Venky’s (India) Ltd Q1 FY26 – From KFC Supplier to Balance Sheet Broiler
1. At a Glance
CMP ₹1,461, market cap ₹2,055 Cr, P/E a sizzling 35.9, book value ₹1,047, dividend yield 0.68%. FY25 revenue ₹3,365 Cr with PAT ₹57 Cr, giving wafer-thin margins at 2.7%. ROE is clucking at just 8.2% while debt is light at ₹170 Cr (D/E 0.11). In Q1 FY26, revenue came at ₹866 Cr (+7% YoY) but PAT fried down to ₹15.8 Cr (–79% YoY). Venky’s share price has been under the grill too: –28% in the last 1 year, and –10% in 3 years.
2. Introduction
Venky’s is not just that brand your gym trainer says you must avoid on cheat days. It’s the granddaddy of Indian poultry — a company that’s been supplying chicks, chicken, and chicken nuggets long before Swiggy knew what “add-ons” meant.
Part of the VH Group, Venky’s operates in three kitchens — poultry breeding (the biryani base), animal health products (the masala packets), and oilseed (the side dish of soya). Their client list is drool-worthy — KFC, Pizza Hut, McDonald’s, Burger King. Basically, if you’ve ever wiped peri-peri sauce off your beard at a mall, odds are Venky’s had a role.
But the stock story? Not so juicy. Sales have been flat for 5 years, profits swinging like a tandoori skewer, and investors getting more burnt than the last piece in your butter chicken bowl.
3. Business Model – WTF Do They Even Do?
Lazy investor edition: Venky’s breeds chicks, grows them, processes them into meat, makes feed, produces animal medicines, crushes soya, and even sells ready-to-eat kebabs. Basically, they’ve built an end-to-end chicken universe.
Poultry & Poultry Products (~35% of FY24 revenue): Parent chicks, broilers, SPF eggs (Venky’s is Asia’s largest SPF egg producer). Their meat portfolio spans raw cuts, nuggets, sausages, RTE samosas, kebabs, and even biryani. From gym bros to lazy bachelors, Venky’s has everyone covered.
Animal Health Products: Poultry feed supplements, veterinary medicines. FY24 saw a new facility at Kesurdi (Satara) for 600 tonnes powder + 300 KL liquid meds.
Oilseed (65% of FY24 revenue): Three soya processing plants (capacity 5.4 lakh MTPA). So basically, even vegetarians are indirectly funding Venky’s profits.
Question for readers: Would you trust Venky’s more as a stock… or as butter chicken for dinner?
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹866 Cr
₹808 Cr
₹843 Cr
+7.1%
+2.7%
EBITDA
₹24 Cr
₹103 Cr
₹25 Cr
–76.7%
–4.0%
PAT
₹15.8 Cr
₹75 Cr
₹13.3 Cr
–78.9%
+18.8%
EPS (₹)
11.2
53.4
9.4
–79.0%
+19.1%
Annualised EPS = ~₹45 → P/E at CMP is a hefty 32–36x.
Commentary: Revenues are steady, but profits collapsed. That’s not seasoning, that’s straight-up margin slaughter.
5. Valuation Discussion – Fair Value Range Only
P/E Method
Annualised EPS: ₹45
Apply fair P/E range 18x–25x (food processing comps).
