Avanti Feeds profit falls 11.66% as costs outpace revenue
Revenue grew 5.96% YoY, but margin declined 1.55 percentage points and other income contributed 18.85% of pre-tax profit.
Filed 28 May 2026, 18:03 IST · after market close · Avanti Feeds Ltd (AVANTIFEED)
Key takeaways
- Consolidated net profit fell 11.66% YoY to Rs 138.86 cr as expenses grew 7.84% against 5.96% revenue growth.
- Operating margin narrowed 1.55 percentage points YoY to 11.22%, leaving Avanti Feeds 5.53 percentage points below the 16.75% median of 26 reported sector peers.
- The stock fell 7.23% on the first trading day after the results, more than twice its 3.43% median absolute move after the past eight results.
Price around the results
Revenue growth did not translate into operating profit
Consolidated revenue rose 5.96% YoY and 6.09% QoQ, but operating profit declined 6.85% YoY and 6.44% QoQ. Expenses grew 7.84% YoY and 7.91% QoQ, faster than revenue in both comparisons, narrowing operating margin by 1.55 and 1.51 percentage points respectively. This left net profit down 11.66% YoY and 15.05% QoQ.
Other income remained material as financing costs rose
Other income fell 30.67% YoY and 45.01% QoQ, yet still accounted for 18.85% of pre-tax profit, making earnings less dependent on operations than the headline profit figure suggests. The tax rate fell 1.16 percentage points YoY and 1.88 percentage points QoQ, which cushioned the decline in net profit. Interest expense rose 86.89% YoY and 67.65% QoQ.
Q4 margin reversed the previous quarter's improvement
Operating margin rose from 12.07% in Q2FY26 to 12.73% in Q3FY26, but fell to 11.22% in Q4FY26; it was also below the 13.33% recorded in Q1FY26. The company's margin was 5.53 percentage points below the 16.75% median among 26 Fast Moving Consumer Goods peers that had reported, ranking sixth from the bottom.
The market reaction was unusually negative for this stock
The stock fell 7.23% on the first trading day after the results and was down 14.40% after five sessions. That compares with a 3.43% median absolute move after the company's past eight results, while first-day volume was 4.66 times the reference level. The reaction was therefore materially weaker than the stock's usual post-results move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,468 cr | ₹1,384 cr | +6.09% | +5.96% |
| Other income | ₹35 cr | ₹63 cr | -45.01% | -30.67% |
| Expenses | ₹1,303 cr | ₹1,207 cr | +7.91% | +7.84% |
| Operating profit | ₹165 cr | ₹176 cr | -6.44% | -6.85% |
| Operating margin (%) | 11.22% | 12.73% | — | — |
| Interest | ₹1 cr | ₹1 cr | +67.65% | +86.89% |
| Depreciation | ₹15 cr | ₹16 cr | -5.46% | +3.22% |
| Profit before tax | ₹183 cr | ₹222 cr | -17.63% | -13.43% |
| Tax | ₹45 cr | ₹59 cr | -23.52% | -17.35% |
| Net profit | ₹139 cr | ₹163 cr | -15.05% | -11.66% |
| EPS (₹) | ₹9.19 | ₹10.96 | -16.15% | -17.50% |
Operating margin of 11.22% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.23% | -5.73% |
| Next session | -10.71% | — |
| 5 sessions | -14.40% | -12.14% |
| 15 sessions | -25.41% | — |
| 30 sessions | -26.88% | — |
Volume on the results session was 4.66× its 20-day average.
What to watch
- Whether operating margin recovers from 11.22% after the 1.55-percentage-point YoY decline.
- Whether expense growth remains above revenue growth after the YoY gap of 7.84% versus 5.96%.
- Whether other income's 18.85% share of pre-tax profit declines in the next quarter.