FMCG stock jumps 6% as company’s operations remain unaffected by bird flu outbreak

Synopsis: SKM Eggs Products Export jumped sharply after the company assured its investors that its poultry farm remained unaffected by the recent bird flu outbreak in Kerala, as the company operates only in Tamil Nadu.

The shares of this leading seller and producer of eggs and their by-products are in focus after it gave a much anticipated clarification from the management regarding the recent bird flu outbreak in Kerala, which investors were worried that it will affect its business operations. In this article, we will dive more into it.

With a market capitalisation of Rs 1,013 crore, the shares of SKM Egg Products Export (India) Ltd reached a day’s high of Rs 387.30 per share, up over 7 percent from its day’s low price of Rs 360.50 per share. Over the past five years, the stock has delivered a robust return of 561 percent, outperforming NIFTY 50’s return of 82 percent.

About the news

The appearance of bird flu in some parts of Kerala has raised alarm bells in the poultry industry in India, particularly for neighbouring Tamil Nadu, one of India’s largest egg-producing states. Following this development, officials in Tamil Nadu have stepped up surveillance along the borders as well as implemented precautionary measures to prevent any potential spread of avian influenza (bird flu), which has caused concern amongst investors regarding the potential disruption of the poultry and egg supply chain.

In response to this development, SKM Egg Products Export (India) Ltd released a statement clarifying to stock exchanges that the company’s operations are unaffected by the outbreak. 

According to SKM Egg Products, all of their poultry farms and egg production facilities are located within Tamil Nadu, where there have been no reports of avian influenza (bird flu). Therefore, SKM Egg Products does not have any connection to or presence in Kerala, where the bird flu cases were reported.

Additionally, SKM Egg Products indicated to stock exchanges that its poultry farm is a government-recognised compartment free from avian influenza, meaning that its birds have been under health monitoring while they continue to produce eggs, thus maintaining a stable condition. 

SKM Egg Products also stated that appropriate biosecurity measures, along with increased monitoring of the birds’ health and other preventative measures, have been put into place and that the production of eggs is continuing normally, and the health of the birds remains stable.

Financials

SKM Eggs has reported a total revenue from operations of Rs 202 crore in Q2 FY26, a growth of 58 percent as compared to Rs 127 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 15 percent from Rs 176  crore.

Regarding its profitability, it reported a net profit of Rs 25 crore in Q2 FY26, representing a staggering 188 percent growth (almost triple) compared to Rs 9 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 52 percent from Rs 16 crore.

SKM​‍​‌‍​‍‌​‍​‌‍​‍‌ Egg Products, established in 1996, is among the top egg processing enterprises in Asia, capable of processing 1.8 million eggs per day and producing 6,500 metric tons of egg powder annually. The company is recognized for its advanced technology and various international certifications like ISO22000, BRC, and HALAL, thus offering quality and safe products that are used in bakeries, mayonnaise, and other food sectors.

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