Eggoz Financial Performance in FY25: Strong Growth Amid Controversy
Eggoz has captured attention recently due to a controversy, but the branded egg producer reported impressive financial results in FY25, showcasing considerable revenue growth alongside a slight reduction in losses for the fiscal year. The revenue from operations for Eggoz soared by 78% year-on-year, reaching Rs 130 crore in FY25 compared to Rs 73 crore in FY24. This information is derived from the standalone financial statements filed with the Registrar of Companies (RoC).
Company Overview and Market Expansion
Founded in 2017 in Bihar by Abhishek Negi, Aditya Singh, and Uttam Kumar, Eggoz operates under a farmer-led, asset-light supply chain model that facilitates the delivery of fresh eggs to retailers within a 24-hour timeframe. Over the years, the company has successfully expanded its footprint in major markets such as Delhi-NCR, Bengaluru, Kolkata, Jaipur, and Lucknow.
Revenue Sources and Product Diversification
The egg sales continued to be the primary source of revenue for Eggoz in FY25. However, the company is branching out into the ready-to-cook segment, introducing products like momos, burger patties, and nuggets.
Expenditure Analysis
On the expenditure side, egg procurement remained the largest cost factor, representing nearly 67% of total expenses. The procurement costs rose to Rs 103 crore in FY25, reflecting the company’s revenue growth. Additionally, employee benefit expenses surged to Rs 20 crore for the year, with Rs 3 crore allocated to ESOP-related expenditures.
Freight, advertising, and other operating costs elevated Eggoz’s total expenses to Rs 154 crore in FY25, an increase from Rs 100 crore in the previous fiscal year. (Refer to various sources for a detailed cost breakdown of the company.)
Impact of Operating Expenses on Losses
Despite the rise in operational costs, Eggoz managed to mitigate its net losses by 8%, bringing them down to Rs 23 crore in FY25 from Rs 25 crore in FY24. The company also reported enhancements in EBITDA, return on capital employed (ROCE), and a favourable expense-to-revenue ratio during the year.
Funding and Future Prospects
Eggoz’s brand reached a peak annual revenue run rate (ARR) of Rs 200 crore and achieved EBITDA breakeven in Q4 FY25, driven by strong consumer demand and improved distribution. To date, the company has garnered over $32 million in funding, including a $20 million round led by Gaja Capital. Previously, Eggoz raised $8.8 million in a Series B round from IvyCap Ventures, $3.5 million in Series A funding, and Rs 3.7 crore during its seed stage.
Challenges and Reputation Management
While the narrowing of the gap between expenditures and profits suggested a potentially profitable FY26, the ongoing controversy regarding allegedly ‘carcinogenic’ eggs could adversely impact the brand. This situation may not only affect sales but also lead to additional costs related to countering negative perceptions. It underscores the delicacy of maintaining a positive reputation in today’s market environment and highlights the necessity for brands to implement robust strategies for managing such crises.
Eggoz’s approach also plays a crucial role in addressing the protein deficiency challenge prevalent across the country. The company’s initiatives provide incentives for smaller poultry farmers to remain engaged in the market, rather than allowing a migration towards industrial-scale layer farms. India’s diverse and rich environmental landscape warrants alternatives to the growing trend of industrialisation in poultry farming, making models like Eggoz a refreshing exploration of innovation in the field.