Crisil sees India poultry returning to 10% growth on firmer egg and broiler prices
India’s poultry sector is projected to grow about 10% this fiscal as stronger egg and broiler realisations offset a 3-5% rise in feed costs, Crisil Ratings said. Operating margins could improve by 50-70 basis points, supported by limited capex and stable leverage.
What happened
Crisil Ratings · Crisil expects India’s poultry sector to return to roughly 10% growth this fiscal as stronger egg and broiler prices lift realisations. Feed
Key facts
- Poultry industry growth projected at around 10% this fiscal
- Operating margins expected to improve by 50-70 basis points
- 34 rated poultry companies analysed, with combined prior-fiscal revenue of about ₹12,410 crore
- Egg segment represents 58-60% of industry value
- India per-capita egg consumption is 106 eggs annually
- Egg consumption forecast to rise 4-6% this fiscal
- Egg prices projected at ₹5.6-5.8 per egg
- Egg-segment revenue growth projected at 9-11%
- Broiler-segment revenue growth projected at 8-10%
- Broiler volume growth projected at 2-4%
- Average broiler prices projected at ₹120-125 per kg versus ₹115-120 per kg last fiscal
- Feed accounts for 60-65% of input costs
- Imported components account for about 10% of feed costs
- Feed costs projected to rise 3-5% to about ₹77 per kg
- Interest coverage projected at 3-4 times
- Leverage expected at around 2 times next fiscal
Why this matters
Improving poultry economics and restrained industry capex could make selective capacity, feed-efficiency or integrated supply-chain investments more attractive.