India's shrimp exports industry is less exposed to price pressures, trade barriers, and other levies imposed by any single market.

To conclude, India's shrimp industry is currently currently in a paradoxical situation. The sector has never been so strong in terms of production and exports.

However, the economics at different stages of shrimp value chain are becoming increasingly fragile, creating challenges for the long-term sustainability of the industry. That said, I would like to share with you share with you that state and central governments along with various stakeholders across the value chain are actively engaged in addressing these challenges and exploring long-term solutions for sustainable growth of the shrimp asset industry in the country.

I am confident that with coordinated efforts and appropriate policy support, we can overcome these challenges and ensure that aquaculture continues to remain a strong contributor to India's economic growth and export earnings. Thank you.

With this, we will now take up the questions, please.

Sir, thank you for taking my question. The first query is regarding farmgate prices.

In terms of trends, given that we have seen inflation in major protein globally, could you comment on how do we see farmgate prices currently, and wouldn't it be denominated in US dollars? In that sense, with the rupee depreciating, shouldn't that benefit have flown down?

Yeah. See, the thing is as we know that farmgate prices it's actually a balancing factor between global price and the farmgate price for the processors and exporters.

There is need to be a nexus between these two major inputs for the processing and exports. Naturally it automatically determines the price, what should be the farmgate price, and with the prices that are prevailing globally.

Having said that, see, we constantly monitor these two things, and the other aspect which we have to consider is the affordability and sustainability of the farmers to continue this activity. We keep normally both the considerations, and we fix the farmgate prices from time to time.

Sure. We have seen off late that beef prices, pork prices have been moving up.

Globally, we haven't seen that kind of upward move in shrimp. Is there any particular reason why?

I think we'll have to see. We cannot exactly say that.

When there is a little shortage of availability of shrimp in the country, the automatically demand and supply, the farmgate prices is tend to go up. When there are good orders for processors, the shrimp available because of the season in progress, naturally the prices is likely to go up.

When the harvest takes place and the produce comes into the market, the prices are tend to little come down. This is a natural process going up and down depending upon the availability of raw material and also global demand for a particular kind of the product that is in demand.

There is no specific reason that we can attribute for any increase or decrease.

Sure. Sir, my second query is regarding our prices.

We do see an increase in the feed cost. Obviously, our margins have come off.

Given that input prices continue to be on a rise, any further price hikes we have envisaged?

See, Mr. Khanna, the price again, we need to have a lot of what you call, workings that we have to fix the price and looking into the affordability and sustainability as a farmer, and also the governments have say in prices because of the various schedules that are there in the Andhra Pradesh now.

All the stakeholders—the feed manufacturers, government—and we are all working the price, how it should be a balanced approach we should take for it. We suddenly increase the feed price, that is also not advantageous.

At the same time, the sustainability of feed industry is also to be kept in mind. The very actively the farmers, the government, government of Andhra Pradesh, and also the feed manufacturers are constant interaction with each other, and the government had, in fact, constituted a committee with one of the Big Four consultants.

They are working on that, how to handle this price, because we have to keep in view not only the feed manufacturers, but also to the farmers, and also how it becomes a sustainable activity for the farmers. It is an ongoing process, and these raw material prices are, as we have seen, that they keep increasing phenomenally, particularly in the last one year, particularly like fish meal, soya bean meal, all these prices have gone up.

It is not just because the raw material prices have increased, we keep increasing the prices of the feed. There is a lot of work that has to be done before we take any increase in the feed.

We are trying to balance, Mr. Khanna, these things, and I hope that we'll come to some balancing figure where the prices are affordable to the farmer as well as it is sustainable for the feed industry also.

Sure. Thank you.

Sir, my last query is regarding the US reciprocal tax refund. We have seen a few other companies who have received the refund.

In the last call, we mentioned maybe $15 to $20 million could be given to us given that we are the importer of record. Any update on the same, sir?

Still, I think my colleague would be able to give the status. Mr.

DVS, the CFO. Over to you, DVS.

Yes, sir. Regarding reciprocal tariff, particularly for seafood industry, that too for India, now the entries are under ADD and CVD review, which are under suspension status.

Unless the suspension is lifted, the CBP will not process the reciprocal tariffs. As of now, they are all under pending status.

