Indian Poultry Industry Profitability to Slip: Crisil Report

The Indian poultry industry's operating profitability is poised to slip next financial year 2025-26, owing to an increase in feed cost, even as strong demand leads to revenue growth of 8-10 per cent, Crisil Ratings said in a report.

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The operating profitability is expected to slip 50 basis points, the rating agency said in a note this week. With modest capital expenditure (capex), no significant debt addition and healthy accrual, the credit profiles of poultry companies are expected to remain stable, Crisil Ratings said. The rating agency has come up with these estimates after analysing 30 poultry companies it rates. Those 30 companies had generated revenue of about Rs 10,000 crore last fiscal 2023-24. "The industry's margin improved last fiscal and this fiscal due to favourable input costs and higher realisati