Q1 2027 Avanti Feeds Ltd Earnings Call

August 27, 2026

Speaker #2: Investors, please stay connected. Your conference will begin shortly. Welcome to Avanti Feeds Limited Q1 FY 2026-27 Investors Call. Please stay connected.

Speaker #2: Your conference will begin shortly. Welcome to Avanti Feeds Limited Q1 FY26–27 Investors Call. Please stay connected. Your conference will begin shortly.

Speaker #2: Welcome to Avanti Feeds Limited Q1 FY 2026-27 investors call. Please stay connected. Your conference will begin shortly. Welcome to Avanti Feeds Limited Q1 FY 2026-27.

Speaker #2: Investors' call. Please stay connected. Your conference will begin shortly. Welcome to Avanti Feeds Limited, Q1 FY2026–27 investors' call. Please stay connected.

Speaker #2: Your conference call has started now. We are handing over the proceedings to the management of the company.

Operator: Call has started now. We are handing over the proceedings to the management of the company.

Speaker #3: Good evening, 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.

Divya T.: Good evening, 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 financials results for Q1 FY27. Alluri Nikhilesh, Executive Director, Avanti Frozen Foods Private Limited, has joined from the processing plant. Along with me here are C. Ramachandra Rao, Joint Managing Director and Company Secretary of Avanti Feeds Limited, A. Venkat Sanjeev, Executive Director of Avanti Feeds Limited, D.V.S. Satyanarayana, CFO of Avanti Frozen Foods Private Limited, and K. Srinivas Reddy, CFO of Avanti Pet Care Private Limited. to begin with, I will present highlights of financial results for the quarter ended 30 June 2026 of shrimp feed division, and also consolidated financials of the company for the same period.

[Company Representative 3] (Avanti Feeds): Good evening, 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 financials results for Q1 FY27. Alluri Nikhilesh, Executive Director, Avanti Frozen Foods Private Limited, has joined from the processing plant. Along with me here are C. Ramachandra Rao, Joint Managing Director and Company Secretary of Avanti Feeds Limited, A. Venkat Sanjeev, Executive Director of Avanti Feeds Limited, D.V.S. Satyanarayana, CFO of Avanti Frozen Foods Private Limited, and K. Srinivas Reddy, CFO of Avanti Pet Care Private Limited. to begin with, I will present highlights of financial results for the quarter ended 30 June 2026 of shrimp feed division, and also consolidated financials of the company for the same period.

Speaker #3: Niklesh, Executive Director of Avanti Frozen Foods Private Limited, has joined from the processing plant, and along with me here are Mr. C. Ramchandrao, Joint Managing Director and Company Secretary of Avanti Feeds Limited, and Shri A.

Speaker #3: 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 Petcare Private Limited.

Speaker #3: To begin with, I will present highlights of the financial results for the quarter ended 30th June 2026 of the Shrimp Feed Division, and also the consolidated financials of the company for the same period.

Speaker #3: Thereafter, Mr. D. V. S. Satyanarayana will present the financial highlights of the shrimp processing and export division, and after that, Mr. K. Srinivas Reddy will present the status of the Petcare project.

Divya T.: Thereafter, Mr. D.V.S. Satyanarayana will present the financial highlights of shrimp processing and export division. 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 and 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 FY26 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%.

[Company Representative 3] (Avanti Feeds): Thereafter, Mr. D.V.S. Satyanarayana will present the financial highlights of shrimp processing and export division. 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 and 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 FY26 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%.

Speaker #3: After the presentations by all of us, Mr. S. Ramchandrao, Joint Managing Director and Company Secretary of Avanti Feeds, will give an update on the current situation and highlights of the industry.

Speaker #3: After that, we will have a question-and-answer session. The comparative performance of Q1 FY27 with that of Q4 FY26 and Q1 FY26 has already been provided in the presentation.

Speaker #3: Circulated. So first, we'll go through the consolidated financial results for Q1, FY 27. The consolidated gross income in Q1, FY 27 is 1,966 crores, as compared to rupees 1,516 crores in the previous quarter of Q4, FY 26, an increase of 450 crores, by about 30%.

Speaker #3: Compared to Q1 FY26 gross income of ₹1,657 crores, there is an increase of ₹309 crores, or about 19%. The PBT is ₹157 crores in Q1 FY27, as compared to ₹184 crores in Q4 FY26, a decrease of ₹27 crores, or 15%.

Divya T.: 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 financials 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.

[Company Representative 3] (Avanti Feeds): 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 financials 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.

Speaker #3: Compared to Q1 FY26, PBT of ₹249 crores, there is a decrease of ₹92 crores, or about 37%. The consolidated results indicate the net impact of several factors, such as increases or decreases in income, expenditure, and exceptional items relating to both feed and frozen divisions.

Speaker #3: These have been discussed in the individual performance of these units. Standalone financial results of the Feed Division: Feed Division Q1 FY27 results—the gross income for Q1 FY27 is ₹1,615 crore, as compared to ₹1,069 crore in the previous quarter, Q4 FY26.

Speaker #3: An increase of ₹546 crores, representing 51%, mainly due to an increase in the 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.

Divya T.: The gross income in Q1 FY27 increases 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 193,852 MT in Q1 FY27 as compared to 123,725 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 increases to 193,852 in Q1 as compared to 165,564 MT in Q1 FY26. The major raw materials are fish meal, soya bean meal, and wheat flour.

