Venky’s (India) Profit in June Down by 79%

Pune, August 8, 2025: Venky’s (India) Ltd (NSE: VENKEYS, BSE: 523261) has reported a sharp drop in its Q1 FY26 net profit. It fell by 79% year-on-year to ₹15.83 crore. The poultry segment, which is the company’s main business, suffered from lower prices for its products. The lower prices were the primary reason for the sharp decline in profitability.

Venky’s (India) Ltd is a key player in the poultry industry, involved in various businesses like poultry breeding, processed chicken, animal health products, and oilseed processing. The company is headquartered in Pune and its shares are listed on the NSE (VENKEYS) and BSE (523261).

Following the announcement, the shares of the company fell sharply by 1.79%, or ₹26.70 and were trading at ₹1,461.50, as of 1:40 PM today.

Detailed Insights For Investors

Profitability Pressure

• Net profit dropped 79% YoY due to weak margins in the poultry business.
• Main reason: lower prices for key products like day-old chicks and processed birds.

Stock Reaction

• Share price fell by 1.79% after the earnings announcement.
• Current trading price: ₹1,461.50.

Revenue Growth But Lower Profit

• Total revenue grew by over 7% YoY.
• Despite higher revenue, profit before tax and EPS fell sharply.

Mixed Segment Performance

• Poultry segment revenue declined due to pricing pressure.
• Animal Health segment showed steady growth.
• The oilseed segment performed strongly with over 33% growth.

Balance Sheet Health

• The company maintains a strong asset base with low liabilities.
• Total equity remains high, showing financial strength.

Long-Term Outlook

• Short-term challenges exist in the poultry market.
• Diversification into other segments may support long-term stability.

Financial Performance

In the quarter that ended on June 30, 2025 (Q1 FY26), the company’s Revenue from Operations was ₹86,583 lakh. This was a 7.15% increase from ₹80,802 lakh in the same quarter last year (Q1 FY25), and also higher than the ₹84,316 lakh in the previous quarter (Q4 FY25). The company’s Total Income was ₹87,752 lakh, up 7.22% from ₹81,850 lakh in Q1 FY25. However, profitability was hit hard, with the Profit Before Tax dropping by 78.41% to ₹2,177 lakh from ₹10,087 lakh in Q1 FY25. Similarly, the Net Profit plunged by 78.95% to ₹1,583 lakh compared to ₹7,518 lakh a year earlier. The Earnings Per Share (EPS) also fell sharply by 78.94% to ₹11.24 from ₹53.36 in Q1 FY25.

Segment-Wise Revenue

The company’s performance varied across its different business segments. The Poultry & Poultry Products segment saw its revenue decrease by 7.43% to ₹47,566 lakh compared to ₹51,380 lakh a year ago. This was due to lower prices for day-old chicks and grown-up birds. However, the Animal Health Products segment showed steady growth, with revenue increasing by 16.15% to ₹9,698 lakh from ₹8,351 lakh in Q1 FY25. The Oilseed segment was the top performer, with a strong revenue increase of 33.68% to ₹31,802 lakh compared to ₹23,794 lakh a year earlier.

Management Commentary

The company’s management noted that while the poultry business faced challenges, the Animal Health and Oilseed segments provided crucial support. Management plans to focus on improving efficiency and creating more value-added products to boost profits in the upcoming quarters.

Balance Sheet Snapshot (As of June 30, 2025)

Road Ahead For Venky’s (India)

Venky’s may continue to face pressure in its poultry business due to low product prices. However, the strong performance of its Animal Health and Oilseed segments offers some support. The company is planning to improve efficiency and develop more value-added products to help increase profits. Its financial position remains stable with a strong balance sheet. Going forward, if poultry prices recover, overall performance could improve. Investors should watch how well the company manages costs and maintains growth in its non-poultry segments. This will be key for long-term stability and recovery.

REF:https://nsearchives.nseindia.com/corporate/VENKEYS_08082025125515_VIL_FR_June2025.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations