💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment of egg powder and frozen egg manufacture. Total revenue for FY 2024-25 stood at INR 188.59 Cr, with Q1 FY 2025-26 revenue reported at INR 60.68 Cr. While specific segment growth percentages are not provided, the company noted increased operation levels as evidenced by a 104.91% YoY increase in the net capital turnover ratio.

Geographic Revenue Split

Not disclosed in available documents, though the company emphasizes a strong focus on international export markets alongside domestic sales.

Profitability Margins

Profitability saw a significant decline in FY 2024-25. Operating Profit Margin (OPM) dropped from 11.50% to 4.51% (a -70.06% variance) and Net Profit Margin (NPM) decreased from 10.24% to 4.80% (a -53.12% variance). This was primarily driven by a sharp rise in raw material (egg) costs and lower gross profit margins.

EBITDA Margin

Operating Profit Margin was 4.51% in FY 2024-25, down from 11.50% in the previous year. The core profitability was impacted by a significant increase in production costs and increased borrowings, leading to a -69.97% YoY decline in the Interest Coverage Ratio to 4.31.

Capital Expenditure

The company reported significant capital investments during FY 2024-25 for a new unit focused on enhancing production capacity and diversifying product offerings. While the exact INR Cr value is not specified, these investments contributed to a reduction in Return on Capital Employed (ROCE) from 26.37% to 12.37%.

Credit Rating & Borrowing

Crisil Ratings migrated the company to 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not Cooperating' on September 11, 2025, for bank facilities totaling INR 29.9 Crore. The migration occurred because the company failed to provide requisite information or No Default Statements (NDS).

⚙️ Operational Drivers

Raw Materials

Eggs (primary raw material) represent the most significant cost component. Other costs include manpower and logistics.

Import Sources

Not specifically disclosed, but the company is pursuing backward integration by owning poultry farms in India to secure supply.

Capacity Expansion

The company has implemented an expansion plan at a new unit strategically focused on enhancing production capacity and leveraging advanced technology to meet growing domestic and international demand.

Raw Material Costs

Raw material costs increased significantly in FY 2024-25, which was the primary driver for the 70.06% drop in operating margins. To mitigate this, the company is moving toward backward integration to reduce dependency on external market price volatility.

Manufacturing Efficiency

Net Capital Turnover ratio improved by 104.91% YoY (from 3.63 to 7.43), indicating higher operational levels despite margin pressure.

Logistics & Distribution

Export efficiency is sensitive to international shipping costs and trade route stability; however, specific distribution cost percentages are not provided.

📈 Strategic Growth

Growth Strategy

Growth is targeted through capacity expansion at a new unit, product diversification into specialized egg products, and backward integration into poultry farms to control costs. The company is also identifying new international markets to enlarge its customer base.

Products & Services

Whole egg powder, egg yolk powder, egg albumen powder (in both frozen and powder forms). These are used in bakery goods, pasta, mayonnaise, baby food, and meat products.

Brand Portfolio

Ovobel.

New Products/Services

The company is shifting from standard egg powder to specialized products in the same segment to meet evolving customer preferences.

Market Expansion

Actively looking to enter new international markets and increase presence in profitable retail niches.

Market Share & Ranking

The company notes there are only a few other active companies in the egg powder and frozen egg domain in India, suggesting a strong niche position.

Strategic Alliances

The company redeemed an investment of INR 9.00 Cr in Non-convertible debentures of Greenergy Bio Refineries Private Limited in March 2025.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward healthy eating and high-quality food ingredients. The company is positioning itself by improving quality measures and diversifying into specialized egg-based ingredients to capture this trend.

Competitive Landscape

Faces international competition and a few domestic players. Management relies on past experience and quality differentiation to counter competitive threats.

Competitive Moat

The company's moat is built on its reputation for quality and its status as one of the few Indian players in a specialized export-oriented niche. Sustainability is driven by backward integration and brand building in retail niches.

Macro Economic Sensitivity

Highly sensitive to inflation (affecting production costs) and global economic conditions (affecting export demand).

Consumer Behavior

Increasing global preference for healthy living and 'clean' food ingredients is driving demand for high-quality egg powders.

Geopolitical Risks

War and port congestion are cited as specific threats that could disrupt shipping routes and increase export costs.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to international trade policies, tariff structures, and food safety standards for export markets.

Legal Contingencies

A certificate from a practicing Company Secretary confirms that no directors have been debarred or disqualified by the Ministry of Corporate Affairs or other statutory authorities.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (eggs) and escalating manpower expenses are the primary internal uncertainties. International trade policy changes represent a significant external risk.

Geographic Concentration Risk

High dependency on international markets for revenue, making the company vulnerable to global trade slowdowns.

Third Party Dependencies

Historically dependent on external egg suppliers, which the company is attempting to mitigate through backward integration into poultry farming.

Technology Obsolescence Risk

The company is mitigating this by leveraging 'advanced technology and process optimization' in its new production unit.

Credit & Counterparty Risk

Trade receivables increased 48.04% YoY, which management attributes to higher year-end sales volume rather than deteriorating credit quality.