Thank you, Mr. Karthik.

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 un-audited financial results for Q3 FY26 and for the period ended 31st December 2025.

Mr. Venkata Sanjeev and Mr.

Nikhilesh, Executive Directors, are joining from the shrimp feed and processing plants respectively. Along with me here are Mrs.

Santhi Latha, GM Finance and Accounts; D. V.

S. Satyanarayana, CFO of Avanti Frozen; and K.

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

To begin with, Mrs. Santhi Latha will present highlights of financial results for the quarter ended 31st December '25 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. Thereafter, K.

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

Over to Mrs. Santhi Latha.

Thank you, sir. Good evening, everyone.

Now, I'll take you through the consolidated and standalone financial performance highlights for the quarter and nine months ended 31st December 2025. First, we'll go through the consolidated financial results for the quarter ended December '26, Q3 '26 results.

The comparative performance of Q3 FY26 with that of Q2 FY26 and Q3 FY25 have been given in the presentation already circulated. Gross income in Q3 FY26 is ₹1,447 crores as compared to ₹1,659 crores in the previous quarter of Q2 FY26, a decrease of ₹212 crores by about 12.78%.

Compared to Q3 FY25 gross income of ₹1,405 crores, there is an increase of ₹42 crores by about 2.99%. The PBT for the Q3 FY26 is ₹222 crores as compared to ₹227 crores in Q2 FY26, a decrease of ₹5 crores by 2.2%, and compared to Q3 FY25 PBT of ₹184 crores, there is an increase of ₹38 crores by about 20.65%.

The nine months financial results for the nine months ended 31st December 2025 is the comparative performance of nine months FY26 with that of nine months FY25 are also given in the presentation already circulated. Gross income in nine months FY26 is ₹4,761 crores as compared to ₹4,341 crores in nine months of FY25, an increase of ₹420 crores by 9.67%.

The PBT is ₹698 crores in nine months FY26 as compared to ₹526 crores in nine months FY25, an increase of ₹172 crores by about 32.7%. 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 will be discussed in the divisional performance of these units individually.

Standalone financial results of feed division: so Q3 FY26 results, the gross income for the Q3 FY26 is ₹993 crores as compared to ₹1,200 crores in the previous quarter of Q2 FY26, a decrease of about ₹207 crores due to decrease in the quantity of feed sold. The gross income in Q3 FY26 decreased to ₹993 crores from ₹1,073 crores in the corresponding quarter of Q3 FY25, a decrease of ₹80 crores.

This is offset by the decrease in the sale price and also increase in sales quantity by 13,922 MT. The PBT for Q3 FY26 is ₹172 crores as compared to ₹180 crores in Q2 FY26, a decrease of ₹8 crores by 4.44% since Q2 is the main season for the aquaculture industry.

Compared to Q3 FY25 PBT of ₹167 crores, there is an increase of ₹5 crores by 2.99% mainly due to decrease in raw material cost. The feed sales decreased to 1,18,127 MT in Q3 as compared to 1,54,644 MT in Q2 FY26 and from 1,32,049 MT in Q3 FY25.

The nine months FY26 results: gross income in nine months FY26 is ₹3,471 crores as compared to ₹3,484 crores in nine months FY25, a decrease of ₹13 crores by 0.37%. The PBT is ₹576 crores in nine months FY26 as compared to ₹465 crores in nine months FY25, an increase of ₹111 crores by 23.87%.

The feed sales increased to 4,38,335 MT in nine months FY26 as compared to 4,25,537 MT in nine months FY25. The major raw materials of feed are fishmeal, soybean meal, and wheat flour.

The noticeable development in this quarter is increasing trend of two major raw materials, that is fishmeal and soybean meal, resulting in decrease in the 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 prices of fishmeal increased in Q3 FY26 to ₹117 per kg from ₹98 in Q2, and increased from ₹93 per kg in Q3 FY25. In case of soybean meal, the prices increased to ₹43 per kg in Q3 FY26 from ₹43 in Q2 FY26, and decreased from ₹46 in Q3 FY25.

