Sanstar Q1 FY27: Revenue up 21.5%, PAT at ₹9.21 cr

Key takeaway from Sanstar’s Q1 print

Sanstar reported a sharp operational turnaround in Q1 FY27, with consolidated revenue from operations rising to ₹206.16 crore from ₹169.66 crore a year ago. The company also moved to a consolidated net profit of ₹9.21 crore, compared with a loss of ₹0.33 crore in Q1 FY26. The results for the quarter ended June 30, 2026 were declared on August 13, 2026. The improvement was linked to better gross margins and normalized production levels, as stated in the results commentary. While the year-on-year performance strengthened, the company also disclosed sequential declines versus Q4 FY26 on several lines.

Revenue growth led by better operating conditions

On a year-on-year basis, revenue from operations increased 21.51% to ₹206.16 crore in Q1 FY27. Total income for the quarter was reported at ₹208.93 crore, compared with ₹172.81 crore in the year-ago quarter, translating into 20.90% growth. The same filing also noted a quarter-on-quarter decline of 4.90% in revenue from operations from ₹216.78 crore in Q4 FY26. Total income fell 5.04% quarter-on-quarter from ₹220.01 crore. In another disclosure, sales were reported at ₹206.16 crore (₹2,061.6 million) versus ₹169.66 crore (₹1,696.6 million) a year ago, aligning with the revenue from operations figure.

Profitability swings back to positive

Sanstar’s consolidated net profit for Q1 FY27 stood at ₹9.21 crore, turning around from a loss of ₹0.33 crore in Q1 FY26. In rupee million terms cited in the same set of numbers, net income was ₹9.21 crore (₹92.1 million) compared with a net loss of ₹0.33 crore (₹3.3 million). Profit before tax (PBT) was ₹12.55 crore, compared with a loss of ₹0.76 crore in the year-ago quarter. Tax expense for the quarter was ₹3.34 crore, split into current tax of ₹1.40 crore and deferred tax of ₹1.94 crore. Basic EPS was reported at ₹0.50 versus a loss per share of ₹0.02 in Q1 FY26, and diluted EPS was also ₹0.50.

Margin recovery: gross profit and EBITDA

The quarter showed a marked improvement in operating metrics cited in the update. Gross profit rose 67.4% year-on-year to ₹68.9 crore (₹689 million), lifting gross margin to 33.4% from 24.3%. EBITDA turned positive at ₹15.4 crore (₹154 million), with an EBITDA margin of 7.5%, compared with an EBITDA loss of ₹0.9 crore (₹9 million) in Q1 FY26. The company clarified that EBITDA excludes other income. Separately, another table in the material also referenced gross profit of ₹10 crore for Q1 FY27, indicating multiple gross profit presentations across sources in the same compilation.

Cost structure snapshot from the filing

The standalone financial line items shared for Q1 FY27 showed cost of materials consumed at ₹128.73 crore. Employee benefits expense was ₹6.15 crore, finance costs were ₹0.34 crore, and depreciation and amortization was ₹5.26 crore. Other expenses were reported at ₹47.36 crore, taking total expenses to ₹196.38 crore for the quarter. Alongside these, the filing also summarised expenses movement as down 1.6% quarter-on-quarter and up 13.1% year-on-year. These numbers sit against the improvement in reported profitability for the quarter.

Consolidated scope and associate impact

On the consolidated side, Sanstar disclosed that the results include Spark Ingredients Private Limited as an associate. The company’s share of net loss after tax from the associate was reported at ₹0.0033 crore (₹0.33 lakh). Consolidated net profit for the quarter was still reported at ₹9.21 crore, with EPS of ₹0.50. The board approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The approval also included Limited Review Reports issued by S.C. Bapna & Associates, Chartered Accountants.

Stock reaction on results day

Sanstar’s stock closed at ₹112.9, up 0.88% on the day the results were reported. The price move was modest relative to the scale of year-on-year earnings improvement. The update also carried a headline year-on-year change number for PAT of 2890.91%, reflecting the swing from loss to profit. Investors typically track whether such a turnaround is supported by operating margins and production stability, both of which were flagged as supportive factors in the commentary.

Monitoring agency update on preferential issue proceeds

Sanstar also filed its Q1 FY27 monitoring agency report in the same period. The filing said ₹198.27 crore from its preferential issue was not utilised for working capital or general corporate purposes. The full unutilised amount was deployed in fixed deposits, according to the report. This disclosure is relevant because it indicates the company’s deployment of funds and liquidity positioning during the quarter.

Snapshot table: reported Q1 FY27 vs Q1 FY26

Why this quarter matters for tracking performance

The Q1 FY27 result establishes that Sanstar returned to profitability after a loss in the same quarter last year, alongside double-digit revenue growth. The disclosed margin expansion, including gross margin moving to 33.4% and EBITDA turning positive at ₹15.4 crore, provides supporting context for the earnings swing. At the same time, sequential comparisons in the filing show revenue and profit were lower than Q4 FY26, with net profit down 55.05% quarter-on-quarter from ₹20.49 crore and PBT down 38.60% from ₹20.44 crore. The next set of quarterly updates will help investors assess whether the margin improvement is sustained and how volumes and costs trend after the reported normalization in production levels.