Poultry Sector Set for Steady Growth Amid Profitability Pressures

The poultry industry is projected to experience a 4-6% revenue growth in fiscal 2025-26 due to rising rural demand and increasing protein-rich diet preferences. However, lower broiler prices may affect profitability, even as credit profiles remain stable. Egg segment growth prospects remain strong, signifying a robust sector outlook.

The poultry industry is poised for a 4-6% revenue increase in 2025-26, driven by a rise in rural consumption and a growing penchant for protein-rich diets, according to a Crisil Ratings report.

The report, however, warns of a potential decline in operating margins by 80-100 basis points due to lower broiler prices in the fiscal's first half. Crisil Ratings has assured that the credit profiles of poultry firms will likely remain stable, supported by modest capital expenditure and restricted debt increments.

The egg segment holds a promising growth potential, with projections indicating a 7-9% revenue increase due to stable demand, despite India's current per capita egg consumption falling below global averages. The broiler segment, while recovering partly in the second half, faces a challenging start with lower prices, yet sales volume may increase by 6-8%.