However, the wheat flour price decreased to ₹32 per kg in Q3 FY26 from ₹33 per kg in Q2 FY26 and ₹35 per kg in Q3 FY25. The present purchase price of fishmeal is ₹145 per kg, soybean meal is ₹56 per kg, and wheat flour is ₹32 per kg.

While on one hand, the raw materials are instrumental in determining the margins, on the other hand, the status of aquaculture activity conditions such as climate, 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 stood at 16% on revenues during the nine-month period ended 31st December '25 as compared to 13.3% during the corresponding period of the previous year, that is 31st December 2024.

The full impact of reduced and stabilized raw material prices during the nine months of FY26 enabled to achieve 16% PBT. Considering continued steep increase in price of major raw material like fishmeal and soybean meal during the past three months, which will have an impact on Q4 FY26, the PBT for the FY26 is expected to be around 14.5% to 15%.

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. However, considering the performance during the first nine months of FY26 as compared to performance during nine months of FY25, the results are likely to register marginal improvement.

Shrimp production and feed consumption FY25, and company plans for FY26: on the basis of estimated shrimp production of about 8 to 9 lakh MT in calendar year 2025, the feed consumption is estimated to be about 11 to 12 lakh metric tonnes. The company's feed sales during the nine months FY26 is 4,38,335 MT against 4,25,537 MT in nine months '25.

It is estimated that the feed sales during FY26 would be around 5,55,000 MT. Shrimp processing and export: the export of frozen shrimp during '24-25 was to the tune of 7,41,529 MT worth USD $5,177.01 million.

USA is the largest importer with 3,11,948 MT of frozen shrimp, followed by China 1,36,164 MT, 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 contributed to the major item of export in terms of quantity and value, accounting for a share of 43.67% in quantity and 69.46% of the total US dollar earnings.

Frozen shrimp exports during '24-25 increased by 8.3% in value terms and 6.06% in US dollar terms and 3.56% by volume. The company shrimp exports during FY25 was 14,149 as compared to 13,444 in FY24, an increase of 682 MT.

It is estimated that the exports during FY26 would be around 16,500 MT. Now, I hand over to Mr.

D. V.

S. Satyanarayana to present highlights of shrimp processing and export division.

Thank you, madam. Good evening, everyone.

Now, I would like to take you through the financial highlights of shrimp processing and export division. Q3 FY2026 results: the gross income for Q3 FY2026 was ₹455 crores as compared to ₹462 crores in Q2 FY2026, a decrease by ₹7 crores representing 1.5%, mainly due to decrease in sales quantity by 1,095 metric tonnes, which represents 23%.

However, the increase in other income during Q3 FY2026 partially offset the impact of the lower sales volume. Gross income in Q3 FY2026 increased to ₹455 crores from ₹328 crores during Q3 FY2025, an increase of ₹127 crores representing 39% year-on-year growth.

Higher sales in Q3 FY2026 was driven by an increase in average selling price realization, favorable foreign exchange rate, and increase in other income. The profit before tax before exceptional items for Q3 FY2026 stood at ₹52 crores compared to ₹53 crores in Q2 FY2026, reflecting a marginal decrease mainly due to other income.

The profit before tax in Q3 FY2026 was ₹52 crores, an increase from ₹18 crores in the corresponding quarter, that is Q3 FY2025, reflecting a significant increase primarily due to improved sales price realization, favorable foreign exchange rate, higher other income, and a reduction in ocean freight rates. Comparison of performance for nine months ended 31st December 2025 with nine months ended 31st December 2024: the gross income for nine months during FY2026 was ₹1,296 crores as compared to ₹855 crores in the corresponding nine months period of previous year, that is financial year 2025, an increase of ₹441 crores representing 52% in the gross income during nine months of FY2026, is mainly due to increase in sales quantity by 2,804 metric tonnes, representing 28% growth, and also improved average sales price realization.

The profit before tax for the nine months ended FY2026 stood at ₹130 crores compared to ₹68 crores for the corresponding period in FY2025, reflecting an increase of ₹62 crores in the PBT. This growth is mainly attributable to higher sales volume, improved sales price realization, favorable foreign exchange rate, increased other income, and also there is a marginal reduction in ocean freight rates.

With this, frozen results are completed. Now, I hand over to Mr.

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

Thank you.

Thank you, Mr. D.

V. S.

Satyanarayana. Good evening, all.

Now, I would like to update of pet food project. As already informed, company commenced trading in cat food and dog food under the Avanti's Pet Care brand, that is Avan Furr's.

The company is planning to expand its portfolio with additional flavors in a due course. The response from the pet owners for the both cat and dog food has been highly positive with a strong market acceptance and observed across all regions.

During Q3 FY25-26, the company recorded sales of ₹136.2 lakh compared to ₹95.08 lakh in Q2 FY25-26, reflecting continued growth momentum. The growth was driven by the increasing patronage of our cat food product as well as the steady traction in the dog food segment.

On the market expansion, the company is strengthening its presence in tier-1 cities and has initiated expansion into tier-2 and tier-3 markets. E-commerce operations: our products are now live on Supertails and Amazon platform, strengthening our presence and improving accessibility for customers nationwide.

The company continues to focus on building strong brand visibility for Avan Furr's through the ongoing digital market campaign in Instagram and Facebook, that is Avan Furr's, enhancing customer awareness and brand engagement across our target audience. On the project side, as informed earlier, the company has purchased a land near Hyderabad converted from agriculture to non-agriculture use for setting up a state-of-the-art manufacturing facility.

The land development works are in progress, and we are in the final stage of finalizing the design and drawing. Upon completion of the detailed project report and the receipt of necessary government approvals, construction activity will commence.

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

Thank you, Mr. K.

S. Reddy.

As anticipated, the first season of shrimp culture of this year commenced with highly positive expectation by farmers and all the stakeholders, the farmers preparing ponds and stocking from mid-February '26, and the stockings are going on impressively. Along with the increase in shrimp culture this year, as expected, the volume of feed sales also will increase.

However, the prices of major raw materials, particularly fishmeal and soybean meal, are increasing steeply, as explained by my colleague earlier, impacting on margins. We do hope that prices of these raw materials will stabilize during the course of the year.

Reviewing the status of shrimp exports, we have been discussing on impact of reciprocal tariff imposed by US on imports of shrimp from India. As you all know, there has been a high degree of uncertainty on levy of reciprocal tariff and extent of its impact on seafood industry.

It is a positive development to see withdrawal of 25% duty imposed as a penalty for import of Russian oil. It has given much needed relief to the export of shrimps to USA.

Further, the other 25% duty has also been removed. However, the US government chose to levy import surcharge of 10% on imports.

Uncertainty whether it is increased to 15% still exists, awaiting clarity. Overall, export environment also poised to be more encouraging with the tariffs coming down and the company working on exports to other global markets.

As you are aware, on 20th February 2026, the US Supreme Court ruled in a 6-3 decision that International Emergency Economic Powers Act, IEEPA, does not authorize the US President to impose tariffs on imports because the act does not grant clear statutory authority to levy taxes or duties, a power reserved for Congress. As a result of the ruling, IEEPA-based tariffs including reciprocal duties previously imposed were invalidated and are no longer legally enforceable.

US Customs and Border Protection stopped collecting these unlawful IEEPA tariffs effective from 24th February 2026 by deactivating the related tariff codes. However, the Supreme Court's opinion did not directly address the refund for the duties already collected.

Importers may need to pursue refunds through customs protests or litigation. Within hours of the decision, the US administration introduced a new temporary global import surcharge under Section 122 of the Trade Act of 1974, initially set at 10% and subsequently announced to be raised to 15% effective from 24th February for up to 150 days.

The new surcharge effectively replaces the IEEPA tariffs, but under a different statutory authority. Having said so much about this tariff, Mr.

Nikhilesh would be able to throw more light on this subsequently later on in the course of question and answer discussions. Now, I'll just give the highlights of the Union Budget announced recently.

The government has increased allocation to the fisheries sector under schemes such as Pradhan Mantri Matsya Sampada Yojana with continued focus on aquaculture, value chain development, and export promotion. The customs duty on imported shrimp feed has been reinstated at 15% after withdrawing concession duty at 5% given in the budget of the previous year, that is 2025.