[Company Representative 3] (Avanti Feeds): The gross income in Q1 FY27 increases 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 193,852 MT in Q1 FY27 as compared to 123,725 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 increases to 193,852 in Q1 as compared to 165,564 MT in Q1 FY26. The major raw materials are fish meal, soya bean meal, and wheat flour.

Speaker #3: An increase of ₹336 crores, representing 27%, was due to an 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, about 18%, mainly due to an increase in raw material prices.

Speaker #3: Feed sales increased to 193,852 empties in Q1 FY27, as compared to 123,725 empties in Q4 FY26. The PBT in Q1 FY27 has declined by ₹110 crore, from ₹224 crore in Q1 FY26 to ₹114 crore in Q1 FY27, representing a 45% decrease.

Speaker #3: The feed sales increased to 193,852 in Q1, as compared to 165,564 in Q1 FY26. The major raw materials are fish meal, soybean meal, and wheat flour.

Speaker #3: The noticeable development in this quarter is the increasing trend of two major materials, that is, fish meal and soybean meal, resulting in a decrease in profitability when compared with previous quarters.

Divya T.: The noticeable development in this quarter is increase in 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 case 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.

[Company Representative 3] (Avanti Feeds): The noticeable development in this quarter is increase in 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 case 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.

Speaker #3: 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.

Speaker #3: In the case of soybean meal, prices increased to ₹58 per kg in Q1 FY27, from ₹49 in Q4 FY26, and from ₹40 in Q1 FY26.

Speaker #3: 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, soybean meal is ₹71 per kg, and wheat flour is ₹33 per kg.

Divya T.: The present purchase price of fish meal is INR 225 per kg, soya bean meal is INR 71 per kg, and wheat flour is INR 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, et cetera, 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 revenue 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.

[Company Representative 3] (Avanti Feeds): The present purchase price of fish meal is INR 225 per kg, soya bean meal is INR 71 per kg, and wheat flour is INR 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, et cetera, 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 revenue 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.

Speaker #3: 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 and diseases, determines the consumption of feed in terms of volume, which will have an impact on the overall performance of the company.

Speaker #3: The PBT during the quarter stood at 7.06% on revenues, as compared to about 13% during Q4 FY26, and 17% during Q1 FY26.

Speaker #3: 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.

Speaker #3: 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 the coming months upon arrival of fresh crops.

Divya T.: 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 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. The 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 562,060 MT against 555,247 MT in FY26.

[Company Representative 3] (Avanti Feeds): 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 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. The 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 562,060 MT against 555,247 MT in FY26.

Speaker #3: To sum up, in general, FY26-27 is expected to be a challenging season for the aquaculture industry, with respect to shrimp production, due to the steep increase in feed raw material prices, as well as exports from India and global demand for shrimp exports.

Speaker #3: The shrimp production and feed consumption in FY26, and company plans for FY27. On the basis of estimated shrimp production of about 800,000 to 900,000 metric tons in calendar year 2026, the feed consumption is estimated to be about 1.1 to 1.2 million metric tons.

Speaker #3: The company's feed sales during FY26 were 562,060 MT, against 555,247 MT in FY25. It is estimated that feed sales during FY27 would be around 585,000 metric tons.

Divya T.: It is estimated that the feed sales during FY27 would be around 585,000 metric tons. Shrimp processing and export division. The export of frozen shrimp during 2025/2026 was to the tune of 792,647 MT worth USD 505,624.48 million. 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 terms. 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 earnings.

[Company Representative 3] (Avanti Feeds): It is estimated that the feed sales during FY27 would be around 585,000 metric tons. Shrimp processing and export division. The export of frozen shrimp during 2025/2026 was to the tune of 792,647 MT worth USD 505,624.48 million. 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 terms. 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 earnings.

Speaker #3: Shrimp processing and export division. The export of frozen shrimp during 25-26 was to the tune of 7,92,647 empty, 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%.

Speaker #3: On a year-on-year basis, export volume to the US declined by 17.9%, whereas exports increased by 24% to China, 36% to the EU, and 5% to Japan in metric tons.

Speaker #3: Frozen shrimp continued to be the major item of export, in terms of both quantity and value, accounting for a share of 40% in quantity and 67% of the total US earnings.

Speaker #3: During FY26, frozen shrimp exports registered a growth of 13.16% in rupee value, 8.64% in dollar value, and 6.9% by volumes. The company's shrimp exports during FY26 were 16,976 empties, as compared to 14,149 in FY25, an increase of 2,827 empties.

Divya T.: 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 export during FY26 was 16,976 MT as compared to 14,149 in FY25, an increase by 2,827 MT. It is estimated that exports during FY27 would be around 19,000 metric ton. Now, I hand over to Mr. D.V.S. Satyanarayana to present highlights of shrimp processing and export division.

[Company Representative 3] (Avanti Feeds): 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 export during FY26 was 16,976 MT as compared to 14,149 in FY25, an increase by 2,827 MT. It is estimated that exports during FY27 would be around 19,000 metric ton. Now, I hand over to Mr. D.V.S. Satyanarayana to present highlights of shrimp processing and export division.

Speaker #3: It is estimated that the exports during FY27 would be around 19,000 metric tons. Now, I hand over to Mr. Deviya Satynarayana to present the highlights of the shrimp processing and export division.

