Regaal Resources Limited (RRL), a prominent player in the maize starch extraction industry, has received a significant boost to its credit profile. CRISIL Ratings has upgraded the company's long-term rating to 'CRISIL A-/Stable' from 'CRISIL BBB+/Positive', while also enhancing its total bank loan facilities to Rs. 625.57 crore from Rs. 385.00 crore.

Financial Performance and Growth

The upgrade reflects RRL's robust financial performance and growth trajectory:

The company's revenue growth has been driven by strong volumetric expansion and improved capacity utilization. RRL's operating margin improved to 12.38% in fiscal 2025, showcasing better operational synergies despite volatile maize prices.

Expansion and Value Addition

RRL is currently undertaking significant expansion initiatives:

• Increasing maize starch extraction capacity by 825 tonnes per day, bringing the total to 1,650 tonnes per day by April 2026.
• Adding value-added products including liquid glucose, maltodextrin powder, and dextrose variants.

These expansions are expected to strengthen RRL's market position and diversify its product portfolio.

Capital Structure and Funding

The company's capital structure remains comfortable, with a net worth of Rs. 243.00 crore as of March 2025. This has been further bolstered by:

• IPO funding of Rs. 210.00 crore
• Ongoing capex of Rs. 450.00 crore over fiscals 2025-26, funded through a mix of term loans and internal accruals

Key Strengths and Challenges

Strengths:

• Established market position in maize starch extraction
• Prudent working capital management
• Comfortable financial risk profile

Challenges:

• Susceptibility to raw material price volatility
• Regulatory changes affecting operations
• Risks associated with ongoing capex

Future Outlook

CRISIL expects RRL to benefit from its established market position and the ongoing capacity expansion. The financial risk profile is likely to remain healthy, supported by steady accretion to net worth and comfortable liquidity levels.

However, the company's performance will be closely monitored for:

• Successful completion and ramp-up of new capacities
• Sustained improvement in operating margins
• Management of working capital cycle

As Regaal Resources Limited navigates its growth phase, the upgraded credit rating reflects confidence in its financial strength and market position, setting a positive tone for its future endeavors in the maize starch industry.

Regaal Resources Limited, a leading manufacturer of maize starch and its derivatives, has made several significant announcements that underscore its commitment to growth, transparency, and expansion.

Expansion Plans

Regaal Resources has unveiled ambitious plans to double its crushing capacity from 825 TPD to 1,650 TPD by the end of Q4 FY26. This expansion is set to be implemented in phases, with the first phase aiming to reach 825 TPD by June 2025. Additionally, the company plans to diversify its product portfolio by introducing new offerings including maltodextrin, liquid glucose, DAH (Dextrose Anhydrous), and DMH (Dextrose Monohydrate).

New Investor Relations Advisor

Regaal Resources has appointed Uirtus Advisors LLP, based in Kolkata, as their Investor Relations Advisor. The appointment, effective from September 01, 2025, was communicated to the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) through a formal notification signed by Tinku Kumar Gupta, the Company Secretary and Compliance Officer.

This strategic move is expected to enhance Regaal Resources' communication with investors and stakeholders, potentially improving market perception and investor relations.

Q1 FY2026 Financial Results

Regaal Resources disclosed its unaudited financial results for the quarter ended June 30, 2025 (Q1 FY2026). The company's board of directors approved these results in a meeting held on September 09, 2025.

Key financial highlights for Q1 FY2026 include:

The company's revenue from operations showed a significant year-on-year growth of 26.53%, rising from ₹1,948.75 million in Q1 FY2025 to ₹2,465.69 million in Q1 FY2026. However, profit after tax saw a marginal decline of 1.18%, from ₹91.75 million to ₹90.67 million.

Recent IPO Success

Regaal Resources recently completed its Initial Public Offering (IPO) on August 20, 2025. The company issued 29,999,520 equity shares at ₹102 per share, raising a total of ₹3,059.95 million. This included a fresh issue of shares amounting to ₹2,088.83 million and an offer for sale by existing shareholders worth ₹960.02 million.

Anil Kishore Puria, Chairman & Managing Director of Regaal Resources, oversaw the approval of these financial results. The company continues to focus on its core business of manufacturing maize starch and its derivatives, with no separate reporting segments under IND AS 108 "Operating Segments".

As Regaal Resources navigates its post-IPO phase, implements new investor relations strategies, and pursues its expansion plans, stakeholders will be keenly watching how these developments impact the company's future performance and market position.