SKMEGGPROD - SKM Egg Prod.

📊 NSE: SKMEGGPROD 🏢 Food - Processing - Indian 📅 Last Updated: 12/14/2025 13:29

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations for FY25 was INR 497.83 Cr, a 27.8% decrease from INR 689.95 Cr in FY24. However, Q2 FY26 standalone revenue grew 64.9% YoY to INR 206.21 Cr from INR 125.02 Cr in Q2 FY25.

Geographic Revenue Split

Japan and Russia are the primary export markets, together accounting for 45% of total export sales in FY25, down slightly from 46% in FY24.

Profitability Margins

Net profit margin for FY25 was 6.5% (INR 32.99 Cr profit on INR 507.40 Cr total income), a significant decline from 12.4% in FY24. Q2 FY26 standalone net profit grew 129.2% YoY to INR 20.58 Cr.

EBITDA Margin

The company targets a sustained PBILDT margin above 15%. FY25 PBT margin stood at 9.2% (INR 46.94 Cr on INR 507.40 Cr total income).

Capital Expenditure

Planned capex of INR 70 Cr for Environmental Controlled (EC) sheds and a Bio-gas plant, with INR 33.13 Cr incurred in FY25, of which INR 9.69 Cr was for plant and machinery.

Credit Rating & Borrowing

CARE Ratings assigned a 'Stable' outlook with interest coverage at 15.39x and TD/GCA at 0.95x as of FY23. Financial costs for H1 FY26 were INR 6.41 Cr.

⚙️ Operational Drivers

Raw Materials

Primary raw materials are eggs and poultry feed, with material costs representing 57.7% of standalone revenue (INR 119.08 Cr) in Q2 FY26.

Import Sources

Raw materials are primarily sourced locally from Tamil Nadu and surrounding regions to support integrated operations.

Key Suppliers

Sourced from local poultry farms and feed manufacturers; specific supplier names are not disclosed in available documents.

Capacity Expansion

Historical installed capacity was 6,900 MT. Current expansion involves a INR 70 Cr project for EC sheds and a Bio-gas plant expected to be completed by Q1FY25.

Raw Material Costs

Cost of materials consumed was INR 310.12 Cr in FY25, representing 62.3% of consolidated revenue.

Manufacturing Efficiency

Quantity sold in FY25 was 9,620 Tons, an 8% decrease from 10,455 Tons in FY24.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Scaling to > INR 1,000 Cr revenue by expanding domestic sales of liquid egg products and frozen egg albumen, diversifying export markets beyond Japan and Russia, and completing the INR 70 Cr capex for EC sheds to improve bird productivity.

Products & Services

Egg powder (whole, yolk, albumen), liquid egg, and frozen egg albumen blends used in bakery, confectionery, noodles, pasta, and meat products.

Brand Portfolio

SKM Egg Products.

New Products/Services

Liquid egg products and frozen egg albumen specifically targeted at the domestic Indian market to reduce export dependency.

Market Expansion

Focusing on the domestic Indian market and adding new customers in non-traditional export geographies.

Strategic Alliances

Joint sector undertaking with Tamil Nadu Industrial Development Corporation Limited (TIDCO), which holds a 7.58% stake.

🌍 External Factors

Industry Trends

Shift toward integrated poultry models to ensure bio-safety and increasing demand for standardized, hygienic egg ingredients in global food processing.