Regaal Resources Limited , a leading maize-based specialty products manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, along with significant progress in utilizing its IPO proceeds.

Financial Highlights

For Q2 FY26, Regaal Resources achieved:

• Operating Income of ₹3,200.20 crore, up 56.5% year-on-year (YoY)
• Operating EBITDA of ₹350.40 crore, increasing 12.7% YoY
• Profit After Tax (PAT) of ₹167.10 crore, growing 27.7% YoY

The company's performance for H1 FY26 was equally impressive:

• Operating Income reached ₹5,665.90 crore, a 41.9% YoY increase
• Operating EBITDA stood at ₹595.00 crore, up 8.1% YoY
• PAT rose to ₹257.80 crore, a 15.8% YoY growth

IPO Fund Utilization

Regaal Resources has made significant progress in utilizing the funds raised from its Initial Public Offering (IPO):

The company has utilized approximately 97% of the net IPO proceeds, with the remaining funds temporarily held in a designated special current bank account.

Operational Updates

Anil Kishorepuria, Chairman and Managing Director of Regaal Resources, commented on the results: "We are pleased to share that the capacity expansion to 1,650 TPD remains on track and would be commissioned by the end of this Fiscal. The new capacity will be dedicated towards the production of Liquid Glucose, Maltodextrin Powder, Dextrose Monohydrate, Dextrose Anhydrous and many other value-added products, enabling us to achieve product diversification and capture rising demand across various industries."

The company noted that the contraction in value-add margin was primarily due to muted demand in the starch export market and the company's strategy of maintaining strong relationships with farmers by accepting maize deliveries even when exceeding near-term manufacturing requirements.

Future Outlook

Regaal Resources remains optimistic about future growth, citing recent improvements in export markets supported by firming global starch prices and a decline in maize prices in India. The company is focused on optimizing operations while maintaining strong capital discipline and a commitment to sustainable business practices.

As Regaal Resources continues to expand its capacity and product portfolio, it is well-positioned to capitalize on the growing demand for maize-based specialty products across various industries, including processed foods, industrial applications, and FMCG.

Market Response

The financial results and IPO fund utilization update were well-received by the market, reflecting investor confidence in Regaal Resources' growth strategy and operational execution.

Note: All financial figures are in Indian Rupees (₹).

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.