SKMEGGPROD · price
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SKM Egg Products Export released its audited Q4 and full year FY 25-26 financial results on May 22, 2026, and held an earnings call with shareholders and analysts. The company detailed its major poultry farm expansion: adding 20 lakh layer birds (total capacity to 24 lakh), increasing egg production from 13.50 crore to ~62 crore eggs (5x increase), and setting up a new feed mill. Total project cost is ~400 crores, with ~300 crores financed through low-cost bank loans at 4.5-4.7% effective interest rate (after 3% government subsidy). The company locked construction contracts at current rates to avoid 40-45% future cost inflation, saving ~60 crores. No new land acquisition was needed, saving ~70-80 crores. Total cumulative savings from various optimizations are estimated at ~150 crores.
The expansion will significantly reduce production costs through economies of scale and captive feed production, strengthening profitability and operational resilience. With 5x higher egg production and multiple cost-saving initiatives, the company is well-positioned for long-term earnings growth.