Sunrakshakk Inds — Q3 FY26 earnings call

Call held 16 Feb 2026

Management summary

Sunrakshakk Industries India Limited reported strong Q3 and 9M FY26 results, driven by its successful transformation from a textile-centric company to a diversified FMCG and FMCG intermediates manufacturer. The company achieved significant revenue and profit growth, with FMCG now dominating the revenue mix. Management outlined ambitious growth targets for 2028, supported by increased capacity utilization and strategic product portfolio expansion, while addressing margin dynamics and client diversification.

Highlights

  • Q3 FY26 Revenue of ₹164 crores, up 517% YoY.

  • Q3 FY26 EBITDA of ₹15.26 crores, up 158% YoY.

  • Q3 FY26 PAT of ₹9.41 crores, up 328% YoY.

  • 9M FY26 Revenue of ₹410 crores, up 430% YoY.

  • 9M FY26 FMCG & FMCG intermediates contributed 82% (₹335 crores) of revenue, with textiles at 18% (₹75 crores).

  • Targeting ₹1,000 crores revenue by 2028 with a 30-35% CAGR and 7% PAT margin by FY28.

  • FMCG capacity utilization expected to reach over 85% by end of Q4 FY26.

Key financials

3 periods

Headline

  • Overall EBITDA Margin QoQ Change
    -30 bps

Q3 FY26

  • Revenue
    ₹164 Cr
    YoY +517%
  • EBITDA
    ₹15.26 Cr
    YoY +158%
  • PAT
    ₹9.41 Cr
    YoY +328%
  • Textile EBITDA Margin
    18.9%
    QoQ +0.43%
  • FMCG EBITDA Margin
    7.6%
    QoQ +6.1%

9M FY26

  • Revenue
    ₹410 Cr
    YoY +430%
  • EBITDA
    ₹38.55 Cr
    YoY +171%
  • PAT
    ₹22.88 Cr
    YoY +403%

What they filed

Q1 FY27: revenue up 426.0%, net profit up 973.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue27 27 27 25 31 +15%52 +94%107 +304%130 +426%
EBITDA5 6 4 4 5 −1%7 +14%13 +193%13 +262%
Net profit2 2 1 1 2 +24%3 +46%7 +584%8 +973%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹410 Cr Total
  • FMCG & FMCG Intermediates (9M FY26) ₹335 Cr 81.7%
  • Textile (9M FY26) ₹75 Cr 18.3%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Technological upgradation of textile business and similar FMCG products
    So yes, most of the capex we have done. Now there are a little capex which is in our planning that is mainly towards the technological upgradation of the textile business and similar line of products for the FMCG segment.
  • M&A Sunrakshakk Agro Products Private Limited Acquisition · Closed

    Foundation of FMCG and FMCG intermediates platform, core growth engine

    Basically, the strategic evolution with the FMCG platform on December 27, 2024, we announced the acquisition of 100% equity in Sunrakshakk Agro Products Private Limited.
  • M&A Manufacturing unit in Guwahati Acquisition · Closed

    Expanded manufacturing footprint and product range

    So by acquiring this Guwahati unit, we were having facility of manufacturing more than 100 products.
  • Liquidity Liquidity disclosed Preferential allotment of ₹98.24 crores in May 2025 strengthened balance sheet and improved financial flexibility. Focus on prudent working capital management, improving inventory cycles, strengthening receivable collections, optimizing supply chain efficiency.
    The preferential issue of approx. INR98 crores completed in FY '25 has significantly strengthened our capital base and enhanced financial flexibility to support our ongoing FMCG expansion plans.

Guidance & targets

Revenue

  • Total Revenue Revenue · by 2028 · High confidence ₹1,000 crores
    Looking ahead, we remain focused on disciplined execution, improving capacity utilization, expanding distribution, and strengthening brand presence. Backed by our diversified FMCG platform, integrated manufacturing network, and strengthened balance sheet, we are steadily progressing towards our medium-term aspiration of achieving approximately INR1,000 crores of revenue by 2028.

    — Saurabh Chhabra

Revenue Growth

  • CAGR Revenue Growth · future · Medium confidence 30%-35%
    So we already had made a statement that we will be touching a revenue of INR1,000 crores by FY '28. So that is something which can be looked after. That we will be growing at a 30%-35% CAGR.

    — Sandeep Hinger

Profitability

  • PAT Margin Profitability · by FY28 · High confidence 7%
    So we are aiming for a PAT of 7% by the FY '28.

    — Sandeep Hinger

  • Blended PAT Margin Profitability · FY26 · High confidence 5.8%-5.85%
    And accordingly, we are anticipating a PAT of 5.8%, 5.85% at which we will be closing the FY '26.

