Financial Performance (Q1 FY27 vs Q1 FY26)

Revenue & Profitability

  • Revenue from Operations: Rs. 2,062 million (21.5% YoY increase)
  • Gross Profit: Rs. 689 million (67.4% YoY increase from Rs. 412 million)
  • Gross Profit Margin: 33.4% (improved from 24.3%)
  • EBITDA: Rs. 154 million (compared to negative Rs. 9 million in Q1 FY26)
  • EBITDA Margin: 7.5% (improved from negative 0.5%)
  • PBT: Rs. 126 million (compared to negative Rs. 8 million)
  • PBT Margin: 6.1% (improved from negative 0.4%)
  • PAT: Rs. 92 million (compared to negative Rs. 3 million)
  • PAT Margin: 4.5% (improved from negative 0.2%)
  • EPS: Rs. 0.50 (compared to negative Rs. 0.02)

Export Performance

  • Export Revenue: Rs. 723 million (24.5% YoY increase from Rs. 580 million)

Strategic Developments

Capacity Expansion

  • Commissioned expanded native starch manufacturing capacity at Dhule facility
  • Increased capacity addition from planned 1,000 TPD to 1,250 TPD
  • Total installed manufacturing capacity increased from 1,100 TPD to 2,350 TPD
  • Derivatives facility at Dhule expected to be commissioned during FY2026-27

Strategic Investment

  • Completed preferential allotment to Corn Products Development Inc. (subsidiary of Ingredion Incorporated)
  • Raised approximately Rs. 1,983 million (Rs. 198.27 crore)
  • Ingredion subsidiary acquired 9.0% equity stake in Sanstar Limited
  • Partnership provides access to Ingredion's global R&D infrastructure, technical expertise and formulation capabilities

Renewable Energy Initiative

  • Commissioned 3 MW solar power plant at Kutch in August 2026
  • Investment of approximately Rs. 7.5 crore
  • Plant for captive consumption only
  • Expected to meet 40% of Kutch facility's electricity requirement
  • Expected annual power cost savings: approximately Rs. 3 crore
  • Additional to existing 3.5 MW solar power and 1.6 MW biogas based power capacity at Dhule

Management Commentary

Mr. Gouthamchand Chowdhary, Chairman and Managing Director commented:

  • Q1 FY27 marked improved operating performance with normalized plant operations and higher production
  • Middle East conflict led to increased energy costs impacting margins
  • Higher plant availability supported international market demand
  • Native starch market remains competitive but pricing pressure has moderated
  • Focus on deepening presence across existing markets and increasing export volumes
  • Expanded manufacturing base and Ingredion partnership provide platform for next growth phase
  • Future focus on ramping up Dhule capacity utilization, commissioning derivatives facility, increasing value-added products contribution, and maintaining operating cost discipline

Operational Context

Sanstar Limited is one of India's largest producers of maize-based specialty products and ingredient solutions, serving industries including food and beverage, pharmaceuticals, animal nutrition, paper, and textiles.