FMCG stock jumps 13% after reporting 299% YoY increase in net profit

Synopsis: SKM Egg Products Export India Ltd jumped 13% after reporting Q3FY26 sales of Rs. 204 crore, EBITDA of Rs. 42.8 crore, and a 299% YoY surge in net profit to Rs. 30 crore, reflecting strong margin expansion.

This export-oriented company, which specializes in the production and sale of eggs as well as egg-based products, has come into focus after its stock jumped 13% following its strong Q3 performance, highlighted by an impressive 299% growth in profit.

With a market capitalisation of Rs. 1,078 cr, the shares of SKM Egg Products Export India Ltd are currently trading at Rs. 204.75 per share, surging 13% in today’s market session, making a high of Rs. 214.30, up from its previous close of Rs. 189.45 per share. The stock has delivered 96% returns over the past year and 36% in the last six months, though it declined 6% in the past month.

Q3FY26 Results

Quarter-on-Quarter (QoQ) Performance

SKM Egg Products Export Ltd showed modest growth in sales on a quarterly basis, rising from Rs. 202 crore in Q2FY26 to Rs. 204 crore in Q3FY26, a 1% increase QoQ. EBITDA improved from Rs. 37.4 crore to Rs. 42.8 crore, marking a 14% increase QoQ, while net profit rose from Rs. 24.8 crore to Rs. 30.0 crore, a 21% increase QoQ. 

Correspondingly, earnings per share (EPS) increased from Rs. 4.70 to Rs. 5.70, reflecting the same 21% QoQ growth, indicating steady operational and profitability improvements over the previous quarter.

Year-on-Year (YoY) Performance

On a yearly basis, SKM Egg Products Export Ltd displayed robust growth across all key metrics. Sales surged from Rs. 135 crore in Q3FY25 to Rs. 204 crore in Q3FY26, a 51% YoY increase. EBITDA jumped from Rs. 14.0 crore to Rs. 42.8 crore, a 206% YoY increase, reflecting a significant improvement in operational efficiency. 

Net profit grew from Rs. 7.52 crore to Rs. 30.0 crore, translating to a 299% YoY increase, with EPS rising from Rs. 1.43 to Rs. 5.70, mirroring the same 299% growth YoY, underlining strong profitability expansion over the last year.

SKM Egg Products Export India Ltd started the journey of eggcellence in 1996 with a state-of-the-art production facility comprising the best technology and methods which are in line with international standards. It 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.

It offers a range of functionally superior egg products that blend seamlessly with other ingredients and are widely used across various food applications. The company has earned the trust of customers in Europe, Japan, and Asia, consistently focusing on product improvement based on customer feedback. It demonstrates a strong financial performance with a ROCE of 13.1% and ROE of 11.8%, supported by a manageable debt-to-equity ratio of 0.51. 

The company has delivered impressive profit growth at a CAGR of 49% over the past five years, and its 3-year average ROE stands at 28.5%, highlighting consistent value creation for shareholders. With a PEG ratio of 0.28, the stock reflects attractive growth relative to its earnings valuation.

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