Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Venky’s (India) Ltd (NSE: VENKEYS) Q4 2026 Earnings Call dated May. 15, 2026
Corporate Participants:
Rohan Bhagwat — Company Secretary
Jeevan Handa — Chief Financial Officer
Analysts:
Prabhal Sen — Analyst
Siddharth — Analyst
Unidentified Participant
Akhil Parekh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Q4FY26 earnings con call of Venkus hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Prabhal Sen from ICICI Securities. Thank you. And over to you sir.
Prabhal Sen — Analyst
Thank you. Hello everyone. Welcome to this Q4 post Q4 panelist call of Venkies India Limited hosted by ICICI Securities. We have with us senior members of the management from Benkes India including Mr. N.K. Toshnival, the GM oilseed segment, Dr. Vijay Tejare and Dr. P.G. Pedgawankar from the poultry segment, Mr. Deepak Khosla, GM of the AHP segment and Mr. J.K. Handa, the Chief Financial Officer as well as Mr. Rohan Bhagwat who is the Company Secretary. We will start off of course with some management commentary on the results and then we’ll have an interactive Q and A session.
Over to you. So I’ll hand it over to the management now. Over to you sir.
Rohan Bhagwat — Company Secretary
Thanks Mr. Hardik. A very good afternoon and thank you all for joining us today for the conference call of Venkies India Limited. The company had published financial results for the quarter and year ended 31st March 26th along with information for investors on 14th May. I hope you all have gone through the same today. We have with us unitheads to answer all your queries in respect of their respective segments and area of operations. Before we start discussing the company’s performance, I would like to mention that some statements made in today’s discussion may be forward looking in nature and may involve risks and uncertainties.
After the end of this call, in case you have any further questions, please feel free to reach out to the investorizations team. I will now hand over the call to Mr. Jeevan Handa, our CFO to make the opening comments. Over to you Mr. Handa.
Jeevan Handa — Chief Financial Officer
Good afternoon and a very warm
Siddharth — Analyst
Welcome
Jeevan Handa — Chief Financial Officer
To our shareholders and investors. I am Jeevan
Siddharth — Analyst
Ahada, cfo.
Jeevan Handa — Chief Financial Officer
We are meeting today to discuss on the Revengees earning call for the quarter and
Siddharth — Analyst
Year ended March
Jeevan Handa — Chief Financial Officer
26th. I hope you have gone through the audited and also the detailed information to investors
Siddharth — Analyst
For the quarter ended March 26th.
Jeevan Handa — Chief Financial Officer
Overall performance of the company substantially improved. Poultry and poultry products segment delivered a robust performance due to the improved realization from the sale of day old chicks and grown up broilers. Particularly in the last quarter, the animal health products segment has continued to deliver gradual increase in terms of turnover as well as the profitability.
Siddharth — Analyst
Performance of oil kit segment registered a vast improvement
Jeevan Handa — Chief Financial Officer
As
Siddharth — Analyst
Compared to previous quarters
Jeevan Handa — Chief Financial Officer
For the financial year
Siddharth — Analyst
2526, the company registered a better performance
Jeevan Handa — Chief Financial Officer
As compared to previous year on account of better realization in the fourth quarter. Recently improvement in realization is visible and with the onset of monsoon
Siddharth — Analyst
We hope to see better performance.
Jeevan Handa — Chief Financial Officer
With this briefing, our senior management is available here to answer all your queries. You may go ahead with your questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question May press star n1 on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akshay Satpeeja from Alpha Invesco. Please go ahead.
Rohan Bhagwat
Congratulations on page set of numbers. So if you could please share the volumes. For grown up broilers, tricks and layers.
Jeevan Handa
The volume of commercial broiler birds is 8.69 crore in 2526. Against the previous year it was 9 crore 17 lakh. 17 lakh birds. There was a reduction of almost 49 lakhs kgs during this financial year. In regard to the layer 6, the volume is 4 crore 57 lakh in this year. Whereas last year it was 4 crore 38 lakh. So there is an increase of 19 lakh chicks during the year. In case of broiler chicks it is 11 crore 46 lakh chicks during the year. Whereas in the last year it was 10 crores 77 lakh chicks.
This is a volume of layer chicks, broiler chicks and machine broiler birds. Thank you.
Rohan Bhagwat
Okay, if you could also share what would be the realizations for each segment? And also what would be our cost for broilers and chicks for this quarter?
Jeevan Handa
Okay. As far as the commercial broiler bird rate is concerned, this year it is 89.59 rupees. Whereas the last year the cost was 90.37. I mean this is realization. So there is a reduction of 78 paisa per kg. The realization is on the lower side. And in case of broiler chick the realization in this year it is 34.94 paisa. Whereas last year it was 37 rupees 90 paisa. So there is a reduction in the broiler chicks. The old chicks it is 2 rupees 96 paisa. In case of layer chicks the realization is 45 rupees 15 paisa.
Whereas last year it was 41.50 paisa. So there is an increase of 3 rupees 65 paisa. In case of layer 6. So brawler chicks, layer 6 and commercial brawler birds the realization is comparative. Comparable. Comparable realization is given. In regard to the costing is concerned. The commercial broiler bird cost of production is almost touching average 89 rupees during the year. Whereas in the case of layer chicks it is ranging somewhere around 35 to 37 rupees per bird. And in case of broiler chicks it is touching somewhere around 32 rupees.
Rohan Bhagwat
Okay, okay. Just a little suggestion here. If you could please share these details in the investor presentation or the press release that we publish every quarter, it could be of great help. Then. Additionally sir, what I wanted to understand is. Sir, is there any correlation between the cost of day old chicks and grown up broiler? I understand that in grown up grown up broilers day old chick is going to be a influential factor. But do prices really change for day old chicken costs for us?
Jeevan Handa
No. As far as the commercial broiler costing is there that day old chicks being supplied to the commercial broiler division is on the cost basis which is. Which was 28 rupees per kg, 28 rupees per number throughout the year. So that was fixed for the year. So that is not affecting the cost of production of commercial broiler birds. Ultimately because the bird price is remains same for the entire year based on the costing.
Rohan Bhagwat
Okay, so can we say then this difference between the selling price and the price by this cost, this is additional benefit. If Venki is integrally selling whatever boilers that they are selling. This is the benefit versus what another farmer would do.
Jeevan Handa
Yes, surely it is because it is a firm and confirmed price to the commercial broiler division that this is on cost basis based on being passed on to the other divisions. But as far as the variation in the production cost is concerned, there are other factors like feed cost, medication cost, growing charges, cost, mortality, cost and other productivity parameters. But as far as the day old chicks is concerned, cost is, I mean confirmed that this is what the price is throughout the year starting in all 365 days.
Rohan Bhagwat
Okay. Okay. So somewhat similar on the parent front. So we actually as being a part of integrated VH could be I think source our parents and grandparents. It’s from the parent. So does that also give us some cost advantage? Because what I understand is parent is also selling these breeding chicks to other players, to our competitors. So do we get any cost advantage there also?
Jeevan Handa
No, it’s a uniform price for all the customers. VI is one of the. Okay,
Rohan Bhagwat
Okay. So the cost benefit is going to be more on the six two. Yeah. So sir, if you could also segregate in terms of volumes like what portion is integrated and what goes via contract farming. Is there if you could quantify the cost difference.
Jeevan Handa
No, your question is you want.
Rohan Bhagwat
Yeah. What portion of a broiler volumes is. So we grow the broiler ourselves or versus we use contract farming, contractual farmings. And the volumes come from there?
Jeevan Handa
No, if you see the overall volume, what has been stated by Mr. Handa, 8.6 crore kg has been converted and sold as broiler bird. So when we say 8.6 crore that implies that almost three and a half crore of the chicks are placed or sold through integration division. Whereas we have sold directly to the customers close to 1 crore. So total 4 crore of 11 crore. So out of that if you see it comes to close to 80% under integration and 20% for open market.
Rohan Bhagwat
Okay. Okay, Got it. So one more thing I wanted to show. So what is our plans going forward? Can we expect to grow at an industry rate or maybe higher than that? 7, 8%. Is there any specific model that we plan to grow by like contractual farming, leasing or you want to grow the broilers ourselves. Is there any specific plan to grow for next three to five years for us?
Jeevan Handa
Yeah, sure. I think this is a good question. In fact, if you see the profile of Winky and if you see the overall growth from last few years, you must have seen that animal health product division and oilseed division, our main focus is there. So majority of the expansion and majority of the production and majority of the give ties coming from those division. Though principally we call ourselves as a poultry company. But if you see the profile, our profile is too balanced. So that almost 49 to 50% is poultry.
And balance is coming from oilseed and AHP division. So when we talk of expansion, our expansion is not only in poultry, but the expansion is coming from all other divisions also including poultry. With regard to poultry growth, our growth is coming to 7 to 8% as an industry and we do expect that that growth is likely to happen in Venkis also. But we have our own plans with regards to layer expansion, broiler expansion, and we have flexibility to convert some of the broiler birds. Rather than placing under integration or contract farming, we do sell into the open market.
So that flexibility also is there. So at that point of time, I mean that overall percentage may look less than the industry growth, but definitely internally we are growing and we have plans to grow under portals.
Rohan Bhagwat
Okay. Okay. So is there any difference between we trying to grow the board and sell it ourselves?
Operator
I’m sorry to interrupt. You may please rejoin that.
Rohan Bhagwat
It’s just a follow up of the same question, just a clarity on the same part. Is there any difference in the trying to grow up the broiler and sell versus contract farming?
Jeevan Handa
It’s an integration division only wherein we are placing the chicks growing ourselves and then selling into the market or it goes to the processing plant.
Rohan Bhagwat
Okay. Okay, thank you. That’s it for this idea.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to three per participant. Should you have a follow up question, please rejoin the queue. We will take our next question from the line of Ansh Khimawat from Capital One. Please go ahead.
Rohan Bhagwat
Hello.
Operator
Yes, you’re article.
Rohan Bhagwat
Yeah, So I just had two questions. First from the poultry division, what gives us confidence that it will be less volatile in this as compared to the earlier years? That will be my first question, sir. Hello.
Jeevan Handa
So you, you are asking that what will be the look of outlook for the poultry on being less volatile this year? Am I, am I right in understanding the question
Rohan Bhagwat
Correct for FY27? Sir, yes sir.
Jeevan Handa
No, if you see the overall poultry, I mean when we talk of poultry and when we call it as volatile, it is only because of the feeding grain prices and broiler realization. But if you see the overall performance of 25, 26, you can see that though first two quarters were not as expected, but later on it was compensated by quarter three and quarter four. So definitely, I mean overall outlook, if you see, I mean it is more or less what we are expecting that in past whatever the performance was there, the same performance is likely to be as per division.
Rohan Bhagwat
So are we trying to say that it’s going to be seasonality? If you say there’s going to be a seasonality where Q1, Q2 might be a bit tepid and then it might be followed by a bumper in Q3 and Q4, is there is that something which we can take it from this?
Jeevan Handa
No, no. I mean quarter to quarter performance variation will be there. Usually we do not talk on quarter to quarter basis as the investor. Definitely it’s analyzed and reviewed from investor point of view. But from company perspective we always focus on yearly performance. So if you see yearly performance, definitely there will be a bit of consistency with regard to poultry performance. Except some very related to realization and some very related to ingredient prices. But yearly performance definitely will be as expected.
What we are seeing.
Rohan Bhagwat
Okay, and so where do we see on the feed cost prices right now? Are we seeing it improving as to how it was in Q4.
Jeevan Handa
In this last quarter? I mean yearly 20,
Siddharth
25, 26.
Jeevan Handa
The average prices is 31,000 for the feed prices, broader feed prices, total feed prices. I mean this includes layer ration as well as a broiler ration also. But as far as the water free is concerned, the broiler feed rate is ranging somewhere around 39,000 rupees per ton.
Rohan Bhagwat
Okay, sir. Got it, sir. And so another question would be on the other financial assets and the other non current assets. Where assets have increased by approximately, approximately 4 crores. Also there were some bank balances which were there for greater than a year or something. Should we assume that it’s the same number or is there any difference there?
Jeevan Handa
Yeah, it’s a regrouping from the current assets to the non current assets. Ultimately figures are almost the same. It is basically if you see the current asset is there in the bank balances. But if you see the current asset, non current asset, it is lying in the other financial assets. So it is regrouping as per the index requirement.
Unidentified Participant
Thank you.
Operator
Thank you. Next question is from the line of Siddharth from I thought pms. Please go ahead.
Siddharth
So my first question is this quarter the margin in the poultry segment has almost 14 percentage operating margin. Right? Is it due to what is the reason for this and do you think that this performance can be maintained?
Jeevan Handa
Yeah, with regard to quarter four, the main attributing factor was boiler realization and of course input cost. So that is the reason why. And the percentage and the overall absolute profit was higher. We do expect such kind of performance in future also. But there are certain things which of course we have to see with regard to ingredient prices. But as far as broiler realization is concerned, usually, usually quarter one traditionally has shown a better performance in past.
Siddharth
Okay, so like what is your outlook on key raw material prices like maize
Prabhal Sen
And what do you. How do you see that landscape?
Siddharth
Raw material prices are Concerned I think it is going to be little bit volatile in coming months. For one thing the crude oil prices are very high. One of a major ingredient quant the government is working on ethanol production that will lead to some inconsistency. So yeah, prices again are related to crude oil because a majority of soya oil or palm oil across the globe is majority of them as is being utilized towards bio region. Prices are going to be remain little higher than the last year. But the relations factor is very good and consumption demand is very good.
So I think that will be able to take the burden of this price increase.
Rohan Bhagwat
How is the supply demand situation in the poultry industry right now in India?
Siddharth
As far as supply and demand is concerned, India is more than sufficient as far as the corn and soya both are concerned. Today corn we are not able to export even to our neighboring country Bangladesh Because Bangladesh is able to import much cheaper price from a Brazil. So in one word you can say. In one way you can say that India is expensive. As far the agri commodities are concerned the prices are going to be dominated by the international prices which are already much lower than the Indian prices.
So I think the local prices cannot remain higher for a longer period. Somewhere other the international factor has to coming. We feel very comfortable as far because the availability is very good for both the products. The price is there which are fluctuating nature. But we don’t see much impact on that because of global factors. The Brazil and Argentina are very economical as far as soya and meij is concerned. That’s the price look from our side.
Rohan Bhagwat
Yeah.
Unidentified Participant
Thank you.
Operator
Thank you. Next question is from the line of akhil Parekh from 361 Capital. Please go ahead.
Siddharth
Yeah, thanks for the opportunity and many congratulations on a good set of numbers. My first question is on the poultry pricing trend. Right. You highlighted for full year FY26. If you can share those numbers for fourth quarter of FY26 and how is the current trend like in month of April and May? That would be my first question.
Jeevan Handa
As far as the real segment is concerned prices are stable whatever the price is. 45 rupees to 49 rupees is the price which is same in the last quarter fourth quarter as well as the coming quarter that is April, May, June. In regard to the broiler prices it was very good prices in the last quarter ranging up to 105 to 110 rupees. Where the wenk’s is operating Though in the other part of the country the prices were much Higher. But in the area where Venkis operating it was ranging between 110 rupees and all which is continued in the month of April also similar to that and May also in the first 10 days.
But now gradually it is falling maybe due to the multiple factors of the demand supply situation and all. And in regard to the broiler chick, same is the case. The prices were quite up in the last quarter it went up to even 55 rupees per kg per bird number bird day
Siddharth
Old Bralachik
Jeevan Handa
It has come down to the level of 35.
Siddharth
And even some part of the northern India it has come down to the level of 2221 rupees. Also as there are fluctuation in the different
Jeevan Handa
State, different numbers are there. So prices are April, May it was good. But now from 10th May 11th May onwards it is little bit on the falling side.
Siddharth
Does the Adik mask impact our business?
Jeevan Handa
Yeah, usually it happens. But if you see the last Arik Mas the prices were quite a bit because people started taking maximum correction with regard to production and the impact was not to that extent. Usually people always fear about Adiq Maas and Shravan Maas. So this time Adiq Maas is in month of May. So people are quite. I mean they are taking lot of precaution with regard to Adit Mas. So availability will get reduced to the extent what demand will get compensated.
Siddharth
Got it. And my two more questions. One is on the animal health side. We have done very good and we have been scaling up meaningfully now. So do you think this 100 crore of a top line quarterly generator is sustainable going forward in animal health?
Akhil Parekh
In Anyone health actually 102 is a yearly, it is a 25, 26 performance. And this business is a very consistent kind of business. Last year we have built up a new facility which is adding value to our product line which is giving us a bottom line improvement in the bottom line. But we also hope that this current year also the same speed will be there for animal segment. And we are also introducing some new product line which will add to the values.
Siddharth
Okay, okay. So it’s fair to assume what we did in fourth quarter broadly that run rate can continue from a sales perspective. And margins also if I look at it EBIT margins were almost 29% much higher than historical 23, 24% range. So we expect that to continue. Basically
Akhil Parekh
Yes. I think there will be a first quarter seems to be on the same first quarter will be at the same kind of a speed of the Margin but second and third quarter generally we have seen because of now the raw material price of the raw material price of the ingredient has gone up. So definitely there’s a little bit of a pressure on the on the cost of production that will affect into little bit reduction in the overall margin in the coming quarters. But for whole year I think it will sustain 22, 23% and above and we are likely to see the improvement in the top line also.
Yes,
Siddharth
Great. So great. And lastly on the oilseed business, our EBIT margins increased almost to 5.3% and over last quarter on quarter basis. If I look at the numbers for last 18 quarters, we have done very good in last three, four quarters. So how should one look at it for full year? FY27 oilseed business in terms of sales as well as what is the sustainable EBIT margins which looks like basically on the current scenario right now
Prabhal Sen
For the CFI 7
Siddharth
Is concerned last 6 months there has been a gradual increase in the capacity relation. And one of the initiative what we have taken is to educate the poultry farmers about the impact on their production on account of the good quality of soya. That education campaign we started sometime in October and lasted up to January and February. And because of that we have been able to increase our outside sales other than the group to the 20% of our production. Now oil is already accounting around 40% of our outside production, outside sales.
And now this 20% we are trying to increase it to one third of our production of a doc. So that means our dependence on the group will become lower and our 60 to 65% revenue will be coming out from the outside the group only. And that will ensure a better margins, better liquidity and wide acceptability of the product. So we see that we’ll be able to build up on this platform much better
Jeevan Handa
Way than the past.
Siddharth
Great. So good to hear. If I can squeeze one last question if that’s okay?
Unidentified Participant
Yeah, sure.
Siddharth
Yeah. So this was the animal health business, right? I mean if you look at some of the listed peers, they get far better valuation. And we being part of this whole entity. Are there any internal discussions in terms of separating animal health business and getting it separately listed? Any remote thoughts or discussions within the board meeting? If you can throw some light, that would be really helpful because what happens is because it’s a part of entire venkies which includes a volatile business as well of poultry, animal health is not getting the right multiple.
So I don’t know if promoters and management and board of directors have given any thought on Separately listing animal investors. That’s all for myself.
Akhil Parekh
If you see that in case of. In case of animal is part of the portfolio of the Wenk’s Wenk portfolio is very interesting. It has a poultry, it has a food processing, it has oil feed business and animal health. They actually complement each other. I think this is a perfect set of models and then I think Rohan can add to it or you can ask Rohan separately if you have some dedicated question towards it. But presently this model is fantastic.
Jeevan Handa
Yes, I agree with Deepak. Mr. Deepak Khosla. So we will give. We have taken your suggestion. If anything is there, we’ll surely let you know. Thank you.
Siddharth
All right, thanks a lot. That’s all. Good message.
Operator
Thank you. Next question is from the line of Harsha from Marisis Advisors. Please go ahead.
Siddharth
Hello. Hi sir. Congratulations on the great set of numbers. I have three questions. Actually I like to ask the first question. There has been recently an article about CCI antitrust investigation. Can you throw some light or give some color on that?
Rohan Bhagwat
Yeah, sure. So this CCI investigation is regarding certain practices in the parent companies or the parent breeding farms.
Jeevan Handa
So
Rohan Bhagwat
In which venkies as such do not deal in those products.
Jeevan Handa
However, being a group as a part of legality we have received the notice. So as such Venkies India limited Being a list of entity would not be affected on that notice as of now.
Siddharth
Okay. Okay, answer. You know, I just like the past participant. I just wanted to ask that because of the al Nino that is you know, currently going on in India and summers, is there any impact on the bird weight, the summer seasonality which can impact Q1 FY26 or you expect a bit good realizations. And you know of course you as you alluded that the prices of maize and soy will be volatile. How do we expect. How should we expect Q1 FY27?
Jeevan Handa
Yeah, traditionally if you see the productivity gets hampered in Q1 usually because of we have more than 95% of the farms which are open because of these conventional farms in India. Usually the productivity is comparatively 10 to 12% less if we compare it to quarter two and quarter three. So definitely the productivity will be less in quarter one. And we do expect that the same to continue as per productivity of quarter to quarter variation is concerned. So we do expect that the overall body weight and there will be a reduction in availability with regard to industry output of broiler meat.
Siddharth
Okay. Okay. And how do you view oilseeds
Rohan Bhagwat
Business going forward? You know, are these kind of margins sustainable?
Siddharth
See this oil seed Business. I think we started capacity utilization in a better way. And it like it is on a continuous improvement on a capacity utilization. I’m sure we’ll be able to keep up or even better this performance.
Rohan Bhagwat
Okay. Okay sir. That. That would be from my side. Thank you.
Operator
Thank you. We will take our next question from the line of Madhurati from countercyclical investment. Please go ahead
Siddharth
Sir. So if you could start by telling us the realization in fourth quarter for doc and broiler meat per kilogram.
Jeevan Handa
In the machine realization is concerned it is ranging in the last quarter it is ranging somewhere around 101 seconds.
Siddharth
Sir, if you could tell us the average that will be really helpful.
Jeevan Handa
Yes. Yes Surely it is 102.67 in the last quarter as far as commercial broiler is concerned. As far as the deodor chicks is concerned it was 51 rupees 32 paisa in the last quarter. And in case of layer 6 it is 46 rupees 15 paisa.
Siddharth
Answer these same in the till quarter to date. What is the realization in all these parameters in the first quarter?
Jeevan Handa
Yes, first quarter current quarter that is only April. Only now that is April is completed. May is still going on. But in April as far as the prices of merchant brawler is concerned it is ranging somewhere around 9798 rupees or let’s say 100 rupees in round of figure. As far as the player 6 is concerned it is 46 rupees per chick in the last in the month of April as far as Dollar Chicks is concerned it is ranging somewhere around 38 to 39 rupees.
Siddharth
How what is the cost of production per kilogram and of broiler doc in fourth quarter and the same in the first quarter
Jeevan Handa
It is 30 to 33 rupees in a day old chicks. And as far as the cost of production for brawler birth it is 89 rupees and layer 6 it is 35 to 37 rupees.
Siddharth
Answer any change in the cost of production in the first quarter?
Jeevan Handa
It is likely to change in. Because of first quarter is only April, May and June is still pending. So there are many ups and down particularly in the RM friends so likely to be change in the cost of production depending on depending on the seasonality as well as the RM production side. I mean costing side.
Siddharth
So have maize prices increased quarter on quarter in first quarter versus fourth quarter?
Jeevan Handa
Not really. Because now in this first quarter rather than new bumper crop is coming from Bihar but due to the rains and all Those things prices are temporarily gone up but it’s likely to become down or is within the range. So it may not be. I mean similar to the last quarter as well as the first quarter.
Siddharth
Understood sir. And sir, I was seeing our commercial broiler production in FY10 it was 10.4 crore kgs. And I. I think in FY26 also it is the same. So I don’t think it has grown over the past six years. So what is the reason
Jeevan Handa
As we say in our last one call that we have a flexibility to convert broiler chicks either into Bert through our integration division or if an opportunity is there we do sell some part to the open market customer. That is I mean selling of broiler chicks directly to the customers. So because of that flexibility if you compare in certain year you will find that the number of kgs which are sold as a meat sometimes it is more and sometimes number of broiler chicks sold in the market it is more. So that flexibility is there on operational part depending on the situation,
Siddharth
Sir. But it seems to me that from FY16 till FY20 every year commercial grown up broiler in kgs was increasing. But after that it has basically plateaued out. And whereas so basically the overall poultry division itself it doesn’t seem it has been really growing at 8,9% the industry average.
Jeevan Handa
In regard to the commercial broiler section for example the prices are so volatile. The at deol chick prices are even in the last quarter it was 50 plus. Whereas in the first quarter it is on the lower side by 3435 rupees. The cost of production is 32 rupees. So this is what you know why the top line is also hampering and same way is the commercial boiler birds. The price is 120 or 115 or 114 in the last quarter. Whereas in the April it is ranging somewhere around 102 and 100 or 100. And presently it is falling down to the level of 90 or 93.
So. And so top line is also hampering with the realization bottom line is also affecting the numbers. So that is why you are saying that it is not in the order the last quarter was there.
Siddharth
And sir, how is the parent bird placement for the year on an industry wide scale? I mean how is the demand supply in the broiler segment?
Jeevan Handa
It is more or less 7 to 8%. If you see in past few years, I mean whatever the broiler breeders are getting sold all over India the overall percentage of increase is 7 to 8% compared to previous year
Siddharth
Sir. Now if we look at FY27 on a division wise you mentioned that in animal health care we can expect something like 15 to 20% growth. Is that understanding correct?
Akhil Parekh
Yeah, I think this animal health business will definitely grow in the double digit and even from the first month of this financial year direction only. So we are optimistic on this. And
Siddharth
For the
Jeevan Handa
OIC
Siddharth
Division the
Jeevan Handa
Fourth quarter performance can be expected to continue in the remaining quarters of this FR27
Siddharth
Is I think next two quarter we definitely expect so third quarter on what the new crops comes in. So that depends on the availability and the crop size. And all India because El Nino is affected though the soya bean and May doesn’t need much of the water. But you want to see that how that El Nino effect is on the crop then will be taking a call from October notes at a later stage. But up to September I think we’ll be doing but equivalent if not better than the this quarter.
Rohan Bhagwat
Great sir. So thank you very much for answering all the questions in detail. Sir my.
Siddharth
My request to you Kindly carry this request to the promoters as feedback. Sir like the previous speaker said the animal healthcare division since it’s an independent division it might be housed in Venkis India but since there are no inter division transactions it’s an independent unit so it can be split off
Jeevan Handa
And
Siddharth
It will generate huge in the value for the shareholders. And sir also we should do a share buyback so because recently the taxation has become very attractive for share buyback. So these two feedback I request
Rohan Bhagwat
You to carry to the promoters from the shareholders. Thank you very much.
Jeevan Handa
Thank you.
Operator
Thank you. Next question is from the line of Sahil Jain from Sanithi Partner. Please go ahead.
Rohan Bhagwat
Hello. Hello. Am I audible? You
Operator
Are audible sir.
Rohan Bhagwat
Yeah. Congratulations on a good set of numbers and a good part of execution. So I wanted to focus a little bit on oil processing. So if I go through the last decade except for FY15 your margins have been in a range of 4 to 5%. But since FY21 where you hit a peak of 2500 and until last year which was FY25 you came down to almost 1100 crore. Can you explain? And the margins also kept falling before this excellent quarter which we have had. So I wanted to understand one what has happened between FY21 to FY25 and also the sustainability of on which variable should be as investors keep a track of just to see what is happening in the Venki’s oil processing division
Siddharth
After Covid we had certain setbacks and the constraints which it took about two and two and a half years to recover that. And if you look at it from 24 onwards it has been gradually rising but the cumulative impact is being seen now. Actually the progress has started from the 24th onwards only and things built up in a better way. They learned from the experience. And second thing, we are going for an outside market where our outside market will be around 60 to 65% so that will add lot of advantages to us and it will help us to improve the capacity utilization Also in the commodity business the main thing is that you capacity utilization which makes all the difference and that is what we are trying to encase that because we are a debt free we are not using any money for the capex we are not using money for any working capital there absolutely no loan for the division.
So that capacity relation brings the best of the benefits.
Rohan Bhagwat
Okay, so at current. What is your current capacity utilization? Let’s say Q4 and is there any seasonality in your capacity utilization in your oil processing or is there like a seasonal impact?
Siddharth
We are trying to be consistent throughout the year though it is a seasonal indices but we have made our working in such a way that procurement of raw material sale of our goods that season or no season doesn’t impact us is a consistent performance throughout the year.
Rohan Bhagwat
Okay, and your capacity utilization, sir?
Siddharth
Capacity utilization today is around 65 to 70% and this year we expect to be around 80%.
Rohan Bhagwat
So will that be your optimum capacity utilization 80% or we can a little do a little more. Okay, so we can reach.
Siddharth
There’s a many factors counts for that. It is the capacity is counted on 300 number days 300 working days only but whereas 65 so capacitulation for commodity at least cost it can be increased at any time.
Rohan Bhagwat
So one last question. So two last questions on the oil processing. One, what’s the sort of procurement policy as it do and what is the catchment area? So procurement policy is there a direct procurement or is it from the Monday and what is the catchment area? Just to
Siddharth
It is the combination of. It is a Monday purchase also it’s a traders purchase Also this thing are doing. And second thing that NAFT and National Cooperating Federation they also stock the material they also sell. So we buy ITC and all this bulk people who buy in the off season and sell in the lean season we buy from them also it is a combination of all in procurement the main thing is the cost factors and we are almost. You can say the 70 to 80% of Maharashtra is our purchasing centers. That is where we procure our material.
So that ensures one thing, the competitiveness of the pricing. Second thing, availability, consistent availability throughout the year.
Rohan Bhagwat
And will you be deploying any more capital in the oil processing? Because your entire procurement in Maharashtra and you also have operations outside of Maharashtra. So will I in future do we have a plan for any more capex in the same like north? Yeah, north. Basically the you already present in west via Maharashtra. So do you have any future capex?
Siddharth
Right now we would like next one year for this units, all three units where we have the four plants to be stronger enough to sustain any volatility in the future so that we ensure the consistent performance. After satisfying that, we’ll think of a further capex.
Rohan Bhagwat
Okay. Okay. So I’ll get back in the queue for the other revision. Thank you. Thank you for your time sir.
Operator
Thank you. Next question is from the line of Chetan Palkir from Treason Capital. Please go ahead.
Rohan Bhagwat
Yeah, good afternoon and thank you for the opportunity. Am I audible?
Jeevan Handa
Yes.
Rohan Bhagwat
Yeah. So my questions are mainly on animal health business. So I can see in last 10 years we have almost more than doubled this business and the margins have also gone up from under 17 18% to this quarter it was around 29%. So if you can just help us, what is structurally changing in this business? Are the margins improving because of scale? Because of the product mix which is changing because few quarters back we were talking about getting into natural solutions and other specialized treatment products or higher margin replacement for legacy feedseed supplements.
So what is really happening in this business and if you can just help us the overall the trajectory for this business over the next three years, let’s say including the competitive positioning or any export opportunities that we are exploring, etc. So just a more detailed color on animal health business. Yeah,
Akhil Parekh
Last three, four years there were three, four changes have been made in the product mix. As you know, there’s a lot of talk on the antimicrobial resistance. So we started developing lot of products for the natural solution which is into those kind of a growth promoters which are naturals. That was the one changes we have made. Second, the big changes come and we set up our new unit which is basically for the treatment of the poultry, which is a therapeutic unit which is last year to last year. Yes, before that it was commissioned and it has started giving us a good revenue and good kind of a product mix and good results.
So this new units, before that the product mix has also changed. And third thing was that we have deployed a lot of distribution channel all across the country with a lot of clearing and forwarding and over warehousing system where we can reach to our customer in the different look and corner. So if we develop any product we want to sell from Trivendram to Guwahati or Agartala. So our system is such that it’s all those places we can sell it within six to seven days. So and then we have also started giving some technical support and assistance to our customers.
So these all things are happening and we see now with this kind of capacities and this kind of product mix, the future looks great. And we are very optimistic in the next two, three years over top line will further increase. It will definitely improve on the whatever the growth we were getting in the past. Now I think the growth will further strengthen and definitely it will affect on the bottom line as well as on the top line. And we are in export front also. We started selling to few of the countries outside India and that scope is also quite wide for us.
These all things will help us to further strengthen this business in the next three, four years. Yes please.
Rohan Bhagwat
Okay, okay. And what would be our quantum of export at present and what would be the capacity utilization in this business?
Akhil Parekh
Yes, actually whatever export is still not. It’s a very and I should say it’s in timing. It’s a not even the 2, 3% of the turnover which has started yet. That that’s number one and capacity. We have a two plant, one plot one plant which is our earlier plant at the Sade which is giving us around 75 to 80% utilization. A new plant which we have built. So which is at. Still at. Because this is for specialty product and the therapeutics. So this is still at the 35 to 40% of the capacity utilization which will give us a lot of volume in the coming years.
Going to be safe for next few years with this new production unit. Yes. And
Rohan Bhagwat
Incrementally how much volume or how much revenue this new plant can give us and what would be the margin difference between this and the legacy?
Akhil Parekh
Yeah, I cannot comment on that as of now. But we are very optimistic this for this business will continue to see the double digit growth in the coming years. Definitely. Absolutely. Okay.
Rohan Bhagwat
So essentially sir, we are saying incrementally all the growth will come from outside the group or within the group. Yes,
Akhil Parekh
Yes, absolutely. We are lot of as over. We have expanded over distribution channel and this will definitely help us for the outside group also, even with the inside group also we are trying to service Better and better. But outside group also now the numbers will definitely increase. And last few months we have already seen that changes.
Rohan Bhagwat
Okay. Okay answer. Who are we competing against in this market and what is there? How big is this opportunity?
Akhil Parekh
Yeah, absolutely. Because what happens with this business is divided into three, four segments. And Venkates in the animal health division is one part of that. Then over group company with these and deal with others like biologicals and pre mixing mothers. And there are many company which has some of the product line similar. These are multinational, these are local companies. And growth opportunity definitely will increase because people are becoming more and more conscious now. And the natural solution which we are providing which is definitely going to give us a good volume in the coming years.
Rohan Bhagwat
What would be our market share sir?
Akhil Parekh
Absolutely the product to product. Because yeah, some products may be. Some product will be very less still around 10 12%. Some product will be around like feed safety, food safety, those kind of product line. We must be 40, 45% of the market share. On an average you can sit between 24, 25% in these product line. Then average market share will be there and hope to increase in the coming years.
Rohan Bhagwat
Okay. Okay. So can we assume we’ll maintain this 110crore kind of an EBITDA run rate in this business.
Akhil Parekh
It will continue to grow at a higher
Rohan Bhagwat
Than the industry rates.
Akhil Parekh
Definitely we’ll. We’ll work on the top line and this will sustain these kind of a margins. And definitely in this business sometime opportunities come and we’ll try to encounter those opportunities. Thank you.
Rohan Bhagwat
Okay. Okay. And my last question is sir, on the SPF X side, what would be our current utilizations, revenue and the margins for this business for the year financial year 26 and outlook for 27?
Jeevan Handa
Yeah. As far as the capacity utilization is concerned, it is to the extent of 48% in this year. And the total capacity is 1 crore 88 lakhs x for the whole year. But it for real estate it is 48% against last year of 45% utilization. And the production was taken out almost 1 crore x in during this year. And the realization was 80 rupees 22 paisa during the current year. So this is hopefully to be improved further as there are a lot of inquiries from different look and corner of the globe.
Rohan Bhagwat
Okay. And what would be the margin in this business in SPFX at present and going forward? What do you expect?
Jeevan Handa
So we’ll get back to you on this question.
Rohan Bhagwat
Okay. Okay. So sir, if I just last one last question from my end. If we just connect to what sir? Guided on the soya business. So if we say that animal health is going to maintain 110 crore EBITDA, SPF exists there and your soya, we are confident that will maintain this run rate. So essentially are we saying these two divisions alone are becoming 160, 180 crore kind of an EBITDA run rate?
Unidentified Participant
Yes.
Siddharth
Yeah, definitely. And I will contribute to the top line.
Rohan Bhagwat
Okay. Okay, that’s it from my answer. I’ll get back in with you. Thank you very much.
Operator
Thank you. Ladies and gentlemen, kindly restrict yourselves to two question only. In case of follow up question, please rejoin the queue. We will take our next question from the line of Mahesh Atal from Dharia Investment Advisors. Please go ahead
Siddharth
Sir. What I understand is that the soya prices have been going. The soybean oil prices have been moving upwards and I think they have in the international markets the price have already touched around sixteen hundred dollars. Mark, what are you seeing on the pricing front and how it is going to increase our realization because we have done 5% EBITDA. What I understand is it could further, you know, go up in the coming times. Is my assumption right on this. What are you seeing on ground? That
Prabhal Sen
Would be my first question, sir.
Siddharth
No. In soya business or any commodity business, it is not the finished goods or raw material value which matters. What matters what conversion cost. You are able to realize conversion costs always remain the same. When the prices are high, the profit in percentage of comes down. When prices are low, the conversion cost forms a part. So you’ll find that percent of margin becomes more. But actually it is a conversion cost on which number one, number two, a certain amount of profit come from the inventory which is, which is speculative profit.
And then there we have a fairly expertise. We are able to buy the goods well in advance. So we are able to realize the future benefits of the inventory. That two combination makes up the profit of a soya division.
Rohan Bhagwat
So do you see that? I mean how. How do we link the oil prices to your. How much of that is actually oil?
Siddharth
Either? 40% is oil. 60% is a meal. Out of that 60% about 20% meal we are selling outside. So you can say the total turnover of over 55 we are selling around side. We are targeting 33% of the soy milk to sell outside our outside till our outside part of our operation will be more 65% plus and in house it will be 35%.
Prabhal Sen
Fair enough. In your beginning to
Siddharth
One of the questions that you’ve answered, you’ve said that the broiler check the day old chick realizations have gone down from 55 to somewhere around 38. And then you are seeing a downward trend again in that particular segment. So does this also impact your animal health division? In a way because the realization goes down, down, down in that part. The animal animal health also depends on how good the industry is. Right? I mean you will only it will be good for the farmers to get the products animal health products only when their realizations are better.
So how do you see this thing?
Akhil Parekh
Yeah, please. I understand it’s a very good question actually as well as animal health business is concerned it is basic for the poultry health. So when they have a problem they want to prevent any disease. They want to make good performance. They want to give nutrition supplements. So that time these products are required. So this is whenever the market is little bit disturbed. Only over the payments get delayed. But not the generally the basically the product consumptions or people start buying less product does it happen Only the sometime the credit extension goes up in those market those time.
Otherwise this is. These are the challenge the cyclical issues. It doesn’t affect the sales. It affects on the. Basically on the your credit period expense extension during those periods. That generally happens. But luckily as you aware that in this business we supply to the layer. We supply to the broiler. We supply to the broiler breeders, we supply to the feed millers. So one of the two segments if getting a little bit effective other picks up. So generally it isn’t effect. Thank you.
Siddharth
My last question sir would be on the balance sheet side. So if you see the receivables have gone up in the. I mean in our balance sheet as on the 31st of March. And also what is the view of management on the balance debt that we are having in the book? Sir, you can actually let. I mean I just wanted to understand how you’re. How you’re looking at debt. We want to clear this down or you are comfortable at this debt levels and how exactly? Because if you already said that the raw material pricing would be little volatile this year.
So how are you geared up to you know get more inventory for the next upcoming year? How are you planning it?
Jeevan Handa
The as far as receivables are concerned it was 340553 crore in the last year which has come down to the level of 544. This include external as well as a group associates. If you see the group associates outstanding it was more in the last year. It has come down this year. But at the same time the turnover has gone up to the 150 crore more in case of oil drip segment. So by even increasing the turnover to the extent of 150crores the debts are up same. That means there is a solid improvement.
Siddharth
Right answer. What about the procurement thing? Are you actually looking at increasing the debts in the procurement season? Because I think you’ll be reading more working capital.
Jeevan Handa
No, on the working capital front we are having the sufficient working capital in place. It is almost 160 cross is the working capital, I mean availability which is sufficient to meet the requirement of all the segments which we are having and the sufficient inventory or stocks are available. There is at the moment there is no, I mean planning to enhance the capital or liability in any of the way.
Siddharth
Maybe terminal
Jeevan Handa
Section or the working capital section. No plans to increase the liability as such.
Siddharth
Just one more thing to answer. Two years back there was one group, Sinivasa group which used, which bought the parent bird. So do you see any competition on that front, sir? I mean they wanted to have their own parent bird in the, in this particular territory. So any update on that?
Jeevan Handa
I think this is a question which is related to industry and not related to Venki. So definitely we’ll come back to you and we will post you the answer in detail with regard to all the details available with the competitor.
Rohan Bhagwat
All right, thank you.
Operator
Sir, we are not able to use NAS speaking.
Prabhal Sen
Yeah, thank you. I think that’s all from my side.
Operator
Thank you. We will take our next question from the line of Chetan Palke from Treetan Capital. Please go ahead.
Rohan Bhagwat
Thank you for the opportunity again sir. Just wanted to understand on the poultry division, last year’s Q1 and Q2 were abnormally volatile. So compared to. I understand we cannot predict the poultry prices for the next one or two quarters but will the volatility be lesser in Q1 Q2 of this financial year? Where do you expect? Basically what I’m trying to understand is will this year’s Q1 Q2 will be better compared to last year’s Q1 Q2 just broadly on the poultry side.
Jeevan Handa
Slowly, slowly industry is getting mature with consistent placement by all the integrators, including all the professionals company. So if you see that is one of the reasons why there is a consistent placement around the year irrespective of whether it’s a quarter one, quarter two or quarter three. Earlier there were a variation with regard to the placement and people used to correct the placement in quarter two and they used to increase the placement in quarter one and quarter three. Now that Is not the case and there is a consistent placement.
At the same time demand also is supporting. If you see overall by graph of non vest segment. Earlier poultry was having 35 to 40% in non waste segment. Now it is crossing more than 55%. So definitely there is a growth in demand. Also there is a consistent placement from professional players of whoever are placing under integration. They are also. So we feel that there will be less volatility in future. Of course there will be a volatility of ingredient prices. That is something different. But if we see the prices or realization to some extent we expect that the market is likely to get matured and there will be less volatility.
Rohan Bhagwat
Okay. Okay. And sir, earlier briefly you mentioned about our growth plans as well in the old chicks and layers and in commercial broiler. So if you can just elaborate a little more on that. I mean what. What makes us think that we can go back to let’s say 5% plus kind of a volume growth in all these segments. Especially the volume growth. Yeah.
Jeevan Handa
Yeah. In case of poultry segment particularly like layer segment we sold 4 crores 57 lakh ticks during last year 25, 26. We are planning to sell almost 5 crore plus ticks during the this 26, 27. So there is a solid plan. Plan to acquire more numbers in case of layer segment. As far as broiler is concerned we are having the packed production line of the breeders flock and all everything. So we are hopeful to have a better number at least the same May not maybe having a 4.5percent growth in regard to the CBF contract broiler farming wherever venkis is operating.
So we are having the same salary set of. I mean offices, branch offices and people in place as well as the number only sometimes the various issues like viruses and disease are also concerned. Like in last year Rajasthan was having a very good number we were having. But at the same time few issues were there. The productivity norms were less. We were having a less production because of virus and many other factors. But as per our availability in the different states where we have venkies operating we are having a packed production when likely to repeat this number at this 2,3% more 4,5% more in broiler chicks as well as CBF numbers layer.
In any case we are going to increase from 4 crore 57 lakh to 5 crore plus.
Rohan Bhagwat
Okay. Okay. And sir, lastly if you can just help us understand what is is the competitive intensity changing in the regions that we are operating especially in the north and west. And how do we see the new entrants performing or how easy or difficult it is getting for new players to come up with commercial farms and scale up our hatcheries and breeders and all those segments.
Jeevan Handa
If you would like to bifurcate the expansion of the industry, we are seeing that more than 75% of expansion comes from existing players because they are better off and they are already having the infrastructure of feed, milling, builder capacity, hatchery and even commercial farms. So more than 75% of expansion is coming from existing operators. And of course new entrants are coming not in a big scale, but definitely 25% of expansion comes from the new entrant or the small scale player or open market.
We can say. But the existing and professional players, they are expanding and their expansion is more than 75% out of the total expansion of 7, 8%.
Rohan Bhagwat
Okay, so in, in your view is the intensity is reducing or still being maintained as it was two, three years back? The competitive intensity? I mean.
Jeevan Handa
No, it’s maintained. I mean if you see that the whatever age is there for the existing player, I mean they are having a. They are better place when we compare to any new entrants or any new competitor coming into the market because they are well poised and they are having a very good presence in that particular geography with regard to the infrastructure.
Rohan Bhagwat
Okay. Okay, that’s it from my answer. Thank you.
Operator
Thank you ladies and gentlemen. Due to time constraint, that was the last question for today. I would now like to hand the conference Mr. Hardik Silanki for closing comments. Over to you, sir.
Rohan Bhagwat
Yeah. Thank you everyone for joining the call. Thanks on behalf of ICICI Securities. Thank you everyone.
Operator
Thank you very much on behalf. On behalf of ICICI Securities. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.