Can management give forward guidance on quarterly profit and top-line projections for FY27/FY28?

Declined specific quarterly top-line and bottom-line figures citing SEBI restrictions and commodity export price volatility, but reiterated full-year confidence in ₹100 Cr+ PAT.

Why borrow ₹300 Cr at 5.25% effective interest for farm capex instead of using the ₹167 Cr cash balance?

CFO and CMD explained that keeping ₹100 Cr+ liquidity is necessary for seasonal working capital and strategic buffer, and the 3% interest subvention makes the net borrowing cost (~5.25%) attractive while treasury yields aim for >10%.

Can raw material feed cost inflation be passed on to international egg powder customers?

Clarified that international export prices are dictated by global competitors (US, EU, Ukraine, Mexico) and not by Indian input costs; margin defense must come from internal backward integration and cheaper soya imports.

SKM Egg Prod. Q2 FY27 Earnings Call — Analysis (NSE: SKMEGGPROD)

SKM Egg Products posted Q2 EBITDA of ₹28 Cr down from ₹38 Cr sequentially due to feed inflation, while reiterating ₹100 Cr+ annual PAT and advancing multi-year farm and powder capex.

27 Oct 2026 · Analysis by Alpha Inflection

Result quality: stable — Results context unavailable. Management sentiment: optimistic.

The take

Q2FY27 Revenue ₹184 Cr . New guidance — FY30 domestic branded shell egg sale… 5 lakhs egg a day . New story: Backward Integration to 2.4M Birds .

Results

Revenue reached ₹184 Cr (+3% QoQ) while PAT declined to ₹16 Cr vs ₹24 Cr in Q1 due to elevated feed raw material costs.

Financial highlights

SKM Egg Prod. Q2 FY27 reported figures
Metric	Value	Basis
Revenue	₹184 Cr	sequential · Q2FY27 · vs ₹179 Cr in Q1
Revenue	₹363 Cr	yoy · H1FY27 · vs ₹380 Cr in H1 last year
EBITDA	₹28 Cr	sequential · Q2FY27 · vs ₹38 Cr in Q1
Profit Before Tax	₹22 Cr	sequential · Q2FY27 · vs ₹32 Cr in Q1
Profit After Tax	₹16 Cr	sequential · Q2FY27 · vs ₹24 Cr in Q1
Profit After Tax	₹40 Cr	yoy · H1FY27 · flat vs H1 last year
Egg Powder Sales Volume	1625 MT	sequential · Q2FY27 · vs 1,831 MT in Q1
Egg Powder Sales Volume	3457 MT	yoy · H1FY27 · vs 4,289 MT in H1 last year
Cash Reserves	₹167 Cr	point_in_time · Q2FY27 · End Q2FY27

Guidance

Management guided for ₹100 Cr+ full-year PAT, supported by soy import substitution, with the 2.4 million layer farm project on track for full commissioning by September 2028.

What management committed to

[SKM Egg Products] will achieve full-year profit after tax of ₹100 Cr+ in [FY27]. — 100 plus, FY27
[SKM Egg Products] will complete the full 2.4 million bird backward integration project by September 2028. — 2.4 million birds, Q2FY29
[SKM Egg Products] will expand egg powder manufacturing capacity from 7,000 tonnes to 10,000+ tonnes with an investment of ₹180 Cr. — 10,000 plus tons, FY29
[SKM Egg Products] will receive its first commercial order from South Korea in Q3FY27. — first order, Q3FY27
[SKM Egg Products] targets scaling branded shell egg sales from ~1.5 lakh eggs/day to 5.0 lakh eggs/day over 2-3 years. — 5 lakhs egg a day, FY30

Key themes

Feed inflation management and large-scale backward integration capex

How the narrative shifted

Feed Cost Inflation & Import Defense: Local spikes in soya and feed ingredients squeezed Q2 margins, prompting direct soya imports (~10% cheaper) to defend gross profitability.
Backward Integration to 2.4M Birds: Scaling in-house layer farm to 2.4 million birds by Sep 2028 will achieve 100% captive egg sourcing, eliminating external egg purchase volatility.
Global Pricing vs Domestic Integration: International egg powder prices cannot be adjusted for Indian cost inflation due to global competitors, requiring strict domestic cost control.
Domestic Branded Shell Egg Scaling: Capitalising on rising domestic protein consumption by expanding branded grading operations from FY28 onwards.

Operational commentary

EC Rearing & Layer Project: First rearing house of Phase 2 is completing in two weeks with chick placement scheduled from Nov 15; full 2.4m bird project on track for completion by September 2028.
Egg Powder Expansion: Approved expanding processing capacity from 7,000 MT to 10,000+ MT at a capex of ₹180 Cr (₹30 Cr equity, ₹150 Cr debt at 8.25%).
Feed Sourcing Strategy: Initiating direct imports of soya to counteract local price spikes, expecting to source ~10% cheaper to insulate gross margins.
South Korea Market Entry: Approved by two South Korean clients; trial samples dispatched with initial commercial order expected in Q3.
Subsidiary Merger: Board approved merger of SKM Universal into the listed entity to be effective April 2027.
Branded Shell Eggs Strategy: Targeting scaling domestic branded egg sales from ~1.5 lakh eggs/day to 5.0 lakh eggs/day over 2-3 years.

Analyst Q&A

Q. Can management give forward guidance on quarterly profit and top-line projections for FY27/FY28?
Declined specific quarterly top-line and bottom-line figures citing SEBI restrictions and commodity export price volatility, but reiterated full-year confidence in ₹100 Cr+ PAT.
Q. Why borrow ₹300 Cr at 5.25% effective interest for farm capex instead of using the ₹167 Cr cash balance?
CFO and CMD explained that keeping ₹100 Cr+ liquidity is necessary for seasonal working capital and strategic buffer, and the 3% interest subvention makes the net borrowing cost (~5.25%) attractive while treasury yields aim for >10%.
Q. Can raw material feed cost inflation be passed on to international egg powder customers?
Clarified that international export prices are dictated by global competitors (US, EU, Ukraine, Mexico) and not by Indian input costs; margin defense must come from internal backward integration and cheaper soya imports.

View source

Research and educational content only. Not investment advice.