SKM Egg Prod.

SKM Egg Prod. achieved an all-time high financial performance in FY26, with sales surging by 55.57% year-on-year to ₹767 crores from ₹493 crores in FY25. Operating profit increased by 129.57% to ₹163 crores, and Profit Before Tax (PBT) grew by 189.36% to ₹136 crores. Notably, Profit After Tax (PAT) crossed the ₹100 crore mark for the first time, reaching ₹102 crores, a 209.09% increase from ₹33 crores in FY25. The company's shareholders' funds stood at ₹395 crores, with a book value per share of ₹150.

The company initiated a significant capital expenditure of ₹403 crores for the second phase of its easy sheds project. This investment aims to expand layer bird capacity from 20 lakh to 40 lakh by 2029, with 20 lakh additional EC layer birds under construction. The project is funded by ₹101 crores from internal accruals and a ₹302 crore bank term loan, benefiting from a 3% interest subsidy. This expansion is expected to yield substantial operational cost savings, estimated at 20 Paises per egg.

SKM Egg Prod. is acquiring SKM Universal for a total valuation of ₹37 crores, with an out-pay of ₹27.75 crores for the remaining 74% stake, as the company already holds 26%. This strategic acquisition aims to integrate SKM Universal's windmill division, which is expected to generate substantial savings and leverage its banking facilities. Additionally, it brings the branded egg division back into the listed entity, enabling a focused marketing push and growth in this segment, which was previously constrained by financial strength.

The company highlighted its strong competitive position in international markets, including Japan, Europe, Russia, Nigeria, and South Africa, achieving at least 5% higher realization than competitors due to superior quality and timely delivery. Management noted that global bird flu outbreaks have been a major market disruptor, causing supply shortages and price volatility, which India has capitalized on as an alternative supply source. The company is also exploring vaccination policies to stabilize supply chains and reduce market turbulence.

SKM Egg Prod. is re-focusing on value-added products, with a reformulated Egg Pro drink set to launch in June. The company is also building a dedicated R&D division for product development, expected to commence operations within six months. While past efforts in this segment faced challenges, the company aims to leverage its financial strength and the executive director's leadership to make significant inroads, initially focusing on the Indian domestic market due to shelf-life and supply chain complexities for exports.

The company detailed its operational milestones from 1995 to 2026, including significant increases in egg breaking capacity from 10 lakh to 30 lakh eggs per day by 2005, and the transition to environmental-controlled poultry farms from 2024, leading to substantial operational cost savings. Looking ahead, the company targets a turnover of ₹1000 crores by 2030 and aims to achieve 10,000 tons in powder volume within five years, while also expanding shellac exports and domestic market presence.