SKM Egg Products' profit drops 25.26% as other income reverses
Revenue rose 3.03% sequentially, but expenses grew faster and Q1FY27's Rs 7.3 cr of other income turned negative.
Filed 23 Oct 2026, 12:33 IST · SKM Egg Products Export (India) Ltd (SKMEGGPROD)
Key takeaways
- Consolidated revenue grew 3.03% qoq, but expenses rose 3.97%, narrowing operating margin by 0.76 percentage points to 16.18%.
- Net profit fell 25.26% qoq as other income dropped from Rs 7.30 cr to -Rs 0.04 cr.
- The stock fell 7.00% on results day, with a 5.01x volume ratio.
Price around the results
Revenue growth did not translate into higher operating profit
In consolidated Q2FY27 results, revenue increased 3.03% qoq, but expenses grew faster at 3.97%. That reduced operating profit by 1.57% and narrowed operating margin by 0.76 percentage points to 16.18%. Net profit fell 25.26% qoq to Rs 17.81 cr.
Other income explains most of the profit decline
Other income fell from Rs 7.30 cr in Q1FY27 to -Rs 0.04 cr in Q2, making it -0.17% of pre-tax profit this quarter. The tax rate also declined by 0.36 percentage points, but that benefit could not offset the loss of other income. Interest expense was unchanged, while depreciation increased 8.91% qoq.
Operating margin matched the reported peer median
SKM Egg Products' 16.18% operating margin was in line with the Fast Moving Consumer Goods median among nine peers that had reported the same quarter. Sequentially, however, margin declined from 16.94% as costs grew faster than revenue.
Shares fell sharply after the results
The stock fell 7.00% on 23 October, with a 5.01x volume ratio. The available reaction data shows the decline on the results date, but does not provide a post-results history for judging whether this move was typical for the stock.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹190 cr | ₹184 cr | +3.03% |
| Other income | ₹-0 cr | ₹7 cr | — |
| Expenses | ₹159 cr | ₹153 cr | +3.97% |
| Operating profit | ₹31 cr | ₹31 cr | -1.57% |
| Operating margin (%) | 16.18% | 16.94% | — |
| Interest | ₹3 cr | ₹3 cr | +0.00% |
| Depreciation | ₹4 cr | ₹4 cr | +8.91% |
| Profit before tax | ₹24 cr | ₹32 cr | -25.62% |
| Tax | ₹6 cr | ₹8 cr | -26.67% |
| Net profit | ₹18 cr | ₹24 cr | -25.26% |
| EPS (₹) | ₹3.37 | ₹4.53 | -25.61% |
Operating margin of 16.18% compares with a Fast Moving Consumer Goods sector median of 16.18% across 9 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.00% | -6.62% |
Volume on the results session was 5.01× its 20-day average.
What to watch
- Whether operating margin recovers from 16.18% after the 0.76-percentage-point qoq decline.
- Whether expenses continue to grow faster than revenue after rising 3.97% versus revenue growth of 3.03%.
- Whether other income remains near -Rs 0.04 cr rather than the Rs 7.30 cr recorded in Q1FY27.