Avanti Feeds Limited ($512573)

Your conference is being recorded. Good evening, ladies and gentlemen, I'm pleased to extend a warm welcome to all of you for this investor conference call. To review the audited financial results for Q4 FY '26 and for the period ended 31st March 2026. We have Venkata Sanjeev,, ED Avanti Feeds Limited; and shri A. Nikhilesh, ED Avanti Frozen Foods Limited, have joined from feed and processing plants, respectively. Along with me are Mrs. Santhi Latha, CFO of Avanti Feeds; Mr. DVS Satyanarayana, CFO of Avanti Frozen Foods Private Limited; and Mr. K. Srinivas Reddy, CFO of Avanti Pet Care Limited. Begin with Mrs.Santhi Latha will present highlights of financial results for the quarter ended 31st March 2026, option fleet division and also consolidated financials of the company for the same period. Thereafter, Mr. DVS Satyanarayana will present the financial highlights of fishing, processing and export division. Thereafter, Mr. K Srinivas Reddy will present the status of the product. After the presentation by all of them, we will take up the question answer session. I would now like to hand over the call to Mr. C. Ramachandra Rao, the JMD. Thank you, and over to you, sir. .

Thank you, Mr. Akash. Good evening, ladies and gentlemen. I'm pleased to extend a warm welcome to all of you for this investors conference call to review the audited financial results of our Q4 FY '26 and for the period ended 31st March 2026. Of course, we have already told that Executive Director; and Mr. Nikhilesh Exec Director have joined online alongwith me here are, Santhi Latha, CFO of Avanti Feeds Limited; and DVS Satyanarayana, CFO of Avanti Frozen Foods Private Limited, and K.Srinivas Reddy, CFO of Avanti Pet Care Limited. To begin with, Mrs. Santhi Latha will present highlights of financial results for the quarter earlier in 31st March 2026. And also consolidated financials of the company for the same period. Thereafter, Mr. DVS Satyanarayana will present the financial highlights of shrimp processing and export dividend thereafter Mr. K. Srinivas Reddy Will present the status of Pet Care project. The -- after presentation by all of them, I'll give you just a brief some of the events that have taken placed and a bit of future forecast. And then before we take up the question and -- questions from you. Now I hand it over to Santhi Latha to give the higher -- financial highlights of fixed division consolidation segments. .

