Sunrakshakk Industries India Limited

Financial Performance Highlights

Q4 FY26 Performance:

  • Consolidated revenue from operations: ₹197.59 crores, up 92.32% YoY from ₹102.74 crores in Q4 FY25
  • EBITDA: ₹20.14 crores, up 76.67% YoY
  • Profit after tax: ₹12.10 crores, up 87.89% YoY
  • Sequential growth: Revenue up 20% QoQ, EBITDA up 32% QoQ, PAT up 29% QoQ
  • EBITDA margin: 10.19% in Q4 FY26 vs 9.31% in Q3 FY26
  • PAT margin: 6.12% in Q4 FY26 vs 5.74% in Q3 FY26

Full Year FY26 Performance:

  • Consolidated revenue: ₹607.75 crores, up 237.34% from ₹180.16 crores in FY25
  • EBITDA: ₹58.69 crores, up 128.75% from ₹25.66 crores in FY25
  • EBITDA margin: 9.66% in FY26 vs 14.24% in FY25
  • Profit after tax: ₹34.98 crores, up 217.72% from ₹11.01 crores in FY25
  • PAT margin: 5.76% in FY26 vs 6.11% in FY25

Operational Highlights

Business Segments:

  • FMCG and FMCG intermediates now contribute majority of revenues
  • FMCG revenues crossed ₹500 crores milestone in FY26
  • Diversified product portfolio spanning soap noodles, detergents, personal care products, home care products, toothpaste, cosmetics, spices, and savory products
  • Manufacturing network across Bhilwara, Roorkee, and Guwahati
  • Customer base of over 200 customers

Guwahati Facility:

  • Successfully commissioned and revamped during the year
  • Enhanced capabilities in soap noodles and cosmetics
  • Improved reach in Northeast and adjacent markets
  • Currently operating at 45-55% capacity utilization
  • Ramp-up from January 2026 contributed to Q4 performance improvement

Textile Business:

  • Contributed approximately 20% of total revenue in recent years
  • Expected to contribute 10-12% maximum in coming years
  • No plans for demerger currently

Capital Allocation and Funding

Preferential Issue Proceeds Utilization:

  • Approximately ₹55 crores utilized for FMCG segment expansion
  • Approximately ₹10 crores utilized for edible section expansion
  • ₹10 crores remaining in fixed deposits
  • Funds used for manufacturing facility expansion in edible category and Guwahati unit
  • Strengthened balance sheet for working capital requirements and growth opportunities

Growth Outlook and Guidance

Revenue Target:

  • Medium-term aspiration to achieve approximately ₹1,000 crores revenue by FY28
  • Current Q4 annualized run rate approximately ₹800 crores
  • Organic growth expectation of 10-15% annually
  • No additional capex required to achieve ₹1,000 crores target

Margin Guidance:

  • Targeting PAT margin of 7% in near future (currently at 6.12%)
  • Expecting 1-1.25% operational leverage improvement from better capacity utilization
  • EBITDA margin improvement expected through better operating efficiencies

Segment Growth Expectations:

  • FMCG segment to remain primary growth driver and largest revenue contributor
  • Edible business expected to grow at 20% annually
  • FMCG intermediates growing at 15-20% annually with 15% captive consumption
  • Textile business expected to contribute 10-12% of revenue

Capacity and Expansion Plans

Current Capacity Status:

  • Sufficient spare capacities across all categories
  • No current capacity constraints
  • Strategic plant planning allows for production capacity growth with demand

Future Expansion:

  • Exploring additional product categories for manufacturing capacity
  • Looking for acquisition opportunities for inorganic growth
  • Considering B2C segment entry in longer term if good partners found

Customer and Market Strategy

Business Model:

  • Primarily B2B segment focused
  • Growing with existing customers rather than frequent new customer acquisition
  • Manufacturing products under customer brands (e.g., Swechha brand owned by customer)
  • Serving major FMCG players including ITC, Jyothy Laboratories

Geographic Expansion:

  • Pan-India customer base
  • Guwahati facility catering to Northeast region, Bengal, Bihar
  • No particular regional focus for future growth

Risk Factors and Challenges

Raw Material Prices:

  • Some pricing pressure observed during end of Q4 and beginning of Q1 FY26
  • No supply challenges due to strategic supplier partnerships

Market Risks:

  • No significant risks identified that could delay FY28 revenue target achievement
  • Stable debtor cycle maintained despite strong growth

Additional Information

Stock Exchange Listing:

  • Currently listed only on BSE
  • Working on NSE listing compliance requirements

Investor Communication:

  • No current plans for advertising or brand building as B2B focused company
  • Key metrics to track: ROI, profitability percentages, operational improvements