Sayaji Industries Ltd Q1 FY27 Results

“Sayaji Industries has carried forward the momentum of the last two quarters and delivered a healthy performance in Q1FY27, marking a good start to the financial year. Revenue for the quarter stood at ₹288 Cr, with an EBITDA of ₹21 Cr and an EBITDA margin of 7.3%. The quarter saw an increase in input prices on the back of general food inflation, higher energy costs and the resulting inflation in logistics costs. Despite this, the Company has remained on course with its performance, supported by healthy volumes and margins. Given that this cost inflation has been experienced across the industry, it is encouraging to note that end product prices have also remained buoyant across the board. During Q1FY27, we recorded an average increase in sales prices of 3 -4%. Based on these developments, we expect margins to remain healthy for the rest of the year. From an operational perspective, raw material availability remains comfortable, and while prices did increase during Q1, we remain comfortable with our procurement strategy for FY27. On the exports front, logistics to the Middle East have remained under pressure on account of elevated freight costs and the continued lack of a resolution to the West Asia crisis. While the situation remains challenging, alternate shipping and logistics routes have since opened up, which is allowing us to manage continuity in our exports business. Alongside this, the Company has focused its energies on alternate export markets, including the United States, and is also seeing healthy visibility from domestic markets. On the project front, we remain on track with our Technology Modernisation and Automation Project. ~95% of the machinery and material has been delivered, installation is in process, and the project is expected to be commissioned by the end of September 2026. Once operational, it will enable significant and sustainable cost savings for the Company. We have also progressed on our joint venture capital expenditure projects. The Alland & Sayaji Gum Arabic Spray-Drying Plant #2 is expected to commence work by the end of September 2026, and given the ongoing monsoon season, civil works are expected to begin in Q3FY27. Work on the Nigay & Sayaji Caramel Colours Plant is expected to commence on the same timelines as well. Taken together, the performance in Q1FY27 and the projects currently under execution position the Company well for FY27. The focus remains on consolidating these gains, completing the projects on hand and continuing to build a stronger, more competitive operating platform.”