Thank you, sir. Good evening, everyone. I will take you through the consolidated and stand-alone financial performance highlights for the quarter and year ended 31st March 2026. The comparative performance of Q4 FY '26 with that of Q3 FY '26 and Q4 FY '25 and of financial year '26 with that of financial year '25 have been even in the presentation already circulated. . So moving on to consolidated financial results for Q4 FY '26. Q4 FY '26 financial highlights. The gross income in Q4 FY '26 is INR 1,516 crores as compared to INR 1,447 crores in the previous quarter. Q3 FY '26, an increase of INR 69 crores by about 4.77%. And when compared with Q4 FY '25, gross income of INR 1,432 crores, there is an increase of INR 84 crores by 5.86%. The PBT is INR 184 crores in Q4 FY '26 as compared to INR 222 crores in Q3 FY '26, a decrease of INR 38 crores by 17.12%. And compared to Q4 FY '25 PBT of INR 211 crores, there is a decrease of INR 27 crores by about 12.8%. Coming to the financial results for the financial year ended 31st March '26, the gross income in FY '26 is INR 6,279 crore as compared to INR 5,756 crores in FY '25, an increase of INR 513 crores by about 8.9%. The PBT is INR 882 crores in FY '26 as compared to INR 737 crores in FY '25, an increase of INR 145 crores by about 20%. The consolidated results indicate the impact of several factors such as increased or decrease in income, expenditure and exceptional items, relating to both feed and frozen division, which will be discussed in the following divisional performance of these in the unit individual. Stand-alone financial results of the division. So Q4 FY '26 results, financial results, the gross income of Feed division for the Q4 FY '26 was INR 1,068 crores as compared to INR 993 crores in the previous quarter of Q3 FY '26, an increase of INR 75 crores due to increase in quantity of feed sold. The gross income in Q4 FY '26 increased at INR 1,068 crores from INR 1,067 crores, a marginal increase of INR 1 crores. The PBT for Q4 FY '26 is INR 139 crores as compared to INR 172 crores in Q3 FY '26, a decrease of INR 33 crores by 19% due to increase in raw material costs. And compared to Q4 PBT of INR 194 crores, there is a decrease of INR 55 crores, about 28%, mainly due to decrease in marketing sold by INR 5,986 and also increase in raw material costs. The feed sales increase to 123,725 MT in Q4 FY '26 as compared to 118,127 in Q3 and decreased from 129,711 in Q4 FY '25. Now coming to the financial year highlights of feed division. The gross income in FY '26 is INR 4,538 crores, as compared to INR 4,549 crores in FY '25, a decrease of INR 11 crores, mainly due to decrease in sales price during April '25 of the previous year. The PPT is INR 715 crores in FY '26 as compared to INR 658 crores in FY '25, an increase of INR 57 crores by 8.66%. The feed sales during the year increased to 562,060 MT as compared to 555,240 MT in previous year. The major raw materials are fishmeal, soya bean meal and wheat flour. The noticeable development in this quarter is increasing trend of 2 major raw materials that are fishmeal and soya bean meal, resulting in decrease in the profitability when compared with the previous quarter. The prices of these raw materials keep fluctuating since their production is based on fish catches and agriculture. Average consumption prices of fishmeal increased in Q4 FY '26 to INR 130 per from INR 117 in Q3 FY '26 and from INR 91 in Q4 FY '25. In case of soya bean meal, their prices increased to INR 55 per kg in Q4 FY '26 from INR 44 in Q3 FY '26, an increase from INR 41 in Q4 FY '25. However, the wheat floor price decreased to 31% in Q4 FY '26 from INR 32 per kg in Q3 FY '26 and decreased from INR 36 in Q4 FY '25. Present purchase price of fishmeal is INR 230 per kg and soya bean meal INR 72 per kg and wheat flour is INR 30 per kg. On one hand, the raw materials are instrumental in determining the margin, on the other hand, the status of [indiscernible] activity conditions like climate exchanges, diseases, et cetera, determined a consumption speed in terms of volume which will have an impact from the overall performance of the company. The PPT during the financial year '26 stood at 15.5% on revenue as compared to about 14.34% during FY '25. [indiscernible] period ended 31st March 2025. To sum up, in general, FY '26, '27 is expected to be a challenging season for the aquaculture industry. In respect of shrimp production due to a steep increase in feed raw material prices, as well as exports from media and global demand for shrimp exports. The Shrimp production and feed consumption FY '26 and company plans for FY '27. On the basis of estimated shrimp production of about 8 to 9 lakh metric tons in calendar year 2026, the feed consumption is estimated to be about 11 to 12 lakh metric tons. The company's feed sales during FY '26 is 562,060 MT against 555,247 MT in FY '25. It is estimated that the fleet sales during FY '27 would be around 580,000 metric tons. Shrimp processing and export division, the export of frozen shrimp during '25, '26 [indiscernible] of 792,647 MT was USD 5,624.48 million. USA was the largest importer about 256,128 MT of frozen ship, followed by China, 159,595; European Union, 135,599; Southeast Asia [indiscernible], Middle East 30,478 and other countries, 76,361 MT. On a year-on basis, export volumes to the U.S. declined by 17.9%, whereas exports to China increased by 24% to the European Union by 36% and to Japan by 5% in metric ton terms. Frozen shrimp contributed to be the major item of export in terms of quantity and value accounting for a share of 40% in quantity and 67% of the total U.S. dollar earnings. During FY '23, frozen shrimp export registered a growth of 13.16% in rupee value and 8.4% in dollar value and 6.9% by volume. Your company shrimp exports during the FY '26 were 16,977 MT as compared to 14,149 in FY '25, an increase by 2,827. It is estimated that the exports during FY '25 would be around 19,000 MT. Now I would like to hand over to Mr. DVS Satyanarayana to present highlights of Shrimp processing and export vision.

