SKM Egg Q2 FY27 PAT Drops to ₹16 Crore

The document is a transcript of the Earnings Conference Call for Q2 FY26-27, held on Friday, October 23, 2026, at 12:30 P.M. IST via Video Conference/Other Audio Visual Means (VC/OAVM), hosted by NSDL.
The stated purpose was to discuss the company's quarterly results and provide a strategic update, followed by a Q&A session with shareholders.
Management participants included Mr. SKM Shri Shivakumar (Chairman and Managing Director), Mr. S K Sharathram (Executive Director), and Mr. K S Venkatachalapathy (Chief Financial Officer).
The company shared a presentation during the call, and the full transcript was submitted to the exchanges for compliance with SEBI LODR Regulation 30.
The company indicated that no unpublished price sensitive information (UPSI) would be shared, as the discussion was based on already published results.

Q2 FY27 Performance: Sales improved to ₹184 crore from ₹179 crore in Q1, but EBITDA declined to ₹28 crore from ₹38 crore due to a significant increase in feed raw material costs. Profit Before Tax (PBT) was ₹22 crore (vs. ₹32 crore in Q1), and Profit After Tax (PAT) was ₹16 crore (vs. ₹24 crore in Q1).
H1 FY27 Performance: Turnover was ₹363 crore (vs. ₹380 crore YoY), with PAT maintained at ₹40 crore, similar to the previous year.
Volume Data: Powder sales for Q2 were 1,625 metric tons (Q1: 1,831 MT). H1 sales were 3,457 metric tons (vs. 4,289 MT YoY).
Guidance: Management reiterated confidence in achieving a full-year FY27 PAT of over ₹100 crore.

Expansion Projects: A ₹180 crore expansion is approved to increase egg processing capacity from 7,000 tons to 10,000+ tons, expected to be operational in the second half of FY28.
EC Farm Expansion: A 2.4 million bird state-of-the-art poultry farm project is on track for completion by September 2028. The first rearing house is scheduled for completion in two weeks (mid-November 2026).
Financing: The board has approved a ₹300 crore term loan (₹200cr from State Bank, ₹100cr from Access Bank) to fund the expansion, with documents to be signed the following week.
Domestic Strategy: A new business model for branded shell eggs is under development, with a target to scale from 150,000 eggs/day to 500,000 eggs/day in 2-3 years. A full strategy will be firmed up in the next 3 months.
Merger: A resolution was passed to merge subsidiary SKM Universal with the listed entity by April 2027.
Raw Material Cost Mitigation: The company is exploring importing soy to reduce feed costs by ~10% and mitigate local price spikes.
New Market: South Korea has approved the company for two customers; trial shipments are underway, with first orders expected in Q3 FY27 (Oct-Dec 2026).

The document is an enclosed transcript of the conference call, submitted as an attachment to the stock exchanges.
Financial data was disclosed and discussed during the call, based on results already published on the exchanges.
The Chairman acknowledged shareholder feedback to release results and presentations earlier to allow more time for review before future calls.