Sanstar Reports Sharp Decline in Q2 Financial Performance

Sanstar Limited (CIN: L15400GJ1982PLC072555), a leading manufacturer of starch products, has reported a significant deterioration in its financial performance for the second quarter of the fiscal year 2025-26.

Key Financial Highlights

Particulars (in Crore Rupees)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue from Operations	196.43	205.58	-4.45%
Net Profit	0.63	7.52	-91.62%
EBITDA	13.50	114.60	-88.22%
EBITDA Margin	0.69%	5.57%	-488 bps

Sanstar's financial results for Q2 FY2025-26 show a sharp decline across key metrics compared to the same period last year. The company's revenue from operations decreased by 4.45% year-over-year to 196.43 crore rupees from 205.58 crore rupees in Q2 FY2024-25.

Profitability Under Pressure

The most notable decline was in the company's net profit, which plummeted by 91.62% to 0.63 crore rupees from 7.52 crore rupees in the corresponding quarter of the previous year. This substantial drop in profitability reflects significant challenges faced by the company during the quarter.

EBITDA and Margin Compression

Sanstar's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a dramatic fall of 88.22%, reaching 13.50 crore rupees compared to 114.60 crore rupees in Q2 FY2024-25. Consequently, the EBITDA margin contracted sharply to 0.69% from 5.57% in the same period last year, representing a decrease of 488 basis points.

Operational Performance

The company's cost of material consumed increased to 156.98 crore rupees in Q2 FY2025-26, up from 147.35 crore rupees in the corresponding quarter of the previous year. This rise in input costs, coupled with a decrease in revenue, has likely contributed to the squeeze on profitability.

Balance Sheet Position

As of September 30, 2025, Sanstar's total assets stood at 761.27 crore rupees, showing a marginal increase from 757.52 crore rupees as of March 31, 2025. The company maintains a strong equity position with total equity of 659.39 crore rupees.

IPO Fund Utilization

Sanstar completed its Initial Public Offering (IPO) in the financial year 2024-2025, raising 397.10 crore rupees. As of September 30, 2025, the company has utilized 319.63 crore rupees of the IPO proceeds, with 41.91 crore rupees temporarily invested in fixed deposits.

Outlook

While the company faces significant challenges as evidenced by the Q2 results, it's important to note that Sanstar continues to invest in its future. The ongoing capital expenditure for the expansion of its Dhule facility, funded partly by the IPO proceeds, may position the company for potential growth once market conditions improve.

Investors and stakeholders will be keenly watching Sanstar's performance in the coming quarters to see if the company can reverse this downtrend and return to a path of profitability and growth.

Sanstar Limited , a leading producer of maize-based specialty products in India, has reported a significant decline in its financial performance for the first quarter. The company faced challenges due to a planned maintenance shutdown and market pressures, resulting in lower revenue and profitability.

Financial Performance

Sanstar's revenue from operations for Q1 stood at ₹1,689.00 million, marking a 44.2% decrease from ₹3,027.00 million in the same quarter of the previous year. The company's gross profit also saw a substantial decline, falling to ₹404.00 million with a margin of 23.9%, compared to ₹801.00 million and a 26.5% margin in the previous year.

The financial results were further impacted by negative EBITDA of ₹17.00 million and a negative Profit After Tax (PAT) of ₹3.00 million for the quarter. Despite these challenges, the company managed to generate a cash profit of ₹20.00 million.

Financial Metric	Q1 Current Year	Q1 Previous Year	Y-o-Y Change
Revenue	₹1,689.00 Mn	₹3,027.00 Mn	-44.2%
Gross Profit	₹404.00 Mn	₹801.00 Mn	-49.6%
Gross Margin	23.9%	26.5%	-260 bps
EBITDA	-₹17.00 Mn	₹274.00 Mn	-
PAT	-₹3.00 Mn	₹165.00 Mn	-

Factors Affecting Performance

The company attributed the decline in performance to two primary factors:

Annual Maintenance Shutdown: Sanstar undertook a 24-day annual maintenance program for its boilers at both plants. This resulted in the non-operation of facilities with a combined capacity of 1,100 Tonnes Per Day (TPD), leading to lower production volumes and no revenue generation for nearly a month.
Market Pressures: The native starch segment faced pricing pressure due to increased Chinese exports into Southeast Asia. This led to excess supply and lower pricing in the Indian market.

Expansion Plans

Despite the current challenges, Sanstar is moving forward with its expansion plans:

The Dhule facility capacity is being increased from 750 TPD to 1,750 TPD.
Native starch manufacturing is scheduled to be commissioned in December 2025.
The derivatives facility is expected to be operational by March 2026.
Upon completion, Sanstar's total capacity will grow from 1,100 TPD to 2,100 TPD.

This expansion will position Sanstar as India's second-largest producer of maize-based specialty products and ingredient solutions.

Management Commentary

Mr. Gouthamchand Chowdhary, Chairman and Managing Director of Sanstar Limited, commented on the results: "With the maintenance program now behind us, operations have been normalized and no further scheduled downtime and production loss is expected over the next three quarters. Looking ahead, we remain optimistic about the operating environment as global trade headwinds are expected to ease."

He also noted that China's approach to exports is expected to normalize, potentially leading to a recovery in native starch pricing in India. Additionally, the company anticipates a positive outlook for maize, its key raw material, with projections of higher cultivated areas and government releases of maize inventories.

As Sanstar navigates through these challenges and completes its expansion plans, the company aims to capitalize on an improving market environment and drive sustainable growth in the coming quarters.