Venky's Q2 profit returns as revenue rises 33% year on year

Venky's (India) Limited reported profit after tax of Rs 14.61 crore for the quarter ended 30 September 2026, reversing a Rs 26.53 crore loss a year earlier, as revenue from operations increased 33.1% to Rs 1,066.01 crore. However, profit was down 70.8% from Rs 49.99 crore in the preceding June quarter.

How did Venky's perform in the September 2026 quarter?

Venky's returned to profit in the quarter ended 30 September 2026, reporting profit after tax of Rs 14.61 crore against a loss of Rs 26.53 crore in the quarter ended 30 September 2025. Profit before tax was Rs 20.91 crore, compared with a pre-tax loss of Rs 35.08 crore a year earlier, while basic earnings per share turned to Rs 10.37 from negative Rs 18.83.

Revenue from operations rose by Rs 265.14 crore year on year to Rs 1,066.01 crore from Rs 800.87 crore. Total expenses increased to Rs 1,056.78 crore from Rs 845.31 crore, with cost of materials consumed rising to Rs 755.63 crore from Rs 608.07 crore and other expenses increasing to Rs 132.30 crore from Rs 117.58 crore.

Venky's recorded current tax of Rs 5.90 crore and deferred tax of Rs 0.40 crore in the September quarter, taking total tax expense to Rs 6.30 crore. In the year-earlier quarter, the company reported a tax credit of Rs 8.55 crore alongside the Rs 35.08 crore pre-tax loss, resulting in the Rs 26.53 crore loss after tax.

What changed from Venky's June 2026 quarter?

Venky's profit after tax fell by Rs 35.38 crore from Rs 49.99 crore in the June 2026 quarter to Rs 14.61 crore in the September quarter. Revenue from operations declined by Rs 52.37 crore over the same sequential comparison, while profit before tax decreased by Rs 38.36 crore from Rs 59.27 crore.

Total expenses declined by Rs 5.82 crore from Rs 1,062.60 crore in June to Rs 1,056.78 crore in September, a smaller reduction than the Rs 94.18 crore fall in income before expenses. Cost of materials consumed fell by Rs 27.34 crore to Rs 755.63 crore, while purchases of stock-in-trade increased by Rs 5.92 crore to Rs 75.78 crore.

The inventory-change line was negative Rs 8.04 crore in the September quarter, compared with negative Rs 28.21 crore in the June quarter, a Rs 20.17 crore movement. Employee benefit expense rose to Rs 69.22 crore from Rs 67.92 crore, while finance costs decreased slightly to Rs 3.82 crore from Rs 3.94 crore.

Tax expense also declined sequentially, to Rs 6.30 crore from Rs 19.28 crore in June. Despite that reduction, basic earnings per share fell to Rs 10.37 from Rs 35.49, based on paid-up equity share capital of Rs 14.09 crore in both quarters.

Which Venky's segments contributed to September-quarter revenue?

Venky's poultry and poultry products segment recorded the highest September-quarter revenue at Rs 513.57 crore, followed by oilseed at Rs 494.15 crore and animal health products at Rs 98.50 crore. Total segment revenue was Rs 1,106.32 crore, from which Rs 40.31 crore of inter-segment revenue was deducted to arrive at revenue from operations of Rs 1,066.01 crore.

Poultry and poultry products revenue was nearly unchanged from Rs 515.89 crore in June but increased from Rs 367.55 crore a year earlier. Oilseed revenue declined from Rs 527.91 crore in June but was above Rs 368.88 crore in the September 2025 quarter, while animal health products revenue decreased from Rs 113.67 crore sequentially and increased from Rs 91.24 crore year on year.

Venky's poultry and poultry products segment reported profit before tax and interest of Rs 10.12 crore, reversing a loss of Rs 58.31 crore a year earlier but declining from Rs 76.25 crore in June. Animal health products earned Rs 23.06 crore, down from Rs 30.31 crore in June and Rs 27.27 crore a year earlier, while oilseed profit before tax and interest was Rs 0.86 crore against Rs 30.95 crore and Rs 10.18 crore, respectively.

What do Venky's half-year profit and cash flows show?

Venky's reported profit after tax of Rs 64.50 crore for the half year ended 30 September 2026, compared with a Rs 10.70 crore loss in the corresponding prior-year half. Revenue from operations was Rs 2,144.49 crore, compared with Rs 1,666.70 crore, and profit before tax was Rs 90.18 crore against a Rs 13.31 crore loss.

Venky's used Rs 110.64 crore in operating activities during the six months, compared with Rs 15.26 crore used in the prior-year period. The cash-flow statement shows Rs 77.43 crore deployed in trade receivables and other financial assets, Rs 75.00 crore in trade payables and other financial liabilities, and Rs 54.47 crore in non-financial liabilities and provisions.

Investing activities generated Rs 50.12 crore in the half year, compared with Rs 5.69 crore a year earlier. This included Rs 60.10 crore of net proceeds from sales and purchases of mutual funds, partly offset by Rs 18.02 crore spent on property, plant, equipment and intangible assets.

Cash and cash equivalents decreased by Rs 61.03 crore during the half year, closing at Rs 1.13 crore on 30 September 2026 from Rs 62.16 crore at the beginning of the year. Net cash used in financing activities was Rs 0.51 crore, compared with Rs 3.66 crore used in the corresponding prior-year half.

Conclusion

Venky's September-quarter results show a year-on-year turnaround in reported earnings, with profit after tax of Rs 14.61 crore following a Rs 26.53 crore loss, supported by a 33.1% increase in revenue from operations. The sequential comparison was different: revenue, pre-tax profit and after-tax profit were lower than in June, and each of the three disclosed segments recorded lower profit before tax and interest.

The next point to watch is whether working-capital cash movements reverse after Venky's used Rs 110.64 crore in operating activities during the first half, including Rs 77.43 crore related to trade receivables and other financial assets. Segment profitability is also unresolved after poultry and poultry products, animal health products and oilseed reported September-quarter profit before tax and interest of Rs 10.12 crore, Rs 23.06 crore and Rs 0.86 crore, respectively.