Avanti Feeds’ margin collapses as costs outpace revenue growth
Consolidated revenue rose 18.27% YoY, but operating margin fell 7.76 percentage points as expenses grew faster than sales.
Filed 13 Aug 2026, 15:56 IST · after market close · Avanti Feeds Ltd (AVANTIFEED)
Key takeaways
- Consolidated revenue grew 18.27% YoY, but operating profit fell 50.56% as expenses rose 28.86%.
- Operating margin fell 7.76 percentage points YoY to 5.57%, leaving Avanti Feeds 10.54 percentage points below the 44-peer sector median.
- Other income contributed 41.95% of pre-tax profit, while net profit declined 37.36% YoY to Rs 116.31 cr.
Price around the results
Revenue growth failed to translate into profit growth
Consolidated revenue rose 18.27% YoY and 29.44% QoQ, but operating profit declined 50.56% YoY and 35.74% QoQ. Net profit fell 37.36% YoY and 16.24% QoQ to Rs 116.31 cr, showing that the improvement in sales did not carry through to earnings.
Costs drove the sharp margin contraction
Expenses grew 28.86% YoY against 18.27% revenue growth, narrowing operating margin by 7.76 percentage points; sequentially, expenses rose 37.69% versus 29.44% revenue growth, cutting margin by 5.65 percentage points. Interest expense fell 9.62% YoY and 58.77% QoQ, but that was not enough to offset the operating cost pressure. Other income accounted for 41.95% of pre-tax profit, making reported profit materially dependent on non-operating income.
Margin decline now extends across two consecutive quarters
Operating margin has fallen from 13.33% in Q1FY26 to 12.07% in Q2FY26, 12.73% in Q3FY26, 11.22% in Q4FY26 and 5.57% in Q1FY27. Avanti Feeds’ margin was 10.54 percentage points below the 16.11% median for 44 Fast Moving Consumer Goods peers that had reported, placing it sixth from the bottom.
Market reaction will be seen after the filing
The consolidated results were filed after market close, so a market reaction was not yet available. Across eight recent result reactions, the stock rose five times and fell three times, with a median absolute move of 3.63%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,900 cr | ₹1,468 cr | +29.44% | +18.27% |
| Other income | ₹66 cr | ₹35 cr | +90.44% | +28.31% |
| Expenses | ₹1,794 cr | ₹1,303 cr | +37.69% | +28.86% |
| Operating profit | ₹106 cr | ₹165 cr | -35.74% | -50.56% |
| Operating margin (%) | 5.57% | 11.22% | — | — |
| Interest | ₹0 cr | ₹1 cr | -58.77% | -9.62% |
| Depreciation | ₹14 cr | ₹15 cr | -4.12% | -10.98% |
| Profit before tax | ₹157 cr | ₹183 cr | -14.41% | -36.98% |
| Tax | ₹40 cr | ₹45 cr | -9.97% | -35.87% |
| Net profit | ₹116 cr | ₹139 cr | -16.24% | -37.36% |
| EPS (₹) | ₹7.58 | ₹9.19 | -17.52% | -42.09% |
Operating margin of 5.57% compares with a Fast Moving Consumer Goods sector median of 16.11% across 44 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 5.57% after two consecutive quarterly declines.
- Whether expenses grow slower than revenue after rising 28.86% YoY against 18.27% revenue growth.
- Whether other income’s 41.95% share of pre-tax profit decreases.