The association has been pursuing with the government for reinstating 50% 15% duty because the imported feed was available at highly reduced prices making a big competition for the domestic feed manufacturers. This step would help domestic feed suppliers to compete with the imported shrimp feed.

The budget emphasizes strengthening cold chain, processing infrastructure, and export ecosystem, which is expected to support shrimp processors and exporters. Earlier customs duty rationalization on key feed and processing inputs continues to improve cost competitiveness for shrimp feed manufacturers and exporters.

Overall, policy directions remain supportive of seafood exports with a focus on enhancing global competitiveness and boosting value addition. I think with this, we will take up the questions from the investors.

I think we can start this question-answer session. Over to you, Mr.

Karthik.

Yeah. I wanted to ask three questions on your core business and two questions on the new pet food business.

I'll start with the core business. We're going to have UK's trade deal be implemented first, and the talks are probably from April, we'll have the implementation of the UK trade deal and EU by the end of the year.

Given that when these trade deals are implemented, the duty reduction is substantial, do you see the end market size as a whole increasing?

I think Nikhilesh would take this question. A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Hi. Could you repeat the question, please?

Given that UK's trade deal and EU's trade deal, of course EU is expected by the end of this year or beginning of next year, and UK by April this year, is going to be at a substantially lower the tariff rate, because in EU we had tariffs up to 26%, in UK we had it up to 9%. Given this scenario, do you see the market in EU expanding for shrimp itself?

Because suddenly the price would drop and become more competitive against other proteins. A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Yes, I would definitely say that the market access into EU and UK would be better. There'd be higher demand coming from these markets.

Yes, 100%, because they're reducing duties.

Understood. On UK, are we already collaborating for April sales without duty, or is it still undecided?

A. Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): I think these agreements have been announced, but what the industry is watching is when and how quickly are they implemented.

There is no official news on the implementation date. We're hoping that it comes into effect quickly.

May I add to what Nikhilesh said? I think it is around six to nine months time they want to complete all the formalities.

The bilateral trade agreement has to be implemented from both sides. Both governments have to approve that.

I think it will take about six to nine months. That's what I read in a newspaper the other day.

Understood, sir. Sir, next question is on the El Niño impact on the weather.

One of our core raw materials, fishmeal, will be very heavily impacted by this weather conditions. That is for India.

For Ecuador, they have their own challenges with El Niño. How are you reading it for both the countries?

Is this question for fishmeal? Yeah.

See, the catches from this ocean, it depends upon the nature, definitely. Each year it keeps varying.

The last year it was not so good, particularly Chile and Peru are the major suppliers of fishmeal to the almost global consumers. This year the catches have been fairly good.

Some in between there was less demand for Indian fishmeal because of the availability of fishmeal from Chile and Peru. Again, the prices have gone up, again the demand has gone up from, particularly West Asia because particularly from Taiwan and other countries, they would like to have cheaper fishmeal available from India.

As far as the quality is concerned, it is the same. That is how the prices in the Indian fishmeal is going up.

Moreover, the dollar is becoming very strong, and rupee depreciation is giving more advantage to the exporters. They compare domestic price with the export price, and the government also gives some incentive for exports.

Overall, the fishmeal producers get much more higher margins on exports. This is definitely going to be a big challenge for us.

We have made representation to the government to bring some sort of a regulatory mechanism by which the exports are limited and adequate fishmeal is available for the domestic consumption. We'll have to wait and see, because the government is also interested in getting more and more forex, they would not readily agree to that.

We are making our efforts to somehow bring a balance between these two exported fishmeal and domestic availability. Let's wait and see for that.

Understood, sir. Last question on the core business: the shipping rates and the container movement on our export front, are they stable given the Middle East situation, at least as of that shipment?

A. Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Currently this war is quite new, right now we don't have any changes.

Our shipping currently is below Cape of Good Hope, Africa. We don't expect so much, but of course there should be some disruption.

