SKM Egg Products Export has reported a robust financial performance for the year ended March 31, 2026, with significant growth in both revenue and profitability. The company's board approved the audited financial results for the fiscal year, alongside strategic decisions aimed at expanding operational capacity and strengthening its market position. During an investor conference call held on May 22, 2026, management outlined a vision to achieve a turnover of ₹1,000 crore by 2030, driven by capacity expansion and backward integration.

FY26 Financial Performance

The company recorded a 58% year-on-year increase in revenue from operations, which rose to ₹7.67 billion for FY26 from ₹4.93 billion in the previous year. Profitability metrics demonstrated a substantial turnaround, with Profit Before Tax (PBT) surging by 325% to ₹1.36 billion. Net profit for the year stood at ₹1.02 billion, marking the first time the company crossed the ₹100 crore mark in profit after tax.

The following table summarises the key financial metrics for the full year:

For the quarter ended March 31, 2026, revenue from operations was reported at ₹1.97 billion, while net profit for the quarter stood at ₹317 million. The company's EBITDA for the quarter was ₹513 million, with an EBITDA margin of 27.50%.

Expansion and Capital Expenditure

To support its growth trajectory, SKM Egg Products Export has commenced a capital expenditure programme with a total outlay of ₹403 crore. A central pillar of this initiative is a fivefold increase in layer bird capacity — from 5 lakhs to 20 lakhs birds — through the construction of new Environment Controlled (EC) sheds. The expansion is expected to increase egg production capacity from 13.50 crore eggs to approximately 62 crore eggs. Additionally, the company plans to build a new feed mill and enhance its bio-gas operations as part of the same programme.

The following table outlines the key parameters of the expansion plan:

The new plant is expected to produce 11.8 tonnes per day of nutrient-rich organic manure, adding a value-accretive by-product stream to the expanded operations. The project will be financed through a term loan of ₹3.02 billion, with the remaining amount met from internal accruals. The capex is also eligible for an interest subvention subsidy of 3% on the interest paid on the term loan. Management indicated that the investment is targeted towards bottom-line growth by reducing procurement costs, with the project expected to be completed by 2028-29.

Strategic Acquisition

The board has approved the acquisition of a 74% stake in SKM Universal Marketing Company (India) Private Limited for a total consideration of ₹27.75 crore. This transaction, classified as a related party transaction, is intended to secure strategic investment and synergy benefits. The acquisition will increase the company's shareholding in the associate to 100% upon completion, which is expected within two months. The target entity operates in the branded egg and wind energy divisions. Management noted that the takeover would bring the windmill division, offering substantial savings and banking facilities, and the branded egg division back into the listed entity to focus on growth.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE411D01023/3dafab98e1604379.pdf

SKM Egg Products Export (India) Limited has announced a major expansion initiative at its poultry farm with an investment outlay of approximately ₹400 crores. The project, shared with shareholders and analysts during a teleconference on May 22, 2026, aims to significantly enhance production capacity and operational efficiency. The company expects to realize cumulative savings of nearly ₹150 crores in project costs and operational expenses through this strategic move.

Expansion Overview

The company is establishing an additional layer bird capacity of 20 lakh birds, increasing the total capacity in its own poultry farm to 24 lakh layer birds. The expansion involves constructing new Environment Controlled (EC) sheds to replace existing open sheds that are over 16 years old. This upgrade is projected to increase egg production from 13.50 Cr eggs to approximately 62 Cr eggs, representing a five-fold rise.

Cost Efficiency and Savings

Construction activities for the additional capacity are expected to be completed over the next two-and-a-half to three years. By negotiating and locking construction contracts at prevailing rates, the company aims to mitigate a projected 40% to 50% surge in construction costs. This strategy is expected to generate savings of nearly ₹60 crores in construction expenses alone.

Operational Benefits

The expansion includes a new feed mill to cater to the nutritional requirements of the additional birds. This initiative is expected to reduce dependency on external procurement, generating cost efficiencies of 15% to 20% in feed costs. Additionally, the company is expanding its Bio-Gas division with two new digesters, which will lead to savings in coal costs and create new sales revenue from Compressed Bio-Gas (CBG).

All new facilities will be constructed within existing poultry farm premises, avoiding new land acquisitions that would have cost an estimated ₹70 crores to ₹80 crores.

Financial Structure

The project will be funded through a mix of internal accruals and bank borrowings. Approximately ₹100 crores will be funded through internal accruals and bank deposits, while the remaining ₹300 crores is proposed to be financed through bank borrowings.

The company is eligible for an interest subvention of 3% from the Ministry of Animal Husbandry. After accounting for this subsidy, the net effective interest rate on the loans is expected to be around 4.5% to 4.7%. This financial structure allows the company to preserve capital currently earning investment returns of 7.5% to 8%.

The disclosure was signed by Shivkumar, Managing Director, on May 26, 2026.