Sanstar Ltd Q1 FY27 Results

Sanstar reported standalone/consolidated PAT of ₹9.21 Cr for Q1 FY27 (quarter ended June 30, 2026), against a ₹0.33 Cr net loss in the year-ago quarter — a clean YoY turnaround with revenue from operations up 21.5% YoY to ₹206.16 Cr (₹169.66 Cr) and NPM improving to 4.41% from -0.19%. Sequentially, however, the print cooled: revenue was down 4.9% and PAT down 55% versus Q4 FY26's ₹216.78 Cr revenue and ₹20.49 Cr PAT, with NPM compressing from 9.31% and OPM (EBITDA on revenue, ex-other income) easing to roughly 7.5% from 8.9%.

The QoQ margin squeeze traces mainly to depreciation more than doubling to ₹5.26 Cr from ₹2.49 Cr in Q4, consistent with the company's IPO-funded expansion of native-starch capacity at Dhule to 2,350 TPD coming fully online; industry commentary also flags pricing pressure on commoditised native starch, which forms 60-65% of Sanstar's revenue mix, as a margin risk the company is looking to offset via a higher-value derivatives facility planned at Dhule within FY27. Finance costs stayed roughly flat YoY and QoQ.

The stock went into the print at ₹113.56, up 3.3% over the past month of trading.

EPS ₹0.50 (quarterly, not annualised) vs ₹1.12 in Q4 FY26 and ₹(0.02) a year ago — paid-up equity capital up to ₹40.05 Cr from ₹36.45 Cr post preferential issue

The quarter's dominant corporate event was the completion of a ₹198.27 Cr preferential allotment of 1.80 Cr equity shares to Corn Products Development Inc., a non-promoter strategic investor, at ₹110/share; as of June 30, 2026 the entire amount remained parked in fixed deposits, unutilised against its stated objects of ₹149.20 Cr working capital and ₹49.07 Cr general corporate purposes. The Board has since inducted a Corn Products nominee director (Jacques Guglielmi) alongside a new independent director and re-appointed the MD and both Joint MDs for fresh five-year terms, formalising the strategic tie-up's board presence. Sanstar also took a 30% associate stake in Spark Ingredients Pvt Ltd for ₹0.15 Cr, triggering first-time consolidated reporting this quarter, though the associate's impact on the numbers is negligible.