Sanstar Limited has reported a significant surge in net profit for the fourth quarter of the financial year 2025-26, driven by improved operational performance and expanded capacity. The company posted a net profit of ₹20.49 crore for the quarter ended March 31, 2026, a sharp rise compared to ₹5.52 crore in the corresponding quarter of the previous year. For the full financial year, the net profit stood at ₹34.45 crore, while revenue from operations was recorded at ₹784.63 crore, down from ₹957.45 crore in the preceding year.

The Board of Directors, at its meeting held on May 23, 2026, approved the standalone audited financial results. The results received an unmodified opinion from statutory auditors M/s. S.C. Bapna & Associates. Additionally, the board approved the appointment of M/s. Keyur J. Shah & Associates as Secretarial Auditors and M/s. Kamal M. Shah & Co. as Internal Auditors for FY26-27, subject to shareholder approval.

Financial Performance Summary

The table below outlines the key financial metrics for the quarter and the full year, compared with the prior year.

Operational Highlights and Expansion

Commenting on the performance, Mr. Gouthamchand Chowdhary, Chairman and Managing Director, noted that FY2026 was a transition year with the first half impacted by maintenance shutdowns and pricing pressure. However, the second half saw a recovery in operations and profitability. Revenue from Operations for Q4FY26 was ₹216.8 million, growing 7.4% QoQ, while EBITDA increased 8.2% QoQ to ₹19.4 million. PAT for the quarter was ₹20.5 million, with PAT margins improving to 9.5% from 6.8% in the previous quarter.

A major milestone was the commissioning of the expanded native starch manufacturing capacity at the Dhule facility. The company scaled its installed crushing capacity to 1,250 TPD, making it India's second-largest maize-based specialty products manufacturer with a total installed capacity of 2,350 TPD. The derivatives facility at Dhule is expected to be commissioned within FY2026-27. The company incurred a total capex of about ₹225 crore to enhance maize grinding capacity.

Auditor Appointments

The board appointed M/s. Keyur J. Shah & Associates, Company Secretaries in Practice, as Secretarial Auditors for a term of one year for FY 2026-27. The firm is a peer-reviewed entity with UIN S2010GJ126800. M/s. Kamal M. Shah & Co., Chartered Accountants, were reappointed as Internal Auditors for FY 2026-27. Both appointments are subject to approval by the members at the ensuing Annual General Meeting.

The company noted that the implementation of new Labour Codes resulted in an increase in gratuity liability by ₹0.67 crore, which has been presented as a non-recurring expense under employee benefits. The trading window for designated persons, which closed on April 01, 2026, will reopen 48 hours after the declaration of these results.

Sanstar Limited announced on 12th May 2026 the commissioning of its expanded native starch manufacturing capacity at its Dhule facility in Maharashtra. This development marks a significant milestone in the company's growth journey and is part of its broader capacity expansion plan funded through IPO proceeds. The entire amount of Rs. 1,816 million allocated towards the Dhule expansion has now been fully utilised.

Capacity Expansion at a Glance

With this commissioning, Sanstar has increased its total installed capacity from 1,100 TPD to 2,350 TPD, positioning itself to become one of the largest manufacturers in India's maize-based specialty products industry. The following table summarises the manufacturing footprint across Sanstar's facilities:

The expansion is being implemented in two phases. While the native starch capacity has now been commissioned, the derivatives facility at Dhule is expected to be commissioned within FY2026-27.

Strategic Significance and Product Portfolio

The Dhule facility is strategically located near key maize-growing regions and major ports, providing strong logistical advantages and supporting efficient sourcing and export operations. The expanded capacity is expected to improve operational efficiencies, enhance scale benefits, and strengthen the company's ability to cater to growing domestic and international demand.

Sanstar's diverse product portfolio spans multiple categories:

• Native Starch Products
• Modified Starch Products: Yellow Dextrin, Oxidized Starch, White Dextrin, Cationic Starch, Pregel Starch
• Derivatives Products: Meltodextrin Powder, Liquid Glucose, Liquid Dextrose, Dextrose Monohydrate, Dextrose Anhydrous, Dried Glucose Solids
• Co-Products: Gluten, Fiber, Maize Steep Liquor, Enriched Protein, Germ

Based on FY25 revenues, the segment breakdown was approximately food/personal care at ~45%, animal nutrition at ~25%, and industrials/others at ~30%.

Management Commentary

Commenting on the development, Mr. Gouthamchand Chowdhary, Chairman and Managing Director, stated: "The commissioning of our expanded native starch capacity at Dhule marks an important milestone in Sanstar's growth journey. This expansion strengthens our manufacturing capabilities and enhances our ability to serve a diverse and growing customer base across industries."

He further noted that despite originally planning for a 1,000 MTPD expansion at the time of the IPO, the company has successfully scaled its installed crushing capacity to 1,250 MTPD, demonstrating strong execution capability and operational efficiency. "With the full utilization of IPO proceeds towards this project, we are now well positioned to scale our operations. The upcoming commissioning of the derivatives facility will further enhance our product portfolio, enabling us to move towards higher value-added offerings," he added.