Venky's Q1FY26 results: Profit plunges 79% as poultry business shrinks

Venky's India posted a nearly 79 per cent drop in first-quarter profit on Friday, as its poultry business margins shrank, with over-supply and curtailed demand leading to lower pricing.

The poultry firm reported a net profit of ₹15.83 crore ($1.81 million) in the quarter ended June 30, compared to last year's ₹75.18 crore.

Venky's poultry and poultry products business has been impacted for months by lower market pricing of broiler birds.

Panic selling drove down prices during an April heatwave, over concerns about the birds' mortality rate in hotter conditions, Venky's said in a post-earnings call in May.

Firms such as Venky's are also impacted seasonally, usually during the second and third quarters, when multiple Hindu festivals limit meat and egg consumption, which can lead to a months-long overhang, the company has said.

 

Revenue in the poultry and polutry products segment fell 7.4 per cent, resulting in a loss of ₹5.66 crore from the category, compared to a year-ago profit of ₹82.74 crore.

Revenue in Venky's second largest oilseed segment grew 33.6 per cent, aided by firmer pricing of soya and decent demand, the company said.

Venky's processes soya to make edible oil, which it sells in bulk to traders, and de-oiled cake, which it sells as poultry feed to manufacturers.

Its overall revenue rose 7.1 per cent, helped by the growth in the oilseeds segment. However, expenses rose more than 19 per cent.

The company is also foraying into ready-mix spice powders, production for which began in the first quarter.