What are SKM Egg Products' Q2 FY26 results and current stock price?

SKM Egg Products closed at ₹387, hitting 5% upper circuit. Q2 Results: Sales ₹202 Cr (+58% YoY), Net Profit ₹24.8 Cr (+186% YoY), EPS ₹9.40. Market Cap ₹1,017 Cr, P/E 18.5.

How has SKM Egg Products performed in Q2 compared to previous quarters?

Exceptional performance with Sales growth of 58% YoY, EBIDT up 168% to ₹37.4 Cr, and Net Profit surge of 186% to ₹24.8 Cr. EPS increased 187% to ₹9.40.

What is SKM Egg's debt position and financial health?

SKM Egg maintains healthy financials with debt-to-equity ratio of 0.51, ROCE 13.1%, ROE 11.8%. Debt stands at ₹172 Cr against market cap of ₹1,017 Cr.

Should I invest in SKM Egg Products after Q2 results?

SKM Egg shows explosive growth with reasonable valuation (P/E 18.5). However, investors should consider the cyclical nature of poultry business and monitor sustainability of growth rates.

What are the key growth drivers for SKM Egg Products?

Key growth drivers include increasing demand for processed eggs, export opportunities, capacity expansion, and value-added products in the food processing sector.

What are the risk factors for SKM Egg stock?

Key risks include raw material price volatility, disease outbreaks in poultry, export market fluctuations, and competitive pressures in FMCG sector.

SKM Egg Products Q2: 186% Profit Jump, 5% Upper Circuit - Analysis Oct 2025

Q2 FY26 Food Processing & Poultry Sector Overview

SKM Egg Products Export (India) Limited, Asia's largest egg processing company, has delivered an exceptional quarterly performance that sent its stock price to 5% upper circuit. The Q2 FY26 results showcase explosive growth with 58% increase in sales and a staggering 186% surge in net profit, highlighting the company's strong positioning in the growing processed food market. With capacity to process 1.8 million eggs per day, SKM continues to capitalize on the increasing demand for value-added egg products both domestically and internationally.

🥚 Egg Processing Leader: Explosive Growth Story Exceptional Performance

About the Company

SKM Egg Products Export (India) Limited started its journey of eggcellence in 1996 with state-of-the-art production facilities comprising the best technology and methods aligned with international standards. SKM EGG PRODUCTS is one of the largest egg processing plants in Asia with a capacity to process 1.8 million eggs per day to produce 6500 tonnes of egg powder annually. The company has established itself as a leader in egg processing with a comprehensive product portfolio including whole egg powder, egg yolk powder, egg albumin powder, and other value-added egg products. With strong export presence and growing domestic demand, SKM continues to expand its footprint in the processed food industry.

💎 Operational Excellence

The company demonstrates exceptional growth metrics with 58% revenue increase and 186% net profit surge, reflecting efficient operations and strong market demand for processed egg products.

Key Financial Metrics & Technical Parameters

Current Price

₹ 387

⇡ 5% Upper Circuit

Market Cap

₹ 1,017 Cr

Stock P/E

18.5

Face Value

₹ 10.0

Quarterly Performance Highlights (YoY Comparison)

Sales

₹ 202 Cr

⇡ 58%

EBIDT

₹ 37.4 Cr

⇡ 168%

Net Profit

₹ 24.8 Cr

⇡ 186%

EPS

₹ 9.40

⇡ 187%

Financial Parameter	Q2 FY26	Q1 FY26	Q2 FY25	Analysis
Revenue from Sales	₹ 202 Cr	₹ 176 Cr	₹ 127 Cr	Explosive growth trajectory
Net Profit	₹ 24.8 Cr	₹ 16.3 Cr	₹ 8.62 Cr	Massive profitability improvement
EBIDT	₹ 37.4 Cr	₹ 24.8 Cr	₹ 13.9 Cr	Strong operational performance
EPS	₹ 9.40	₹ 6.18	₹ 3.28	Exceptional shareholder returns