We need to see what happens. For us, since most of our markets are to US, Europe, Japan, I don't think there's any immediate direct effect, but there'll be some kind of trickle-down effect depending on how containers are blocked or inventory is managed by the shipping company, so that we need to wait and watch.

Understood, sir. Moving to the pet food business...

Of course.

Yeah. He'll come back.

Sir, thank you for taking my question. The first query is on the outlook for processing for FY27.

We've given a target of 16,500 for FY26 four quarters. How do we look at FY27 given these trade agreements?

A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): I'll take that question. Frankly speaking, on a lighter note, I must thank the Indian government for taking a proactive approach to support the country and the exporters not only for shrimp, but all the categories by unlocking and giving good market access to countries like EU and UK and also negotiating a trade deal with the US eventually, which now doesn't matter, but because of all these reasons of improved bilateral trade, we do expect better market access, they're quite robust for the year '27.

Our guidance, I need to relook at it because we're finalizing some of those numbers with the change in tariff structures. Sure.

Just to understand, we have capacity of around 28,000. Would that be the right understanding?

A. Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): Yes.

28,000 would be the right understanding. Sure.

The second is given that there is positivity in terms of the shrimp side of it, do you see farmers feeding more going forward because obviously that impacts both on the feed side and processing side. What's the sentiment at the farmer side?

A. Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): It's quite positive.

This is not only for the processor or feed miller or farmer, generally everyone in the supply chain is positive. Even the importers are positive because it's just a tax that goes into a government coffer, we can pass it on to the consumer instead of paying taxes, definitely everyone is happy about it.

Just to understand this a little further, in terms of for us in the processing side, do you see operating leverage kick in for us as volumes move up, or potentially given that you are trying to get entry into newer markets, we would try to price a little bit more competitively? A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): I wouldn't say that we would price very competitively because we have better market access, that means we have better demand for our products. What we need to really see is how do these things pan out, right?

These are announcements, and so for them to be implemented, like Mr. Rao had said previously, it might take six to nine months or even longer.

I don't even know. It's difficult to comment on that.

Once they start kicking in, I think it's more of a long-term perspective that I would take an approach, not in the FY27, that there should be theoretically better margins. The question that you're asking is quite new, right?

Tariffs removed a month ago. We need to see how this pans out, but theoretically it should give better margin recovery.

For example, US where we did bring out that post N-Set tariffs have been revised downwards for us,

are we seeing importers pull in a lot more inventory from India given that now we are a little bit more competitive with Ecuador, and some other countries have been hit by higher tariffs in terms of anti-dumping, CVD, etc.? A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): It's a very broad question. I'll just try to make it simple.

Right now, we're in off-season, there's not much material

for

the farmers because it's winter. On enquiry level, there's a higher enquiry level, more positivity, more interaction to the customers on their plans for the year.

Definitely, it's looking positive, but again we're in the off-season, we're quite confident. I would say that we're quite confident that demand would come back once the season opens.

I'll get back to the questions, but wishing you all the best. A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Thank you.

Thanks for the opportunity, sir. My first question is on the feed business.

When the management is guiding for around 5.5-odd lakh metric tonnes sort of feed sales in FY26, which sounds a bit optimistic, or of lettuce kind of thing, considering the evolving things wherein majority of the things are favoring us in terms of the overall outlook. How's the company seeing the business in FY27 and '28?

Can we expect a mid-to-high single-digit sort of growth rate in terms of the overall feed sales volume? See,

the growth of volume depends on the circumstances prevailing during the main culture seasons, that is first season and the second season. As you know that year after year, these climatic conditions keep changing, and last year we had a lot of problems in climatic conditions, and this year we are hoping that the climate would be more friendly and more suitable for the aquaculture, improved aquaculture.

With this hope and with this confidence, all the farmers have really worked out and making efforts to increase the area of culture this year. Also, those who have left the culture at the time of COVID also have now trying to see that whether they can restart this.

With these positive developments, we are expecting that the growth would be better this year, but this is still a very primitive stage. We have just started the stockings, and as we see next couple of months, we will know how the culture keeps progressing.

Depending upon that, we would be in a position to estimate the growth that we can expect in the first season. Of course, each season a peculiar, unique by itself, we will know what would be the first season's real demand for the feed, and also thereafter the second season will start.