Speaker #1: Thank you, ma'am. Good evening, everyone. Now I would like to take you through the financial highlights of the shrimp processing and export division—Q1, FY 2027 results.

D.V.S. Satyanarayana: 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 INR 350 crores as compared to INR 446 crores in Q4 FY2026. That is immediate preceding quarter, a decrease by INR 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 tariff effective from 24 February 2026. The gross income in Q1 FY2027 decreased to INR 350 crores from INR 378 crores during Q1 FY2026, that is corresponding quarter in the previous year, a decrease of INR 28 crores representing 7% mainly due to decrease in sales volume by 16%.

Speaker #1: The gross income for Q1 FY2027 was ₹350 crores, as compared to ₹446 crores in Q4 FY2026, which is the immediate preceding quarter. This is a decrease of ₹96 crores, representing 22%, mainly due to a decrease in sales volume by about 15%.

Speaker #1: However, the average selling price realization decreased in Q1 FY 2027, as compared to Q4 FY 2026, following the withdrawal of reciprocal tariffs effective from February 24, 2026.

Speaker #1: The gross income in Q1 FY 2027 decreased to ₹350 crores from ₹378 crores during Q1 FY 2026, that is, the corresponding quarter in the previous year.

Speaker #1: A decrease of ₹28 crore, representing 7%, was mainly due to a decrease in sales volume by 16%. So, though volumes decreased by 16%, the value decreased only by 7%, mainly because of the improved average selling price realization in the current quarter.

D.V.S. Satyanarayana: 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 items for Q1 FY2027 stood at INR 45 crores compared to INR 48 crores in Q4 FY2026. Despite the decline in sales volume in Q1 FY2027, profit before tax remains at the same level as the previous quarter, primarily due to better operational efficiency. The profit before tax in Q1 FY2027 was INR 45 crores, an increase from INR 25 crores in the corresponding quarter in Q1 FY2026, reflecting a significant increase primarily due to improved average selling price realization, favorable foreign exchange rate, 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.

Speaker #1: The PBT before exceptional items for Q1 FY 2027 stood at ₹45 crore, compared to ₹48 crore in Q4 FY 2026. Despite the decline in sales volume in Q1 FY 2027, profit before tax remained at the same level as the previous quarter, primarily due to better operational efficiency.

Speaker #1: The profit before tax in Q1 FY 2027 was ₹45 crores, an increase from ₹25 crores in the corresponding quarter, Q1 FY 2026, reflecting a significant increase primarily due to improved average selling price realization, favorable foreign exchange rate, and higher other income recorded in Q1 FY 2027.

Speaker #1: Now, I hand over to Mr. K. Srinivas Reddy to update the status of the pet food problem.

Speaker #2: Thank you, Mr. Deviya Satynarayana. Now, I would like to update you on the pet food project. During Q1, FY26-27, the company continued to strengthen its presence in the pet food segment under the PET-K brand AvantFirst. The response from pet owners to both the cat food and dog food products remained encouraging, with growing acceptance across various markets.

K. Srinivas Reddy: Thank you, Mr. D.V.S. Satyanarayana. Now I would like to update the pet food project. During Q1 FY2026-2027, the company continued to strengthen its presence in the pet food segment under pet care brand, Owen's First. 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 FY2026-2027 sales increased to INR 180 lakhs, compared to INR 151 lakhs in Q4 FY2025-2026, reflecting continued growth in both cat food and dog food segments. 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.

K. Srinivasa Reddy: Thank you, Mr. D.V.S. Satyanarayana. Now I would like to update the pet food project. During Q1 FY2026-2027, the company continued to strengthen its presence in the pet food segment under pet care brand, Owen's First. 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 FY2026-2027 sales increased to INR 180 lakhs, compared to INR 151 lakhs in Q4 FY2025-2026, reflecting continued growth in both cat food and dog food segments. 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.

Speaker #2: Reflecting the strong potential and promising growth prospects of the business, sales in Q1 FY26-27 increased to ₹180 lakhs, compared to ₹151 lakhs in Q4 FY25-26, reflecting continued growth in both the cat food and dog food segments.

Speaker #2: The company continued to expand its market reach by strengthening its presence in Taiwanese cities and gradually expanding into Taichung and Taichi markets. The products are also available on leading e-commerce platforms, including Amazon and SuperTail, thereby improving accessibility and expanding the company's reach to customers across the country.

K. Srinivas Reddy: 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 Owen's First brand through the targeted digital marketing initiatives on Instagram and Facebook at Owen's First. The company planning to expand its product portfolio by introducing 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-art pet food manufacturing facility. The company has submitted application to consent for establishment to the concerned government authority, and the approval process is currently underway. Construction activity will commence upon receipt of the necessary approval. Now I am handing over to VMD sir for closing remarks.

K. Srinivasa Reddy: 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 Owen's First brand through the targeted digital marketing initiatives on Instagram and Facebook at Owen's First. The company planning to expand its product portfolio by introducing 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-art pet food manufacturing facility. The company has submitted application to consent for establishment to the concerned government authority, and the approval process is currently underway. Construction activity will commence upon receipt of the necessary approval. Now I am handing over to VMD sir for closing remarks.

