Venky's (India) Reports Q2 Loss Amid Poultry Sector Challenges
Venky's (India) Ltd experienced a significant downturn in Q2 FY26, reporting a consolidated net loss of ₹26.53 crore compared to a profit of ₹7.80 crore in Q2 FY25. Despite a 3.45% increase in revenue to ₹811.23 crore, the company's EBITDA turned negative at ₹31.00 crore. The poultry segment faced challenges due to lower realizations and weak domestic consumption, while the Animal Health Products segment showed satisfactory performance. The Oilseed segment demonstrated steady improvement. For the half-year, Venky's reported a revenue of ₹1,688.75 crore and a net loss of ₹10.70 crore. The company's shares fell over 7% following the results announcement.
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Venky's (India) Ltd, a diversified player in the poultry industry, has reported a significant downturn in its financial performance for the second quarter. The company faced headwinds due to weak poultry prices and elevated feed costs, resulting in a consolidated net loss.
Financial Highlights
| Particulars (₹ in crore) | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue from Operations | 811.23 | 784.22 | +3.45% |
| EBITDA | (31.00) | 14.00 | -321.43% |
| Net Profit/(Loss) | (26.53) | 7.80 | -440.13% |
The company's revenue from operations saw a modest increase of 3.45% year-over-year, reaching ₹811.23 crore. However, the bottom line was severely impacted, with EBITDA turning negative at ₹31.00 crore compared to a positive ₹14.00 crore in the same quarter last year.
Segment Performance
Poultry and Poultry Products
This segment faced significant challenges due to lower realizations from the sale of day-old chicks and grown-up birds. The oversupply pressure in regional markets, coupled with weak domestic consumption during the monsoon quarter, negatively impacted profitability.
Animal Health Products
The company reported satisfactory performance in this segment, with stable demand contributing positively to the overall results.
Oilseed Segment
This division showed steady improvement, providing some relief amidst the challenges faced by the poultry segment.
Half-Year Performance
For the half-year period:
- Revenue stood at ₹1,688.75 crore
- Net loss reported at ₹10.70 crore, a reversal from the profit of ₹30.40 crore in the previous year
Market Response
The market reacted negatively to the results, with Venky's shares falling more than 7% to ₹1,413.00, underperforming the broader market.
Management Commentary
The financial results indicate that Venky's is navigating through a challenging period in the poultry sector. The management notes that the poultry and poultry products segment continued to face challenges, primarily due to lower realizations and weak domestic consumption.
Outlook
The poultry industry's cyclical nature and its susceptibility to factors like feed costs and consumer demand patterns suggest that Venky's may continue to face headwinds in the near term. However, the steady performance of the Animal Health Products segment and improvements in the Oilseed segment could provide some stability to the company's overall performance.
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