Good evening, everyone. Now I would like to take you through the financial highlights of shrimp processing and export in Q4 FY 2026 results. The gross income for Q4 FY '26 was INR 446 crores as compared to INR 455 crores in Q3 FY 2026, a decrease by INR 9 crores, representing 2% mainly due to decrease in average sales price realization. For gross income in Q4 FY '26 increased to INR 446 crores from INR 364 crores during Q4 FY 2025, an increase of INR 82 crores, representing 22% year-on-year growth. Higher sales in Q4 FY '26 were driven by an increase in average selling price realization and favorable foreign exchange rates. The profit before tax for Q4 FY 2026 was INR 48 crores as compared to INR 52 crores in Q3 FY 2026, received in the immediate quarter, decreasing mainly due to decrease in average price realization, and also there was an additional provision for gratuity and leave encashment in Q4 FY 2026 as part of the new labor court. The profit before tax in Q4 FY 2026 was INR 48 crores, an increase from INR 18 crores in the corresponding quarter, that is Q4 FY 2025, reflecting a significant increase primarily due to improved sales price realization, favorable foreign exchange rates and higher other income and also there was a reduction in ocean price rates during the current quarter. Comparison of performance for 12 months ended 31st March 2026, with 12 months ended 31st March 2025. Gross income for the 12 months of FY 2026 was INR 1,741 crores compared to INR 1,220 crores in the corresponding 12 months period of previous year. That is FY 2025. This represents an increase of INR 521 crores, reflecting a growth of 43%. The increase in gross income during FY 2026 was primarily driven by a rise in the sales volume of 2,827 metric tons, representing 20% growth, improved average sales price realization and also higher other impact. Profit before tax for the 12 months ended FY 2026 was INR 178 crore as compared to INR 86 crores in the corresponding period of financial year 2025, reflecting an increase of INR 92 crores. This growth was primarily attributable to higher sales volumes during the current year, improved sales price realization, favorable FX rates and also increased other income. So this completes the presentation of processing and export division financial results. Thank you. Now I hand over to Mr. K.Srinivas Reddy to update the status of a food product.

Thank you, Mr. DVS Satyanarayana. Now I would like to update pet food projects. As already informed, company continues to strengthen its presence in the pet food segment during Q4 FY '25, '26 under pet care brand, Avant Furst. The response from the pet owners by both cat food and dog food have been encouraging with the growth -- growing acceptance across various markets, reflecting the strong potential of the business. During Q4 FY '25, '26, the company recorded sales INR 151 lakh compared to INR 136 lakh in Q3 FY '25, '26, reflecting a sustained growth and increasing market acceptance of our products. The growth was supported by continuous demand for our cat food [indiscernible] and steady expansion of the dog food segment across existing and new markets. The company continued to expand its market reach by strengthening its presence in [indiscernible] city and gradually entering type 2 and type 3 markets. Our products are also available on leading e-commerce platform, including Amazon and Supertel, improving accessibility and enhancing our reach to customers across the country. The company continued to focus on strengthening the Avant Furst, brand product targeted digital marketing initiative on Instagram and Facebook. That is Avant Furst. The effects are aimed to enhancing the brand awareness, increasing the customer engagement and expanding our reach among pet owners across the country. The company also actively working on expanding its product portfolio and plans to introduce additional flavors and variants to cater to evolve the customer preference and strengthen its market position. On the project side, as informed earlier, the company has purchased the land near Hyderabad converted from agriculture to non-agricultural use for setting up a state of art manufacturing facility. The land development work are in progress and we are in the final stage of finalizing the design and drawing. Upon completion of the detailed project report and receipts of necessary government approval, construction activities will commence. now I hand over to JMD sir for closing remarks.

