Sunrakshakk Q1FY27 standalone net profit jumps 970% to ₹78.42 crore

scanx
Reviewed by
Shriram SScanX News Team
Key Highlights

Sunrakshakk Industries reported Q1FY27 consolidated net profit of ₹15.04 crore, up 131% YoY, and standalone net profit of ₹78.42 crore, up 970% YoY. Revenue surged 120.6% to ₹2,763.34 lakh driven by FMCG segment growth. An accounting change in depreciation method boosted PAT by ₹181.17 lakh.

powered bylight_fuzz_icon
48253359

*this image is generated using AI for illustrative purposes only.

Sunrakshakk Industries India Limited ( Sunrakshakk Industries ) reported a consolidated net profit of ₹15.04 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 130.7% year-on-year increase from ₹6.52 crore in Q1FY26. The company’s consolidated revenue from operations surged 120.6% to ₹2,763.34 lakh, up from ₹1,252.37 lakh in the corresponding period last year.

Standalone results reflected even sharper growth due to the inclusion of the FMCG business. Standalone net profit rose to ₹78.42 crore from ₹7.36 crore in Q1FY26, an increase of approximately 970%. Standalone revenue from operations climbed to ₹1,300.80 crore from ₹247.30 lakh in the prior year quarter, as the FMCG segment contributed zero revenue in the standalone books during Q1FY26.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 14, 2026. A significant accounting change during the quarter impacted the bottom line: the company switched its depreciation method for Property, Plant and Equipment from Written Down Value (WDV) to Straight-Line Method (SLM) effective April 1, 2026. This prospective change reduced the depreciation charge by ₹231.81 lakh in consolidated financials, thereby increasing profit before tax by the same amount and boosting profit after tax by ₹181.17 lakh.

Segment Performance

The FMCG segment was the primary driver of growth, with revenue jumping from ₹1,005.07 lakh in Q1FY26 to ₹2,503.03 lakh in Q1FY27. In contrast, the Textile segment saw modest growth, with revenue rising slightly from ₹247.30 lakh to ₹260.31 lakh.

Segment Revenue Q1FY27 (₹ Lakh) Revenue Q1FY26 (₹ Lakh) Result Q1FY27 (₹ Lakh)
FMCG 2,503.03 1,005.07 2,039.11
Textile 260.31 247.30 11.08
Total 2,763.34 1,252.37 2,050.19

Operational Highlights

Operational EBITDA (excluding other income) climbed to ₹22.59 crore, up 94.41% YoY from ₹11.62 crore. The FMCG segment EBITDA margin improved to 8.55% in Q1 FY27 from 7.90% in Q1 FY26, reflecting continued operating leverage. On a consolidated basis, EBITDA margin stood at 8.18% in Q1 FY27, down from 9.28% in Q1 FY26 and 10.19% in Q4 FY26, attributed to higher raw material costs amid ongoing geopolitical headwinds.

The company commissioned a new soap production line at its Roorkee facility during the quarter, adding approximately 1,700 MT of monthly capacity. Additionally, the Guwahati facility was commissioned with monthly capacities of 2,160 MT for soap noodles and 1,000 MT for cosmetics. Aggregate installed capacity for FMCG & FMCG Intermediary rose to 20,840 tons per month, from 19,640 tons per month. FMCG and FMCG Intermediates contributed approximately 90.6% of consolidated revenue (₹250.30 crore) in the quarter, up from approximately 83% in FY26.

What the Numbers Show

The accounting policy shift regarding depreciation materially influenced the reported profitability metrics. While consolidated revenue grew organically by 120.6%, the reduction in depreciation expense by ₹231.81 lakh directly inflated the profit before tax figure. Excluding this non-operational accounting benefit, the underlying operational profit before tax would have been lower, highlighting the importance of adjusting for such one-time estimate changes when assessing operational efficiency trends. Additionally, while absolute profitability scaled meaningfully with PAT growing 130.7%, the contraction in consolidated EBITDA margin from 10.19% in Q4FY26 to 8.18% in Q1FY27 indicates pressure from input costs despite volume growth.

Strategic Outlook and Capacity Expansion

The company has outlined a medium-term growth plan targeting approximately ₹1,000 crore in revenues by FY28. This strategy involves strengthening new business verticals and expanding pan-India presence. Key initiatives include:

  • Integrated FMCG Platform: Establishing a scalable platform with diversified offerings and nationwide presence.
  • Capacity Optimization: Improving utilization and operational efficiency across FMCG, intermediates, and Edibles segments.
  • Customer Expansion: Deepening penetration in existing and new markets through an expanded distributor network.

The Bhilwara facility has also been rebranded as “A.K. Processors Private Limited” to reflect its entry into the Edibles sector. As of March 31, 2026, the company’s total equity and liabilities stood at ₹323.95 crore, with shareholders' funds at ₹184.98 crore.

Other Developments

  • The company appointed Varun Kabra as the scrutinizer for its upcoming Annual General Meeting.
  • Related party transactions were approved subject to necessary regulatory clearances.
  • The trading window for securities will open after 48 hours of the result announcement, on August 17, 2026.

Historical Stock Returns for Sunrakshakk Industries

1 Day5 Days1 Month6 Months1 Year5 Years
-0.69%-1.26%-2.75%-2.75%-2.75%-2.75%

How will the shift from WDV to Straight-Line depreciation impact Sunrakshakk Industries' future tax liabilities and cash flow projections beyond the immediate accounting benefit?

