Venky's India Reports Significant Net Loss in Q2 Due to Poultry Business Woes

Venky’s (India) Ltd announced a consolidated net loss of ₹26.53 crore for the quarter ended September 30, 2025, a sharp contrast to a net profit of ₹7.8 crore in the same period last year. This downturn was primarily caused by weak selling prices for its poultry products and elevated costs for animal feed. Revenue from operations saw a modest increase of 3.5% year-on-year, reaching ₹811.23 crore. However, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) swung from a positive ₹14 crore to a negative ₹31 crore.

The company attributed the poor performance in its largest segment, poultry and poultry products, to subdued prices for day-old chicks and grown-up birds, stemming from oversupply in several markets. Despite steady demand in processed food and Quick Service Restaurant (QSR) segments, live broiler prices remained under pressure. The Animal Health Products business performed satisfactorily, while the Oilseed segment showed improvement.

For the first half of the fiscal year, Venky's reported a net loss of ₹10.7 crore, reversing a profit of ₹30.4 crore from the previous year. The company stated its focus remains on operational efficiency, cost control, and expanding its range of value-added products, such as "Venky’s Chicken in Minutes" and ready-to-cook items, to navigate the volatility in the live-bird market.

Following the results, shares of Venky’s (India) Ltd declined by over 7% on the Bombay Stock Exchange, trading at ₹1,413.00. Impact This news is predominantly negative for Venky's (India) Ltd, signalling significant operational challenges in its primary poultry business. The net loss and negative EBITDA raise concerns about profitability and cash flow. While the Animal Health and Oilseed segments show resilience, the core business weakness could lead to reduced investor confidence and potential stock price depreciation, especially if these issues persist. The impact on the broader Indian stock market is likely limited unless it indicates a systemic problem across the poultry or agri-business sector. Impact Rating: 6/10

Difficult Terms: Consolidated Net Loss: The total loss incurred by a company and its subsidiaries after accounting for all revenues and expenses. Realisation: The amount of money a company actually receives for its products or services. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. Subdued Prices: Prices that are low or declining. Oversupply Pressure: When the supply of a product in the market exceeds demand, leading to lower prices. Live Broilers: Chickens raised for meat before they are processed. QSR: Quick Service Restaurant, a type of restaurant that serves fast food. Monsoon Quarter: The period of the year when monsoons occur, typically July to September in India. Oilseed Segment: Business related to crops like soybeans, groundnuts, etc., and their products. Soybean Meal and Oil Prices: Prices of products derived from soybeans, used in feed and food. Operational Efficiency: Performing business activities effectively and with minimal waste. Value-added Product Expansion: Introducing products that have been enhanced or modified to increase their perceived value. Live-bird Market: The market for freshly slaughtered or unprocessed poultry.