It's very difficult to exactly estimate, but with all the present circumstances, we expect that there should be minimum 10% growth in the feed volume consumption, if not more, because this area of culture going up and farmers are also very positive about the culture season ahead. With this, we'll be able to see a growth of about 10%, if not more.

Understood. Secondly, sir, when we see the gross margin for the feed division, when we were into the 2Q FY26 conference call wherein you were highlighting a increase in the fishmeal and soymeal prices, but when we see the third quarter's number, we can see a QoQ improvement into your gross margin.

Have you taken some price hike into the feed division? Going forward, how you are seeing those numbers panning out?

See,

what has happened here is the averaging of the raw material cost has really given that additional advantage in the Q3. What is happening is when the prices keep going up, we follow the weighted average consumption, earlier low prices will have some impact on the Q3 raw material prices also.

That's how we have got a better improvement on what I said in the last investors call. Again, I'm saying the same thing now, because Q4 is going to be again the same story repeats.

That is the reason why when we said that the average increase in the profitability is likely to be more about 1% to 1.5% more than what it was there earlier. If you look at nine months, it is very good, about 16% we have recorded, but that is not going to be there for the average for the whole year when we complete by 31st March '26, 2026.

That would be around 15%, 14.5% to 15% because of the price hike. These raw material prices because of the averaging, that difference in profitability comes in quarterly results.

Understood. Sir, can we expect around two to three months more we are having those low-cost inventory, which is likely to consume and after we will be

seeing the... Yes, you are right.

Understood. Sir, lastly on the processing business: so we can see a significant improvement into the realization per kg.

However, if we see from the EBITDA front, there was some steep increase into your opex into the third quarter. Can you explain the reason for that?

How you are seeing the profitability in this division going forward, considering the updates across the macro?

Nikhilesh would be able to take this call. A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Yeah. I think my colleague had clearly explained the point that there was better volume, there was better price realization, better other income.

All these pretty much are the main reasons for the better margin. On top of that, we were able to pass on the tariffs, which now have been reversed.

That's the main point of it. We also diversified into other markets, which was good considering the instability or volatility in the US market, which is positive just running the operations continuously.

I hope that answers. The notes that my colleague said was actually on point.

Just lastly on your opex front, as I have seen that currently we have around ₹190-odd crores sort of opex vis-a-vis your ₹77 crores last year. What led to this steep jump in current quarter?

What can be the sustainable run rate for that? Mr...

Satya.

The major reason for going up the opex was because of the reciprocal tariff, which was at highest at 50% during Q3 FY2026. That is the reason major jump you can see in opex.

Okay. We are accounting that into our opex part.

Understood.

Yes.

That's it from my side.

Thank you.

Good evening, sir. Am I audible?

Yes. Please go ahead.

Congratulations on a mixed set of numbers. Sir, just want to clarify from all of you that in FY27, what are the target markets for all the business segments that we are looking for?

Is just a plan that you made? If it is made, if you can explain us.

See,

for FY27, we are working on the projections because till recently, we had so many challenges like tariffs, and also our own culture season, how it's going to be, and what efforts we should make to encourage the farmers to undertake more culture, and all this planning was going on. We are in the process of preparing the budgets for the '26-27.

I think we'll be able to share with you sometime in next call we should be able to give you more details on that.

Okay. Thank you so much for the clarification.

Sir, one more question regarding this: in Africa and West Asia and overall Asia, you are also taking a few market share and operating as well. How much expectations of that sales realizations that we expect from this Asia and Africa as well?

If you please share this at least.

Nikhilesh, can you answer that

question? A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): Can you repeat that question?

Sir. What you said, sir?

Can you repeat? A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited): Yeah.

Okay. In FY27, as sir said, your plans and projections are on.

I just want to know that in Africa and in Asia, are there any opportunities to grow your markets for all the business segments that we are operating? A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Africa, generally, it's in terms of income level quite low, the opportunity in Africa maybe not immediate, but more long-term, I wouldn't say the immediate next two, three years. Asia in particular has been doing quite well.

