Simran Farms Limited is a prominent Indian integrated poultry enterprise specializing in **poultry breeding, farming, and hatchery operations**. The company operates a vertically integrated "feed-to-fork" business model, focusing on the consolidation of poultry activities through large-scale **contract farming** and internal manufacturing infrastructure. By maintaining control over the entire value chain—from feed production to broiler rearing—the company ensures quality standards and operational oversight in a rapidly modernizing sector. --- ### **Integrated Value Chain & Operational Infrastructure** The company’s operations are designed to mitigate supply chain volatility through vertical integration and strategic partnerships. * **Core Product Focus:** The company operates in a single identifiable segment—**Poultry Breeding & Farming**—with its primary commercial output being **broilers**. * **Contract Farming Model:** Simran Farms utilizes an integration model with local farmers, providing them with scientific rearing protocols and balanced nutrition management to ensure high-yield bird production. * **Feed Self-Sufficiency:** The company operates a large-scale manufacturing setup for **poultry feeds** to support internal requirements. * **Strategic Sourcing (Simran Agritech):** Sourcing is optimized through **Simran Agritech Private Limited (SAPL)**, which operates an automatic manufacturing plant for **Soya DOC** and poultry feed. This partnership provides feed with high **protein ratios**, improving bird strength and yield. * **Logistics Optimization:** Manufacturing plants are strategically located in close proximity to poultry farms to minimize **transportation costs** and reduce bird stress during transit. * **Subsidiary Operations:** The company holds an **82.71%** stake in **Puregene Biotech Limited**, which reported total assets of **₹406.07 Lakhs** and a net profit of **₹10.12 Lakhs** for the year ended March 31, 2025. --- ### **Financial Performance & Growth Trajectory** Simran Farms has demonstrated a significant recovery in revenue and profitability, navigating through a period of high commodity volatility. | Metric (Standalone) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Income** | **₹836.24 Crore** | **₹488.69 Crore** | **₹367.27 Crore** | | **Net Profit (PAT)** | **₹5.79 Crore** | **₹31.12 Lakhs** | **₹3.49 Crore** | | **Revenue Growth** | **+71.1%** | **+33.06%** | **-6.75%** | **Performance Drivers:** * The recent surge in net profit is attributed to **improved price realization for broilers**, **better feed conversion ratios (FCR)**, and **reduced disease incidence**. * Despite revenue growth in FY24, margins were previously pressured by a **32% annual surge** in maize prices. * The company reported **no cash losses** for FY 2023-24 or the preceding year. --- ### **Capital Structure & Strategic Financial Expansion** To support its growth targets and navigate a consolidating industry, the company has significantly strengthened its capital base and financial flexibility. **1. Equity Capital Expansion:** In **March 2026**, the company converted **1,018,300 warrants** into equity shares at an issue price of **₹155** (including a **₹145 premium**). This raised **INR 15.78 Crores** from both the **Promoter Group** and **Non-Promoters**, increasing the paid-up equity capital to **₹4.81 Crore** (**48,10,000 shares**). **2. Enhanced Borrowing & Investment Limits:** * **Borrowing Limit:** Increased from **₹100.00 Crore** to **₹150.00 Crore** as of November 2025. * **Investment & Loan Limit:** Authorized up to **INR 50 Crores** under Section 186 of the Companies Act to allow for strategic loans and securities. * **Related Party Transactions (RPT):** Approved transactions with **Simran Agritech Private Limited** for an aggregate value of up to **INR 600 Crores** for **FY 2025-26**, ensuring a steady supply of raw materials at arm’s length. **3. Liquidity & Liability Profile (as of March 31, 2025):** The company manages liquidity through rolling cash flow forecasts and committed credit lines. | Liability Type (₹ in Lakhs) | Less than 1 year | 1-3 Years | More than 3 years | Total | | :--- | :--- | :--- | :--- | :--- | | **Trade Payables** | **8,650.71** | 565.27 | 536.30 | **9,752.28** | | **Short Term Borrowings** | **4,129.63** | — | — | **4,129.63** | | **Long Term Borrowings** | — | 15.01 | 0.29 | **15.31** | --- ### **Industry Outlook & Strategic Targets** India is the world's **third-largest producer** of poultry meat and eggs. Simran Farms is positioned to capitalize on the sector's transition toward organized, integrated models. * **Sector Growth:** Indian poultry demand is projected to grow **8-10%** in **FY 2025-26**, with a long-term **CAGR of 8.1%** through **2034**. * **Company Targets:** Management is targeting a **4-6% volume growth** and an **8-10% revenue increase** in the forthcoming fiscal year. * **Macro Tailwinds:** Leveraging India's projected **7.20% GDP growth** for **FY 2024-25** and rising consumer preference for affordable, protein-rich diets. --- ### **Risk Profile & Mitigation Strategies** The poultry industry is characterized by high biological and commodity risks. Simran Farms employs a formal **Risk Management Policy** to address these headwinds. **1. Operational & Biological Risks:** * **Feed Costs:** Raw materials (**Maize and Soybean meal**) constitute over **60%** of production costs. The company uses **forward contracts** to hedge against price spikes. * **Disease Management:** Vulnerability to **Avian Influenza (Bird Flu)** is mitigated through stringent **biosecurity protocols** and comprehensive **vaccination programs**. * **Climate Impact:** Heat waves can increase mortality; the company maintains **comprehensive insurance coverage** for livestock and assets. **2. Market & Financial Risks:** * **Price Volatility:** Broiler realization prices are volatile; management notes a limited ability to fully pass on cost increases to consumers. * **Credit Risk:** Managed through individual customer creditworthiness assessments and established credit limits. The company has **no foreign exchange exposure**. **3. Governance & Compliance:** * **Regulatory Note:** As of September 2025, the company noted a deficiency in maintaining the required database for **Unpublished Price Sensitive Information (UPSI)** regarding subsidiary financials. * **Leadership:** Continuity is maintained through the re-appointment of **Mr. Kawaljeet Singh Bhatia** (until August 2027) and **Mr. Gurmeet Singh Bhatia** (until August 2026) as Whole Time Directors.