Speaker #2: The company continued to strengthen the AvantFirst brand through targeted digital marketing initiatives on Instagram and Facebook. The company is planning to expand its product portfolio by introducing a new flavor and variants to cater to evolving consumer preferences and further strengthen its market presence.

Speaker #2: As informed earlier, the company has purchased land near Hyderabad, converted from agriculture to non-agriculture use, for setting up a state-of-the-art pet food manufacturing facility.

Speaker #2: The company has submitted an application for consent for establishment to the concerned government authorities, and the approval process is currently underway. Concession activity will commence upon receipt of the necessary approvals.

Speaker #2: Now, I am handing over to GMD Sir for closing remarks.

Speaker #3: 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 the overall performance, particularly against the backdrop of global economic stress prevailing across industries today.

C. Ramachandra Rao: Good evening, ladies and gentlemen. My colleagues have shared the performance of group companies during the first quarter of Q1 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 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 one hand, Indian seafood exports have been consistently growing and registered an all-time record in financial year 2025 and 2026. On the other hand, the consistency of profitability and sustainability of growth are increasingly coming under pressure.

D.V.S. Satyanarayana: Good evening, ladies and gentlemen. My colleagues have shared the performance of group companies during the first quarter of Q1 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 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 one hand, Indian seafood exports have been consistently growing and registered an all-time record in financial year 2025 and 2026. On the other hand, the consistency of profitability and sustainability of growth are increasingly coming under pressure.

Speaker #3: As you are aware, factors such as the 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.

Speaker #3: The aquaculture industry, one of the most promising sectors contributing to India's export earnings, is also currently under considerable stress. On one hand, Indian seafood exports have been consistently growing and registered an all-time record in financial years 2025 and 2026.

Speaker #3: On the other hand, the consistency of profitability and sustainability of growth are increasingly coming under pressure. One of the most serious emerging concerns in shrimp culture is the steep increase in shrimp feed costs.

D.V.S. Satyanarayana: One of the most serious emerging concerns in shrimp culture is the steep increase in shrimp feed cost. As you know, 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, farm gate 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.

Speaker #3: As you know, 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, soybean meal, and wheat flour, have increased significantly, resulting in a substantial rise in the feed cost.

Speaker #3: While ensuring a reasonable return, feed manufacturers also need to consider the affordability and long-term sustainability of shrimp farming for farmers. At the same time, pond gate prices are highly volatile and largely influenced by the global prices of processed shrimp.

Speaker #3: 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.

Speaker #3: 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.

D.V.S. Satyanarayana: At this juncture, the industry looks to government for appropriate policy support to address these emerging challenges. It will be necessary to view the shrimp industry as an integrated value chain rather than treating shrimp farming, feed manufacturing, and seafood exports are separate activities.

Speaker #3: Some of the policy interventions that could be considered include: one, monitoring the availability and prices of key raw materials, particularly fish meal, fish oil, soybean meal, and wheat flour.

C. Ramachandra Rao: Some of the policy interventions that could be considered include, one, monitoring the availability and prices of key raw materials, particularly fish meal, fish oil, soya bean meal, and wheat bran. 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 export 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 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.

D.V.S. Satyanarayana: Some of the policy interventions that could be considered include, one, monitoring the availability and prices of key raw materials, particularly fish meal, fish oil, soya bean meal, and wheat bran. 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 export 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 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.

Speaker #3: Examining whether excessive exports of critical feed ingredients like fish meal are affecting domestic availability and contributing to price pressures. Creating an appropriate mechanism to monitor abnormal increases in the prices of essential feed raw materials.

Speaker #3: 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.

Speaker #3: To conclude, India's shrimp industry is 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 the shrimp value chain are becoming increasingly fragile, creating challenges for the long-term sustainability of the industry.

Speaker #3: That said, I would like to share with you the stage 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 culture industry in the country.

C. Ramachandra Rao: That said, I would like to 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 culture 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.

D.V.S. Satyanarayana: That said, I would like to 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 culture 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.

Speaker #3: 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.

Speaker #3: Thank you. With this, we will now take up the questions. Please.

C. Ramachandra Rao: Thank you, sir.

Operator: Thank you, sir.

Speaker #1: Sir, ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star one on your telephone keypad.

[Company Representative] (Avanti Feeds): Thank you.

[Company Representative 1] (Avanti Feeds): Thank you.

[Company Representative] (Avanti Feeds): Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad.

Operator: Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing star and one again. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad.

Speaker #1: And wait for your turn to ask a question. If you would like to withdraw your request, you may do so by pressing star one again.

Speaker #1: Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. The first question comes from the line of Mr. Arjun Karna from Kotak Mutual Fund.

[Company Representative] (Avanti Feeds): Okay.

[Company Representative 1] (Avanti Feeds): Okay.

[Company Representative] (Avanti Feeds): The first question comes from the line of Mr. Arjun Khanna from Kotak Mutual Fund. Please go ahead, sir.

Operator: The first question comes from the line of Mr. Arjun Khanna from Kotak Mutual Fund. Please go ahead, sir.

Speaker #1: Please go ahead, sir.

Speaker #4: Sir, thank you for taking my question. The first query is regarding farm-gate prices. So, in terms of trends, given that we have seen inflation in major protein globally, could you comment on how we see farm-gate prices currently, and won't it be denominated in US dollars?

