SKM Egg Products Export (India) Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript SKM Egg Products Export (India) Ltd filed with BSE on 31 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
SKM Egg Products management discussed rising feed costs, particularly soya, which compressed margins during the quarter, while realizations for dried egg powder rose to around Rs 770 per unit from Rs 722 in the prior quarter, partly aided by exchange rate depreciation. Management described plans to expand branded egg sales domestically, with a business plan expected by the end of March, alongside an ongoing Rs 400 crore capex program to expand egg production capacity through EC sheds and biogas facilities. Management also addressed disruptions to Russia exports due to shipping delays that required airlifting product, and discussed the SKM Best Eggs acquisition, which is expected to add about Rs 40-50 crore in revenue this year.
Numbers mentioned
Realization per unit of dried egg powder: 770 rupees (Q1 FY27)
p. 6
“I think it's about 770 rupees. Yeah.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 6 of the filed PDF · View the filing
Prior quarter realization: 722 rupees (Q4 FY26)
p. 6
“I think last quarter we said we realized 722 rupees.”
Mr. Mervan Kotwal, page 6 of the filed PDF · View the filing
Russia exports: 150 tons a month
p. 12
“Russia exports to Russia we are doing about 150 tons a month.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 12 of the filed PDF · View the filing
SKM Best Eggs revenue contribution: 40-50 crore turnover (FY27)
p. 21
“The scale is now about 40,50 crore turnovers about 40,50 crore turnovers will get added to this year.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 21 of the filed PDF · View the filing
Cost reduction from EC sheds: Minimum 5% over overall production cost
p. 19
“Minimum 5% over the overall production cost.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 19 of the filed PDF · View the filing
Capex for egg production capacity: 400 crores
p. 15
“But these 400 crores are to enhance our own egg production capacity.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Feed cost pressure — another two to three months
stated conditionally by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 7
“I think we have to live with the increased feed cost at least for another two.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 7 of the filed PDF · View the filing
Branded egg sales strategy — definite plan to enter market · by end of this financial year
stated firmly by Board Room
p. 6
“I think by end of this financial year we will have a definite plan to go into the market.”
Board Room, page 6 of the filed PDF · View the filing
Capacity expansion board approval — by October
stated conditionally by Board Room
p. 6
“So, when everything is finalized by October, we will get the board approval in economics.”
Board Room, page 6 of the filed PDF · View the filing
Japan branch office approval — second half of the year, third and fourth quarters
stated firmly by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 12
“So we will have this in place for the second half of the year, third and fourth quarters”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 12 of the filed PDF · View the filing
EC shed completion — complete all EC sheds · November December 28
stated firmly by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 19
“By November December 28th this will be complete.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 19 of the filed PDF · View the filing
Branding business plan — by end of March
stated firmly by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 15
“No, that will be clearly known by end of March.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 15 of the filed PDF · View the filing
Egg powder market growth strategy — balanced export and domestic revenue · 10 years
stated as an aspiration by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 10
“In 10 years, time the company should have balanced export revenue.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 10 of the filed PDF · View the filing
Growth plan strategic goals — 2030 and 2035
stated as an aspiration by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 13
“We have a strategic goal of 2030. We are working on a strategic goal of 2035.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 13 of the filed PDF · View the filing
Distributor expansion in Russia — induct one more distributor · second half, third and fourth quarter
stated conditionally by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
p. 12
“Now we are trying to induct one more distributor which will also happen in the second half, third, and fourth quarter because we must iron out a few things with the existing distributor.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained that US, Europe, India, South American countries, Ukraine and China are the major supply countries influencing international prices, with different products influenced by different regions.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Pramukh Kabra: How are international egg powder prices determined and which countries dictate them?
p. 3
“The biggest influencing supply countries are in the international market because you are right, US is one of them.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 3 of the filed PDF · View the filing
Management said the investment should not be evaluated on an ROCE basis but as necessary for sustainability and operational efficiency.
Answered by Board Room
Asked by Mr. Pramukh Kabra: How should investors evaluate the ROCE from the EC sheds and biogas capex?
p. 4
“Same in connection with the EC shed biogas we could not see in the aspect of ROCE or return on investments. It is the sustainability aspect.”
Board Room, page 4 of the filed PDF · View the filing
Management attributed it primarily to a substantial increase in feed cost, particularly soya, rather than shell egg prices.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Mervan Kotwal: What caused the margin contraction this quarter?
p. 7
“Only the increase in fee cost is the biggest. Yes. Substantial increase in soya.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 7 of the filed PDF · View the filing
Management said there is no room to increase sale volume due to capacity restrictions, and bottom line will be influenced by international egg product prices and feed costs.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Rajesh: How should growth be viewed for upcoming quarters given full capacity utilization?
p. 8
“So as as a continuity to the reply that I gave you gave it the previous question the rest of the quarters there is no room to increase our sale volume because of restriction in capacity.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 8 of the filed PDF · View the filing
Management said the branded business has lower margins than egg powder but larger volume scale potential, given India's large egg demand.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Saurabh Dole: What is the contribution and margin profile of branded products?
p. 9
“The demand for eggs are very high. The future scope is very good but it's not a high margin like egg product.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 9 of the filed PDF · View the filing
Management said pricing is not directly linked to cost but to competition and international market prices, so cost increases cannot be simply transferred to customers.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Saurabh Dole: How does the company pass on rising feed costs to customers?
p. 10
“So, any increase in cost cannot be transferred to the customer, but it is driven by the competition and market prices courses internationally.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 10 of the filed PDF · View the filing
Management said the Japan approval was delayed due to resubmission requirements but a new customer has been added despite the branch impact not yet showing.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Sam: What is the status of the Japan office and new customer acquisition there?
p. 11
“We were expecting approval by June, July, but it is getting postponed by one or two months because we were asked to resubmit the information.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 11 of the filed PDF · View the filing
Management said the reduction was due to shipping containers that failed to reach their destination in time and had to be airlifted back, not deliberate holding back.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Gopal: Did the company export less egg powder this quarter due to holding back for higher prices later?
p. 16
“No. As I told at the beginning, we had about six to seven containers on sea which did not reach the destination in time.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 16 of the filed PDF · View the filing
Management said realization depends on the mix of products and markets sold each quarter and can only be predicted as a range.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Gopal: Will the realization of 770 hold in the coming quarter?
p. 18
“So, it's not one average realization.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 18 of the filed PDF · View the filing
Management said EC sheds offer higher and more consistent productivity and better feed conversion, together providing a minimum 5% reduction in production cost.
Answered by Mr. SKM Sri Shivkumar (Chairman and Managing Director)
Asked by Mr. Sam: What cost advantage do EC sheds provide versus existing open sheds?
p. 18
“One is productivity is a little higher than open houses. Then consistent productivity is there better than the open houses.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 18 of the filed PDF · View the filing
Risks flagged
Rising feed costs, particularly soya, compressing margins
p. 7
“Substantial increase in soya. There is an increase in production.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 7 of the filed PDF · View the filing
Shipping delays causing containers to not reach destination on time, requiring costly airlift
p. 16
“So, we had to bring it back. And then we have to do additional products and airlift them to Russia.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 16 of the filed PDF · View the filing
Full capacity utilization limiting near-term volume growth
p. 8
“there is no room to increase our sale volume because of restriction in capacity”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 8 of the filed PDF · View the filing
Pricing is market-driven and cost increases cannot be passed on to customers due to competition
p. 10
“Our pricing is not dependent on our cost.”
Mr. SKM Sri Shivkumar (Chairman and Managing Director), page 10 of the filed PDF · View the filing
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