Thank you, okay. At the outset, I'm delighted to share with you that India seafood exports reached an all-time high of USD 8.46 billion in financial year '26, '26. The volume and value of its historic peak despite global challenges. U.S. and China remain key markets and frozen shrimp continues to dominate exports with 66% in terms of value of the seafood exports from India. As you know, Q1 representing April, May, June months with the peak season [indiscernible], on the successful performance in FY '26, the farmers started shopping for the main season with high expectations for the financial year '27 also. The ship culture is progressing without much hurdle so far. Record market is promising and also farm gate prices is stable with the expectations of the farmers. Unfortunately, the things were going smoothly, the prices of raw materials used for the manufacturers of Shrimp feed going up steeply since past 2 months, major region attributed with [indiscernible] on one hand and added to it the test of [indiscernible] this year. seriously impacting the rainfall and agricultural crops. As you know, fishmeal, fish oil, Soya bean meal, soya, soil wheat floor are the major raw materials used in the manfacturer fee. My colleagues have already explained to you the increasing trend of these raw materials. The price of fishmeal doubled from INR 100 to INR 240 in a span of 2 months, May and June. Even soya bean meal price has also gone up steeply by about 5%. -- the prices of soya bean mall increasing steeply due to shortage in the previous year drop by 13 lakh tonnes and failure of current year crop due to [indiscernible] conditions. Moreover, the government of India has increased minimum support price of soya bean meal by about INR 380 per quintal, breaking this and soybean price at INR 5,708 per quintel. In the light of increasing in this raw materials, the company is preparing for increase in feed price at the earliest to compensate the price hike as much as possible, keeping in the overall shrimp culture. So we are confident that increasing in price fee, the increasing cost will be absorbed the great extent. At this stage in time, I would like to share with you the major region per step increase in fish meal price is export of about 75% of the fishmeal manufacturers in India due to higher price realization and also incentives given by the government of India, but export of fishmeal. Moreover, 5% GST is applicable for local purchase of fishmeal, whereas there is no GST on exports. The company, along with fleet nitration and plasma is making efforts to represent the government related to be by bringing in appropriate pace by limiting export quantity and with rigor incentives so that fishmeal is available to the local fishmeal manufacturer which is used by production of thin by export but by adding very good partner change. Even in the case of Soya bean meal, the government is the approach for permission to imports have been met to regulate the increasing price. With all these efforts, the company is confident that street prices would be stabilized in course of time to continue to Shrimp content without interruption. Turning to the outlook for shrimp exports the since exports deletes has improved following the recent developments in U.S. trade policy, while some uncertainty remains [indiscernible] the final tariff structure applicable to seafood improves. The overall environment has become more favorable for exports. In parallel, the company continues to strengthen its presence in other international markets, thereby reducing fixed dependence on any single geography. The company is focusing on increasing the value-added products and also expanding the new markets. A significant development occurred on 20th February 2026 when the U.S. Supreme Court by 6-3 majority ruled that the international emergency economic power at AEP does not authorize the president to impose [indiscernible] as the author due to levy taxes and duties rest with the Congress. Consequently, the tariffs at cyclical times imposed under EPA, including the receptacle duties were invalidated sees it to be legally unforeseeable. As a result, CBP, the Custom -- U.S. customers initiated process of preferred tariffs collected by it. Further, U.S. customs and product protection for discontinue the collection of EPA-based tariffs with February 2026. The U.S. administration subsequently introduced a temporary global import [indiscernible] under the Section 122 of the Trade Act of 1974, effective from the same date for a period of to 150 days. Although the subtract was initially fixed at 10%, there have been indications of a possible increase and for clarity is awaited. Subsequently, U.S. core decisions, including a filtration incorporation in United States and euro versus United States directed CVP to refund duties collected under -- facilitate large-scale refund processing, CBP launched consolidated administration and processing of entries and new functionality with [indiscernible] emission environment on 20th April 2026. According to the legal consultants of the Seafood Export Association, the initial sale of the refund process is likely to cover entries that remain unliquidated due to ongoing antidumping and countervailing due administrative reviews. In the case of frozen exports of India, entries on EPA tariffs were paid since first April 2025 remains suspended, pending completion of these reviews, which are expected to conclude over 12 to 18 months. CPT custom -- U.S. content is expected to process the related the suspension of liquidation on these entries is listed. So with this, I -- we will take up the questions from you, gentlemen. I think -- yes. No, I think you can proceed with the question-and-answer session.

