Universal Starch Chem Allied Limited reported a significant turnaround in profitability for the first quarter of FY27, posting a standalone net profit of ₹325.46 lakh compared to a net loss of ₹250.6 lakh in the corresponding period of FY26.

The Mumbai-based starch manufacturer saw its revenue from operations expand by 21.4% year-on-year to ₹1,474.6 crore, up from ₹1,214.4 crore in Q1FY26. However, on a sequential basis, revenue contracted by 3.2% from ₹1,523.6 crore reported in the fourth quarter of FY26.

Financial Performance

The company’s pre-tax profit stood at ₹462.2 lakh for the quarter, a marked improvement from the pre-tax loss of ₹247.5 lakh recorded in Q1FY25. Basic earnings per share (EPS) rose to ₹7.75, reversing the diluted EPS loss of ₹5.97 seen in the prior year.

Total comprehensive income for the quarter was marginal at ₹0.31 lakh, down from a negative ₹0.37 lakh in the preceding quarter and significantly lower than the ₹0.89 lakh recorded in Q1FY26.

What the Numbers Show

While the top-line growth of over 21% year-on-year indicates robust demand or pricing power in the starch segment, the bottom-line recovery is disproportionately larger relative to revenue changes. The shift from a pre-tax loss of ₹247.5 lakh to a profit of ₹462.2 lakh suggests a substantial improvement in operating margins or cost efficiencies that outpaced the revenue growth trajectory.

Universal Starch Chem Allied Limited reported a standalone net profit of ₹325.46 lakh for the quarter ended June 30, 2026 (Q1FY26), marking a significant turnaround from the net loss of ₹250.60 lakh recorded in the corresponding period of FY25. The improvement was driven by a 21.4% year-on-year increase in revenue from operations, which reached ₹1,474.61 crore, compared to ₹1,214.42 crore in Q1FY25. This operational strength allowed the company to offset higher costs and return to profitability.

The Board of Directors approved the unaudited standalone financial results on August 12, 2026, following a limited review by the statutory auditor, M.B. Agrawal & Co. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee reviewed the results before they were taken on record by the Board.

Financial Performance Highlights

Revenue from operations stood at ₹1,474.61 crore in Q1FY26, up from ₹1,214.42 crore in Q1FY25. However, cost of materials consumed increased significantly to ₹1,221.53 crore from ₹990.98 crore in the prior year, reflecting input cost pressures or volume changes. Other income rose to ₹34.50 lakh from ₹18.15 lakh, contributing modestly to total income.

Profit before tax improved to ₹462.22 lakh from a loss of ₹247.48 lakh in Q1FY25. Tax expenses for the quarter were ₹136.76 lakh, comprising current tax of ₹128.64 lakh and deferred tax of ₹8.12 lakh. Earnings per share (basic and diluted) were ₹7.75, compared to a loss per share of ₹5.97 in Q1FY25.

What the Numbers Show

The primary driver of the turnaround was the expansion in revenue outpacing the growth in total expenses. While revenue grew by 21.4%, total expenses increased by only 15.4%, indicating improved operating leverage despite a sharp rise in material costs. The company’s focus on maize products manufacturing remains its core segment, with other activities like wind power generation not reported separately as they do not meet the reportable segment criteria under Ind AS-108.

The company noted that figures for previous years have been regrouped where necessary. Additionally, management has assessed the potential impact of the newly enacted labour codes — Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, and Occupational Safety, Health and Working Conditions Code, 2020 — and accounted for these effects in the financial statements based on actuarial valuation reports.