Financial Performance (Q1 FY2027 vs Q1 FY2026)

  • Revenue from Operations: ₹2,062 million, representing a 21.5% year-on-year increase
  • Gross Profit: ₹689 million, up significantly from ₹412 million in Q1 FY26
  • Gross Profit Margin: 33.4%, improved from 24.3% in the year-ago quarter
  • EBITDA: ₹154 million (EBITDA Margin of 7.5%), compared to negative ₹9 million (-0.5%) in Q1 FY26
  • Profit Before Tax: ₹126 million (PBT Margin of 6.1%), compared to negative ₹8 million (-0.4%) in Q1 FY26
  • Profit After Tax: ₹92 million (PAT Margin of 4.5%), compared to negative ₹3 million (-0.2%) in Q1 FY26
  • Earnings Per Share: ₹0.50, compared to negative ₹0.02 in Q1 FY26
  • Finance Cost: ₹3 million, reduced from ₹6 million in Q1 FY26
  • Depreciation and Amortization: ₹53 million, increased from ₹24 million in Q1 FY26
  • Tax Expenses: ₹33 million

Operational Highlights

  • The company is India's 2nd largest maize-based specialty products and ingredient solutions manufacturer with total installed capacity of 2,350 TPA
  • Export revenue increased 24.5% YoY to ₹723 million during the quarter, contributing 34% of total revenues
  • The company serves 34 countries with its export products
  • The ongoing conflict in the Middle East led to increased energy costs, which impacted margins during the quarter

Capacity Expansion

  • Commissioned expanded native starch manufacturing capacity at Dhule during the quarter
  • Originally planned 1,000 TPD expansion was scaled 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
  • The Dhule facility has a landbank of 210 acres providing space for future expansion

Strategic Development

  • Completed preferential allotment to Corn Products Development Inc., a subsidiary of Ingredion Incorporated
  • Raised approximately ₹1,983 million through the issue
  • Corn Products Development Inc. now holds approximately 9% of Sanstar Limited
  • Partnership provides access to Ingredion's global R&D infrastructure, technical expertise and formulation capabilities

Sustainability Initiative

  • Commissioned a 3 MW solar power plant at Kutch in August 2026
  • Investment of approximately ₹7.5 crore
  • Plant will be used entirely for captive consumption
  • Expected to meet around 40% of the Kutch facility's electricity requirement
  • Expected annual power cost savings of approximately ₹3 crore
  • This is in addition 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, stated that the first quarter marked a period of improved operating performance with normalized plant operations and higher production. He noted that while the native starch market remains competitive, the pricing pressure has moderated. The company remains focused on deepening its presence across existing markets and increasing export volumes as utilization of the expanded capacity improves.

Forward Outlook

The company's focus is on gradually ramping up utilization of the expanded Dhule capacity and commissioning the derivatives facility. Sanstar will also focus on increasing the contribution from value added products, expanding its presence across domestic and export markets and maintaining discipline on operating costs.

Manufacturing Facilities

  • Dhule, Maharashtra: 2,000 TPD capacity, located near maize belts allowing for 30% of maize requirements direct from local farmers
  • Kutch, Gujarat: 350 TPD capacity, USFDA registered facility
  • Both plants are SCADA automated for efficiency, product quality, safety and flexibility
  • 50,000 MT of maize storage silos at Dhule

Product Portfolio

The company manufactures maize-based products through wet milling process including Native Starch, Modified Starches and Derivatives for end industries including Food, Beverage, Pharma, Paper, Textile, Adhesives and Industrials. By-products serve animal nutrition and food industries.