Simran Farms Ltd H1 FY26 – Broilers, Borrowings & Bhatias: How India’s Poultry King Is Laying Eggs of Mixed Fortune
1. At a Glance
Simran Farms Ltd (BSE: 519566), the Madhya Pradesh-based poultry giant, just dropped its H1 FY26 results – and the birds are squawking. With a market cap of ₹72 crore and a current price of ₹190, this ₹877 crore revenue company has built an empire of feathers, feed, and fluctuating fortunes.
The latest quarter (Q2 FY26, i.e., September 2025) saw sales of ₹188.46 crore, down from ₹204.94 crore in June 2025. Despite the fall in topline, the company posted a tiny PAT of ₹0.35 crore, still a 45.8% jump QoQ, proving that even a chicken can fly for a few seconds if it catches the right wind.
But before you clap, the stock P/E is undefined (thanks to a negative EPS of ₹-5.2), ROE at 16.4%, and a debt pile of ₹61.2 crore. Simran’s borrowing limit was raised from ₹100 crore to ₹150 crore this November — because apparently, when margins are thin, the best solution is… more leverage!
Return in the last 3 months? +15.8% — not bad for a bird business running on wafer-thin OPM of 0.75%.
2. Introduction
Poultry farming isn’t for the faint-hearted. Feed prices rise faster than the stock market, diseases can wipe out profits overnight, and margins are thinner than a layer of butter on a gym-goer’s toast. Yet, Simran Farms Ltd has been in the game since 1984 — long before influencer chickens began trending on Instagram reels.
The company sits comfortably in the Fast Moving Consumer Goods (Food Products) segment, though its journey has been anything but fast-moving. Over the last decade, sales have grown at a modest 7% CAGR, while the stock has rewarded investors with a 21% CAGR — a classic case of “price running ahead of protein.”
From Indore to Jammu, the company’s network of breeding farms and hatcheries stretches like a desi franchise model — a mix of in-house operations and contract farming. Its revenue engine? Broiler sales. The profit engine? Well, that’s still warming up.
So, why should anyone care? Because India’s protein consumption story is real. Urbanization, rising incomes, and gym bros demanding “lean protein” every morning mean demand is here to stay. But as we’ll soon see, Simran Farms has to fight not just disease and feed prices — but its own balance sheet demons.
3. Business Model – WTF Do They Even Do?
Simran Farms is basically the Maruti Suzuki of Indian poultry — except instead of cars, they roll out chickens. The company does integration and consolidation of poultry farming — a fancy way of saying they coordinate farmers, feed them (literally and financially), and collect the finished goods (the broilers).
Here’s how the money-making machine clucks:
Breeding and Hatching: Parent breeding farms near Indore produce chicks that are sent to contract farmers across 7 states.
Feed Production: They’ve set up an in-house feed production unit because in poultry, feed = gold. If you control feed quality and price, you control profitability.
Broiler Farming: Contract farmers rear birds for 35–40 days. Simran supplies the chicks, feed, and medicine — and buys back the grown birds at a fixed rate.
Processing and Sale: Birds are sold to wholesalers and retailers — mostly live or freshly dressed.
Allied Businesses: Vet medicine (through Simfa Labs), feed supplements, and now — plans for retail poultry outlets.
Essentially, Simran Farms controls everything except the weather and chicken mood swings.
But here’s the twist — it’s a high-volume, low-margin model. The OPM last quarter? Just 0.75%. Even Amul would faint at such margins.
4. Financials Overview
Quarterly Results – Consolidated Figures in ₹ Crores
Metric
Sep 2025 (Latest Qtr)
Sep 2024 (YoY Qtr)
Jun 2025 (Prev Qtr)
YoY %
QoQ %
Revenue
188.46
174.64
204.94
+7.91%
-8.05%
EBITDA (Op Profit)
1.42
0.62
1.67
+129%
-15%
PAT
0.35
0.24
0.76
+45.8%
-53.9%
EPS (₹)
0.92
0.63
1.98
+46%
-53.5%
Commentary: Simran’s quarter was like watching a cricket team win despite being bowled out at 150 — technically a win, but nobody’s clapping. Sales dropped QoQ, operating margins remain anaemic, yet PAT inched up YoY. If chickens could do math, even they’d be confused.
