Sunrakshakk Inds

Sunrakshakk Industries India Limited delivered a robust performance in Q4 and FY26. Q4 FY26 consolidated revenue from operations grew by 92.32% YoY to INR197.59 crores, and PAT increased by 87.89% YoY to INR12.10 crores. For the full year FY26, revenue surged by 237.34% to INR607.75 crores, with PAT growing 217.72% to INR34.98 crores. Profitability also saw improvement in Q4, with EBITDA margin at 10.19% and PAT margin at 6.12%.

The FMCG and FMCG intermediates segments have become the majority contributors to revenue and the primary growth engine for the company. In FY26, FMCG revenues successfully crossed the INR500 crores milestone, demonstrating significant scale-up in a relatively short period. Management expects the FMCG category to remain the top contributor to revenue in the future, with FMCG intermediates projected to grow at 15-20% annually.

The company's manufacturing footprint was strengthened by the successful commissioning and revamp of the Guwahati facility, enhancing capabilities in soap noodles and cosmetics, and improving reach in the Northeast. The Bhilwara facilities continue to support the edible business. These expansions, combined with improved operating efficiencies, are contributing to better profitability, with management noting early outcomes of these efforts in Q4 FY26.

A preferential issue during the year successfully raised capital, which strengthened the balance sheet and supported future growth initiatives. A significant portion of these funds was utilized for expanding manufacturing facilities in the edible category and the FMCG Guwahati unit. Specifically, INR55 crores were deployed for the FMCG segment, and INR10 crores are held as Fixed Deposits, with the remaining amount allocated to the edible section.

Sunrakshakk has set an ambitious medium-term aspiration to achieve INR1,000 crores in revenue by FY28, driven by an expected organic growth rate of 10-15% annually. The company also aims to achieve a stable 7% PAT margin in the near future, with expectations to be 'nearby' this target in FY27. Additionally, an improvement of 1-1.5% in existing EBITDA margins is targeted by FY28, supported by increased capacity utilization and operational leverage.

The company's diversified FMCG platform now spans soap noodles, detergents, personal care, home care, toothpaste, cosmetics, spices, and savory products. The edible business, primarily spices and savories, is growing at a decent pace and is expected to grow by 20% in the coming years. Conversely, the textile segment, which contributed around 20% in previous years, is projected to reduce its share to a maximum of 10-12% of total revenue in the coming years, indicating a strategic shift.

Currently, Sunrakshakk operates predominantly in the B2B segment, serving over 200 customers including major FMCG players like ITC and Godrej. Management stated that public advertising is not a priority for its B2B model. However, the company is actively exploring opportunities for inorganic growth and has a long-term aspiration to venture into the B2C segment if suitable partners and opportunities arise.