Venkys India Limited , a leading poultry and processed food company, reported substantial losses in its poultry segment for the quarter ended September 30, 2025 (Q2 FY26). The company's financial performance was severely impacted by unexpected profit margin declines, particularly in its core poultry business.

Financial Performance Overview

For Q2 FY26, Venkys India reported:

The company's revenue showed a modest increase of 3.44% year-over-year. However, profitability metrics deteriorated significantly, with EBITDA turning negative at -₹20.80 crore compared to a positive ₹23.90 crore in the same quarter last year. Net profit plummeted to a loss of ₹26.50 crore, a stark contrast to the ₹7.80 crore profit recorded in Q2 FY25.

Poultry Segment Challenges

The poultry segment, which is a major contributor to Venkys India's revenue, reported losses of approximately ₹60.00 crores for the quarter. This poor performance was attributed to several factors:

1. Lower Realizations:

   • Day-old broiler chick prices fell to ₹26.48 per chick from ₹37.22 in the previous year, a decline of ₹10.74 per chick.
   • Commercial broiler bird realization dropped to ₹80.57 per kg from ₹98.50 per kg, a decrease of ₹17.93 per kg.

2. Seasonal Factors: The quarter was impacted by festivals including Ganesh Chaturthi, Navratri, and Pitrapaksh, which affected demand patterns.

3. Weather Conditions: Abnormal rains and flooding in northern regions where the company operates further disrupted business operations.

Other Segments Performance

While the poultry segment struggled, other business segments showed mixed results:

• Animal Health Products: This segment registered satisfactory performance, providing some stability to the overall business.
• Oilseeds Segment: Continued to show improvement, offering a silver lining amidst the challenges.

Management Outlook

The management expressed optimism for better performance in the second half of the fiscal year. They noted that prices began recovering in the last week of October, coinciding with the onset of winter, which typically sees increased demand for poultry products.

Additionally, the company highlighted a significant decline in raw material prices for maize and soya, with both trading 25% below minimum support prices. This reduction in input costs could potentially help improve margins in the coming quarters if demand recovers as expected.

Conclusion

Venkys India's Q2 FY26 results underscore the volatile nature of the poultry business, which remains susceptible to seasonal factors, weather conditions, and market dynamics. While the company faces significant challenges in its core poultry segment, the performance of its Animal Health Products and Oilseeds segments provides some diversification benefits.

Investors and industry observers will be keenly watching how Venkys India navigates these challenges and capitalizes on the potential recovery in the second half of the fiscal year. The management's ability to leverage lower input costs and improve realizations in the poultry segment will be crucial for the company's financial turnaround in the coming quarters.

Venky's India Limited , a leading poultry and animal health products company, has reported a net loss of ₹26.5 crore for the second quarter ended September 30, 2025. This marks a significant downturn from the profit of ₹7.76 crore recorded in the same period last year. Despite the challenging market conditions, the company managed to increase its revenue to ₹810.00 crore, up from ₹774.00 crore in the corresponding quarter of the previous year.

Financial Performance

The company's financial results for Q2 FY2026 paint a picture of mixed performance across its segments:

Segment-wise Performance

Poultry and Poultry Products

This segment faced significant challenges, with lower realizations from the sale of day-old chicks and grown-up birds impacting its performance negatively.

Animal Health Products

The company reported a satisfactory performance in this segment, showing resilience amidst overall market pressures.

Oilseed

This segment continued to show steady improvement, contributing positively to the company's diverse portfolio.

Key Highlights

• The company experienced an EBITDA loss of ₹31.10 crore in Q2 FY2026, compared to an EBITDA gain of ₹13.90 crore in the same quarter last year.
• Despite the challenges, Venky's India managed to increase its revenue by 4.65% year-over-year.
• The Poultry and Poultry Products segment, which is a significant contributor to the company's revenue, faced headwinds due to market conditions.

Management Commentary

B. Balaji Rao, Managing Director of Venky's India Limited, commented on the results, stating, "The quarter presented significant challenges, particularly in our core Poultry and Poultry Products segment. However, we are encouraged by the steady performance of our Animal Health Products division and the continued improvement in our Oilseed segment. We are implementing strategic measures to navigate these market conditions and return to profitability."

Future Outlook

While the company faces near-term challenges, particularly in its poultry segment, the diversification of its business across animal health products and oilseeds provides some resilience. The management's focus on strategic measures to address market challenges will be crucial in the coming quarters.

Investors and analysts will be keenly watching how Venky's India navigates these challenging market conditions and implements strategies to improve profitability across its segments in the future quarters.