Sayaji Industries returned to profitability in FY26 with a net profit of ₹228.51 lakh, reversing losses recorded in the prior two fiscal years. The company will hold its 85th Annual General Meeting on Monday, September 21, 2026, to adopt these results.

The meeting will commence at 3:30 pm via Video Conferencing or Other Audio-Visual Means (OAVM). Shareholders holding shares as on the cut-off date of September 11, 2026, are eligible to participate and vote.

Financial Performance

The company reported a net profit of ₹228.51 lakh for FY26, a significant improvement from the net loss of ₹1,146.52 lakh in FY25 and ₹1,131.89 lakh in FY24. Gross total income rose to ₹1,01,604.26 lakh in FY26, up from ₹99,448.67 lakh in FY25 and ₹94,386.18 lakh in FY24. No equity dividend was declared for any of the three fiscal years.

The return to profit follows operational improvements including increased grinding activity, installation of new automated equipment, and a focus on value-added products such as dextrose and sorbitol. Previously, high maize prices driven by government ethanol policies had pressured input costs.

Meeting Agenda

Shareholders will transact ordinary business, including the adoption of audited balance sheets as at March 31, 2026, and the reappointment of Mr. Varun P. Mehta (DIN: 00900734) as a director retiring by rotation.

Special business includes approving remuneration of ₹1,20,000 plus GST and out-of-pocket expenses for M/s Dalwadi and Associates as cost auditors for FY27. Additionally, shareholders will vote on a special resolution to extend Mr. Mehta’s tenure as Executive Director until March 31, 2029, with a salary cap of ₹20,00,000 per month plus perquisites.

Key Dates and Voting Process

The Board approved the Notice and Board Reports in a meeting held on Friday, August 7, 2026. The notice was sent to shareholders on Wednesday, August 26, 2026.

Remote e-voting will be available from 9 am on Friday, September 18, 2026, to 5 pm on Sunday, September 20, 2026, via KFin Technologies Limited. Shareholders may submit questions or queries during this same window. Speaker registration for the AGM is also open from 9 am on September 18 to 5 pm on September 20.

Meeting Logistics

The electronic copy of the AGM notice and the Annual Report for FY26 will be dispatched to members who have registered email addresses. For those without registered emails, KFin Technologies Limited will send a letter containing the web link and path to access the documents. The reports are also available on the company's website.

Members are advised to update their contact details with their Depository Participants or via Form ISR-1 with KFin Technologies Limited to ensure seamless communication and dividend receipt.

Sayaji Industries returned to profitability in the first quarter of FY27, reporting a net profit after tax (PAT) of ₹7 crore, a significant turnaround from the ₹4 crore loss recorded in Q1FY26. The Ahmedabad-based corn wet milling and specialty food ingredients group posted revenue from operations of ₹288 crore, marking a 6% increase year-on-year. This performance underscores the company’s ability to navigate inflationary pressures while maintaining volume growth and executing on its strategic pivot to high-margin specialty ingredients, providing shareholders with renewed confidence in the firm’s operational resilience.

The filing, submitted pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, highlights a robust expansion in operating margins. EBITDA surged 287% year-on-year to ₹21 crore, with the EBITDA margin widening by 532 basis points to 7.3%. Gross profit also saw a sharp recovery, increasing 52% year-on-year to ₹93 crore, pushing the gross margin up by 968 basis points to 32.2%. These figures reflect improved pricing power and operational efficiency amidst a challenging cost environment.

Financial Performance Overview

Despite the strong bottom-line recovery, sequential comparisons show some moderation. EBITDA declined 19% quarter-on-quarter to ₹21 crore from ₹26 crore in Q4FY26, while PAT fell 33% sequentially to ₹7 crore from ₹11 crore. Finance costs remained stable at ₹6 crore, and depreciation stood at ₹5 crore for the quarter.

Strategic Capex Roadmap

The investor presentation unveiled a detailed capital expenditure roadmap totaling approximately ₹159 crore across standalone and joint venture projects. Key initiatives include:

• Technology Modernisation & Automation: A ₹20 crore project launched in April 2026, focused on cost savings, with completion expected by September 2027.
• Product Upgradation Project: A ₹14 crore investment aimed at generating peak revenue of ₹30 crore, scheduled for completion in June 2027.
• New Product Project: A ₹40 crore initiative targeting ₹300 crore in peak revenue, currently in the planning stage with completion slated for December 2027.
• Joint Ventures: Two new plants with Alland & Sayaji (Gum Arabic Spray-Drying Plant #2) and Nigay & Sayaji (Caramel Colours Plant) have commenced construction in August 2026. Each has a total JV CAPEX of ₹42.5 crore, with expected completions in January 2028 and December 2027, respectively.

What the Numbers Show

The most striking aspect of Sayaji Industries’ Q1FY27 results is the divergence between revenue growth and margin expansion. While revenue grew modestly by 6%, gross margins expanded by nearly 10 percentage points year-on-year. This suggests that the company successfully passed on input cost increases to customers. Priyam Mehta, Chairman and Managing Director, noted an average sales price increase of 3-4% during the quarter. The ability to maintain healthy volumes while raising prices indicates strong demand elasticity in its core starch and specialty ingredients segments, allowing the company to offset higher energy and logistics costs without sacrificing market share.

Operational Updates and Outlook

Management attributed the cost pressures to general food inflation, higher energy costs, and logistics inflation. However, end-product prices remained buoyant across the board. On the exports front, logistics to the Middle East faced challenges due to elevated freight costs and geopolitical tensions in West Asia. To mitigate this, the company has opened alternate shipping routes and is focusing on new export markets, including the United States, alongside healthy visibility from domestic markets.

The company’s five-year financial snapshot shows a gradual improvement in profitability, with PAT margins rising from -1.2% in FY24 to 0.1% in FY26, setting the stage for the stronger performance seen in Q1FY27. Cash flow from operating activities improved to ₹38 crore in FY26 from a negative ₹33 crore in FY25, providing internal funding support for the upcoming capex cycle.