Sukhjit Starch & Chemicals Limited , a leading manufacturer of starch and its derivatives, has announced its financial results for the second quarter and half-year ended September 30, 2025. The company reported a decline in both revenue and profit compared to the same period last year.

Key Financial Highlights (Standalone)

Quarterly Performance

For the quarter ended September 30, 2025, Sukhjit Starch & Chemicals reported:

• A 14% year-on-year decrease in revenue from operations, which stood at Rs. 312.68 crores compared to Rs. 363.87 crores in the same quarter last year.
• Total income, including other income, declined by 13.5% to Rs. 316.58 crores from Rs. 366.09 crores in Q2 FY2025.
• Net profit before tax saw a significant drop of 72%, falling to Rs. 4.70 crores from Rs. 16.83 crores in the corresponding quarter of the previous year.
• Net profit after tax decreased by 67.8% to Rs. 4.07 crores, compared to Rs. 12.63 crores in Q2 FY2025.

Half-Year Results

The company's performance for the first half of FY2026 also showed a downward trend:

• Revenue from operations for H1 FY2026 decreased by 9.8% to Rs. 679.88 crores, down from Rs. 753.70 crores in H1 FY2025.
• Total income for the six-month period was Rs. 686.64 crores, a 9.2% decrease from Rs. 756.51 crores in the previous year.
• Net profit before tax for H1 FY2026 stood at Rs. 10.37 crores, marking a 70.4% decline from Rs. 35.04 crores in H1 FY2025.
• Net profit after tax fell by 66.4% to Rs. 8.82 crores, compared to Rs. 26.24 crores in the first half of the previous fiscal year.

Other Financial Metrics

• The company's earnings per share (EPS) for Q2 FY2026 decreased to Rs. 1.30, compared to Rs. 4.04 in Q2 FY2025.
• For the half-year, EPS stood at Rs. 2.82, down from Rs. 8.40 in the corresponding period of the previous year.
• The paid-up equity share capital remained unchanged at Rs. 15.62 crores.

Consolidated Results

On a consolidated basis, which includes the performance of its subsidiaries, the company reported:

• Total income of Rs. 319.20 crores for Q2 FY2026, down from Rs. 370.35 crores in Q2 FY2025.
• Net profit after tax of Rs. 4.30 crores for the quarter, compared to Rs. 12.55 crores in the same quarter last year.
• For H1 FY2026, consolidated total income was Rs. 691.63 crores, with a net profit after tax of Rs. 9.31 crores.

The Board of Directors approved these results in their meeting held on November 13, 2025. The company continues to operate primarily in the starch manufacturing segment and its derivatives, as per Ind AS-108.

Despite the challenging quarter, Sukhjit Starch & Chemicals maintains a strong balance sheet with total assets of Rs. 1,153.83 crores on a consolidated basis as of September 30, 2025.

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.