VENKEYS - Venky's (India)

📊 NSE: VENKEYS 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 15:01

💰 Financial Performance

Revenue Growth by Segment

For H1 FY26, Poultry and Poultry Products revenue was INR 965.49 Cr, Animal Health Products (AHP) was INR 163.83 Cr, and Oilseed was INR 507.57 Cr. In the previous full year (FY25), AHP grew 9.4% YoY to INR 339.31 Cr, while Oilseed revenue declined 35.8% YoY to INR 1,140.75 Cr.

Geographic Revenue Split

Not disclosed in available documents, though operations are primarily focused in India with key facilities in Pune and Patan.

Profitability Margins

Q2 FY26 Net Profit Margin was -3.27% (Loss of INR 26.53 Cr on INR 811.23 Cr revenue). Historically, Net Profit Margin improved from 2.12% in FY24 to 3.53% in FY25. Operating Profit Margin also rose from 2.36% to 4.08% in the same period.

EBITDA Margin

PBILDT margin for H1 FY25 reached 8.59%, an increase of 339 basis points over the 5.20% margin recorded in H1 FY24, driven by higher demand and improved realizations in the poultry segment.

Capital Expenditure

The company is term debt-free as of September 30, 2023, after closing the term loan for the SPF division Patan Project. No major debt-funded capital expenditure is planned for the near future.

Credit Rating & Borrowing

The company maintains a comfortable capital structure with an overall gearing of 0.13x as of March 31, 2024. Interest coverage ratio improved to 10.96x in FY25 from 7.02x in FY24 due to lower finance costs and improved performance.

⚙️ Operational Drivers

Raw Materials

Maize and Soya (soyaseed/soybean) are the primary raw materials, accounting for approximately 75% of the total production cost.

Import Sources

Sourced domestically in India, with procurement timing linked to the harvesting season to manage cost volatility.

Capacity Expansion

Current capacity is supported by strong infrastructure and production capabilities; the SPF division Patan Project was recently completed to strengthen production.

Raw Material Costs

Raw material costs represent 75% of total revenue. Profitability is highly vulnerable to price movements in maize and soya, which the company often cannot fully pass on due to the fragmented nature of the poultry industry.

📈 Strategic Growth

Growth Strategy

Growth is targeted through regular expansion projects to strengthen production capabilities and the gradual, stable scaling of the Animal Health Products segment.

Products & Services

Day-old broiler chicks, CBF birds, Broiler Hatching Eggs, SPF eggs, Soya oil, Soya de-oiled cake (DOC), and Animal Health Products (vaccines and medicines).

Brand Portfolio

Venky's.

Market Expansion

Ongoing regular expansion projects are aimed at strengthening production infrastructure across existing segments.

🌍 External Factors

Industry Trends

The poultry industry is characterized by high fragmentation and seasonal demand dips (e.g., Q2), making it difficult for players to maintain steady margins during input cost spikes.

Competitive Landscape

Intense competition from a large number of fragmented players in the poultry and oilseed markets.

Competitive Moat

The company possesses a moat through its integrated business model, spanning from breeding and SPF eggs to animal health and oilseed processing, providing a diversified revenue base.

Macro Economic Sensitivity

Highly sensitive to agri-inflation, specifically maize and soya prices, which dictate 75% of the cost structure.

Consumer Behavior

Demand for poultry products is subject to seasonal variations, which typically results in lower realizations during the second quarter of the fiscal year.