What specific strategies is the company employing to counteract the contraction in consolidated EBITDA margins driven by rising raw material costs and geopolitical headwinds?

Given the aggressive target of ₹1,000 crore in revenues by FY28, what is the projected timeline for the new Edibles segment to contribute significantly to the bottom line?

like19
dislike

Sunrakshakk targets ₹1,000 crore revenue by FY28

scanx
Reviewed by
Suketu GScanX News Team
Key Highlights

Sunrakshakk Industries India Limited reported a 217.72% increase in consolidated net profit to ₹34.98 crore for FY26, with revenue from operations surging 237.34% to ₹607.75 crore. The growth was primarily driven by the FMCG segment and the entry into the Edibles market. The board approved the audited financial results and re-appointed auditors. Management has set a medium-term target to achieve approximately ₹1,000 crore in revenue by FY28, leveraging existing capacities and aiming for a 7% PAT margin.

powered bylight_fuzz_icon
41599786

*this image is generated using AI for illustrative purposes only.

Sunrakshakk Industries India Limited reported a consolidated net profit of ₹34.98 crore for the financial year ended March 31, 2026, a significant increase of 217.72% from ₹11.01 crore in the previous year. Revenue from operations surged 237.34% to ₹607.75 crore, compared to ₹180.16 crore in FY25, driven primarily by the FMCG segment and the strategic entry into the Edibles market. The board approved the audited financial results for the quarter and year ended March 31, 2026, during a meeting held on May 30, 2026.

The company’s standalone net profit for FY26 stood at ₹1350.35 lakh, up from ₹563.49 lakh in the prior year, with standalone revenue reaching ₹21437.39 lakh. Earnings per share (EPS) on a consolidated basis increased to ₹11.65 for FY26 from ₹4.38 in the previous year. The board also re-appointed M/s. Jindal Kulwal & Associates as Internal Auditors and M/s K.C. Moondra & Associates as Cost Auditors for the financial year 2026-27.

Financial Performance

The following table summarizes the audited consolidated financial results for Sunrakshakk Industries for the quarter and year ended March 31, 2026:

Particulars (₹ Crore) Q4FY26 FY26 YoY % (FY26)
Revenue from operations 197.59 607.75 237.34%
EBITDA (Excl. Other Income) 20.14 58.69 128.75%
Profit after Tax (PAT) 12.10 34.98 217.72%
EPS (₹) 3.90 11.65 165.98%

Segment Performance

Revenue from the FMCG segment was the primary driver of growth, contributing ₹17078.53 lakh in Q4FY26 and ₹50578.91 lakh for the full year. The Textile segment reported revenue of ₹2680.17 lakh for the quarter and ₹10195.84 lakh for the year. The consolidated financial results include figures for the wholly-owned subsidiary, Sunrakshak Agro Products Pvt Ltd, which was acquired effective January 1, 2025.

Capital Allocation

During FY26, the company allotted 11,69,600 equity shares of ₹10 each at a premium on May 30, 2025, raising a total of ₹98.25 crore on a preferential basis. The funds are being utilized for expansion activities related to manufacturing and trading of cosmetics, personal care, and home care products, as well as for working capital requirements. The equity shares were sub-divided from ₹10 to ₹2 face value effective October 15, 2025.

Operational Highlights

The company has established an integrated FMCG platform with manufacturing plants located in Roorkee, Bhilwara, and Guwahati. The total monthly capacity for FMCG and FMCG Intermediary Chemicals stands at 19,640 tons, while the Textile Processing capacity is 45 lac meters per month. The Bhilwara facility became fully operational in September 2025, contributing to the Edibles segment with monthly capacities of 850 MT in savories and 650 MT in spices. The Guwahati facility was commissioned with monthly capacities of 2,160 MT for soap noodles and 1,000 MT for cosmetics. Management has set a medium-term target to achieve approximately ₹1,000 crore in revenue by FY28.

Management Outlook

During the Q4 and FY26 earnings conference call, management stated that the ₹1,000 crore revenue target can be achieved with existing capacities, requiring no major capital expenditure. The company expects organic growth of 10%-15% annually, alongside potential inorganic acquisitions in the FMCG segment. Profitability is expected to improve, with a target of 7% PAT margin in the near term, up from 6.12% in Q4FY26. The Guwahati facility is currently operating at 45%-50% capacity utilization, with significant room for ramp-up. The Textile segment is expected to contribute 10%-12% of total revenue in the coming years, down from approximately 20% previously.

Historical Stock Returns for Sunrakshakk Industries

1 Day5 Days1 Month6 Months1 Year5 Years
-0.69%-1.26%-2.75%-2.75%-2.75%-2.75%

What specific inorganic acquisition targets is management evaluating to support the FMCG segment expansion?

How will the company utilize the remaining preferential issue funds now that the Bhilwara and Guwahati facilities are operational?

What is the projected timeline for the Guwahati facility to reach optimal capacity utilization to support the FY28 revenue target?

like18
dislike

More News on Sunrakshakk Industries

Must Read Next

Earnings

Shree Cement Q2 Results: board meeting scheduled for October 23 58 mins ago
no imag found
Steamhouse India expects steam business to maintain 23% profit margin 3 hrs ago

Stocks

Softtech Engineers secures ₹92.95 crore AI project from JNPA 8 mins ago
no imag found
Puravankara secures ₹2,600 crore redevelopment project in Goregaon West 8 mins ago
1 Year Returns:-2.75%