Universal Starch Chem Q1 Results: Net profit turns positive at ₹325 lakh
Universal Starch Chem Allied Ltd returned to profitability in Q1FY26 with a net profit of ₹325.46 lakh, reversing a loss of ₹250.60 lakh in Q1FY25. Revenue grew 21.4% YoY to ₹1,474.61 crore, driven by strong performance in its maize products segment. The Board approved the results on August 12, 2026, after review by statutory auditors M.B. Agrawal & Co.
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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.
| Particulars | Q1FY26 (₹ in Lacs) | Q1FY25 (₹ in Lacs) | Change |
|---|---|---|---|
| Revenue from Operations | 14,746.13 | 12,144.19 | +21.4% |
| Other Income | 34.50 | 18.15 | +90.1% |
| Total Income | 14,780.63 | 12,162.34 | +21.5% |
| Total Expenses | 14,318.40 | 12,409.82 | +15.4% |
| Profit Before Tax | 462.22 | (247.48) | Turnaround |
| Net Profit After Tax | 325.46 | (250.60) | Turnaround |
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.
Historical Stock Returns for Universal Starch Chem
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.94% | -2.11% | +4.78% | +43.80% | +25.93% | +71.40% |
How sustainable is the current operating leverage given the significant 23.3% year-on-year increase in material costs, and what hedging strategies is Universal Starch employing to mitigate future input price volatility?
Will the newly enacted labour codes lead to a structural increase in operating expenses in subsequent quarters, potentially eroding the margin improvements seen in Q1FY26?
Given that wind power generation does not meet reportable segment criteria, are there plans to scale this division or divest it to focus exclusively on core maize product manufacturing?
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