Sukhjit Starch & Chemicals Limited , a leading player in the Indian starch industry, has reported a significant improvement in its financial performance for the first quarter. The company's net profit surged by 94.67% quarter-on-quarter to Rs. 4.75 crores, signaling a strong start despite challenges in the operating environment.

Financial Highlights

Operational Performance

The company is currently operating at 78-85% capacity utilization and aims to reach 85% by the end of the fiscal year. Sukhjit Starch has recently completed a 200-ton capacity expansion and plans to add another 200 tons in the near future.

Market Dynamics and Outlook

Mr. Bhavdeep Sardana, Senior VP and CEO, expressed cautious optimism about the second half, citing several positive factors:

1. Stabilizing Raw Material Prices: Maize prices have stabilized following government intervention in rice supply to ethanol players, easing pressure on input costs.

2. Export Opportunities: Indian starch manufacturers have resumed exports as maize prices became competitive, although Sukhjit Starch is not currently exporting.

3. Demand Recovery: The company is witnessing renewed demand across various sectors, including paper, packaging, FMCG, and personal care.

4. Value-Added Products: Sukhjit Starch is focusing on developing value-added products and deepening customer engagement through product customization and R&D partnerships with multinational companies.

Strategic Initiatives

The company is prioritizing the expansion of its value-added product portfolio. Mr. Sardana highlighted their approach:

"We are catering and changing our production capacities to align with our customers, making that shift. We are working on highly assured pharmaceutical grade products, qualifying existing products, and increasing quality assurance around the existing infrastructure."

Industry Outlook

The management believes that the demand for the starch industry will remain robust, driven by growth in sectors such as paper, packaging, FMCG, and personal care. The company is also optimistic about export opportunities once there is clarity on tariffs.

Pricing Trends

While finished goods pricing has stabilized, the management expects potential upward movement in the coming months due to seasonal factors and the government's announcement of a new Minimum Support Price (MSP) for maize.

As Sukhjit Starch & Chemicals Limited navigates through the evolving market landscape, its focus on value-added products, customer engagement, and operational efficiency positions it well to capitalize on the growing demand for starch and its derivatives in both domestic and international markets.

Sukhjit Starch & Chemicals , a leading agro-processing company specializing in starch and its derivatives, has announced its unaudited financial results for the quarter ended June 30, 2025, showing steady revenue growth and improved profitability.

Financial Highlights

The company reported revenue from operations of ₹367.20 crores in Q1 FY26, up from ₹359.14 crores in the previous quarter (Q4 FY25). This represents a quarter-on-quarter growth of about 2.24%. The company's profitability metrics also showed improvement:

Performance Analysis

The company attributes the improvement in its financial performance to enhanced operational efficiency and stabilization in raw material prices. Managing Director K.K. Sardana expressed optimism about the company's future prospects, stating, "Since the prices of some finished goods have stabilized and the demand from some key sectors has started showing an upward trend, we expect the profitability to improve in the coming quarters."

Industry Outlook

Sardana noted early signs of stabilization in raw material prices, aided by government measures supporting maize cultivation. The company anticipates better performance in the second half of FY26, driven by improved maize availability, positive demand trends, and supportive pricing.

Company Profile

Sukhjit Starch & Chemicals Ltd, incorporated in 1943, is one of India's oldest and largest starch producers. The company's diverse product portfolio includes:

• Starch
• Dextrines
• Liquid glucose
• Various by-products

These products cater to industries such as food & beverages, paper & board, personal care & pharmaceuticals, textile, FMCG, and animal and pet foods.

Forward-Looking Statements

While the company remains optimistic about emerging market opportunities, it cautions that forward-looking statements are subject to risks and uncertainties. Actual results may differ from projections due to factors such as industry trends, economic conditions, tax laws, and exchange rate fluctuations.

Sukhjit Starch & Chemicals Limited continues to focus on customer-centricity and sustainable practices as it aims to deliver value to stakeholders and maintain a sustainable growth trajectory in the coming years.