Company Overview

Business Transformation and Strategy

The company has transformed from a textile-focused business to an FMCG-dominant growth platform. This strategic pivot was achieved through the acquisition of Sunrakshak Agro Products Pvt. Ltd. effective December 27, 2024, for which ₹98.65 crore was raised. The company rebranded to reflect its diversified FMCG-led profile.

FMCG, FMCG intermediates, and Edibles segments have scaled meaningfully and now represent a significant proportion of revenues, supported by expanding capacities, widening distribution, and strong consumer demand. The customer base exceeds 200.

Operational Highlights and Capacity Expansion

Capacity Additions:

  • Commissioned Guwahati facility with monthly capacities: 2,160 MT for soap noodles and 1,000 MT for cosmetics.
  • Added new soap line at Roorkee facility, increasing production capacity by 1,700 MT.
  • Bhilwara edibles facility became fully operational with monthly capacities: 850 MT in savories and 650 MT in spices.

Aggregate Installed Capacity: The successful ramp-up has expanded aggregate installed FMCG and FMCG Intermediates capacity to 20,840 tons per month.

FMCG Milestone: FMCG revenue crossed ₹500 crore in FY26.

Q2 FY27 Financial Performance (Consolidated)

Revenue from Operations: ₹265.17 crore, up 119.20% YoY from ₹120.97 crore in Q2 FY26, but down 4.04% QoQ from ₹276.33 crore in Q1 FY27.

Expenditure Breakdown:

  • Raw Material Expenses: ₹197.22 crore
  • Employee Expenses: ₹6.46 crore
  • Other Expenses: ₹38.35 crore
  • Total Expenditure: ₹242.03 crore

Profitability:

  • EBITDA: ₹23.14 crore, up 98.26% YoY; EBITDA Margin: 8.73% (9.65% in Q2 FY26, 8.18% in Q1 FY27)
  • PAT: ₹16.00 crore, up 130.10% YoY; PAT Margin: 6.03% (5.75% in Q2 FY26, 5.44% in Q1 FY27)
  • Basic EPS: ₹5.16

Other Financial Items:

  • Other Income: ₹0.29 crore
  • Depreciation: ₹2.08 crore
  • Interest/Finance Cost: ₹0.96 crore
  • PBT: ₹20.38 crore
  • Tax: ₹4.38 crore

H1 FY27 Financial Performance (Consolidated)

Total Revenue: ₹541.50 crore, up 119.93% YoY from ₹246.21 crore in H1 FY26.

Expenditure Breakdown:

  • Raw Material Expenses: ₹406.11 crore
  • Employee Expenses: ₹12.73 crore
  • Other Expenses: ₹76.93 crore
  • Total Expenditure: ₹495.77 crore

Profitability:

  • EBITDA: ₹45.73 crore, up 96.32% YoY; EBITDA Margin: 8.45% (9.46% in H1 FY26)
  • PAT: ₹31.04 crore, up 130.39% YoY; PAT Margin: 5.73% (5.47% in H1 FY26)
  • Basic EPS: ₹10.01

Other Financial Items:

  • Other Income: ₹0.50 crore
  • Depreciation: ₹4.39 crore
  • Interest/Finance Cost: ₹2.18 crore
  • PBT: ₹39.67 crore
  • Tax: ₹8.63 crore

FY26 Annual Financial Performance (Consolidated)

Revenue from Operations: ₹607.75 crore, up 237.34% YoY from ₹180.16 crore in FY25.

Expenditure Breakdown:

  • Raw Material Expenses: ₹426.42 crore
  • Employee Expenses: ₹19.04 crore
  • Other Expenses: ₹103.60 crore
  • Total Expenditure: ₹549.06 crore

Profitability:

  • EBITDA: ₹58.69 crore, up 128.72% YoY; EBITDA Margin: 9.66% (14.24% in FY25)
  • PAT: ₹34.98 crore, up 217.71% YoY; PAT Margin: 5.76% (6.11% in FY25)
  • Basic EPS: ₹11.65

Note: FY25 numbers are consolidated with Sunrakshak Agro Products Private Limited financials from January 1, 2025. Ratios are not directly comparable due to the business model transformation.

Balance Sheet Position (Consolidated)

As of September 30, 2026:

  • Total Equity & Liabilities: ₹361.67 crore
  • Total Assets: ₹361.67 crore

Shareholders' Funds: ₹216.03 crore (includes Share Capital of ₹6.20 crore and Reserves & Surplus of ₹209.83 crore)

Non-Current Assets: ₹127.26 crore (PPE: ₹109.77 crore, Right to use: ₹3.43 crore, Capital work in progress: ₹12.04 crore, Other Financial Assets: ₹2.01 crore)

Current Assets: ₹234.41 crore (Inventories: ₹108.89 crore, Trade Receivables: ₹53.18 crore, Cash & Cash Equivalents: ₹19.97 crore, Other Current Financial assets: ₹13.26 crore, Other Current Assets: ₹39.11 crore)

Non-Current Liabilities: ₹35.95 crore (Long Term Borrowing: ₹30.34 crore, Lease Liability: ₹3.67 crore, Deferred Tax Liabilities: ₹1.94 crore)

Current Liabilities: ₹109.69 crore (Short term Borrowings: ₹18.17 crore, Trade Payables: ₹80.21 crore, Other Financial Liabilities: ₹0.97 crore, Other Current Liabilities: ₹6.03 crore, Provision: ₹4.31 crore)

Revenue Mix and Segment Performance

Q2 FY27 Revenue Breakdown by Section (₹ crore):

  • Soap Section: ₹25.85
  • Noodle Section: ₹82.74
  • Detergent Section: ₹27.14
  • Edibles Section: ₹49.67
  • Cosmetic Section: ₹25.16
  • Noodle Section (Guwahati): ₹30.35

FMCG, FMCG Intermediates, and Edibles together contributed 90.85% of consolidated revenue in Q2 FY27. The FMCG segment result margin expanded to 9.27% from 6.34% in Q2 FY26.

Management Commentary

Mr. Saurabh Chhabra, Promoter & Director: Q2 FY27 marks the most profitable quarter in company history. The company is well ahead of its pace to reach approximately ₹1,000 crore in revenue by FY28, having already achieved ₹541.50 crore in H1 FY27. The focus remains on sustaining profitable growth through a diversified portfolio, expanding customer base, and increasing FMCG contribution.

Growth Outlook and Future Plans

  • Earlier Aspiration: ~₹1,000 crore in revenues by FY28.
  • Current Status: This target is expected to be achieved much sooner, supported by product mix improvement, operating leverage, and cost efficiencies.
  • Growth Drivers: Customer & channel expansion, manufacturing & capacity optimization, wallet share & cross-selling growth, product & portfolio expansion, and distribution & market deepening.
  • Revenue CAGR Guidance: 30-35% for FY25-FY29.

Industry Context

The India FMCG market size was worth around USD 192.20 billion in 2023 and is predicted to grow to around USD 665.63 billion by 2032 with a CAGR of roughly 14.80% between 2024 and 2032.

Key Management

  • Sh. Prakash Chand Chhabra, Managing Director
  • Sh. Tilok Chand Chhabra, Promoter & Director
  • Sh. Saurabh Chhabra, Promoter & Director
  • Sh. Dinesh Porwal, CFO
  • Sh. Ashish Kumar Bagrecha, Company Secretary
  • Sh. Arun Singh, Business Head

Quality and Compliance

The company maintains established quality methodologies and has never faced significant quality issues or citations for deficiencies. This commitment has built strong customer trust.