Sanstar standalone profit falls to Rs 5.87 crore in September quarter

Sanstar Limited reported standalone net profit of Rs 5.87 crore for the quarter ended September 30, 2026, Rs 3.34 crore below the Rs 9.21 crore reported in the June 2026 quarter. Sanstar’s equity stood at Rs 906.70 crore at September-end after its Rs 198.27 crore preferential share issue in June 2026.

What did Sanstar report for the September 2026 quarter?

Sanstar reported standalone profit after tax of Rs 5.87 crore for the quarter ended September 30, 2026, compared with Rs 9.21 crore in the quarter ended June 30, 2026 and Rs 63 lakh in the quarter ended September 30, 2025. The sequential reduction was Rs 3.34 crore, while profit increased Rs 5.24 crore from the corresponding quarter a year earlier.

Profit before tax was Rs 7.58 crore in the September 2026 quarter, down from Rs 12.55 crore in the preceding quarter. Basic and diluted earnings per share, which were not annualised, were Rs 0.29 each for September 2026, against Rs 0.50 each for June 2026. The Board approved the unaudited standalone results on November 5, 2026.

Why did Sanstar’s profit decline from the June quarter?

Sanstar did not provide a management explanation for the fall in standalone profit from Rs 9.21 crore in June 2026 to Rs 5.87 crore in September 2026. The decline was also evident before tax, with profit before tax decreasing Rs 4.97 crore between the two quarters.

Sanstar reported one operating segment, manufacturing and trading of commodities, for the September 2026 results. As a result, the filing does not provide a product, customer or business-line split of revenue, costs or earnings that could identify the source of the quarter-on-quarter movement.

The year-on-year and sequential comparisons point in different directions. September 2026 profit of Rs 5.87 crore exceeded the Rs 63 lakh reported in September 2025, but remained below the Rs 9.21 crore earned in June 2026. The company said prior-period figures were regrouped or reclassified where necessary to make them comparable.

How did the preferential issue affect Sanstar’s capital position?

Sanstar completed a preferential issue of 1,80,24,157 equity shares on June 24, 2026, raising Rs 198.27 crore. The shares, with a face value of Rs 2 each, were allotted to non-promoter Corn Products Development Inc. at Rs 110 per share, including securities premium of Rs 108 per share.

Total equity increased to Rs 906.70 crore at September 30, 2026 from Rs 693.93 crore at March 31, 2026. Equity share capital rose to Rs 40.05 crore from Rs 36.45 crore, while other equity increased to Rs 866.65 crore from Rs 657.48 crore over the same period.

Sanstar said unutilised preferential-issue proceeds were temporarily held in fixed deposits with a scheduled bank or in a separate account as at September 30, 2026. Its utilisation disclosure listed working-capital requirements of Rs 82.20 crore and general corporate purposes of Rs 49.07 crore, and showed Rs 51.50 crore as unutilised at September-end.

What did Sanstar’s September-end balance sheet show?

Sanstar reported total assets of Rs 1,020.01 crore at September 30, 2026, compared with Rs 803.04 crore at March 31, 2026. Total equity and liabilities also stood at Rs 1,020.01 crore, reflecting the balance-sheet effect of the June 2026 share allotment and subsequent deployment or placement of funds.

Property, plant and equipment were Rs 440.87 crore at September 30, 2026, compared with Rs 424.43 crore at March 31, 2026. Capital work-in-progress increased to Rs 27.34 crore from Rs 11.01 crore, while trade receivables stood at Rs 96.86 crore and inventories at Rs 62.61 crore at September-end.

Bank balances other than cash equivalents were Rs 271.69 crore at September 30, 2026, while cash and cash equivalents were Rs 19.12 crore. Non-current liabilities were Rs 46.43 crore and current liabilities were Rs 66.88 crore, including current borrowings of Rs 23.21 crore at September-end.

What did Sanstar disclose on cash flow and its associate?

Sanstar reported net cash used in operating activities of Rs 8.10 crore for the half year ended September 30, 2026. Its cash-flow statement recorded a Rs 20.50 crore increase in inventories and a Rs 6.39 crore reduction in trade payables during the six-month period, alongside profit before tax of Rs 20.54 crore.

Investing activities used Rs 204.07 crore in the half year, including Rs 161.60 crore invested in other bank deposits and Rs 68.24 crore spent on property, plant and equipment, capital work-in-progress and related capital advances or payables. Financing activities generated Rs 207.68 crore, including Rs 197.69 crore of proceeds from the fresh share issue recorded in the cash-flow statement.

Sanstar acquired 1,50,000 equity shares in Spark Ingredients Private Limited on June 13, 2026 for Rs 15 lakh, representing a 30% holding in the associate. The consolidated-review disclosure recorded Sanstar’s share of the associate’s net loss at Rs 40,000 for the September 2026 quarter and Rs 73,000 from June 13 through September 30, 2026.

Conclusion

Sanstar’s September 2026 standalone results showed a sequential profit decline, with net profit falling to Rs 5.87 crore from Rs 9.21 crore in June, even as it remained above the Rs 63 lakh earned a year earlier. The June preferential issue reshaped the balance sheet, lifting equity to Rs 906.70 crore and total assets to Rs 1,020.01 crore by September 30.

The next disclosed item to watch is the use of the Rs 51.50 crore of preferential-issue proceeds that remained unutilised at September 30, 2026. Sanstar identified working capital and general corporate purposes as the stated uses, while its newly acquired 30% associate reported a loss attributable to Sanstar of Rs 73,000 through September-end.