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.

Sukhjit Starch & Chemicals Limited, a leading manufacturer of starch and its derivatives, has reported a significant decline in its net profit for the first quarter. The company's financial performance has been impacted by challenging market conditions and fluctuations in raw material prices.

Key Financial Highlights

• Net profit decreased by 65% to Rs 48.00 million, down from Rs 136.00 million in the corresponding quarter last year.
• Revenue declined to Rs 3.70 billion, compared to Rs 3.90 billion in the previous year's quarter, representing a 5% decrease.
• The company's performance was affected by volatility in maize prices and changes in the raw material market.

Factors Affecting Performance

The company's financial results were influenced by several factors:

1. Raw Material Price Volatility: Fluctuations in maize prices, which form about 70% of the operating income, significantly impacted the company's margins.
2. Market Dynamics: Changes in the supply of rice from the Food Corporation of India (FCI) for ethanol blending affected the maize market, leading to increased raw material costs.
3. Operating Margin Pressure: The operating margin stood at 6.93%, lower than the previous year's 9.20%, primarily due to elevated raw material prices.

Future Outlook

Despite the challenges faced in Q1, Sukhjit Starch & Chemicals remains optimistic about its future performance:

• The company expects revenue to increase by 8-10%, supported by healthy growth in key industries it serves, including FMCG, textiles, and paints.
• Operating margins are projected to improve to the range of 8-9%, as raw material prices stabilize and the company implements efficiency measures.
• The management is focusing on increasing traction from new customers and expanding its market presence.

Company Profile

Sukhjit Starch & Chemicals Limited, established in 1943, is a prominent player in the Indian maize processing industry. With a maize grinding capacity of 1,600 tonnes per day, the company has a significant market share in the domestic starch and derivatives sector. Its strategic manufacturing locations across North, South, and Eastern India provide advantages in raw material sourcing and market access.

The company serves a diverse and reputed clientele, including major brands in the food and beverage, pharmaceutical, and packaging industries. Despite the current challenges, Sukhjit Starch & Chemicals maintains a healthy capital structure with a gearing ratio of 0.49 times.

As the company navigates through the current market dynamics, investors and industry observers will be keenly watching its ability to improve operating efficiency and capitalize on the expected growth in its key market segments.