If you see our share in Asian markets has been growing over the past few years, we're still very bullish on the Asian market, we do expect higher share towards this region.

As far as feed is concerned, we are making efforts to go to Middle East, and we are trying to enter that market. Trials are going on, and the culture there we are supporting them with the technical advice, and also we have sent some trial products also, the feed, to them.

We are making efforts to supply to Middle East countries also for this shrimp feed. Let's wait and see.

Okay. Sir, can you please share your percentage?

How far are your trials? Is it 50%, 60%, or 70% completion?

If you just share the numbers.

It's

not completed.

Can you come back on it? It's not completed.

A. Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

We can't view this as a percentage, right, because this is like a trial, you cannot give...

Sir. Got your inputs.

Lastly, sir, one question on financial numbers: so is there any expectations of yours or calculations that how much numbers on top line and bottom line we will end this year, FY26? No,

not now. We are still working on that.

A. Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

After [tariff hit?] , we just close the call then.

Sir. Congratulations.

Hi. Sir, my question is regarding pet food business.

I just want to understand how we are going to penetrate the market, as the market is surrounded by and dominated by some few key players. Could you please shed some light on your plan in long term, how are we going to penetrate the market?

Venkata Sanjeev ji, can you please take this question? A.

Venkata Sanjeev (Executive Director, Avanti Feeds Limited and Avanti Pet Care Private Limited):

Hi. Right now, we're concentrating mostly on the product itself.

The product has gotten great reply from the market, and all the dog owners and cat owners who have used it are becoming repeat customers. Product is going to be the key for it.

Also, we're going to soon launch new products, which will compete with the bigger brands with better quality. That's what has been our goal since the start.

Okay. Sir, if you could please shed light on some revenue figures, like our major revenue is coming from dog food or cat food?

A. Venkata Sanjeev (Executive Director, Avanti Feeds Limited and Avanti Pet Care Private Limited):

Dog food is around 60% to 65% and the rest.

If you could shed some light on some margin guidance, like what kind of margin are we looking from this business in long term?

Venkata Sanjeev ji, would you like to answer this question?

A. Venkata Sanjeev (Executive Director, Avanti Feeds Limited and Avanti Pet Care Private Limited): Better for you to answer.

Yeah.

See, the margins, I think it is too premature to talk about the margins at this stage, because we have just started. The initial years, we'll have to incur a lot of expenditure on the promotion of the product and building the brand image.

We'll have to do a lot of work on that, and more expenditure is incurred to create the brand image and to various market segments also we have to see, and also the regions. See, this product is supposed to be marketed pan India.

We are now concentrating on a region-wise, east, west, north, south like that we have divided, and we are in the process of recruiting people, and also to e-commerce also we are just penetrating into the market. To make the product visible, the availability is a very important aspect in this kind of business.

Simultaneously, we have our own distributors as well as e-commerce. It will take some time for us to give the numbers and margins, because the initial expenditure is high.

Moreover, see now we are doing it a more of a trading. The real benefit of this comes to the company when we start our own production, because as long as you import the products, you know the price, how the foreign exchange that rupee getting depreciated against the dollar and all when we import and distribution and all the expenses are bound to be higher.

When we start our own production, maybe next one year or 16 12 14, 15 months, we should be able to start our own production. Then one real benefit of the project would be seen at that time.

Now it is only the process is only to develop the brand and stabilize the market base. People should know that Avanti's product is available and which are the flavors whether it is a dog food or a cat food.

We are focusing mostly on that, and also recruiting the people to promote the product. Business promotion is another important thing.

These are the two things which we are doing. That expenditure at this stage it is very difficult to make any margins at this point of time.

Last question regarding this only: so sir, as you have said that we are going to start our own production, how much capex are we going to do, or do we have any facility as of now running in which we will do production? That's my last question, sir.

Thank you. See,

we have purchased the land, land development is going on. We are working with our collaborators for preparing the drawings and also the machinery estimates, civil works, all this work is actively working on that, and we should be able to really give the clear estimate of the total project cost maybe next couple of months we should be able to do it.

