Sayaji Industries Limited returned to profitability in FY26, reporting a profit after tax of ₹1 crore compared to a net loss of ₹11 crore in the previous year. The company achieved revenue from operations of ₹1,072 crore for the fiscal year ended March 31, 2026, representing a 7% increase from ₹1,004 crore in FY25. This turnaround was supported by a 24% rise in gross profit to ₹280 crore and an 85% surge in EBITDA to ₹47 crore.

Financial Performance

The company's operational efficiency improved significantly during the year, with the gross margin expanding to 26.1% from 22.5% in FY25. EBITDA margins also improved, reaching 4.4% compared to 2.5% in the prior year. However, finance costs rose 29% to ₹25 crore, while depreciation increased 6% to ₹21 crore. Basic EPS for the year stood at ₹1, a substantial recovery from the negative EPS of ₹4 recorded in FY25.

Quarterly Results

For the fourth quarter of FY26, Sayaji Industries posted a PAT of ₹11 crore, a sharp increase from the net loss of ₹8 crore in the corresponding quarter of the previous year. Revenue for Q4FY26 stood at ₹268 crore, up 9% year-on-year. The quarter saw an EBITDA of ₹26 crore, translating to a margin of 9.6%, compared to an EBITDA of near zero in Q4FY25.

Five-Year Snapshot

A review of the company's performance over the last five years indicates a recovery from the lows of FY24 and FY25. While revenue has grown from ₹793 crore in FY22 to ₹1,072 crore in FY26, profitability has fluctuated due to varying cost structures. The company recorded its highest revenue in FY23 at ₹1,040 crore but faced profitability challenges in subsequent years before returning to the black in FY26.

Balance Sheet and Cash Flows

The company's balance sheet size expanded to ₹550 crore in FY26 from ₹522 crore in the previous year. Short-term borrowings increased to ₹160 crore from ₹138 crore, while long-term borrowings reduced to ₹60 crore from ₹76 crore. Cash flow from operating activities improved to ₹38 crore in FY26 from a negative ₹33 crore in FY25. Cash and bank balances at the end of the year stood at ₹1 crore.

Management Commentary

Co-Chairman and Managing Director Priyam B. Mehta acknowledged FY26 as a year of recovery and a return to annual profits for Sayaji Industries. Mehta indicated that the management's focus is now directed toward delivering strong performance and continued growth in FY27, building on the operational and financial improvements achieved during the year.

Sayaji Industries Limited successfully implemented the SAP S/4HANA enterprise resource planning system across all its units and divisions at the standalone level. The company completed the transition from legacy systems to the new platform on June 1, 2026, as part of its business digital transformation initiative. This strategic upgrade is designed to provide seamless integration across business processes, strengthen financial controls, and improve operating efficiency through better productivity and real-time availability of information.

The implementation project commenced in April 2025. The shift to SAP S/4HANA marks a significant step in the company's efforts to modernize its IT infrastructure. By moving to a unified system, the organization expects to enhance data accuracy and streamline operations across its various business verticals.

Implementation Details

The project timeline and scope were detailed in the regulatory filing submitted to the exchange. The following table outlines the key phases of the digital transformation initiative:

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that the information was provided in the interest of transparency. The filing was confirmed by Mr. Vishnu H Thaker, Company Secretary & Compliance Officer.