Sukhjit Starch & Chemicals Limited has issued a clarification to BSE regarding recent price movements in its shares, responding to an inquiry from the exchange's surveillance department dated December 31, 2025.

Company's Response to Price Movement Inquiry

The company received a communication from BSE's surveillance department seeking clarification on price movements. In its response dated January 01, 2026, the management addressed the exchange's concerns about recent share price and volume behavior.

Management's Explanation

The company attributed the recent price and volume movements to market perception and analysis about the industry, along with prevailing capital market conditions. Management emphasized that these factors are beyond their control and requested the exchange's understanding of this situation.

The company stated that management does not have any new information to share with shareholders beyond the financial data and other information already available in the public domain.

Compliance with Disclosure Requirements

Sukhjit Starch & Chemicals reaffirmed its commitment to regulatory compliance and transparency. The company highlighted several key points regarding its disclosure practices:

• Prompt sharing of all necessary information that may impact company operations or performance
• Timely disclosure of developments affecting price or volume behavior
• Compliance with unpublished price-sensitive information requirements
• Adherence to SEBI LODR Regulations 2015

Future Disclosure Commitments

The management reiterated its commitment to continue making appropriate disclosures as and when any price-sensitive events occur or when developments are in the interest of shareholders. This commitment aligns with the provisions of SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

The company's response demonstrates its adherence to regulatory requirements while explaining that current price movements reflect market dynamics rather than any undisclosed material information.

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:

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:

1. 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.

2. 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.

3. 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.

4. Operational Efficiency: The company maintained healthy capacity utilization across all plants, supported by better maize procurement and efficient raw material planning.

5. 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.