Key Technical Parameters & Fundamentals

52-Week High/Low

₹ 390 / 151

Book Value

₹ 129

ROCE

13.1%

ROE

11.8%

Annual EPS

₹ 20.8

Dividend Yield

0.39%

Debt to Equity

0.51

Total Debt

₹ 172 Cr

🏢 Business Overview & Market Position

SKM Egg Products has established itself as Asia's largest egg processing facility with:

Processing Capacity: 1.8 million eggs per day
Annual Production: 6500 tonnes of egg powder
Product Portfolio: Whole egg powder, egg yolk powder, albumin powder
Market Reach: Strong domestic and export presence
Technology: State-of-the-art processing facilities
Quality Standards: International quality certifications

💡 Investment Perspective

Reasonable Valuation: P/E of 18.5 attractive for growth company
Explosive Growth: 186% profit surge shows operational excellence
Market Leadership: Largest egg processor in Asia with scale advantages
Export Potential: Strong presence in international markets
Capacity Utilization: High utilization rates driving profitability
Healthy Financials: Moderate debt with strong cash flows

📈 Growth Drivers & Market Analysis

Growth Driver	Current Impact	Future Potential	Risk Factors
Export Demand	High	Very High	Currency fluctuations, trade policies
Domestic Processed Food	Medium	High	Competition, price sensitivity
Capacity Expansion	Medium	High	Execution risk, capital requirements
Value-added Products	Low	Medium	R&D costs, market acceptance
Health & Nutrition Trend	High	Very High	Changing consumer preferences

Market Position: SKM Egg Products enjoys a dominant position in the egg processing industry with significant scale advantages. The company's capacity to process 1.8 million eggs daily provides operational efficiencies and cost advantages that smaller players cannot match. With increasing health consciousness and demand for protein-rich foods, the company is well-positioned to capitalize on both domestic and international growth opportunities.

⚠️ Key Challenges & Monitorables

Raw Material Volatility: Egg prices subject to seasonal fluctuations and supply constraints
Disease Outbreaks: Poultry diseases can disrupt supply chain and increase costs
Export Dependence: Significant revenue from exports exposed to global economic conditions
Regulatory Changes: Food safety regulations and export policies can impact operations
Competition: Increasing competition in processed food segment
Commodity Business: Egg processing has relatively low entry barriers

💡 Positive Industry Trends

Health Consciousness: Growing demand for protein-rich and natural foods
Urbanization: Increasing preference for processed and convenient foods
Export Opportunities: Strong demand for egg products in international markets
Product Innovation: Scope for value-added and specialized egg products
Scale Benefits: Large-scale operations provide cost advantages
Brand Building: Opportunity to build strong brand in processed foods

Valuation Analysis & Investment Outlook

💰 Financial Health & Valuation Metrics

Valuation Parameter	SKM Egg	Industry Average	Analysis
P/E Ratio	18.5	22-25	Attractive relative valuation
P/B Ratio	3.0	3.5-4.0	Reasonable book value multiple
ROCE	13.1%	10-12%	Above average capital efficiency
ROE	11.8%	9-11%	Healthy return on equity
Debt/Equity	0.51	0.6-0.8	Conservative debt levels

Investment Perspective: SKM Egg Products presents an attractive investment opportunity with reasonable valuation multiples and explosive growth metrics. The P/E ratio of 18.5 appears justified given the 186% profit growth and strong industry positioning. However, investors should be cautious about the cyclical nature of the poultry business and monitor sustainability of current growth rates. The company's scale advantages and export capabilities provide competitive moat, but execution risks and raw material volatility remain key monitorables.

⚠️ Sector-Specific Risks & Considerations

Commodity Price Risk: Egg prices are volatile and impact profitability significantly

Seasonal Factors: Production and demand patterns show seasonal variations

Regulatory Environment: Food processing industry subject to strict regulations

Export Dependencies: International trade policies can affect export revenues

Disease Risks: Avian flu and other diseases can disrupt operations

Competitive Pressures: Low entry barriers in egg processing segment

ROCE and ROE Guide - Financial Ratios for Stock Selection

Understanding ROCE and ROE: Your Guide to Smart Stock Selection

21 Oct 2025

SKM Egg Products: 186% Profit Surge, Hits 5% Upper Circuit