India’s poultry sector is projected to grow 4–6% in revenue in FY26, supported by rising rural consumption, increasing per capita meat intake, and a growing shift toward protein-rich diets, according to a recent Crisil Ratings report. However, the industry’s operating margins are expected to decline by 80–100 basis points due to weaker broiler prices in the first half of the fiscal.
Despite pressure on profitability, Crisil notes that the credit profiles of poultry companies remain stable, helped by modest capital expenditure, limited borrowing, and healthy cash flows. The poultry industry is divided between the layer (egg) segment, which contributes 55% of the sector’s value, and the broiler meat segment, which accounts for the remaining 45%.
The broiler segment is expected to witness muted revenue growth of 1–3% this fiscal, as wholesale broiler prices fell nearly 20% year-on-year to INR 110–115 per kg in Q1. This drop was triggered by a short summer and early monsoon—leading to heavier birds and surplus supply. While festive demand has begun supporting prices, average realisations for the fiscal are still expected to remain 4–6% lower year-on-year. Nevertheless, broiler sales volume is projected to rise by 6–8% to 5.86 lakh tonnes.
In contrast, the egg segment shows stronger momentum. Sales volume is estimated to increase 4–6% to 15,750 crore eggs, with prices rising 2–4%. With India’s per capita egg consumption at just 102 per year—far below the global average of 218—the segment has substantial room for expansion. As a result, egg segment revenue is expected to grow 7–9% in FY26.
Feed costs, which make up 60–65% of total material expenses, will remain manageable. Soy de-oiled cake prices are expected at INR 35–37 per kg due to oversupply, while maize prices should stay stable at INR 24–25 per kg.
Overall, the sector is poised for stable growth, even as margin pressures persist due to volatility in broiler prices.
