Sukhjit Starch & Chemicals Reports Q2 FY26 Results Amid Market Challenges

Sukhjit Starch & Chemicals Limited , a leading player in the Indian starch industry, recently announced its financial results for the second quarter of fiscal year 2026. The company faced market challenges but maintained a focus on operational efficiency and strategic positioning.

Financial Performance

The company reported the following key financial metrics for Q2 FY26:

Metric	Q2 FY26	Q1 FY26	Change
Revenue	₹312.68	₹367.20	-14.8%
EBITDA	₹20.05	₹19.89	+0.8%
Net Profit	₹4.07	₹4.75	-14.3%

Despite the sequential decline in revenue and net profit, Sukhjit Starch & Chemicals managed to maintain a stable EBITDA, indicating efforts to control operational costs.

Market Dynamics and Company Strategy

The company's management highlighted several factors influencing their performance:

Demand Trends: Steady improvement in demand was observed from key sectors including food processing, paper, and textiles. The pharmaceutical and packaging segments continued to show resilience.
Raw Material Costs: Maize prices started softening gradually towards the end of September, attributed to better arrivals from the Kharif crop and supportive government policies encouraging higher maize cultivation.
GST Rationalization: The implementation of GST rationalization on September 22nd temporarily paused demand from the trade sector but is expected to have a positive impact going forward.
Operational Efficiency: The company maintained healthy capacity utilization across all plants, supported by better maize procurement and efficient raw material planning.
Export Potential: Management indicated that Indian starch manufacturers might regain export competitiveness due to favorable maize cost levels compared to global competitors.

Outlook and Strategic Initiatives

Sukhjit Starch & Chemicals' management expressed cautious optimism for the second half of FY26:

They anticipate sequential improvement in operating performance, driven by stabilizing raw material costs and firm demand.
The company is focusing on cost optimization measures, improving yield, and enhancing energy efficiency.
Management has recast the product portfolio to better service demand and optimize profitability in challenging market conditions.
The company maintains a prudent inventory policy, typically keeping a 40-60 day coverage depending on market opportunities.

Industry Perspective

The starch industry in India remains stable overall, with potential for growth in exports. The government's ethanol sourcing policy and increased maize acreage are expected to influence the market dynamics in the coming quarters.

As Sukhjit Starch & Chemicals navigates through these market conditions, investors and industry observers will be watching closely to see how the company's strategies unfold in the face of evolving market challenges and opportunities.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.01%	-0.72%	-3.07%	-27.72%	-39.17%	-26.35%

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)

Particulars (Rs. in crores)	Q2 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Revenue from Operations	312.68	363.87	679.88	753.70
Total Income	316.58	366.09	686.64	756.51
Net Profit Before Tax	4.70	16.83	10.37	35.04
Net Profit After Tax	4.07	12.63	8.82	26.24

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.