1. Opening Hook
Venky’s (India) walked into Q2 FY26 with the energy of a headless chicken. Between angry investors, monsoon floods, and festive “seasonality,” the management’s excuse list was longer than a Sunday biryani menu. While the CFO blamed “lower realizations” and “unexpectedly poor prices,” one investor summarized the quarter perfectly: “Congratulations on the worst performance again.” 🐔
Still, amid chaos, the animal health business clucked calmly, oilseed margins improved slightly, and management promised better days “post Diwali.” Sounds familiar? It should. Read on—because it only gets crispier (and not in a good way).
2. At a Glance
- Revenue Down:Poultry demand went missing like good governance.
- EBIT Loss ₹58 Cr:Largest in five years—excluding the COVID era.
- DOC Prices ₹26/chick (vs ₹37 YoY):Chick prices caught bird flu.
- Broiler Realization ₹80/kg (vs ₹98 YoY):Meat cheaper, margins thinner.
- Oilseed EBIT ~3%:Trying to rise like refined oil.
- Animal Health Sales ₹370–380 Cr (FY26E):The lone healthy limb.
- Stock Price:Down 30% YTD—investors now praying for divine intervention.
3. Management’s Key Commentary
“Performance was affected due to lower realization and abnormal rains.”(Translation: Even God wasn’t bullish this quarter.)😏
“Festivals like Ganesh Chaturthi and Navratri reduced demand.”(Translation: Indians celebrated everything except eating chicken.)
“Animal Health business remains stable and profitable.”(Translation: At least one division remembered how to make money.)
“Oilseed margins improving with winter demand.”(Translation: It’s cold, people fry more—our only hope.)
“Raw material prices below MSP, so costs will fall.”(Translation: Finally, something falling that’s not our profits.)
“We’re utilizing 67% of poultry capacity, 50% of feed mill.”(Translation: The other half’s just sitting around clucking.)
“We’ll recover in H2 as prices improve post Diwali.”(Translation: We’ve outsourced our turnaround to the Hindu calendar.)
4. Numbers Decoded
| Segment | Q2 FY26 | YoY Change | Comment |
|---|---|---|---|
| Broiler DOC Price | ₹21.4/chick | ↓ 42% | Demand gone to the dogs (or vegetarians). |
| Broiler Bird Realization | ₹71/kg | ↓ 28% | Even biryani stalls felt pity. |
| Broiler Hatching Eggs | ₹19/egg | ↓ 39% | Yolk on us. |
| Maize Price | ₹25,290/MT | ↓ 4% | Farmers unhappy, Venky’s unmoved. |
| Soya Meal | ₹36,154/MT | ↓ 17% | Input costs dropping, profits still ghosting. |
| Cost of Broiler Prod. | ₹85–86/kg | Flat | Costs steady, realization tanked. |
| EBIT (Poultry) | ₹(58) Cr | ↓ | Bleeding faster than a plucked bird. |
🧾Analyst math: Same costs + lower prices = financial omelette.
5. Analyst Questions
Investor #1 (Furious):“Congratulations on being the worst performer in the stock market.”Mgmt:“We’ve noted your comments.”(Read: Please calm down.)
ICICI Securities:“Is the poultry cycle getting longer?”Mgmt:“Yes, but weather, festivals, astrology… many factors.”
Counter Cyclical PMS:“How can Godrej Agrovet break even when you can’t?”Mgmt:“Different geography, different excuses.”
B&K Securities:“Is the ₹58 Cr loss structural?”Mgmt:“No, just seasonal. Very, very seasonal.”
Retail Investor:“Stock at all-time low. Do a buyback?”Mgmt:“We’ll convey your suggestion to promoters.”(Translation: Not happening.)
6. Guidance & Outlook
Management’s Q3 optimism runs on hope, not math. They expect demand revival “post Diwali,” better realizations, and cheaper raw materials. Animal Health aims for ₹380 Cr revenue