[Operator Instructions] The first question comes from the line of Mr. Ronak Shah from Equirus Securities. .

I have multiple questions. So first is on the feed division. So when the -- in opening remarks, the management is highlighting around 11 to 12 lakh or metric ton uptick of the feed, which implies like we can see a flattish kind of feed uptake, wherein sir is highlighting regarding incremental positive farm get price-related benefit and all. Is there something I'm missing on and how you are seeing the pit division to perform in FY '27? And secondly, from the margin perspective, which implies you have taken a meaningful price hike in fourth quarter FY '27, what is the quantum of that and how you are seeing margins to pan out in FY '27, especially from the feed division?

See, let me 3 division, we are preparing for taking price hike price increase. because we're working on that because the prices of raw materials are keeping autos decreasing every day. So we work out the impact on a bulk of this price increase, and we propose to increase depending upon the acceptability of the market also. We have to balance the -- and we hope that maybe in -- as early as possible we will take up. But the exact -- the price increase, how much it needs some time to really get the big picture about this. How much increase we can both for it and how much is acceptable to the market. All these things are being considered. I think in the next month, maybe in an we got 10 days, we should be able to come to a specific number as far as the price increase is concerned. And as far as the market is concerned, the market is -- the culture is stable, the export market is stable, and there is no significant changes in the market conditions. And as of now, the farmers are able to get reasonably good returns on the cultures. And we do not foresee any big change in the expectations for the current year, unless some unforeseen events take place in the rest of the year. So we are still in the first quarter. Second quarter, the July, August, September is up is equally important for the first season to complete -- and the total -- the production figures that they come with being the reason being the major season for fuel production. And as now, we have very confident, very positive about the market, positive about the performance of the company.

Sir, haven't we any taken pricing into the fourth quarter?

We have taken a price increase in February of the fourth quarter. So the impact is not there much because only 1 month, we have the improved price, and that is also not a full price impact because [indiscernible] hype right now.

As I stated in my intellectually remarks, the prices of soya bean meal and fishmeal have gone up very steeply in the last 2 months, unprecedented price increase -- but the reasons I have mentioned as one, fishmeal price has gone up -- and also this soya bean made price. So this has impacted on the cost. So we are working on that very seriously. And maybe in the next few days, we'll be going for a price increase of the feed. I think that should take care of whatever the cost that is going to a great extent.

Second question is on the export front. So when the management is aspiring for around 19,000 odd metric ton export in FY '27, which implies like 10% to 12-odd percent sort of growth, but when we compare it with the peers or even the benefit of FDA, doesn't the management sound a bit conservative on that front? Or am I missing something over here?

Nikhilesh, can you take this question? .

Yes. I think generally, if you've seen, I think if you look at the last 10 years, there's year-on-year, year-on-year, year-on-year increase last 10 years. [indiscernible] So this business cannot be exponentially at one point. It has to be built step by step. So that will continue to happen. I hope that answered your question. So this is the opening of FTA with Europe as a [indiscernible] better market access. We will build the production to be because it's food, it's quality remain food consumption, safety and other things. So we need to take it step by step.

So sir, are there any CapEx required both in terms of the feed or in terms of the processing front? Are you aspiring for any major CapEx over the next 2 to 3 odd years right now?

We don't foresee any big CapEx in the next 2 years.

Understood. And sir, lastly, on the pet care front, so what is the scale of the pet care business right now? And considering the initial burn, what is the burn rate which we are seeing? And how the distribution is expanding? Can you just highlight on qualitative, sir?

Venkata, can you take this question, please? .

So we've been increasing the [indiscernible] 53 tonnes to right now 100 tons with goal of 800 metric transfer end of this year. Our distribution network, as of now, we have 31 distributors in 13 cities, and we are constantly expanding, and we're also looking to expand into other products like 3 more economic reports and also record in the coming months.

