New Delhi, Feb. 20 -- The Indian poultry industry is set to see a decline of about 50 basis points in operating profitability in the next fiscal year, driven by a rise in feed costs, even as strong demand fuels revenue growth of 8-10%, as per a Crisil Rating agency report released on Thursday.

Despite this pressure on margins, the report states that poultry companies' credit profiles are expected to remain stable, supported by modest capital expenditures, limited debt addition, and steady cash flows.

An analysis of 30 poultry companies rated by Crisil Ratings, with a collective revenue of around Rs.10,000 crore in the last fiscal year, suggests that profitability gains seen in the past two years due to softening feed prices will narrow ...