Best Aquaculture Sector Stocks

As we entered 2026, India’s aquaculture industry remains a bright spot of the country’s farm products export and rural/semi-urban economy. India is traditionally an agri/farm-savvy economy with an extensive coastline across the country in the east, west, and south, supported by both sea and freshwater resources.

India is the world’s 2nd largest aquaculture producer and the 3rd largest freshwater fish producer. Total fish production is now close to 18 million tonnes (MT), with aquaculture contributing nearly 75%. The aquaculture industry supports millions of livelihoods, ensures strategic food security, and plays a meaningful role in India’s export basket.

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India’s Aquaculture Industry: Overall Structure & Outlook

India is currently the world’s 6th largest exporter of farm and aquatic products, led by shrimp exports—particularly the Litopenaeus vannamei species. Inland species such as Indian major carps, pangasius, and tilapia primarily cater to domestic demand.

Globally, China remains the largest exporter of aquatic products with around 36% market share, followed by Indonesia (~7%), India (~6%), Vietnam (~5%), and Bangladesh (~4%).

India’s key aquaculture products include frozen shrimp (dominant export), freshwater fish, scampi, and value-added seafood products. The ecosystem also includes aqua feed (market size ~$3–3.5 billion), hatcheries, probiotics, equipment (biofloc and RAS systems), processing units, and traceability and certification services.

Domestic consumption has risen steadily, with per capita fish intake increasing to around 11 kg annually from about 6 kg in pre-COVID 2019, driven by health awareness, urbanisation, and price stability. Approximately 85% of production is consumed domestically, while 15% is exported.

Tariff Headwinds: The U.S. Challenge

India’s aquaculture exports averaged $7–8 billion annually during 2019–2025, peaking at $8.09 billion in FY23. Frozen shrimp accounts for roughly 65% of export value. FY25 exports stood at approximately $7.45 billion.

Despite U.S. tariffs escalating to nearly 50% effective rates in 2025, early FY2025–26 data (April–October) showed resilience, with 16% growth in export value. Aquaculture contributes around 1% of India’s total exports (goods + services), currently valued at about $800 billion.

The U.S. remains India’s largest export destination, accounting for nearly 35%, followed by China, the EU, and Japan. India is a net exporter of aquaculture products, with minimal imports (~$0.15 billion), mainly high-value premium items.

After the imposition of ~50% U.S. tariffs, export revenue from the U.S. dropped by nearly 18%, and margins contracted by about 5.5% due to additional levies, including a 25% Russian oil-related cost adjustment. This has significantly impacted producer states such as Andhra Pradesh, with estimated losses of around ₹0.25 trillion.

Effective U.S. tariffs on Indian shrimp currently stand near 58%, including anti-dumping (2.5%) and countervailing duties (5.5%). India, in turn, imposes tariffs of around 35% on U.S. aquaculture products. Even under a potential bilateral trade agreement, phased U.S. tariffs of 10–40% may persist from 2026 under the proposed India Shrimp Tariff Act.

Government Support and Long-Term Growth Potential

India’s aquaculture sector benefits significantly from government support through schemes such as the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and its sub-scheme, the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY).

PMMSY targets seafood production of 22 MT by FY26, supported by investments in broodstock centres, reduced feed tariffs, cold-chain development, and NABARD-backed financing. PM-MKSSY, with an outlay of ₹6,000 crore, focuses on formalising micro-enterprises, promoting aquaculture insurance, and improving traceability and value addition.

Despite challenges such as disease outbreaks, logistics gaps, stringent EU regulations, floods, and global competition, projections suggest India’s aquaculture exports could grow at ~11% CAGR to nearly $21 billion by 2032.

Key Growth Drivers for 2026

• Export Expansion: The EU approved 102 new Indian fishery establishments, raising the total to 604, particularly favouring shrimp and cephalopod exports.
• Deep-Sea Initiative: Focus on Andaman & Nicobar and Lakshadweep islands to tap an estimated 2.5 lakh tonnes of marine resources, including high-value tuna.
• Incentive Schemes: Players like Avanti Feeds eligible for up to 10% incentives on incremental value-added sales through FY27.
• Credit Accessibility: Kisan Credit Card (KCC) lending limits raised from ₹3 lakh to ₹5 lakh for fishers and aquaculture stakeholders.

Avanti Feeds Ltd

The undisputed market leader and India’s largest shrimp and fish feed producer. Avanti benefits from strong brand equity, economies of scale, consistent profitability, fair valuation (P/E ~19), low PEG, and diversification into value-added shrimp products supported by government incentives through FY27.

Apex Frozen Foods Ltd

A leading integrated shrimp processor and exporter with end-to-end operations. Its second processing facility has received EU approval, boosting prospects for value-added and ready-to-eat shrimp exports. Diversification beyond the U.S. market strengthens its long-term outlook.

Kings Infra Ventures Ltd

A high-growth small-cap player focused on sustainable aquaculture and technology integration through its BlueTechOS platform. Expansion in Andhra Pradesh and emphasis on eco-friendly practices and traceability make it a potential 2026 outperformer.

Coastal Corporation Ltd

An integrated shrimp processor and exporter supplying premium products to the U.S., Europe, and Japan. Government-led deep-sea fishing and coastal development initiatives support its diversified business model.

Zeal Aqua Ltd

Specialises in antibiotic-free and sustainable shrimp farming, with strong exposure to EU markets. Focus on premium Black Tiger shrimp, ethical sourcing, and operational efficiency positions it well for improving export realisations.

Conclusion

Despite lingering U.S. tariff risks, India’s aquaculture industry is expected to remain a bright spot for exports and rural employment in 2026 and beyond. Diversification toward China, the EU, Japan, and Russia, along with rising demand for value-added and ready-to-eat products, will support growth.

Domestic consumption remains resilient amid rising living standards and awareness of protein-rich diets. Although challenges such as disease, global competition, and regulatory pressures persist, the sector is projected to grow at a minimum of ~6% CAGR over the next five years.

Looking ahead, improved traceability, new market approvals, and a shift toward premium antibiotic-free segments are likely to position resilient aquaculture companies for sustained earnings growth.