I may add to what Mr. Sanjeev said, that you see, this is -- now presently, what we are doing is we are importing the products from Thailand. We are according to our populations and our brand, we are marketing now. So until such time, we have our own production facility. We would like to focus more on brand image and on the products because the cost and effectiveness will really start getting realized only once we start our own production unit. So until such time, we are trying to diversify the markets and also improve imaged and make products or products more popular. So that is a brand image exercise is going on now. And once we start our own production, we'll be able to see the real proof of this project once we start manufacturing in our own production facility. .

The next question comes from the line of Mr. Arjun Khanna from Kotak Mutual Fund. .

My first question is related to the imports into the U.S. So just to understand, is Avanti Feeds or its subsidiaries the importer on record for this? And what is the tune of the reciprocal tariffs that we have asked for reimbursement? .

Nikhilesh, would you like to take this question? .

I'll let DVS take.

Yes. So Avanti Frozen Foods Private Limited is the import of record in U.S. So on itself for import the goods and do the customs clearance and arrange for the deliveries to the respective buyers. And with regard to tariffs, Avanti frozen as an import of regard, we'll file the entries into ACE portal to get the refunds. .

And what would be the quantum, sir? .

So Quantum, we are just calculating it. So still, it is in the process. We are validating it. Roughly, it will come around $15 million to $20 million. .

Okay. Perfect.

Also in U.S., when the refund starts, it gets credited to that U.S. account which is that I think that -- that is one of the conditions for refund that we have complied with.

Absolutely. Absolutely, sir. The second query is regarding the growth. So we mentioned that we would grow step-by-step over a period of time. So just to understand, sir, in terms of our capacities, I understand would be north of 19,000 tonnes. So does that mean those additional capacities are unmanned at this time? Or is the difficulty in sourcing of the shrimp and hence, step by step. So just if you could run us through what prevents us from scaling up capacity faster than the 10%, 15% that has been mentioned?

So there are a few things to answer that question. Overall, the capacity that we give states is about 26,000 or 28,000 metric tons. But this business is very seasonal. There are months where we want raw material, but we don't have enough raw material because that's how the growth cycle let's say, installed capacity -- so technically, I mean, if you don't understand the seasonality when on paper, it looks like. But in the season, we try to process as much as we can amount we try to procure whatever we can.

Fair. That helps. So what would be the effective capacity of this 26,000 or 28,000 tonnes, given that there are probably 2 season at max. So in terms of what is the max rated capacity of this? .

See, it -- maybe if you send an email.

Perfect. Sure. The context is, sir, that we are indicating we aren't looking at expanding capacity over the next 2 years. And hence, I was wondering that...

We are expanding the sense that there are a lot of things that we are doing in the business to take it up step by step. So we are going to increase capacity utilization, that is cases behind it. But there's a lot of work, which needs to prepare for it takes 1 step by in the product center during that. Looking to continue to grow. And that's the question. .

Sure. The last question is that we are hearing that apart from the in Europe, FDA, there is talk of some bilateral trade agreement with the U.S. Now as part of it, we would probably be importing some of the agri products from there, such as, say, DDGS or maybe Red [indiscernible]. Now in terms of our input materials, this ideally should come at a lower price than in the agri inputs available in India. Is this the right understanding? And are these possible substitutes for the higher priced agri inputs available in the country?

No, we are not importing anything from U.S. agri products. We have...

Absolutely -- this is more in terms of in the future, if the bilateral TT allows it in terms of duty-free imports, is that something that can be looked at.

We have to see today, we cannot see because it is a point of the government to permit are not to -- in respect of being , we are already approaching the government for giving us a limited period permission for import of serial. So that -- that would stabilize the prices which are going up now. They have done earlier ones -- and we had a -- Yes, -- so this particularly agri products, India being agri economy, it depends on [Technical Difficulty]

There are some disturbance, sir

Yes. see, India being the agri economy, the lot depends upon the crop that comes with the year after year and the local consumption requirements, food requirements, essential to the country. All these things determine the need for the product, the -- whether it is to be imported or to be not to be imported or even exported. So we never expected that wheat would be allowed to be exported, wheat meal -- now they are right I don't think the tax on because there is a huge production and stock available in India. So like that, it depends on the situation.

