Full capacity, flat growth, feed-cost margin trap

Revenue +4.9% YoY, -1.3% QoQ; PAT flat YoY on reported but -27.3% QoQ

NPM 12.4% (vs ~16% implied prior), OPM 16.9%; PAT down 27.3% QoQ attributed to soy/feed

Realization stated as ₹770; management credits primarily exchange rate (₹ depreciation)

Management explicitly: 'not B2C2B...cannot transfer cost to customer...pricing not dependent on cost'

Delivered -1.3% QoQ revenue decline on stated full capacity; future growth price-led only

Soya 'substantial increase'; margin compression -27.3% QoQ not fully offset by realization gains. Management now says 2-3 month persistence vs prior vague outlook.

Full utilization stated; revenue -1.3% QoQ on full capacity signals demand ceiling, not growth (prior guidance said 'modest' for FY27—being met, but narrower runway than implied).

SKM Best Eggs acquisition completed; ₹40-50 Cr revenue expected THIS FY (but margins deferred to next FY, admittedly LOWER than egg powder core business).

Expected approval postponed Jun-Jul to Aug-Sep 2026; already have contracts without branch (limited incremental customer win so far).

Two factors: feed cost increase is biggest; soya substantial. Shell rate no longer impact (own production). Will take 2-3 months minimum to abate.

No. We sell, they don't ask. Cost cannot be transferred; driven by market price and competition. Pricing not dependent on our cost.

No room to increase volume (capacity constraint). Bottom line influenced by international price and feed cost. Prices stable; maybe improvement in 2-3/4 for egg white.

Historically not our operation. Margins will be slower but volume scale easier. Growth potential in India much higher than powder market. Strategic for long-term revenue balance.

5% overall production cost reduction (productivity + consistency + feed conservation). First 4 done; rest by Nov-Dec 2026.

Approval postponed 1-2 months (was Jun-Jul, now Aug-Sep). Already have contracts without branch. One new opportunistic customer; branch impact not yet increased.

~150 tons/month. War 'long over', not impacting now. Had Iran war delivery issues last FY (airshipped 6-7 containers). Now normal; working on 2nd distributor for Q3-Q4.

No. 6-7 containers on sea delayed (Russia logistics); had to airship replacement, reducing utilization. Will redeploy in Jul-Aug. Not strategic withholding.

Details to follow offline. ₹400 Cr is egg production capacity expansion (supply for branded). Brand plan by Mar 2027. Investments will be known by end of March.

Cannot guarantee. Effort to increase top line continuously. Strategic goals 2030, 2035. Market behavior unpredictable; 'I even myself don't understand how it moves.'

On track (+4.9% YoY Q1). No new revenue targets set; maintaining prior '2030 ₹1000 Cr' aspiration but vague.

Soya inflation unmitigated; no cost-pass mechanism with customers. Margin recovery depends on market prices, not internal action.

Phased FY28-29. Easy sheds (20 lakh birds) on track Nov-Dec 2026. Branded eggs investment separate, plan by Mar 2027.

Full-year estimate; margin profile TBD. Strategy is dilutive near-term (lower margins than powder).

Soya costs 'substantial increase'; management admits zero cost-pass to customers. Expected 2-3 month persistence minimum. Margin compression -27.3% QoQ documented.

International B2C2B market; management explicitly states: 'any increase in cost cannot be transferred to customer, but it is driven by...market prices...our pricing is not dependent on our cost.' Zero negotiating leverage.

Full capacity utilization; revenue -1.3% QoQ despite full utilization signals ceiling. No volume headroom. All near-term growth must be price-led, but international prices 'quite stable' (management's words).

Easy sheds (Nov-Dec 2026 completion) is 4 months away (aggressive). Japan office delayed Jun-Jul → Aug-Sep. Branded eggs margins lower than core (admitted by MD). Biogas commercialization unproven (test marketing now, commercial Sept).

SKM Best Eggs acquisition adds ₹40-50 Cr revenue THIS year, but EBITDA margins explicitly admitted to be 'slower' than egg powder core. Margin development deferred to next FY. Risk: revenue grows but NPM compressed.