Sanstar delivered a strong operational turnaround in Q1FY27, reporting revenue of ₹2,062 million against ₹1,697 million in the same quarter last year. The company swung to a net profit of ₹92 million from a net loss of ₹3 million in the year-ago period, supported by improved gross margins and normalized production levels.

Q1FY27 financial performance

The quarterly results reflect significant improvement across both topline and bottom-line metrics on a year-on-year basis. Gross profit expanded by 67.4% to ₹689 million, lifting the gross margin to 33.4% from 24.3%. EBITDA turned positive at ₹154 million (7.5% margin), compared to an EBITDA loss of ₹9 million in Q1FY26.

| Metric: | Q1FY27 | Q1FY26 | Change | | ---: | :--- | :--- | :--- | | Revenue: | ₹2,062 million | ₹1,697 million | +21.5% | | Gross Profit: | ₹689 million | ₹412 million | +67.4% | | EBITDA*: | ₹154 million | (₹9) million | nm | | Net Profit / (Loss): | ₹92 million | (₹3) million | nm |

*EBITDA excludes other income.

Operational updates and capacity expansion

The financial improvement was underpinned by key operational developments. The company completed a phase of its capacity expansion at Dhule during the quarter, scaling the addition from the originally planned 1,000 TPD to 1,250 TPD. This has increased Sanstar’s total installed manufacturing capacity from 1,100 TPD to 2,350 TPD. The derivatives facility at Dhule is expected to be commissioned in FY26-27.

Export revenue grew by 24.5% year-on-year to ₹723 million, supported by higher plant availability. Exports continue to contribute approximately 34% of total revenues, with the company serving 34 countries.

Strategic investment and cost reduction

Sanstar completed a preferential allotment to Corn Products Development Inc., a subsidiary of Ingredion Incorporated. The company raised approximately ₹1,983 million through the issue, with Ingredion’s subsidiary holding approximately 9% of Sanstar Limited following the allotment. This partnership provides access to global R&D infrastructure and technical expertise.

Additionally, the company commissioned a 3 MW solar power plant at its Kutch facility in August 2026, investing approximately ₹7.5 crore. This plant is expected to meet around 40% of the Kutch facility’s electricity requirement, resulting in annual power cost savings of approximately ₹3 crore.

What the Numbers Show

The shift from an EBITDA loss of ₹9 million in Q1FY26 to a profit of ₹154 million in Q1FY27 highlights the impact of operational normalization and capacity utilization. While revenue growth of 21.5% was robust, the disproportionate jump in gross profit (67.4%) indicates significant margin expansion, likely driven by the mix of products and improved efficiency from the newly commissioned capacity. However, management noted that short-term pricing pressure in native starch persists due to Chinese exports, suggesting that margin sustainability will depend on volume growth and the upcoming derivatives capacity.

Sanstar Ltd has released its standalone and consolidated financial results for the first quarter of fiscal year 2026 (Q1FY26). However, the primary source document provided for review contains extensive encoding errors, making it impossible to extract or report specific financial figures such as revenue, net profit, or EBITDA.

The filing was digitally signed by Fagun Harsh Shah on August 15, 2026, at 18:04:47 +05'30'. While the document structure indicates the presence of standard financial tables—including sections for profit and loss accounts and balance sheets—the actual numerical values are replaced by garbled characters (e.g., "��������").

Data Integrity Issues

The inability to parse the data prevents any meaningful financial analysis. Key components typically reviewed in such filings are present in form but not in substance:

• Profit & Loss Account: Headers for revenue, expenses, and net profit are visible, but corresponding values are corrupted.
• Balance Sheet: Assets, liabilities, and equity sections are outlined but lack readable figures.
• Cash Flow Statement: Operational, investing, and financing cash flows cannot be determined from the source.

What the Numbers Show

Due to the technical corruption of the source file, no analytical observation can be derived. Investors and analysts should refer to the official exchange filings (BSE/NSE) or the company’s investor relations page for the corrected and readable version of the Q1FY26 results.

Regulatory Compliance

The document retains standard regulatory signatures and dates, confirming the formal submission of the results despite the digital presentation errors. No dividend declaration or other corporate actions could be verified from this specific draft.