Arjun Khanna: Sir, thank you for taking my question. The first query is regarding farm-gate prices. In terms of trends, given that we have seen inflation in major protein globally, could you comment on how do we see farm-gate prices currently, and won't it be denominated in US dollars? In that sense, with the rupee depreciating, shouldn't that benefit have flown down?

Speaker #4: So in that sense, with the rupee depreciating, shouldn't that benefit have flowed down?

Speaker #3: Yeah. See, the thing is, as we know, FarmGate prices are actually a balancing factor between the global price and the FarmGate price for the processors.

[Company Representative] (Avanti Feeds): Well, the thing is, as we know that farm-gate prices are actually a balancing factor with the global price and the farm-gate price for the processors and exporters. There needs to be a nexus between these two major inputs for the processing and exports. Naturally, it automatically determines the price, what should be the farm-gate price, and with the prices that are prevailing globally. Having said that, 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 farm-gate prices from time to time.

[Company Representative 1] (Avanti Feeds): Well, the thing is, as we know that farm-gate prices are actually a balancing factor with the global price and the farm-gate price for the processors and exporters. There needs to be a nexus between these two major inputs for the processing and exports. Naturally, it automatically determines the price, what should be the farm-gate price, and with the prices that are prevailing globally. Having said that, 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 farm-gate prices from time to time.

Speaker #3: And the exporters. So there is need to be a nexus between these two major inputs for the processing and exports. So it is naturally it is the it automatically determines the price what should be the FarmGate price and with the prices that are prevailing globally.

Speaker #3: So the having said that, see, the we constantly monitor these two things and the other aspect which we have to consider is the there's a affordability and sustainability of the farmers to continue this activity.

Speaker #3: So we normally keep both the considerations, and we fix the FarmGate prices from time to time.

Arjun Khanna: Sure. We have seen of 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?

Speaker #4: Sure. We have seen of late that beef prices and pork prices have been moving up. So, globally, we haven't seen that kind of upward move in shrimp.

Speaker #4: Is there any particular reason why?

Speaker #3: I think we like to see, so we cannot exactly say that. So, as far as when there is a little shortage of availability of shrimp in the country, then automatically, demand and supply...

[Company Representative] (Avanti Feeds): I think we will have to see. We cannot exactly say that. When there is a little shortage of the availability of shrimp in the country, automatically demand and supply, the farm-gate prices tend to go up. When there are good orders for processors, the shrimp available, because of the season in progress, then naturally the price is likely to go up. When the harvest takes place and the produce comes into the market, the prices tend to 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 product that is in demand. There is no specific reason that we can attribute for any increase or decrease.

[Company Representative 1] (Avanti Feeds): I think we will have to see. We cannot exactly say that. When there is a little shortage of the availability of shrimp in the country, automatically demand and supply, the farm-gate prices tend to go up. When there are good orders for processors, the shrimp available, because of the season in progress, then naturally the price is likely to go up. When the harvest takes place and the produce comes into the market, the prices tend to 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 product that is in demand. There is no specific reason that we can attribute for any increase or decrease.

Speaker #3: So, the prices of FarmGate prices tend to go up. So when there are good orders for processors, the shrimp is available because of the season in progress, so naturally, the prices are likely to go up.

Speaker #3: So when the harvest takes place and the produce comes into the market, the prices tend to come down a little.

Speaker #3: So 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 product that is in demand.

Speaker #3: So, there is no specific reason that we can attribute for any increase or decrease.

Speaker #4: 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 the rise, are any further price hikes being considered?

Arjun Khanna: 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 researched?

[Company Representative] (Avanti Feeds): See, Mr. Khanna, the price again, we need to have lot of work things that we have to fix the price on, looking into the affordability and sustainability of the farmer, and also the governments have a say in prices because of the various statutes that are there under this 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 price, that is also not advantageous. At the same time, the sustainability of the feed industry is also to be kept in mind. Very actively, the farmers, the government of Andhra Pradesh, and also the feed manufacturers are in constant interaction with each other. The government has in fact, constituted a committee, with one of the Big Four consultants.

[Company Representative 1] (Avanti Feeds): See, Mr. Khanna, the price again, we need to have lot of work things that we have to fix the price on, looking into the affordability and sustainability of the farmer, and also the governments have a say in prices because of the various statutes that are there under this 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 price, that is also not advantageous. At the same time, the sustainability of the feed industry is also to be kept in mind. Very actively, the farmers, the government of Andhra Pradesh, and also the feed manufacturers are in constant interaction with each other. The government has in fact, constituted a committee, with one of the Big Four consultants.

Speaker #3: See, Mr. Karna, the the price again we need to have lot of you know you know what do you call workings that we have to fix the price on the looking into the affordability and sustainability as a farmer and also the governments have you know say in prices because of the various statutes that are there in the Andhra Pradesh now.

Speaker #3: So, all the stakeholders—the feed manufacturers, the government, and we—are all working on the price; how it should be, and a balanced approach we should take for it.

Speaker #3: So, if we suddenly increase the big price, that is also not advantageous. At the same time, the sustainability of the feed industry is also to be kept in mind.

Speaker #3: So 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 has in fact constituted a committee with one of the big four consultants so they are working on that how to handle this this at the price because we have to keep in view not only the feed manufacturers but also to the farmers and also how the it becomes a sustainable activity for the farmers.

