Financial Performance
Megastar Foods delivered exceptional financial results for FY2026, with consolidated revenue surging 52% to ₹5,325.77 crore (FY2025: ₹3,601.01 crore) and net profit increasing 143% to ₹92.96 crore (FY2025: ₹38.33 crore). Standalone performance was equally strong with revenue of ₹5,325.77 crore and net profit of ₹91.62 crore. Earnings per share improved significantly to ₹8.23 (consolidated) and ₹8.11 (standalone) from ₹3.36 and ₹3.34 respectively in FY2025.
Key Financial Metrics
Balance Sheet Strength: Total assets stood at ₹268.16 crore with total equity of ₹102.87 crore. The company maintained healthy ratios with current ratio at 1.36 times and debt-equity ratio improving to 1.20 times from 1.46 times in FY2025. Return on capital employed improved to 16.27% from 10.51%.
Borrowings Structure: Total borrowings amounted to ₹131.40 crore, comprising secured term loans from banks (₹52.77 crore), vehicle loans (₹3.41 crore), unsecured loans from directors (₹15.00 crore), and working capital facilities from HDFC Bank (₹24.50 crore), Citi Bank (₹32.71 crore), and SCB Bank (₹3.00 crore).
Corporate Governance & AGM
The 15th Annual General Meeting was held on September 23, 2026, via Video Conferencing/OAVM. Key agenda items included adoption of FY26 financial statements and re-appointment of Mr. Vikas Goel (DIN: 05122585) as director who retired by rotation. The Board decided not to recommend any dividend for FY2026, opting to retain earnings for business growth.
Management Changes: Ms. Deepali Chhabra resigned as Company Secretary effective May 5, 2026, with Mr. Harsh Sharma appointed as successor effective June 9, 2026.
Credit Rating & Compliance
CARE Ratings upgraded the company's long-term bank facilities to CARE BBB- with stable outlook from CARE BB+ stable. Short-term facilities were rated CARE A3. The company maintained 100% dematerialized shares with Registrar & Share Transfer Agent services provided by Skyline Financial Services Private Limited.
Auditor Reports
Statutory Auditor M/s Nitin Mahajan & Associates issued unmodified (clean) opinions on both standalone and consolidated financial statements. No material weaknesses in internal financial controls were identified, and no pending litigations that would impact financial position were reported. The company has not been declared wilful defaulter by any bank/financial institution.
Operational Highlights
Raw material consumption increased to ₹384.07 crore (FY2025: ₹237.99 crore) while employee benefits expense rose to ₹11.96 crore (FY2025: ₹9.95 crore). Finance costs were ₹14.35 crore and depreciation amounted to ₹9.04 crore. CSR expenditure was ₹17.81 lakhs focused on medical/eye care camps and old age home maintenance.
Related Party Transactions
Key transactions included loans received from directors (₹10.00 crore total), interest paid to directors (₹9.32 lakhs), salary payments to directors (₹2.80 crore), purchases from Ganesh Flour Mills (₹30.35 crore), and sales to Shree Ganesh Grain Products (₹49.81 lakhs).
Contingent liabilities stood at ₹9.96 crore for claims not acknowledged as debt, with no bank guarantees outstanding.