Mumbai: India’s poultry sector is expected to register a 4–6 per cent revenue growth in the current financial year, supported by rising rural demand, higher per capita meat consumption, and a growing preference for protein-rich diets, according to a Crisil Ratings report released on Tuesday.
However, operating margins are likely to decline by 0.8–1 per cent due to weaker broiler prices in the first half of the fiscal. The impact will be partly offset by an expected recovery in prices during the second half and by stable, favourable feed costs throughout the year.
Despite pressure on profitability, the credit profiles of poultry firms are expected to remain stable, aided by modest capital expenditure, limited debt, and steady cash accruals. The report is based on an analysis of 34 companies that collectively recorded revenues of ₹10,815 crore in the previous financial year.
The layer (egg) segment accounts for 55 per cent of the poultry industry by value, while the broiler segment contributes 45 per cent. In the broiler category, revenue growth is projected to slow to 1–3 per cent this year due to weaker realisations.
Crisil Ratings Director Jayashree Nandakumar noted that “wholesale broiler prices dropped 20 per cent year-on-year to ₹110–115 per kg in the first quarter, as a shorter summer and early monsoon increased bird weights, resulting in oversupply.” Prices have since begun to recover with the festive season, though average broiler rates are still expected to be 4–6 per cent lower for the full fiscal.
Broiler sales volumes are estimated to rise 6–8 per cent to around 5.86 lakh tonnes this year. In the layer segment, sales are projected to grow 4–6 per cent to about 15,750 crore eggs, with prices likely to inch up 2–4 per cent amid steady demand.
India’s per capita egg consumption, at 102 eggs per year, remains far below the global average of 218, suggesting strong growth potential. Consequently, the egg segment’s revenue is expected to expand 7–9 per cent in FY26.
Overall, the poultry industry’s blended revenue growth is forecast at 4–6 per cent, though profitability will stay under pressure. Broiler price crashes in the first half led to inventory losses and around a 2 per cent dip in margins. Crisil expects firms to limit these losses in the latter half as prices recover and feed costs remain supportive.