[Company Representative] (Avanti Feeds): 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. The raw material prices are, as we have seen, 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.

[Company Representative 1] (Avanti Feeds): 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. The raw material prices are, as we have seen, 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.

Speaker #3: So it is an ongoing process, and the raw material prices—as we have seen—keep increasing phenomenally, particularly in the last 20 years. In particular, items like fish meal, meat, and soybean meal—all these prices have gone up.

Speaker #3: It's not that just because raw material prices have increased, we keep increasing the prices of the feed. There's a lot of work that has to be done before we take any increase in the feed prices.

Speaker #3: We are trying to balance these things, Mr. Karna, and I hope that we'll come to some, you know, balancing figure where the prices are affordable to the farmers as well as sustainable for the feed industry also.

[Company Representative] (Avanti Feeds): We are trying to balance these things, and I hope that we will come to some balancing figure where the prices are affordable to the farmer, as well as it is sustainable for the feed industry also.

[Company Representative 1] (Avanti Feeds): We are trying to balance these things, and I hope that we will come to some balancing figure where the prices are affordable to the farmer, as well as it is sustainable for the feed industry also.

Speaker #4: Sure, thank you. Sir, my last query is regarding the US reciprocal tax refund. We have seen a few other companies receive the refund. In the last call, we mentioned maybe $15 to $20 million could be given to us, given that we are the importer on record.

Arjun Khanna: Sure. Thank you. Sir, my last query is regarding the US reciprocal tax refund. So we have seen a few other companies who have received the refund. In the last call, we mentioned maybe USD 15 to USD 20 million could be given to us, given that we are the importer on record. Any update on the same, sir?

Speaker #4: Any update on the same, sir?

[Company Representative] (Avanti Feeds): Still, I think my colleague would be able to give you the status. Mr. Divya, the CFO will give. Over to you, Divya.

[Company Representative 1] (Avanti Feeds): Still, I think my colleague would be able to give you the status. Mr. Divya, the CFO will give. Over to you, Divya.

Speaker #3: See, still I think my colleague will be able to give the status. Mr. Devi and the CFO will give it, okay? Over to you, Devi.

D.V.S. Satyanarayana: Yes, sir. So regarding reciprocal tariffs, particularly for seafood industry, that too for India. So now the entries are under ADD and the CVD review, which are under suspension status. So unless the suspension is lifted, the CBP will not process the reciprocal tariffs. So as of now, they are all under pending status.

Speaker #5: Yes, sir. So regarding reciprocal tariffs, particularly for the seafood industry—and that too for India—now the entries are under ADD and CVD review, which are under suspension status.

Speaker #5: So, unless the suspension is lifted, the CBP will not process the reciprocal tariffs. So, as of now, they are all under pending status.

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

Speaker #4: Sure. So, we would have filed for a further refund, right?

Speaker #5: Yeah. So what CBP said is, you can declare the entries, but we will not process them. That's what our legal counsel and even the customs broker said.

D.V.S. Satyanarayana: Yeah. What U.S. Customs and Border Protection said, "You can declare the entries, but we will not process it." That is what our legal counsel and even the customs broker said. Accordingly, we have declared the entry.

Speaker #5: So, accordingly, we have declared the entries.

Speaker #4: Sure, that's it from my side. Thank you.

Arjun Khanna: Sure. That is it from my side. Thank you.

Speaker #5: Thank you.

D.V.S. Satyanarayana: Thank you.

D.V.S. Satyanarayana: Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Next question comes from the line of Mr. Ronak Shah from Equirus Securities. Please go ahead, sir.

Operator: Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. Next question comes from the line of Mr. Ronak Shah from Equirus Securities. Please go ahead, sir.

Speaker #4: Thank you, sir. Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. The next question comes from the line of Mr. Rolakshya from Equitas Securities.

Speaker #4: Please go ahead.

Speaker #6: Yeah, thanks for the opportunity. So, my first question is on the feed division only. When we see the first quarter's 17% year-on-year volume growth, it is quite a steep hike, and when we are highlighting an aspiration of around 5.85 lakh metric tons of sales in FY27, it implies like 5% to 6% sort of annualized growth.

Ronak Shah: Yeah. Thanks for the opportunity. Sir, my first question is on the feed division only. When we see the Q1 17% year-over-year volume growth, it is quite a steep hike. When we are highlighting aspiration of around 5.85 lakh MT of the CD 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. When we see the H2 of FY26, we have relatively lower base. Still, we are a bit conservative on that front. Just want update on that.

Speaker #6: So, just want to understand on the ground how the farmers are looking at the current shrimp activities. And when we see the second half of FY26, we have relatively lower—still, we are a bit conservative on that front.

Speaker #6: So, just wanted an update on that.

[Company Representative] (Avanti Feeds): Yeah. See, at present, the shrimp culture activity is very good. The farmers are very happy that the culture is progressing very well, but the climate is also favorable. The farm gate prices have also gone up. That is also very attractive. The culture is progressing 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, so simultaneously the price of the farmers, also the cost of production also goes up. Hopefully, the farm gate prices will support the farmers with the reasonable return. This keeps going.

[Company Representative 1] (Avanti Feeds): Yeah. See, at present, the shrimp culture activity is very good. The farmers are very happy that the culture is progressing very well, but the climate is also favorable. The farm gate prices have also gone up. That is also very attractive. The culture is progressing 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, so simultaneously the price of the farmers, also the cost of production also goes up. Hopefully, the farm gate prices will support the farmers with the reasonable return. This keeps going.

