> ## Content Index > Fetch the complete content index at: https://www.moatmarginresearch.com/llms.txt > Use this file to discover other available public pages before exploring further. # Avanti Feeds Raised Prices and Sold More. Its Margins Still Halved. - URL: https://www.moatmarginresearch.com/avanti-feeds-raised-prices-margins-still-halved/ - Published: 2026-08-27T02:47:47.000Z - Updated: 2026-09-05T16:43:17.000Z - Description: A company raised prices, sold more, and watched its margin halve — because the price it could get rose far slower than the cost it had to pay. The pricing-power test, in real time. - Author: A K Karthikeyan - Tags: Moat Insights, Coverage The pricing-power test this desk keeps coming back to is simple: when a company's input costs rise, can it raise its own prices enough to protect its margin? Not raise prices at all — anyone can do that — but raise them enough. Avanti Feeds' [June-quarter numbers, filed on 26 August](https://nsearchives.nseindia.com/corporate/AVANTIFEEDS%5F26082026161510%5FAFL%5FPresentation%5FQ1%5FFY%5F27%5F-%5FSE.pdf), are an unusually clean answer, because on the surface the company did everything right and the margin fell through the floor anyway. ## What the quarter looked like Start with the part that looks like strength. Avanti's shrimp-feed business — its core — sold **17% more feed** than a year earlier (193,852 tonnes against 165,564) and booked **26.8% more revenue** from it, ₹1,566 crore against ₹1,235 crore. More volume, higher realisations: on those two lines alone, a good quarter. Now the line that matters. The same shrimp-feed segment's EBITDA margin **collapsed from 18.8% to 7.5%** — it more than halved. Segment operating profit actually fell in absolute terms, to ₹118 crore from ₹232 crore, even as revenue rose by a quarter. At the consolidated level the pattern holds: EBITDA margin down from **16.5% to 9.0%**, and profit after tax down **37.4%**, to ₹116 crore from ₹186 crore. Earnings per share fell to ₹7.58 from ₹13.09. Management gives one reason, and states it plainly. Segment pre-tax margin came in at 5.3%, the company says, "due to increasing Raw Material prices"; group EBIT was "impacted by elevated raw material prices." That is the whole stated explanation. ## Why this is a pricing-power result, not just a cost result Rising input costs are not, by themselves, interesting — every feed maker buys the same soya and fishmeal. What the pricing-power test asks is what the company was able to do about it. And here the arithmetic is unusually legible. Feed revenue rose 26.8% on 17% more volume. Strip the volume out and realisation per tonne rose only about **8–9%**. So Avanti did raise prices — and that increase was nowhere near enough to cover the input inflation that halved its margin. The company passed a fraction of the cost through and ate the rest. A price rise that leaves your margin at 40% of what it was is the appearance of pricing power, not the substance of it. That is the distinction the surface numbers hide. "Revenue up 27%" reads like a company in command of its market. The margin says the opposite: in a quarter when its costs jumped, the largest shrimp-feed maker in the country could make its customers absorb only a sliver of the increase. In a commoditised input business that is not a scandal — it is the normal state of things, and it is exactly why feed manufacturing is a volume game rather than a pricing one. The value of the filing is that it shows the mechanism working in real time, with the company's own numbers. ## Two honest caveats Two things keep this from being a simple bad-news story. First, it is not whole-company: Avanti's smaller shrimp-**processing** segment moved the other way, its margin improving to about 16% from 9%, helped by currency and realisations. The margin collapse is a feed-input story, not a business-wide one. Second, these are **unaudited** first-quarter figures; one quarter of input-cost pressure is a data point, not a trend, and feed margins have swung with raw-material cycles before. What it is not is a mystery. A company raised prices, sold more, and watched its margin halve — because the price it could get rose far slower than the cost it had to pay. Whether that reverses when raw-material prices ease is the thing to watch next quarter. For now, it is a textbook reading of where pricing power ends and a commodity input begins. --- > Educational research, not investment advice. Every figure above is taken from Avanti Feeds' own Q1 FY27 investor presentation (unaudited, consolidated) filed with the exchanges on 26-Aug-2026 and verified against the source. The reading of these figures as a pricing-power result is our analysis; the company attributes the margin decline to raw-material prices. No buy/sell recommendations, no price targets. Moat & Margin is not a SEBI-registered Research Analyst or Investment Adviser.