Venky's (India) earnings calls.

Venky's Q4 FY26 call reflected a quarter of operational recovery rather than transformative financial performance. The poultry segment delivered a 14% operating margin on improved broiler realizations (102.67 Rs/kg in Q4 vs 89.59 annual average), though volumes declined 49 lakh kg YoY. The animal health products (AHP) division showed exceptional quarterly performance at 29%Current 29%. Reported change: +500-700bps vs historical. EBITDA margins—significantly above the 22-24% historical range—driven by new therapeutic product lines and expanded distribution reach, though management expects margin normalization to ~22-23% for FY27. The oilseed segment achieved 5.3% EBIT margins with 65-70%Current 65-70%. Reported change: +targeting 80%. capacity utilization, targeting 80% this year. Feed costs remain a concern: broiler feed averaging 31,658 Rs/ton annually with maize and soy prices facing crude oil linkage and ethanol policy headwinds. The company guided for 7-8% industry-matching growth in poultry, with layer chick volumes targeted at 5 crore+ from 4.57 crore. The critical risk is the recent softening in broiler realizations from 102 Rs/kg in Q4 to 90-93 Rs currently, coupled with day-old chick prices dropping to 21-35 Rs, suggesting Q1 FY27 may face margin compression despite seasonal demand improvements from Eid-ul-Azha and reduced summer productivity. Management deflected on SPF division margin guidance and the potential AHP demerger question.