Sunil Agro Foods has reported a net profit of ₹39.71 lakh for the financial year ended March 31, 2026 (FY26), reversing a net loss of ₹109.43 lakh in FY25. The company has also scheduled its 38th Annual General Meeting (AGM) for Wednesday, September 23, 2026, at 11:00 am IST.

The meeting will be conducted through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Shareholders on record as of September 16, 2026, will be eligible to participate and vote. The AGM agenda includes the adoption of financial statements and the reappointment of directors.

Financial Performance

Total income for FY26 stood at ₹19,772.26 lakh, down from ₹23,096.14 lakh in the previous year. Despite a decline in revenue, the company managed to turn profitable due to controlled expenditures and operational adjustments. Total expenditure was ₹19,710.01 lakh compared to ₹23,240.36 lakh in FY25.

The company did not declare any dividend for the year. No amount was transferred to reserves.

Key Operational Developments

During FY26, Sunil Agro Foods operated in a challenging environment marked by volatility in raw material prices. The business with General Mills India Private Limited was interrupted during the year but resumed in June 2026. The company expanded its production capacity and strengthened its customer base by adding new institutional customers.

Strategic initiatives included a focus on consumer-pack sales and prudent risk management through forward contracts for raw material procurement. These measures contributed to increased sales of Maida and bakery specialty products.

Board Changes and Appointments

Mrs. Manvi Jain, a Non-Executive Director, retires by rotation at the upcoming AGM and offers herself for reappointment. She holds 1,00,000 equity shares (3.33% stake) and has experience in general management and marketing.

The members are also asked to approve the reappointment of Mr. Pramod Kumar S as Whole Time Director for three years, effective November 1, 2026, to October 31, 2029. His monthly salary is set at ₹2,75,000 with a commission ceiling of ₹1,20,000 per annum. Mr. Pramod Kumar S holds a 51.61% stake in the company.

Mr. B Shantilal resigned as Managing Director on May 27, 2026, citing advancing age. Ms. Priya Sharma serves as the Company Secretary and Compliance Officer since November 8, 2025.

Audit Qualification

The independent auditors, Messrs G R V & P K, issued a qualified opinion on the financial statements. The qualification relates to the company’s decision not to make a provision for bad debt of ₹97.57 lakh against debtor Maiyas Beverage and Foods Private Limited.

The NCLT had passed an order in May 2019 stating only 15.14% is payable to sundry creditors of Maiyas Beverage. The company’s outstanding against Maiyas Beverage stood at ₹114.97 lakh. The auditors noted that profits and sundry debtors are overstated by ₹97.57 lakh due to this non-provision. Management stated that appeals against the NCLT order are pending, hence no provision was made.

What the Numbers Show

The turnaround to profitability in FY26 despite a 14.4% drop in total income highlights significant cost containment. Expenditures fell by 15.2%, outpacing the revenue decline. However, the qualified audit opinion regarding the ₹97.57 lakh unprovided bad debt suggests underlying asset quality risks that remain unresolved pending legal appeals.

Sunil Agro Foods Limited reported a significant contraction in profitability for the first quarter of FY27, with net profit falling sharply compared to the previous quarter. The Bengaluru-based wheat products manufacturer posted a net profit after tax of ₹10.02 lakh for the three months ended June 30, 2026, down from ₹21.98 lakh in the preceding quarter ended March 31, 2026. This represents a 54% quarter-on-quarter decline in bottom-line earnings.

Revenue from operations also weakened, logging ₹4,001.88 lakh in Q1FY27, a decrease of approximately 11% from ₹4,497.84 lakh in Q4FY26. On a year-on-year basis, revenue fell 21% from ₹5,060.59 lakh recorded in the corresponding period of FY26. The company’s total income for the quarter stood at ₹4,065.52 lakh, against total expenses of ₹4,046.47 lakh, leaving a slim pre-tax profit margin.

Operational Performance and Costs

The decline in revenue was accompanied by fluctuations in cost structures. Cost of materials consumed decreased to ₹3,774.22 lakh from ₹3,778.69 lakh in the prior quarter, but this reduction was not sufficient to fully offset the drop in top-line growth. Purchases of stock in trade saw a sharp drop to ₹17.33 lakh from ₹136.80 lakh, indicating lower inventory buildup or different procurement cycles.

Other operating income, which includes gains or incidental revenues, contracted significantly to ₹48.82 lakh from ₹51.38 lakh in the previous quarter and was less than half of the ₹106.48 lakh reported in Q1FY26. Employee benefits expense remained relatively stable at ₹70.66 lakh, while finance costs decreased slightly to ₹91.97 lakh from ₹111.78 lakh.

What the Numbers Show

A key analytical observation is the sensitivity of the company’s profitability to minor revenue shifts. With total expenses at ₹4,046.47 lakh and total income at ₹4,065.52 lakh, the profit before tax was just ₹19.05 lakh. This indicates an extremely thin operating buffer, where small variances in material costs or revenue realization directly impact the bottom line. The tax expense for the quarter was ₹9.03 lakh (current tax of ₹2.03 lakh and deferred tax of ₹7.00 lakh), resulting in the final net profit figure.

Comprehensive Income and Equity

Total comprehensive income for the period was ₹12.49 lakh, up from ₹3.34 lakh in the same quarter last year but down from ₹16.11 lakh in the preceding quarter. Other comprehensive income contributed ₹2.47 lakh, driven primarily by defined benefit plan actuarial gains of ₹2.11 lakh and fair value changes on investments of ₹1.04 lakh.

The paid-up equity share capital remained unchanged at ₹300.29 lakh. Earnings per share (basic and diluted) stood at ₹0.33, down from ₹0.73 in the previous quarter and up from ₹0.11 in the corresponding period of the previous year.

Regulatory and Audit Details

The Board of Directors approved the unaudited financial results during its meeting held on August 13, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, GRV & PK Chartered Accountants, who issued an unmodified review report. The financial statements have been prepared in accordance with Ind AS 34 "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013.