SKM Egg Products FY26 Sees Record Turnover ₹767 Cr, PAT Crosses ₹100 Cr

SKM Egg Products Export (India) Limited held an investor conference call to discuss its financial performance for the fiscal year ending March 31, 2026. The company reported a record turnover of ₹767 crore, a significant 58% year-on-year increase from ₹493 crore in the previous year. Operating profit surged by nearly 200% to ₹162 crore from ₹71 crore. Profit Before Tax (PBT) reached ₹136 crore, up from ₹47 crore, and for the first time in its history, the Profit After Tax (PAT) crossed the ₹100 crore mark, standing at ₹102 crore, a substantial jump from ₹33 crore in the prior year.

The company highlighted its operational milestones, including a consistent focus on quality standards for international markets like Japan, Europe, Russia, Nigeria, and South Africa. The expansion of its layer bird capacity is a key strategic initiative, with plans to increase from 5 lakh birds to 20 lakh birds, supported by a ₹400 crore capex. This investment is primarily aimed at improving the bottom line by reducing reliance on external egg procurement and enhancing operational efficiency. The company also mentioned its intention to re-acquire the branded egg division into the listed entity and integrate the windmill division of an acquired company to achieve significant cost savings.

During the call, management addressed investor queries regarding sales volumes, realization per kilogram, demand outlook, and the impact of a depreciating rupee. The company aims for a turnover of ₹1,000 crore by 2030, driven by capacity expansion in powder and egg production. They also discussed future plans for value-added products, including a reformulated Egg Pro drink and egg white cubes, with a dedicated R&D division planned. The company's strategy includes focusing on the Indian domestic market for these products due to shelf-life and distribution challenges in exports. The management also clarified that the ₹400 crore capex is focused on bottom-line growth and is expected to be completed by FY29, increasing layer bird capacity to 40 lakh.

SKM Egg Products' competitive edge in international markets, particularly in Japan and Russia, is attributed to its reputation for quality and timely delivery, allowing it to realize approximately 5% more than its competitors. The company generally enters into three to six-month contracts for about 70-75% of its business, with the remaining 20-30% on a spot basis, benchmarking prices based on cost and market conditions. Forex exposure is typically hedged up to 60-70% of expected exposure, though currently, only 30% is covered due to high volatility.