Sukhjit Starch & Chemicals Posts ₹50 Million Profit In June Quarter, Revenue Rises To ₹3.69 Billion

Sukhjit Starch & Chemicals Ltd., a prominent agro-processing company specializing in starch and its derivatives, has announced its consolidated financial results for the quarter ended June 2025. The company reported a net profit of ₹50 million and revenue from operations of ₹3.69 billion, reflecting a steady performance amid input cost pressures and evolving demand dynamics across industrial and food-grade segments.

The results highlight Sukhjit’s continued focus on operational stability, product diversification, and prudent financial management, as it navigates a competitive landscape shaped by commodity volatility and regulatory shifts.

Key Highlights From Q1 FY26

- Revenue from operations stood at ₹3.69 billion, up 7.8 percent year-on-year  
- Net profit reached ₹50 million, compared to ₹44 million in the same quarter last year  
- EBITDA margin remained modest at 8.5 percent, impacted by raw material cost inflation  
- Earnings per share stood at ₹1.12, reflecting stable profitability  
- No exceptional items or impairments were reported during the quarter  

Business Segment Overview

1. Native And Modified Starch Products  
   - Core segment contributed over 60 percent of total revenue  
   - Demand from paper, textile, and food processing industries remained consistent  
   - Product mix optimization and technical support for B2B clients supported retention  

2. Liquid Glucose And Dextrose  
   - Segment showed moderate growth, driven by pharmaceutical and confectionery applications  
   - Pricing remained stable despite corn price fluctuations  
   - Export orders from Southeast Asia and Middle East markets added incremental volume  

3. By-products And Animal Feed  
   - Corn gluten, germ, and fiber sales contributed to margin support  
   - Demand from poultry and dairy feed manufacturers remained firm  
   - Operational efficiency in by-product recovery enhanced cost absorption  

Operational Efficiency And Cost Management

- Raw material costs rose due to higher corn procurement prices and logistics expenses  
- Energy costs were contained through captive power usage and process optimization  
- Employee expenses remained stable, with productivity-linked incentives  
- Administrative overheads were reduced by 3.2 percent year-on-year through digital integration  

Strategic Developments And Corporate Governance

- Sukhjit Starch is investing in automation and capacity enhancement at its Punjab and Telangana units  
- The company has initiated trials for biodegradable packaging-grade starches  
- Governance practices include quarterly board reviews, audit committee oversight, and transparent disclosures  
- Long-term bank borrowings have been reduced to near-zero, with a debt-equity ratio of 0.15  

Market Position And Investor Sentiment

- Promoter holding stood at 61.3 percent, with no pledged shares  
- The stock has declined 16.6 percent over the past year, reflecting cautious investor sentiment amid sectoral headwinds  
- Market capitalization stood at ₹608.9 crore as of August 2025  
- Dividend payout policy remains conservative, with emphasis on reinvestment and balance sheet strength  

Outlook For FY26

Sukhjit Starch & Chemicals is expected to maintain its growth trajectory through FY26, supported by demand in food processing, pharmaceuticals, and industrial applications. The company’s focus on operational efficiency, product innovation, and financial prudence positions it well to navigate market challenges and capitalize on emerging opportunities.

With a stable start to the fiscal year, Sukhjit continues to reinforce its role as a reliable supplier in India’s starch and agro-processing industry.

Sources: Reuters, Screener, ET Money, Sukhjit Starch & Chemicals Ltd. Earnings Transcript.