Key Financial Figures (Q1 FY27)

Operating Performance:

  • Operating Income: ₹202.15 crores (down 18% YoY due to deliberate reduction in low-margin trading activity)
  • Value-Added Revenue: ₹80.53 crores (up 30.3% YoY)
  • Value-Added Margin: 39.8% (expanded from 25.1% in Q1 FY26, a 1,477 basis point improvement)
  • Trading Contribution: Fell to 3.3% of turnover from 19.5% in Q1 FY26

Profitability:

  • Operating EBITDA: ₹30.98 crores (up 26.6% YoY)
  • EBITDA Margin: 15.3% (expanded 540 basis points YoY)
  • Profit After Tax (PAT): ₹13.33 crores (up 47% YoY)
  • PAT Margin: 6.6% (improved 291 basis points YoY)

Operational Metrics:

  • Maize Crushing: 69,689 metric tons (up from 64,770 metric tons in Q1 FY26)
  • Capacity Utilization: 71.4% for the quarter (affected by planned shutdowns for integration)
  • Export Contribution: 10.4% of revenue (more than doubled from 4.9% in Q1 FY26)

Capacity Expansion Details

Commissioning Date: May 26, 2026

Expansion Components:

  • Crushing Capacity: Doubled from 825 metric tons per day to 1,650 metric tons per day
  • Liquid Glucose Facility: New 180 tons per day capacity
  • Maltodextrin Powder Facility: New 50 metric tons per day capacity
  • Captive Power Plant: Expanded from 7.1 megawatt to 15.8 megawatt

Supporting Infrastructure (Planned for FY27):

  • Additional 50,000 tons of storage across two new silos
  • 50,000-square-feet maize godown
  • 1.6-megawatt methane gas-based power plant

Project Cost & Status:

  • Total Project Outlay: Approximately ₹664 crores
  • Amount Incurred as of June 30, 2026: ₹552 crores
  • Major CAPEX cycle substantially complete

Working Capital & Balance Sheet

Working Capital:

  • Cash Conversion Cycle: 130 days
  • Inventory Days: Elevated at 208 days due to seasonal procurement and expanded capacity support
  • Expected Normalization: Inventory days to progressively normalize as utilization ramps up

Debt Position:

  • Net Debt: ₹735.32 crores (reflects expansion funding and seasonal raw material procurement)
  • Interest Subvention: All debt for new CAPEX qualifies for interest subvention under Bihar's Industrial Investment Promotion Policy
  • Interest Cost Guidance for FY27: Approximately ₹39-40 crores (net of subvention, expected to remain flat compared to FY26)
  • Subvention Limit: Recently amended from ₹20 crores to ₹40 crores, though final government clearance pending

Operational Guidance & Outlook

FY27 Expectations:

  • Maize Crushing Volume: Expected to exceed 400,000 tons (compared to 265,000 tons in FY26)
  • Value-Added Products: Expected to reach 20%-22% of total turnover (from 3% in FY26)
  • Capacity Utilization: Expected to improve progressively from Q2 FY27
  • Q2 FY27 Crushing Guidance: 100,000-110,000 tons

Product Expansion Plans:

  • Planned entry into high-value derivatives including Dextrose Anhydrous, Dextrose Monohydrate and Hydrol
  • Expansion into specialized modified starches: cationic starch, carboxymethyl starch, pre-gel starch, and spray starch
  • Maltodextrin powder expected to reach target capacity in 2-3 months

Market Expansion:

  • Focus on deepening international footprint and entering new geographies
  • Attending international fairs in September to develop new export markets

Raw Material Procurement Strategy

  • Primary procurement during Rabi season (April-July) covering 80-90% of requirements
  • Secondary procurement from Maharashtra, MP, or Karnataka (10-15%)
  • Exploring Kharif crop procurement from Bihar districts (5-10% of requirements)
  • Bihar maize advantage: Higher recovery rates (280-290 grains per 100g vs 350-400 in other states)

Management Commentary

The company is transitioning from a CAPEX-led phase to a phase of cash generation and deleveraging. With major investments complete, focus is on ramping up utilization, scaling volumes, and capturing greater value from expanded manufacturing capabilities. The expansion establishes Regaal as the largest maize wet milling facility in eastern India.