How has been the historical performance of Avanti Feeds?

Revenue and Profit Growth

Avanti Feeds’ net sales have shown a robust increase, rising from ₹3,487.78 crores in March 2019 to ₹5,600.32 crores by March 2025. This represents a compound growth trend, with notable acceleration post-2021. The total operating income mirrors this growth, reflecting the company’s expanding market reach and operational scale.

Profitability has also improved significantly. Operating profit before depreciation and interest (PBDIT) excluding other income increased from ₹407.25 crores in 2019 to ₹633.03 crores in 2025. When factoring in other income, operating profit rose to ₹798.51 crores in the latest fiscal year, up from ₹461.08 crores six years prior. This improvement is indicative of enhanced operational efficiency and effective cost management.

Net profit after minority interest and share in associates’ profits has followed a similar upward path, climbing from ₹273.63 crores in 2019 to ₹528.82 crores in 2025. Earnings per share (EPS) have nearly doubled in this period, reaching ₹38.83 in March 2025 from ₹20.09 in March 2019, signalling strong value creation for shareholders.

Cost Structure and Margins

The company’s raw material costs have naturally increased in line with sales, from ₹2,740.18 crores in 2019 to ₹4,429.26 crores in 2025. However, Avanti Feeds has managed to maintain healthy operating profit margins, which stood at 11.3% in 2025, up from 11.68% in 2019, after a dip in the intervening years. Gross profit margins have also improved, reaching 14.22% in the latest fiscal year compared to 13.29% six years earlier.

Employee costs have risen steadily, reflecting the company’s growth and investment in human capital, increasing from ₹100.32 crores in 2019 to ₹250.79 crores in 2025. Other expenses have similarly grown but remain proportionate to the scale of operations.

Balance Sheet Strength and Asset Base

Avanti Feeds’ total assets have expanded from ₹1,879.95 crores in 2020 to ₹3,682.70 crores in 2025, underscoring significant capital investment and business expansion. The net block of fixed assets has more than doubled over this period, indicating ongoing capacity enhancement and infrastructure development.

Shareholders’ funds have grown consistently, reaching ₹2,800.96 crores in 2025 from ₹1,403.69 crores in 2020, supported by rising reserves. The company maintains a low debt profile, with total borrowings remaining modest at ₹13.25 crores in 2025, reflecting prudent financial management and a strong equity base.

Cash Flow and Liquidity

Operating cash flow has shown marked improvement, with ₹584 crores generated in 2025 compared to ₹178 crores in 2020. Despite significant investing activities, primarily capital expenditure, the company has maintained positive net cash inflows in recent years, demonstrating solid liquidity and financial flexibility. Closing cash and bank balances have increased substantially, reaching ₹898.66 crores in 2025, providing a comfortable buffer for operational needs and growth initiatives.

Summary and Outlook

Over the past six years, Avanti Feeds has exhibited a commendable track record of growth and profitability. The company’s ability to steadily increase revenues and net profits, while maintaining healthy margins and a strong balance sheet, positions it well for future expansion. Its low leverage and robust cash generation capacity provide a solid foundation to capitalise on emerging opportunities in the aquaculture and feed industry.

Investors may find the company’s consistent earnings growth and improving return metrics attractive, especially given its prudent financial management and strategic investments in capacity. The upward trend in book value per share, which has risen from ₹103.03 in 2020 to ₹205.58 in 2025, further underscores the value accretion for shareholders over this period.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →