Sunrakshakk Industries Q2 Profit Rises 130% to ₹16 Crore

Sunrakshakk Industries India Ltd reported consolidated net profit of ₹16.00 crore for Q2 FY27, up 130.1% year on year from ₹6.95 crore, while revenue from operations rose 119.2% to ₹265.17 crore, led by the FMCG business despite a loss in its legacy textile segment.

What did Sunrakshakk Industries report for Q2 FY27?

Sunrakshakk Industries reported consolidated revenue from operations of ₹265.17 crore for the quarter ended 30 September 2026. Revenue was 119.2% higher than ₹120.97 crore in Q2 FY26, but 4.0% lower than ₹276.30 crore in Q1 FY27. Total income stood at ₹265.46 crore, including ₹0.29 crore of other income.

Net profit was ₹16.00 crore, compared with ₹6.95 crore a year earlier and ₹15.04 crore in the preceding quarter. This represented year-on-year growth of 130.1% and sequential growth of 6.4%. Profit before tax rose to ₹20.38 crore from ₹8.78 crore in the corresponding quarter last year.

The company recorded expenditure of ₹245.07 crore during the quarter, up 116.7% year on year but down 4.7% sequentially. Its net profit margin improved to 6.03% from 5.71% in Q2 FY26 and was 0.59 percentage points higher than the preceding quarter. Earnings per share were ₹5.16.

Which business drove Sunrakshakk Industries' quarterly growth?

Sunrakshakk Industries' FMCG segment was the main contributor to the increase in consolidated revenue and segment profit. FMCG revenue reached ₹240.92 crore in Q2 FY27, more than doubling from ₹94.75 crore in Q2 FY26. Segment profit increased to ₹22.32 crore from ₹6.01 crore in the year-earlier period.

The segment's larger revenue base explains the company's overall sales growth and higher reported profit. The quarterly results show that the business mix has shifted substantially toward FMCG, which accounted for the overwhelming share of consolidated revenue in the reported quarter.

The legacy textile business moved in the opposite direction. Textile revenue declined to ₹24.25 crore from ₹26.23 crore a year earlier, while the segment posted a loss of ₹0.97 crore. It had reported a segment profit of ₹3.58 crore in Q2 FY26.

This contrast is important when reading the consolidated results. The FMCG operation generated sufficient segment profit to offset the textile loss and support group-level profitability, but the textile segment reduced the contribution available from the broader business portfolio.

How did the textile loss affect Sunrakshakk Industries' margins?

The textile loss limited operating profitability even as Sunrakshakk Industries expanded its net profit margin. On an EBITDA-proxy basis calculated from profit before tax, depreciation and finance cost, the operating margin was about 8.8% of revenue in Q2 FY27, compared with about 10.4% a year earlier.

The company reported a 6.03% net margin, up from 5.71% in Q2 FY26. The different direction of operating and net margins reflects the changing business mix described in the results, with FMCG adding significantly to revenue and absolute profit while the textile operation moved into loss.

Profit before tax grew 131.8% year on year to ₹20.38 crore, broadly tracking the expansion in net profit. No exceptional items were reported in the quarterly summary. The company also reported standalone revenue of ₹129.44 crore and standalone net profit of ₹7.20 crore for the quarter.

For investors, the segment data provides context beyond the consolidated headline figures. The reported improvement in profit and margin has been supported by FMCG growth, while the loss-making textile unit remains an operational issue disclosed in the quarterly numbers.

What did the board and auditor say about the results?

Sunrakshakk Industries' board approved the unaudited consolidated financial results for the quarter and half-year ended 30 September 2026 at its meeting on 14 November 2026. The results meeting had previously been scheduled for 5 November before being cancelled and refixed for 14 November.

The statutory auditor's limited review report did not identify matters indicating a material misstatement in the financial information. A limited review is not an audit opinion, but it is the review conclusion submitted alongside the unaudited quarterly results.

The company also disclosed compliance measures relating to its insider trading framework, including the reopening of the trading window on 16 November 2026. These disclosures accompany the financial results and relate to regulatory procedures rather than operating performance.

Management has scheduled an earnings conference call for 17 November 2026 at 3:00 PM IST to discuss Q2 and H1 FY27 performance with analysts and investors. The announced call is the next scheduled forum for management commentary on the reported results.

Conclusion

Sunrakshakk Industries delivered sharp year-on-year growth in Q2 FY27, with consolidated revenue rising to ₹265.17 crore and net profit reaching ₹16.00 crore. The results were driven by the FMCG segment, whose ₹240.92 crore revenue and ₹22.32 crore segment profit outweighed a ₹0.97 crore loss in the textile business.

The next disclosed event is the 17 November 2026 earnings call. Investors will watch for management's discussion of the FMCG business, the textile segment's loss, and any comments on FY27 or FY28 plans that the company chooses to provide.