Venky's (India) Q1 FY27 Results (NSE: VENKEYS)
Signal: Margin expansion
The read
The key inflection is a sharp operating recovery: EBITDA rose +134.4% YoY and margin expanded 330bps to 7.4% despite raw-material cost rising to 70.0% of revenue from 63.9%; management attributes the revenue and segment improvement to higher volumes, realizations, product mix and cost optimisation, but the 13.3% asset-base increase against 1.9% depreciation growth is an earnings-quality monitor.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,118.38 Cr | 29.2% | +1.6% |
| EBIT | ₹73.21 Cr | 180.9% | |
| Net profit | ₹49.99 Cr | 215.8% | |
| EPS | ₹35.49 | 215.7% | |
| EBIT margin | 7.4% |
P&L walk
Revenue increased to ₹1,11,838 lakh, +29.2% YoY and +1.6% QoQ, but material costs rose faster at +41.6% YoY; EBITDA nevertheless grew +134.4% and margin expanded to 7.4% as employee costs, depreciation and finance costs grew far slower than revenue, while PAT rose +215.8% on clean operating improvement.
Segments
Oilseed was the main growth engine, with revenue up 66.3% YoY to ₹52,797 lakh and result up 208.3% to ₹3,096 lakh; Animal Health Products delivered the highest segment margin at ₹3,031 lakh of result on ₹11,357 lakh revenue, while Poultry remained the largest revenue segment at ₹51,689 lakh but contributed only ₹1,625 lakh of result amid higher feed prices.
Key positives
- Revenue reached ₹1,11,838 lakh, +29.2% YoY, supported by improved poultry volumes and realizations, higher animal-health volumes and product mix, and oilseed volume growth.
- EBITDA grew +134.4% YoY versus revenue growth of +29.2%, a +105.2 percentage-point gap, while employee costs rose only +7.4%, depreciation +1.9% and finance costs declined 8.2%; EBITDA margin expanded 330bps to 7.4%.
- Oilseed revenue rose +66.3% YoY to ₹52,797 lakh and segment result increased to ₹3,096 lakh from ₹1,005 lakh, aided by higher volume and cost optimisation.
- EPS of ₹35.49 grew +215.7% YoY in line with PAT growth of +215.8%, providing a clean PAT-to-EPS conversion signal.
Key concerns
- Cost of materials consumed rose +41.6% YoY to ₹78,297 lakh, lifting raw-material intensity to 70.0% of revenue from 63.9%; the company cited higher feed prices, indicating input-cost absorption despite better realization.
- Poultry and Poultry Products generated ₹51,689 lakh of revenue but only ₹1,625 lakh of segment result, materially below Animal Health Products and Oilseed on profitability.
Research and educational content only. Not investment advice.