- VENKY’S (INDIA) LTD – Q4 and FY25 Performance Review
- Poultry Margins Affected in Q4 FY25
- Animal Health Products Showing Good Growth
- Oilseed Segment Nearing Bottom
- SPF Egg Business Expanding Fast
- Ready-to-Eat and Spice Business Growing
- Raw Material Prices Still Volatile
- Poultry Business Still Strong, Though Cyclical
- Related Party Receivables Coming Down
- Business Mix and Strategy Focused on Balance
- Key Investments to Support Growth
- What the Management is Saying
- Key Highlights Table
- FAQs about VENKY’S (INDIA) LTD
VENKY’S (INDIA) LTD – Q4 and FY25 Performance Review
Poultry Margins Affected in Q4 FY25
During the fourth quarter of FY25, VENKY’S (INDIA) LTD saw steady sales across segments. But despite this, margins in the poultry business were under pressure. One big reason was the Kumbh Mela in North India. This event disrupted logistics and affected local chicken consumption.
The broiler segment, which usually brings in good profits, saw prices drop to ₹78 per kg, down from ₹87 per kg a year ago. While the sales volume stayed similar, the fall in realization directly hit margins.
Animal Health Products Showing Good Growth
The Animal Health Products (AHP) division was a bright spot for VENKY’S (INDIA) LTD.
- Revenue for FY25 stood at ₹339 crore, up 9% year-on-year.
- In Q3 and April, this segment grew at a faster pace — about 20–21% YoY.
- The new manufacturing plant is now working at 55–60% capacity.
- As this capacity increases, margins are expected to improve.
Looking ahead, the company expects AHP revenues to grow by 15% in FY26.
Oilseed Segment Nearing Bottom
The oilseed segment faced a tough year. Revenue fell to ₹1,100 crore in FY25, almost half of its earlier peak of ₹2,600 crore. This drop happened due to two key reasons:
- Substitution by DDGS (Distillers Dried Grains with Solubles).
- A sharp fall in global commodity prices.
However, VENKY’S (INDIA) LTD is hopeful about the future. The company expects operations to normalize and projects a 25% growth in volumes for FY26. Soya DOC prices have also dropped sharply but are now seen stabilizing.
SPF Egg Business Expanding Fast
The SPF (Specific Pathogen Free) egg business is getting a major push.
- The company has planned ₹70 crore in capital expenses to build 6 new egg houses.
- At present, they have the capacity to produce 188 lakh eggs per year and are utilizing about 60–65% of it.
- Exports in this segment have done well. Revenue from exports doubled to ₹20 crore in FY25.
- Full ramp-up is expected in the next two years. However, the expansion depends on the biosecurity cycle, which takes time.
Ready-to-Eat and Spice Business Growing
VENKY’S (INDIA) LTD is actively building its presence in processed food.
- Processed chicken volumes almost doubled year-on-year, reaching 110.27 lakh kg.
- A new spices line is being launched soon, focusing on both Indian and international markets.
- For FY26, the company expects growth of 25–30% in this segment, helped by online sales and partnerships with fast food chains (QSRs).
Raw Material Prices Still Volatile
Costs of raw materials have been unpredictable.
- On the other hand, Soya DOC prices fell to ₹37.90 per kg, from ₹47.55 the previous year. These prices are expected to stay stable.
The company sees maize as a key risk area due to price swings, which directly affect costs in poultry and feed.
Poultry Business Still Strong, Though Cyclical
The poultry segment remains the core of VENKY’S (INDIA) LTD.
- FY25 revenue for this segment reached ₹1,927 crore, a 10% rise from last year.
- For FY26, the company expects volume growth of 5–10%. But this will depend on how market prices hold up.
DOC (Day-Old Chick) realizations rose to ₹39 per chick, compared to ₹35 a year ago. However, the overall DOC volume stayed mostly the same.
Related Party Receivables Coming Down
Receivables from related group companies have been coming down.
- These receivables dropped from ₹665 crore to ₹500 crore in FY25.
- Overall receivables have been growing over the years — from ₹300 crore in 2019 to ₹550 crore now.
- The management is working on reducing this further to keep the balance sheet healthy.
Business Mix and Strategy Focused on Balance
Here’s a quick look at how the company is managing its different segments:
| Segment | FY25 Performance Highlights |
|---|---|
| Poultry | EBIT down to ₹100 crore from peak ₹180–280 crore |
| Oilseed | At cycle low, expected to recover |
| AHP | Seen as future margin driver |
The company is no longer chasing highs in individual segments. Instead, the focus is on keeping a balance and staying steady across the portfolio.
Key Investments to Support Growth
VENKY’S (INDIA) LTD is putting money into areas that can grow:
- ₹70 crore for SPF egg expansion.
- Ongoing work on AHP plant expansion to support future demand.
- New initiatives in processed foods and spices, including plans to export.
These investments are part of a long-term plan to reduce over-dependence on poultry and enter more stable, higher-margin businesses.
What the Management is Saying
The company’s leadership is staying cautious but hopeful.
- They are aware of ongoing challenges like price swings in raw materials, changing government rules, and risks from imports under WTO rules.
- But the company is taking steps to reduce these risks — through diversification, increasing exports, and expanding in non-poultry areas.
- For FY26, the goal is to grow steadily in volumes and build new business lines.
Key Highlights Table
| Area | FY25 Status | FY26 Outlook |
|---|---|---|
| Poultry Revenue | ₹1,927 crore (+10% YoY) | 5–10% volume growth expected |
| Broiler Realization | ₹78/kg (vs ₹87 YoY) | Depends on demand and logistics |
| AHP Revenue | ₹339 crore (+9% YoY) | 15% growth guided |
| Oilseed Revenue | ₹1,100 crore (down from ₹2,600 crore) | 25% volume growth expected |
| SPF Egg Export Revenue | ₹20 crore (2x YoY) | Full ramp-up in 2 years |
| Processed Chicken Volume | 110.27 lakh kg (2x YoY) | 25–30% growth expected via e-comm & QSR |
| Maize Price | ₹25.50/kg (vs ₹22.80 FY24) | Volatile |
| Soya DOC Price | ₹37.90/kg (vs ₹47.55 FY24) | Stable |
| Related Party Receivables | Down to ₹500 crore | Further reduction targeted |
FAQs about VENKY’S (INDIA) LTD
What does VENKY’S (INDIA) LTD mainly do?
VENKY’S (INDIA) LTD is known for its poultry business. It also sells processed chicken, SPF eggs, animal health products, and operates in oilseed processing.
Why did poultry margins fall in Q4 FY25?
Margins fell mainly due to lower broiler prices and logistic issues during the Kumbh Mela in North India, which reduced demand.
What is the outlook for Animal Health Products?
This segment is doing well. With plant capacity increasing, the company expects 15% growth in revenue in FY26.
How is the company dealing with raw material price changes?
They are closely watching maize and Soya DOC prices. While maize costs have gone up, Soya prices have dropped. The company is working to manage these swings through better planning.
Is VENKY’S (INDIA) LTD planning to grow internationally?
Yes. The company is growing its exports of SPF eggs and also plans to sell its spices and processed foods in international markets.
VENKY’S (INDIA) LTD is going through a shift. The company is not only focusing on poultry but also investing in long-term growth areas like animal health, ready-to-eat foods, and exports. FY25 had some challenges, especially with input costs and pricing. But the plans for FY26 show that the company is moving in a clear direction — toward balance, stability, and smarter growth.
By keeping an eye on market risks and investing in future-ready segments, VENKY’S (INDIA) LTD is working to build a stronger and more flexible business model.
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