Venky’s India reports sharp decline in Q4 profit as poultry margins narrow
The poultry business has seen an 89% plunge in profit before tax and interest. The company is now ready to introduce the ready-to-cook spice segment in FY26.
INDIA – Venky’s India Ltd has recorded a 60% drop in its net profit for the fourth quarter, primarily due to a significant reduction in margins from its poultry operations.
The Pune-based company reported a profit of US$1.6 million (133 million rupees) for the quarter ending March 31, compared to US$4 million (335.1 million rupees) in the same period last year.
Its poultry and poultry products division, which generates roughly 54% of the company’s total revenue, posted an 89% decline in profit before tax and interest during the period.
This segment, which involves breeding and selling day-old broiler and layer birds, has been impacted by lower price realizations, leading to margin compression.
Meanwhile, revenue from operations across the company slipped 5.9% year-on-year to US$101.2 million (8.43 billion rupees), reflecting pressure across core businesses.
Despite the weak performance in poultry, the animal health products division saw a modest 5% increase in profit before tax and interest over the same quarter last year.
The oilseed segment, which processes soy to produce edible oil and de-oiled cake used as poultry feed, delivered more than double the profit compared to the prior-year period.
In response to shifting market demands, the company announced plans to launch into the ready-to-cook spice market, targeting commercial production by the end of the first quarter of fiscal year 2026.
This new project will involve the development of ready-mix powders and will be financed entirely through internal resources at a cost of approximately US$1.9 million (160 million rupees).
Additionally, Venky’s is set to invest around US$8.3 million (700 million rupees) to expand the production capacity of its Specific Pathogen Free (SPF) eggs facility.
These SPF eggs are used in the pharmaceutical and vaccine industry and represent a niche but growing market for the company.
Following the earnings report, Venky’s stock slipped by about 0.5% on the National Stock Exchange.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
