Shares of Avanti Feeds continued their sharp rally on Wednesday, February 4, extending gains for a second straight session and taking the two-day surge to around 28%. The stock jumped after a major positive trigger for India’s fisheries and allied industries following the India–US trade deal.
India–US trade deal lifts fisheries exporters
Fisheries stocks came into focus after India and the United States signed a trade agreement that reduces tariff pressure on Indian exports. India remains the largest exporter of fisheries and allied products to the US, with exports valued at around $2.5 billion.
Earlier, steep tariffs had weighed heavily on exporters’ topline and margins, making Indian seafood less competitive globally. The easing of trade tensions significantly improved sentiment across shrimp exporters, triggering strong buying interest.
Sector-wide rally supports Avanti Feeds
The rally was not limited to Avanti Feeds alone. On Tuesday, Apex Frozen Foods surged 17%, while Mukka Protein jumped over 4%, reflecting broad-based optimism across the sector. Avanti Feeds emerged as one of the biggest gainers, rising nearly 20% in a single session, followed by continued buying on Wednesday.
Strong earnings resilience despite tariff pressure
Despite tariff-related challenges over the past year, exporters managed to maintain robust earnings growth. Avanti Feeds reported an 18% year-on-year rise in revenue in Q2 FY26, supported by strong shrimp demand and geographic diversification.
Industry peers also posted healthy growth, with Apex Frozen Foods recording nearly 20% revenue growth in the same quarter, reinforcing confidence in the sector’s fundamentals.
Export diversification and government support
While shrimp exports to the US dropped sharply after tariffs were imposed, Indian exporters successfully diversified. Shrimp exports to China surged nearly 1,300% in value during April–October 2025, reaching $1.05 billion.
Adding to the positive outlook, the central government announced a five-year export promotion scheme with an outlay of Rs 25,000 crore, aimed at supporting exporters and cushioning tariff-related risks.
Why the rally is sustaining
The continued rally in Avanti Feeds reflects a combination of:
- Improved trade visibility after the India–US deal
- Strong earnings resilience despite earlier tariff headwinds
- Rapid export diversification away from the US
- Policy support from the government
Together, these factors have reignited investor confidence, driving Avanti Feeds shares up 28% in just two trading sessions.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