We start working on the drawings, and in India we need so many approvals from the government to start the construction itself, we will start working on that. Once we get the approvals, we'll start construction.

The total estimated cost of the project and profitability, etc., would be able to give you maybe the next one or two quarters results.

Thank you so much, sir. Thank you for taking my question.

Thank you. All the very best for upcoming quarters.

Thank you. Thank you.

Thank you for the opportunity for follow-up questions. Ask two questions on the pet food business.

Number one, our products were on display and available for purchase on Supertails last quarter. We aimed to expand it to Amazon.

You mentioned expanding to Amazon just now, sir, however it's still not visible on the top

page. Venkata Sanjeev, you can take this.

A. Venkata Sanjeev (Executive Director, Avanti Feeds Limited and Avanti Pet Care Private Limited):

Yes, we've been working with Amazon. Since there's another brand called as Avant, which sells shoes and they've been there for a longer time, they've been visible on the top.

We're working with Amazon to get our brand on top of the page.

Understood. Understood.

On follow-up on that, on Amazon pet food page, where all the other brands are displayed and you are aiming for your own brand to be displayed, has started its own pet food brand. A.

Venkata Sanjeev (Executive Director, Avanti Feeds Limited and Avanti Pet Care Private Limited):

Yeah.

It's also being upfront about it in the labeling and marketing and the packaging saying it's an Amazon brand. Given that significant amount of pet food is being bought by online distributors, do you see this as a threat going forward?

Even at Supertails, I think your brands are at display, and all throughout the last five months, they have been increasing, more and more products have been showing on Supertails. I'm also hearing good feedback from people.

Do you see this as a threat that the distributor website itself is started its own brand? A.

Venkata Sanjeev (Executive Director, Avanti Feeds Limited and Avanti Pet Care Private Limited):

Yes, we do see it as a threat that a distributor can start his own page, but he won't be able to give the same discounts as the company is being able to give. I think that's going to affect their business more than ours.

Understood, sir. Thank you.

Hello. Am I audible?

No, you're not. Please speak a bit louder, please.

Is it audible now? Hello.

Is this better? Nikhilesh, my question was to you.

In the shrimp processing division, we have seen in last nine months a decent volume growth. Whatever it was asking was that since this chaos of the last one year where duties were changed, do you see any possibility of gaining reasonable market share considering your market share volume-wise in the last four, five years has been quite stagnant in this division, around the 1% to 2% mark.

Considering this is a very fragmented market as you guys had mentioned earlier, with these recent changes in the last 12, 15 months, do you think there is a possibility of gaining decent market share now in this segment? A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Market share in the country, that's what you...

In terms of global market, yeah, in terms of the players in the country, yeah, correct. A.

Nikhilesh (Director, Avanti Feeds Limited and Executive Director, Avanti Frozen Foods Private Limited):

Historically, right, this has been, especially in India, it's been very fragmented with 100-plus packers. That way it's just because of the size of the country, the people on the west coast, east coast, different areas, different people specialize.

Some people trying to move only commodities, we try to do more value-added. That said, if you just look at in a broad perspective, right, when we formed the JV with Thai Union for the processing division, we were, I think, we're not even top 10 exporters.

Now we climbed the rank and is amongst the top exporters for frozen shrimp today. That way, we have been increasing our volume, but also we're also looking to play where there's better margin by doing more value-added products and trying to work with more premium clientele where they're very demanding generally.

That's that, but in the next few years from FY27 onwards, our main target is to scale, continue to scale. If you see our CAGR percent on volume or revenue, every year they continue to grow the business step by step.

With food processing, that's the way to do it, because when a consumer gets the bag of shrimp, if there's any problem, there's complaints, right? Food safety issues, it's very sensitive.

Every year we're going to increase step by step, step by step, but we're quite confident, and that's how we see we've showed the business grow in the last five years.

Okay. Nikhilesh.

Thank you.

Thank you for all the investors for actively participating and sharing your views on the performance of the company for the quarter and as well as nine months ended 31st December '25. I conclude this conference call with a note that the next call we'll be able to really see the year-end results as well as the future planning of the company.

Thank you for your time. Thank you very much.