Avanti Feeds' Q2 margin falls to 4.45% as costs outpace sales
Revenue rose 8.87% year on year, but net profit fell 56.21% as expenses grew 18.31%.
Filed 10 Nov 2026, 17:16 IST · after market close · Avanti Feeds Ltd (AVANTIFEED)
Key takeaways
- Operating margin fell to 4.45%, narrowing 7.62 percentage points year on year as expenses grew faster than revenue.
- Net profit declined 56.21% year on year to Rs 73.92 cr despite revenue growth of 8.87%.
- Other income contributed 34.55% of profit before tax, while the lower 23.30% tax rate partly softened the earnings decline.
Price around the results
Revenue growth did not convert into operating profit
Avanti Feeds reported consolidated revenue growth of 8.87% year on year to Rs 1,752.52 cr, but expenses rose 18.31% to Rs 1,674.50 cr. The cost increase outpaced sales growth, driving operating profit down 59.85% to Rs 78.02 cr and cutting operating margin by 7.62 percentage points. Sequentially, revenue declined 7.76% and operating profit declined 26.30%.
Margin pressure leaves Avanti below its peer median
Operating margin narrowed another 1.12 percentage points sequentially to 4.45%, as expenses fell 6.66% against a 7.76% decline in revenue. The margin was 6.21 percentage points below the 10.66% median for the 65 Fast Moving Consumer Goods peers that had reported. Other income was 34.55% of profit before tax, making reported earnings less dependent on operating profit, while the tax rate fell 2.37 percentage points year on year to 23.30%.
Q2 marks a second straight quarterly margin decline
Operating margin has fallen from 13.33% in Q1FY26 to 4.45% in Q2FY27, with the latest decline following a drop from 11.22% in Q4FY26 to 5.57% in Q1FY27. The sequence shows that the pressure is continuing across quarters rather than being limited to the year-on-year comparison.
Results were filed after market close
There is no post-results share-price move to assess because the consolidated results were filed after market close. After its previous eight results, the stock rose six times and fell twice, with a median absolute move of 3.43%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,753 cr | ₹1,900 cr | -7.76% | +8.87% |
| Other income | ₹33 cr | ₹66 cr | -49.33% | -31.99% |
| Expenses | ₹1,675 cr | ₹1,794 cr | -6.66% | +18.31% |
| Operating profit | ₹78 cr | ₹106 cr | -26.30% | -59.85% |
| Operating margin (%) | 4.45% | 5.57% | — | — |
| Interest | ₹0 cr | ₹0 cr | -14.89% | -6.98% |
| Depreciation | ₹15 cr | ₹14 cr | +0.83% | -7.68% |
| Profit before tax | ₹96 cr | ₹157 cr | -38.49% | -57.56% |
| Tax | ₹22 cr | ₹40 cr | -44.36% | -61.46% |
| Net profit | ₹74 cr | ₹116 cr | -36.45% | -56.21% |
| EPS (₹) | ₹5.06 | ₹7.58 | -33.25% | -55.02% |
Operating margin of 4.45% compares with a Fast Moving Consumer Goods sector median of 10.66% across 65 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.43% | -3.27% |
Volume on the results session was 4.69× its 20-day average.
What to watch
- Whether operating margin recovers from 4.45% after two consecutive quarterly declines.
- Whether expense growth moves below revenue growth after rising 18.31% versus 8.87% year on year.
- Whether other income remains near 34.55% of profit before tax.