Speaker #3: Yes. 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 prices of farm gate prices have also been have gone up.

Speaker #3: So that is also very attractive. So the culture is going very progressively, very smoothly, and we hope that throughout this year, that is till December, the completion of the second season also will be like this.

Speaker #3: But only concern is about the the cost cost is the only concern because the the the cost of feed is going up. So the simultaneously we the price of the farmers also will cost of production also goes up and hopefully we that will the farm gate will prices will support the farmers with the reasonable return so 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 the things to take shape in the coming months.

[Company Representative] (Avanti Feeds): Also, we hope that in 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 is what we are hoping for the things to take shape in the coming months.

[Company Representative 1] (Avanti Feeds): Also, we hope that in 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 is what we are hoping for the things to take shape in the coming months.

Speaker #6: Understood. Just on the cost front, where we are seeing a steep hike in the key ingredients—how are we expecting FY27 to look? Because as you are highlighting, the price hike is a bit of a stringent thing considering the government intervention.

Ronak Shah: 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 3, 4 months? Are we in consideration to take that? Second part, in the formulation front, are we evaluating some sort of option to mitigate the such current steep volatility into these ingredients?

Speaker #6: So, first question: have we taken any price hike in the last three-odd months, or are we considering taking that? And second part, on the formulation front, are we evaluating some sort of option to mitigate the current steep volatility in these ingredients?

[Company Representative] (Avanti Feeds): Well, the price hike we have taken. I think the dates we will be able to give later.

[Company Representative 1] (Avanti Feeds): Well, the price hike we have taken. I think the dates we will be able to give later.

Speaker #3: See, the price hike we have taken, I think the effect—which we will be able to feel—will come later.

A. Venkat Sanjeev: 19 June 20, we have taken a price hike.

A. Venkata Sanjeev: 19 June 20, we have taken a price hike.

Speaker #6: On 19th June 2020, we have taken a price hike. Okay. And what is the extent of the price hike? Around 10% we have taken.

Ronak Shah: Okay. What will be the extent of the price hike?

A. Venkat Sanjeev: Around 10% we have taken.

A. Venkata Sanjeev: Around 10% we have taken.

Speaker #6: Okay. And in terms of the formulation, are we looking to evaluate some other options as well, considering the current steep volatility which we are seeing for the last few quarters?

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

Speaker #6: Yes, we are working on the quality aspect along with the formulation, so that we mitigate—I mean, manage the usage of the raw material and all.

A. Venkat Sanjeev: Yes. We are working on the quality aspects along with the formulation, so that we mitigate the usage of the raw material and all will be reduced. We will be considering the raw material price will remain stable.

A. Venkata Sanjeev: Yes. We are working on the quality aspects along with the formulation, so that we mitigate the usage of the raw material and all will be reduced. We will be considering the raw material price will remain stable.

Speaker #6: We'll be reduced—I mean, we'll be considerate. The raw material prices will remain stable.

Speaker #3: So, the most important thing, Mr. Rolakshya, is that, you see, while we always, you know, focus on research to see how best we can give the best quality without compromising on the quality of the feed and its performance, its FCR, etc.

[Company Representative] (Avanti Feeds): 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, its FCR, et cetera, we see how best we can reduce the cost of production by various methods and without compromising on the quality. But one thing is very important to note here, that the prices have gone up so phenomenally that the increase should be something very high, which both the industry, the farmers, feed, government, everybody, exporters, are taking it very seriously how to organize this. This is a very. For the first time, perhaps, such a thing has happened with such a steep increase. So they are trying to find some solution whereby the balancing act takes place.

[Company Representative 1] (Avanti Feeds): 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, its FCR, et cetera, we see how best we can reduce the cost of production by various methods and without compromising on the quality. But one thing is very important to note here, that the prices have gone up so phenomenally that the increase should be something very high, which both the industry, the farmers, feed, government, everybody, exporters, are taking it very seriously how to organize this. This is a very. For the first time, perhaps, such a thing has happened with such a steep increase. So they are trying to find some solution whereby the balancing act takes place.

Speaker #3: We see how best we can take the cost, reduce the cost of production by various methods and without compromising on the quality. But 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, everybody, exporters are taking it very seriously—how to organize this.

Speaker #3: This is a very, you know, for the first time perhaps, it is a strange thing that has happened with such a steep increase. So they are trying to find some solution whereby the balancing takes place—some price mechanism, where determining on the major inputs like fish meal, soybean meal, and wheat flour, they take as that, how, whether there can be a mechanism by which the variance of the prices will be taken care of in the feed price.

[Company Representative] (Avanti Feeds): So some price mechanism where determining on the major inputs like fish meal, soya bean meal, and wheat flour, they think as that how whether there can be a mechanism by which the variance of the prices will take care within the feed price. That is what the government is very seriously working, and even the stakeholders are also acceptable to that kind of a formulation, which will help. It 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, but it is really a concerning factor for all, for the farmers, for feed manufacturers, everyone. We hope that the prices of the raw material also, in course of time, it stabilize.