Sure. We would have filed for the refund, right?

Yeah. What CBP said, "You can declare the entry, but we will not process it."

That's what our legal counsel and even the customs broker said. Accordingly, we have declared the entry.

Sure. That's it from my side.

Thank you.

Thank you.

Thanks for the opportunity. Sir, my first question is on the feed division only.

When we see the first quarter, 17% year-on-year volume growth, it is quite steep hike, and when we are highlighting aspiration of around 5.85 lakh metric ton of the feed in FY27, it implies 5% to 6% sort of annualized growth. Just want to understand on ground how the farmers are looking at the current shrimp activities, and when we see the second half of FY26, we have relatively lower base, still we are a bit conservative on that front.

Just want update on that.

Yeah. See, at present, the shrimp culture activity is very good.

The farmers are very happy that the culture is progressing very well, with the climate is also favorable, and the farmgate prices have gone up. That is also very attractive.

The culture is going very smoothly, and we hope that throughout this year, that is till December, the completion of the second season also will be like this. Only concern is about the cost.

Cost is the only concern because the cost of feed is going up. Simultaneously cost of production also goes up, and hopefully that the farmgate prices will support the farmers with the reasonable return.

This keeps going, and also we hope that in the days to come, maybe some sort of price stabilization in the raw materials also will take place, and things will fall in place in the rest of the year. That's what we are hoping for the things to take shape in the coming months.

Understood. Just on the cost front where we are seeing a steep hike into the key ingredients, how we are expecting FY27 to look like, because as you are highlighting, the price hike is a bit stringent thing considering the government intervention.

First question, have we taken any price hike in last three, four months? Are we in consideration to take that?

Second part, in the formulation front, are we evaluating some sort of option to mitigate such current steep volatility into these ingredients?

See, the price hike we have taken. I think the dates we will be able to give you later.

19th

June, we have taken a price hike. Okay.

What will be the extent of the price hike?

Around 10% we have taken. Okay.

In terms of the formulation, are we looking at to evaluate some other options as well considering the current steep volatility which we are seeing for last few odd quarters?

Yes, we are working on the quality aspects along with the formulation so that the usage of the raw material and all will be reduced. The raw materials price will remain stable.

The most important thing, Mr. Ronak Shah, is that, see, while we always focus on research to how best we can give the best quality without compromising on the quality of the feed and its performance, the FCR, etc., we see how best we can reduce the cost of production by various methods and without compromising on the quality.

One thing is very important to note here that the prices have gone up so phenomenally that the increase should be something very, very high, which both the industry, the farmers, feed, government, exporters are taking it very seriously how to organize this. This is, for the first time perhaps this strange thing has happened with such a steep increase.

They are trying to find some solutions whereby the balancing act takes place, some price mechanism where determining on the major inputs like fish meal, soya bean meal, and wheat flour, they take whether there can be a mechanism by which the variance of the prices will take care in the feed price. That's what the government is very seriously working, and even the stakeholders are also acceptable to that kind of a formulation which will help both the farmers as well as the feed manufacturers.

I think that exercise is going on. Put together all, maybe we will be able to come with some solution in course of time.

It is really a concerning factor for the farmers, for feed manufacturers, everyone. We hope that the prices of the raw material also in course of time will stabilize.

The situation where everyone is comfortably placed to carry on their activities—the feed manufacturers, shrimp farmers, as well as the processors.

Understood. Just to summarize, the second quarter can be again a larger pain point before the benefit of the price hike plus any incremental government intervention will play out.

Is the understanding correct, sir?

That's right.

Lastly, on, sir, our pet food division, any update on how the capex cycle looks like and what sort of investment we have put in till date?

My colleague is here, he will explain.

We are estimating around 175 crores investment in pet food. Till now, we have purchased around 25 crores worth of land we've purchased.

Got it. That's it from my side.

Thank you, sir.

Yeah.

Yes.

Yes.

Yes. Thank you.

Yeah. Thank you, ladies and gentlemen.

It has been very good points that have been raised by some of the investors, and we tried our best to answer them. If you have any specific questions, you may send mail to us.

We will give you information. With this, we conclude this investors' con-call.

Thank you very much.