Perfect. Perfect. Just the final bit. In terms of the shrimp processing side of things, we've been talking of moving into more value addition. So in terms of value-added shrimp say, for FY '26, how has that changed versus FY '25? And how do we envisage this changing in FY '27. .

Nikhilesh?

Maybe previous, could you pull out some of the statistics -- but on the value a inside, I can tell you, generally, we've d one a lot of work over here where we're doing value-added products. than what we were doing 10 years ago in the sense that, I guess, in India, we're probably one of the larger producers of value-added products. Initially, some in 2015, we used to produce raw products only. But maybe they need to eat, which is a [indiscernible] safe consumption. We do breading, you do some [indiscernible] Japanese reputation. So we do wide range of products and we also have a partnership with the food ingredient company. So we're accelerating R&D into value-added products in our facilities in India. But this is in generally the scheme of the business. India produces a lot of raw materials. So we also try to do as much as commodity as possible as you try to maintain the balance to get the right margin output if that answers your question. .

Sure. Just wanted to understand in context of margins. So should we assume that going forward, with better utilization, higher throughput, the EBITDA margin should move north for the processing, please? .

I would generally say if you compare to our peers, if you look to do a general analysis, you will see that our margin structure is much better because we do all these products. So we're already upwards of general market margin level because of these startups. So we want to keep that balance because we also -- I think you just [indiscernible] you asked about capacity utilization. The more value-added products we do, the less an output from the factory. So add process yes. .

[Operator Instructions] we have a question from the line of [indiscernible], an individual investor.

My question is the next 2, 3 years, our company is expecting how much percentage of revenue growth and profit growth.

To answer your question, as you know that we have been, as a group, we have been expanding our activities, not only diversifying also we have this pet care business also coming, and we are expecting a lot of growth in that apart from capacity utilization of frozen products, value-added products, which will increase the bottom line as well as the top line -- and also the aquaculture also, we have enough capacity, we'll be able to increase the total bottom and top line of both the -- so overall, the target, if you put around 10% to 15% growth with the present global situation, it will be a big achievement, because today, we are in a situation where many things are uncertain. We don't know today we are unable to even prepare the packet for '26, '27 even though 3 months have already lapsed we are not sure how these things are going to do, what is going to be the case. So I think you know better that all these developments will definitely influence the process of our budgeting and also targets and also the revenues, top line and all these things. I think it will take some time for us to really understand the situation to come to have a reasonably good budget estimates, madam. .

We have a follow-up question from Mr. Ronak Shah from Equirus Securities. .

Sir, my question is regarding the competition. So right now, we see from a quarter perspective, we are gating that there are certain issues which are coming up over there. So earlier when we are highlighting, we were detrimental compared to the aquaculture blended cost, how we are positioned right now. And if something else is emerging in terms of the other geographies, can you highlight?

Nikhilesh?

I would say Equinor continues to be large, largest exporter India also continues to be part of the largest exporter, the #2. In the U.S. market, it still with the tariffs gone and everything we -- it's looking by there and also in Europe is looking at night. So hopefully, the higher demand encourages more farmers to do more feeding and everything. But on a general level, India continues to play a very import role in the sim supply chain globally. We'll continue to do so government and industry doing everything they can. The last point I wanted to say, as you know, Avanti also invested into Equinor partnership union. So it's about working with the government supply sales and encode the promising market along with India.

If there is no further question, we can conclude the call.

Sure, sir. Go ahead with the closing comments.

Thank you, everyone. Thank you all the investors for joining this conference call of Avanti Feeds. Thank you.

Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using [indiscernible] conference call service. You may disconnect your lines now. Thank you, and have a pleasant evening.