    — Sandeep Hinger

  • Sustainable Operating Margin Profitability · future · Medium confidence above 10%
    I think it will be above that. A bit above that.

    — Sandeep Hinger

  • Sustainable PAT Margin Profitability · future · High confidence 7%
    PAT is around 7%.

    — Sandeep Hinger

Segment Contribution

  • FMCG Revenue Contribution Segment Contribution · by FY28 · High confidence 90%
    So FMCG segment in FY '28 we foresee as a 90% of the revenue from FMCG segment.

    — Sandeep Hinger

  • RCM Contribution to FMCG Revenue Segment Contribution · future · Medium confidence 35%
    So the overall ratio in terms of revenue is going to be somewhere 35%.

    — Sandeep Hinger

  • RCM Contribution to FMCG Segment Contribution · future · Medium confidence 30%-35%
    Yes. And in future, in spite of RCM having their own growth, as I mentioned that 25 to 30% of CAGR, still we are expecting that the ratio would be from 30% to 35% of RCM and the major ratios of 70% to 75% should come from the brands.

    — Saurabh Chhabra

Capacity

  • FMCG Capacity Utilization Capacity · by end of Q4 FY26 · High confidence over 85%
    And by end of the quarter we are expecting almost more than 85% of the capacity utilization.

    — Sandeep Hinger

Revenue Mix

  • FMCG vs Textile Revenue Mix · FY26 · High confidence 85% FMCG, 15% Textile
    So right now we will be closing somewhere 85% to 85% FMCG and 15% in textile for estimated number for FY '26.

    — Sandeep Hinger

  • FMCG vs Textile Revenue Mix · FY27 · High confidence 88% FMCG, 12% Textile
    In FY '27 we foresee that the ratio will go to 88% and 12%.

    — Sandeep Hinger

  • FMCG vs Textile Revenue Mix · FY28 · High confidence 90% FMCG, 10% Textile
    And in FY '27 it is going to be 90-10 kind of a ratio.

    — Sandeep Hinger

What to watch in Q4 FY26

FMCG Capacity Utilization

by end of Q4 FY26
Current 40-45%
Target >85%

Why it matters

Achieving this target is crucial for driving revenue growth and improving operating leverage in the dominant FMCG segment.

And by end of the quarter we are expecting almost more than 85% of the capacity utilization.

Risks & concerns

  • Competition and lower margins in FMCG intermediate segments (e.g., soap noodles)

    medium

    Analyst noted that margins in soap noodle segment are typically lower due to competition. Management stated that a diversified portfolio across various FMCG products and strategic raw material buying help maintain overall margins.

    Analyst acknowledged

Q&A highlights

6 direct
Distribution and Marketing Strategies Direct
So we are basically having B2B majorly customer base. So we are not directly involved in any kind of consumer market. So major of our clienteles are the some of the MNCs and some both in FMCG as well as textile business. We are catering to leading brands like ITC, Godrej, Wipro, and in textile we are also catering to Siyaram and such kind of other brands.

Clarifies the company's B2B model and client base for its FMCG and textile businesses.

Asked by Saanchi Jain

Capex Plans Going Forward Partial
So yes, most of the capex we have done. Now there are a little capex which is in our planning that is mainly towards the technological upgradation of the textile business and similar line of products for the FMCG segment. ... So as now we don't have any concrete plan for capacity addition in FY2027. But yes, there will be expansions through other modes in the coming year.

Indicates a shift from major new capacity additions to technological upgrades and potential M&A for future growth.

Asked by Saanchi Jain

Strategic Shift from Textile to FMCG Direct
this company belongs to the parent group RCM, which is dealing in more than 400 daily consumable products already and which has a presence in India and having more than 10,000 outlets. And this company is already growing at a pace of 25 to 30 CAGR year-on-year. So I mean, that helps us to have a base for the FMCG market.

Explains the strategic rationale for the business transformation, leveraging the parent group's extensive FMCG presence.

Asked by Saanchi Jain

Decline in Quarter-on-Quarter EBITDA Margin Direct
So for this, basically if you will look at the segment-wise financials, so we had improved in terms of EBITDA margins for different segments. ... But overall, there is a reduction in EBITDA margin of 30 BPS. That is mainly because the revenue from FMCG segment had increased substantially during this quarter.

Provides a clear explanation for the overall margin contraction, attributing it to the higher contribution of the lower-margin FMCG segment.

Asked by Saanchi Jain

FMCG Capacity Utilization Direct
So in FMCG, because the capacities are being added recently, right. So we are operating at somewhere 40%-45% of capacities as of now. ... And by end of the quarter we are expecting almost more than 85% of the capacity utilization.

