Sanstar Limited Q1 FY27 Revenue Rises 21.5% to ₹206.2 Crore

Sanstar Limited reported Q1 FY27 operating revenue of ₹206.2 crore, up 21.5% year-on-year from ₹169.7 crore, as EBITDA recovered to ₹15.4 crore from a ₹0.9 crore loss in Q1 FY26. The quarter reflected improved utilisation, higher gross margin and stronger export revenue after a difficult prior-year base.

What did Sanstar Limited report for Q1 FY27?

Sanstar Limited reported total income of ₹209 crore for the quarter ended June 30, 2026, compared with ₹172.9 crore a year earlier, an increase of 20.9%. Operating revenue rose to ₹206.2 crore, while export revenue grew 24.5% year-on-year to ₹72.3 crore.

The company reported gross profit of ₹68.9 crore, up 67.4% from the year-earlier quarter. Gross margin improved to 33.4%, indicating a materially better operating outcome than Q1 FY26. The presentation attributed the quarter's recovery to higher utilisation, while also noting the company’s cost-management and supply-continuity infrastructure.

EBITDA was ₹15.4 crore, representing a 7.5% margin, against an EBITDA loss of ₹0.9 crore and a negative 0.5% margin in Q1 FY26. Profit after tax was ₹9.2 crore, with a 4.5% margin, compared with a ₹0.3 crore loss in the comparable quarter.

Which operating changes supported the quarterly recovery?

Sanstar said the Dhule native starch capacity expansion was completed in Q1 FY27, taking its total installed capacity to 2,350 tonnes per day. The project added 1,250 tonnes per day at Dhule, above the initially planned 1,000 tonnes per day addition.

The company also commissioned a 3 MW solar power plant at Kutch. Sanstar stated that the project is intended to reduce operating costs. These investments are relevant to a starch and derivatives business where plant utilisation, raw-material availability and energy costs can influence profitability.

Sanstar’s coastal plant locations, large raw-material silos and direct sourcing from farmers form part of its operating model. The presentation said about 30% of sourcing is directly from farmers, supporting supply continuity and cost management. It did not provide a separate financial contribution from these measures for the quarter.

How important were exports to Sanstar’s Q1 FY27 performance?

Exports remained a substantial part of Sanstar’s business, with Q1 FY27 export revenue of ₹72.3 crore, up 24.5% year-on-year. Historically, exports have accounted for about 34% of revenue, and the company serves customers across 34 countries.

The export growth rate exceeded the 21.5% increase in overall operating revenue during the quarter. Sanstar’s presentation linked its export capabilities to coastal manufacturing locations and logistics infrastructure, although it did not disclose country-wise sales, customer concentration or export margins.

For investors, the export contribution provides context for the company’s sales mix and operational footprint. At the same time, the presentation does not offer management guidance or an earnings-call transcript for Q1 FY27, limiting visibility on the sustainability of quarterly demand and margins.

What are the key financial and operational figures?

The following figures are from Sanstar’s Q1 FY27 investor presentation and reported quarterly results. All monetary amounts have been converted to crore for consistency.

Sanstar had reported FY26 revenue of ₹784.6 crore and an EBITDA margin of 4.8%. The Q1 FY27 EBITDA margin of 7.5% was above that full-year level, although one quarter alone does not establish a full-year trend.

How does the Ingredion preferential allotment affect Sanstar?

Sanstar shareholders approved a ₹198.27 crore preferential allotment to Corn Products Development Inc., a subsidiary of Ingredion Incorporated, at ₹110 per share. The transaction includes investor-rights and regulatory-compliance steps, according to the information provided.

Corn Products Development Inc. is described as a new investor that will hold a 9% stake in Sanstar. The preferential issue adds a strategic shareholder to the company and raises capital, but the provided material does not state a detailed use-of-proceeds plan beyond the transaction and related compliance process.

The company approved its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, on November 5, 2026. The supplied information does not include the Q2 or half-year financial figures, so the Q1 presentation remains the basis for assessing the revenue and margin recovery discussed here.

Conclusion

Sanstar’s Q1 FY27 results showed a clear improvement from the weak Q1 FY26 base, with revenue rising 21.5%, EBITDA returning to profit and PAT reaching ₹9.2 crore. Higher utilisation, export growth, expanded capacity and a stronger gross margin were the reported features of the quarter.

The next disclosed milestone is the company’s Q2 and first-half FY27 result announcement and the associated filings. Investors will be watching whether revenue growth, the 7.5% EBITDA margin, export momentum and the completed Dhule capacity expansion continue to support operating performance.