Universal Starch Chem Allied Limited reported a sharp recovery in profitability for the financial year ended March 31, 2026, driven by favorable raw material pricing and improved operational efficiency.

Universal Starch Chem posted a net profit of ₹131.2 crore for FY26, a significant increase from ₹32.1 crore in the previous year. Despite total revenue remaining relatively flat at ₹4,900.9 crore, the company achieved an operating profit margin expansion, reflecting better cost management amidst stable sales volumes.

Financial Performance Overview

The company's top-line growth was muted, with revenue from operations standing at ₹4,886.0 crore compared to ₹4,908.9 crore in FY25. However, the bottom line saw substantial improvement due to a reduction in the cost of materials consumed, which fell to ₹3,707.7 crore from ₹4,091.4 crore in the prior year.

The EBITDA rose to ₹337.4 crore from ₹198.6 crore, indicating stronger operational leverage. The improvement in margins was further supported by a decline in financial costs, which dropped to ₹81.4 crore from ₹93.0 crore, aided by reduced borrowing levels.

What the Numbers Show

A key divergence in the data is the decoupling of revenue stability from profit growth. While sales volumes and prices remained largely unchanged, the significant drop in raw material costs directly translated into higher margins. This suggests that the primary driver of the current fiscal performance was input cost optimization rather than demand-side expansion. Additionally, the debt-to-equity ratio improved to 0.73 from 0.99, signaling a strengthening balance sheet position.

Balance Sheet and Cash Flow

The company reduced its total debt to ₹602.4 crore from ₹826.4 crore in FY25. Short-term borrowings decreased to ₹313.9 crore, while long-term borrowings remained steady at ₹288.5 crore. Cash and cash equivalents stood at ₹47.8 crore at the end of the period, down from ₹66.1 crore in the previous year, reflecting active debt repayment and operational cash utilization.

Inventory levels also contracted significantly, falling to ₹262.7 crore from ₹346.3 crore. This reduction in inventory turnover suggests more efficient stock management or a deliberate drawdown of raw material stocks given the favorable pricing environment.

Corporate Actions and Governance

The Board of Directors decided not to declare any dividend for the financial year. In terms of governance, the company held its 53rd Annual General Meeting on September 28, 2026. Key resolutions included the re-appointment of Mrs. Nayankuwar J. Rawal as Whole-Time Director and Mr. Vishal Thakkar as an Independent Director for a second term. Mr. Gopalsingh Rajput was also appointed as Whole-Time Director, succeeding Mr. Subhash H. Rajput who resigned upon completion of his tenure.

The statutory auditors, M/s M B Agrawal & Co., issued an unqualified opinion on the financial statements. The secretarial audit report noted minor non-compliances regarding promoter shareholding in demat form but confirmed overall adherence to corporate governance standards.

Universal Starch Chem Allied Ltd has scheduled its 53rd Annual General Meeting for September 28, 2026, at its registered office in Mumbai. The meeting will address ordinary business, including the adoption of audited financial statements for FY26, alongside several special resolutions concerning board composition and management appointments.

Board Appointments and Re-appointments

The AGM agenda features three significant special resolutions regarding the company's leadership structure. Shareholders will vote on the re-appointment of Mrs. Nayankuwar J. Rawal as Whole-Time Director for a further period of three years, effective November 20, 2026. Her remuneration package includes a monthly salary of up to ₹1,00,000, along with commission and special allowances as approved by the Board within statutory limits.

Additionally, the company seeks approval for the re-appointment of Shri Vishal Thakkar as an Independent Director for a second term of five consecutive years. Thakkar, who was first appointed in 2021, has confirmed his continued eligibility under Section 149(6) of the Companies Act, 2013. He will receive sitting fees for attending Board and Committee meetings.

A third resolution proposes changing the designation of Mr. Gopalsingh Rajput from Director to Whole-Time Director, effective August 12, 2026. Rajput, who holds a Master’s degree in Chemistry and possesses over 32 years of manufacturing experience, will serve a three-year term. His proposed monthly salary is ₹2,75,000, subject to Board approval and statutory limits.

Director Retiring by Rotation

Mrs. Hansarani Ripudaman Singh Vaghela retires by rotation at the upcoming AGM and offers herself for re-appointment. She holds 1,12,700 shares in the company as of March 31, 2026. The Board recommends her re-appointment, noting her qualifications and experience.

Voting and Logistics

The Register of Members and Share Transfer Books will remain closed from September 21, 2026, to September 28, 2026. The cutoff date for determining voting rights is September 21, 2026. Remote e-voting facilities are available through Central Depository Services (India) Ltd (CDSL) from September 25, 2026, at 9:00 am to September 27, 2026, at 5:00 pm.

Shareholders holding securities in demat mode can vote via their depository participant accounts or through the CDSL e-voting portal. Physical shareholders must use their folio numbers to access the e-voting module. The company has appointed M/s. Leena Agrawal & Co., Practising Company Secretaries, as the scrutinizer for the remote e-voting process.