Gives specific current and near-term targets for capacity utilization, indicating significant operational ramp-up.

Asked by Maitri

Plans to Exit or Scale Down Textile Segment Direct
No, no So, I'll just put the information in front of you that there are two professional teams separately managing and maintaining the businesses for textile as well as FMCG, right? ... Therefore, the contribution of textile business will come down substantially in the coming year. But business will go on like this and will go on with growth.

Clarifies that the textile business will continue to operate and grow, but its relative contribution will diminish as FMCG grows faster.

Asked by Nikhil Kamat

Dependency on RCM Direct
So actually, look, the entire dependency is not on RCM. That's what I am telling you. Roughly the ratio for RCM is around 30% to 40%. And we have a quite diversified portfolio including other companies. We will see that it is not that the other companies are just one company. There are multiple MNCs with whom we are working together.

Addresses concerns about client concentration by highlighting diversification with other major MNCs.

Asked by Virendra Kumar Soni

Launch of Sunrakshakk Branded FMCG Products Partial
Currently, it is not in the plan. But it is possible that in the future, as Sandeep ji mentioned, we are exploring the export market as well. So at that time, it is possible that we may develop our own brand and cater to that market.

Provides insight into potential future brand strategy, indicating a focus on manufacturing for others for now but keeping options open for own brand, especially for exports.

Asked by Virendra Kumar Soni

3 min read 6 chapters

Detailed narrative

Business Transformation and Rebranding

Sunrakshakk Industries India Limited has successfully transformed from its textile-centric origins (A.K. Spintex Limited) into a diversified, growth-led, consumer-focused manufacturing platform. This strategic shift, initiated with the acquisition of Sunrakshakk Agro Products Private Limited on December 27, 2024, reflects a long-term vision to build a strong presence across FMCG, FMCG intermediates, and edible products. The company leverages its association with the RCM group, which boasts over INR 2,000 crores turnover and a pan-India presence with 10,000+ stores, providing a strong foundation for its FMCG expansion.

Robust Financial Performance in Q3 & 9M FY26

The company delivered strong financial results, with Q3 FY26 revenue reaching INR 164 crores, marking a 517% year-over-year growth. EBITDA for the quarter stood at INR 15.26 crores (up 158% YoY), and Profit After Tax (PAT) was INR 9.41 crores (up 328% YoY). For the nine months ended December 2025, consolidated revenue was INR 410 crores (up 430% YoY), EBITDA was INR 38.55 crores (up 171% YoY), and PAT was INR 22.88 crores (up 403% YoY). This growth was primarily fueled by the rapid expansion of the FMCG and FMCG intermediate segments.

FMCG Dominance and Margin Dynamics

The revenue mix has significantly shifted, with FMCG and FMCG intermediates contributing 82% (INR 335 crores) of the 9M FY26 revenue, while textiles accounted for 18% (INR 75 crores). Despite segment-wise EBITDA margin improvements (Textile to 18.94% and FMCG to 7.64% in Q3), the overall EBITDA margin saw a 30 basis point decline quarter-on-quarter. This was attributed to the substantial increase in revenue contribution from the FMCG segment, which currently operates at a lower margin profile compared to textiles.

Expanding Manufacturing Footprint and Capacity

Sunrakshakk Industries operates across multiple locations, including Bhilwara (Rajasthan), Roorkee (Uttarakhand), and Guwahati (Assam). The Guwahati facility, commissioned in January 2026, has installed capacities for approximately 2,160 metric tons per month for soap noodles and 1,000 metric tons per month for cosmetic products. Current FMCG capacity utilization stands at 40-45%, but the company anticipates reaching over 85% utilization by the end of Q4 FY26, driven by new contracts and increased volumes.

Strategic Growth Outlook and Capital Allocation

The company has set an ambitious target of achieving INR 1,000 crores in revenue by 2028, expecting a 30-35% CAGR and a PAT margin of 7% by FY28. The FMCG segment is projected to contribute 90% of revenue by FY28. A preferential allotment in May 2025 raised INR 98.24 crores, strengthening the balance sheet and supporting expansion plans. While no concrete large-scale capex is planned for FY27, the company remains open to strategic acquisitions and continuous product portfolio expansion to drive growth.

Product Portfolio and Client Diversification

The product portfolio spans soap noodles, personal care, hygiene products, surface care formulations, and edible products such as savories, snacks, and spices. The company primarily serves a B2B customer base, including leading MNCs like ITC, Godrej, and Wipro, in addition to fulfilling 30-40% of the demand from its parent group RCM. This diversified client base and broad product range are considered key strengths for competitive positioning and mitigating concentration risks.

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