Sanstar Limited has re-published a newspaper advertisement in the Financial Express (Gujarati) on June 1, 2026, intimating shareholders about its Extraordinary General Meeting (EGM). The EGM is scheduled on June 20, 2026, at 11:00 a.m. IST through Video Conferencing or Other Audio Visual Means (VC/OAVM) to seek approval for a preferential issue of equity shares aggregating to ₹198.3 crores. The issue is priced at ₹110 per equity share, including a premium of ₹108, and is directed towards Corn Products Development Inc., a wholly owned subsidiary of Ingredion Incorporated. Post-allotment, the investor will hold approximately 9.0% stake in the company.

The Board of Directors approved the proposal on May 28, 2026. The proceeds are intended for working capital requirements and general corporate purposes, with deployment expected in FY 2026-27. As the issue size exceeds ₹100 crores, Acuité Ratings & Research Limited has been appointed as the monitoring agency to oversee fund utilization in accordance with SEBI regulations. The company has also proposed increasing its authorized share capital from ₹38 crores to ₹50 crores to facilitate this fundraise.

The remote e-voting facility will commence on June 17, 2026, at 9:00 a.m. IST and conclude on June 19, 2026, at 5:00 p.m. IST. Shareholders recorded in the register of members or beneficial owners as on the cut-off date of June 15, 2026, are entitled to vote. The advertisement was disclosed to the exchanges under Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Summary

Joint Venture Overview

Simultaneously, Sanstar and Ingredion have executed a definitive shareholders’ agreement to establish a jointly owned entity in India for the manufacture, sale, and distribution of specialty pharmaceutical and other specialty ingredient products. The Joint Venture partners include Sanstar, Ingredion India Private Limited, and Amishi Drugs and Chemicals Private Limited. The proposed entity will be incorporated as a private limited company, with manufacturing locations shortlisted in Gujarat and Maharashtra. Commercial operations are targeted within 30 to 36 months of incorporation, subject to applicable approvals.

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.