[Company Representative 1] (Avanti Feeds): So some price mechanism where determining on the major inputs like fish meal, soya bean meal, and wheat flour, they think as that how whether there can be a mechanism by which the variance of the prices will take care within the feed price. That is what the government is very seriously working, and even the stakeholders are also acceptable to that kind of a formulation, which will help. It 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, but it is really a concerning factor for all, for the farmers, for feed manufacturers, everyone. We hope that the prices of the raw material also, in course of time, it stabilize.

Speaker #3: That's what the government is very seriously working on, and even the stakeholders are also acceptable to that kind of a formulation, which will help—it will help both the farmers as well as the feed manufacturers.

Speaker #3: So I think that exercise is going on. Put together, maybe we'll be able to come up with some solution in course of time, but it is really a concerning factor for all—for the farmers, for feed manufacturers, everyone. We hope that the prices of the raw material also, in course of time, will stabilize.

Speaker #3: So, we will find a place—I mean, a situation—where everyone is comfortably placed to carry on their activities. This includes feed manufacturers, shrimp farmers, as well as the processors.

[Company Representative] (Avanti Feeds): Where we will find a place, I mean, a situation where everyone is comfortably placed to carry on their activities, if we are a feed manufacturer, shrimp farmers, as well as the processors.

[Company Representative 1] (Avanti Feeds): Where we will find a place, I mean, a situation where everyone is comfortably placed to carry on their activities, if we are a feed manufacturer, shrimp farmers, as well as the processors.

Ronak Shah: Understood. Just to summarize, the second quarter can be again, a larger pinpoint before the benefit of the price hike, plus any incremental government intervention will play out. Is the understanding correct, sir?

Speaker #6: Understood. So, 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.

Speaker #6: Is the understanding correct sir?

Speaker #3: Yes. Yes.

[Company Representative] (Avanti Feeds): Yes.

[Company Representative 1] (Avanti Feeds): Yes.

Ronak Shah: 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?

Speaker #6: Lastly, sir, on our pet feed division—so, any update on how the capex cycle looks like, and what sort of investment we have put in till date?

Speaker #3: Yeah, my colleague is here. He will explain.

[Company Representative] (Avanti Feeds): Yeah, my colleague, Gaius here will explain.

[Company Representative 1] (Avanti Feeds): Yeah, my colleague, Gaius here will explain.

[Company Representative] (Avanti Feeds): Yeah. We are estimating around INR 175 crores investment in pet food. Till now we have purchased a land around INR 25 crores, worth of land we have purchased.

[Company Representative 2] (Avanti Frozen Foods): Yeah. We are estimating around INR 175 crores investment in pet food. Till now we have purchased a land around INR 25 crores, worth of land we have purchased.

Speaker #4: Yesterday, in a planning meeting, we are estimating around ₹175 crore investment in the pet food segment. So till now, we have purchased land worth around ₹25 crore.

Ronak Shah: Got it. That's it from my side. Thank you, sir.

Speaker #6: Got it, got it. That's it from my side. Thank you, sir.

Speaker #2: Thank you sir.

Ronak Shah: Thank you, sir.

Operator: Thank you, sir.

Speaker #3: Yeah.

[Company Representative] (Avanti Feeds): Yeah.

[Company Representative 1] (Avanti Feeds): Yeah.

Speaker #2: Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. I repeat, if you have any questions, please press star and one on your telephone keypad.

[Company Representative] (Avanti Feeds): Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. I repeat, if you have any questions, please press star and one on your telephone keypad. There are no further questions, sir. Shall we proceed to conclude the call?

Operator: Ladies and gentlemen, if you have any questions, please press star and one on your telephone keypad. I repeat, if you have any questions, please press star and one on your telephone keypad. There are no further questions, sir. Shall we proceed to conclude the call?

Speaker #2: There are no further questions, sir. Shall we proceed to conclude the call?

[Company Representative] (Avanti Feeds): Yes.

[Company Representative 1] (Avanti Feeds): Yes.

Speaker #6: Yes.

Divya T.: Yes.

[Company Representative 3] (Avanti Feeds): Yes.

[Company Representative] (Avanti Feeds): Yes, please.

[Company Representative 1] (Avanti Feeds): Yes, please.

Speaker #3: Yes.

Speaker #2: Now, I hand over the floor to the management for closing comments.

[Company Representative] (Avanti Feeds): Now I hand over the floor to the management for closing comments.

Operator: Now I hand over the floor to the management for closing comments.

Speaker #3: Yes.

[Company Representative] (Avanti Feeds): 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 conference call. Thank you very much.

[Company Representative 1] (Avanti Feeds): 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 conference call. Thank you very much.

Speaker #4: Thanks.

Speaker #3: Yeah. Thank you ladies and gentlemen. It has been very good you know points that there have been raised by some of the investors. And we tried our best to answer them and if you have any specific questions you may send mail to us.

Speaker #3: We will give you information. So, with this, we conclude this investors' call. Thank you very much.

Speaker #2: Thank you, sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using our conference call service.

[Company Representative] (Avanti Feeds): Thank you, sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using this conference call service. You may disconnect your lines now. Thank you and have a pleasant evening.

Operator: Thank you, sir. Ladies and gentlemen, this concludes your conference for today. We thank you for your participation and for using this conference call service. You may disconnect your lines now. Thank you and have a pleasant evening.

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Q1 2027 Avanti Feeds Ltd Earnings Call

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