Sunrakshakk Inds — Q4 FY26 earnings call

Call held 6 Jun 2026

Management summary

Sunrakshakk Industries India Limited reported a strong Q4 and FY26, driven by significant growth in revenue and profitability. The FMCG segment has emerged as the primary growth engine, with revenues crossing INR500 crores. The company is focused on operational efficiencies and aims for INR1,000 crores in revenue by FY28, supported by organic growth and improved margins, while strategically deploying capital from a preferential issue for expansion.

Highlights

  • Q4 FY26 consolidated revenue from operations increased by 92.32% year-over-year to INR197.59 crores.

  • Full Year FY26 consolidated revenue increased by 237.34% to INR607.75 crores.

  • Q4 FY26 PAT grew by 87.89% year-over-year to INR12.10 crores, with PAT margin improving to 6.12% from 5.74% in Q3 FY26.

  • FMCG revenues crossed the INR500 crores milestone in FY26, establishing it as the primary growth engine.

  • Guwahati facility is performing very well, catering to the Northeast, Bengal, and Bihar, and growing at a decent pace.

Concerns

  • EBITDA margin for FY26 stood at 9.66%, a decrease from 14.24% in FY25, primarily due to product mix.

  • Experienced 'a bit pressure in terms of pricing' for raw materials during the end of Q4 FY26 and beginning of Q1 FY26 due to ongoing war.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹197.59 Cr
    YoY +92.3% QoQ +20%
  • EBITDA
    ₹20.14 Cr
    YoY +76.7% QoQ +32%
  • EBITDA Margin
    10.2%
  • PAT
    ₹12.1 Cr
    YoY +87.9% QoQ +29%
  • PAT Margin
    6.1%

FY26

  • Revenue
    ₹607.75 Cr
    YoY +237.3%
  • EBITDA
    ₹58.69 Cr
    YoY +128.8%
  • EBITDA Margin
    9.7%
  • PAT
    ₹34.98 Cr
    YoY +217.7%
  • PAT Margin
    5.8%

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.

Capital allocation

high confidence
  • Capex Capex disclosed From successful capital raise through preferential issue
    • Expanding manufacturing facility in FMCG segment ₹55 Cr
    • Expanding manufacturing facility in edible section
    most of the fund is being utilized for expanding our manufacturing facility in edible category and the FMCG Guwahati unit. Remaining amount is, and if I say, 55 tentatively, INR55 crores we had utilized for FMCG segment and rest I believe 10, our INR10 crores FD is available with us and remaining amount we had used for edible section.
  • Liquidity Liquidity disclosed INR10 crores Fixed Deposit available
    INR10 crores FD is available with us

Guidance & targets

Revenue

  • Revenue Revenue · by FY28 · High confidence INR1,000 crores
    Our medium-term aspirations remain to achieve approximately INR1,000 crores in revenue by FY28.

    — Saurabh Chhabra, Promoter and Director

  • Organic Revenue Growth Revenue · every year basis · High confidence 10%-15%
    And we are expecting organic growth of 10%-15% on every year basis, that is point number one.

    — Sandeep Hinger, Finance Head of FMCG Division

Profitability

  • PAT Margin Profitability · near future (nearby in FY27) · High confidence 7%
    we are aiming to have a stable 7% profit margins in a near future.

    — Sandeep Hinger, Finance Head of FMCG Division

  • EBITDA Margin Improvement Profitability · by FY28 · High confidence 1%-1.5%
    by FY28 we are having a target of achieving INR1,000 crores of topline with an improvement of around 1%, 1.5% in the existing EBITDA margins.

    — Sandeep Hinger, Finance Head of FMCG Division

Segment Contribution

  • Textile Segment Revenue Share Segment Contribution · coming years · High confidence 10% to 12% max
    In the coming years we are expecting to be having the share of textile business around 10% to 12% max.

    — Sandeep Hinger, Finance Head of FMCG Division

Segment Growth

  • Edible Segment Growth Segment Growth · coming years · High confidence 20%
    We again see a growth of 20% in the coming years in this segment.

    — Saurabh Chhabra, Promoter and Director

  • FMCG Intermediate Growth Segment Growth · coming year · High confidence 15% to 20%
    And definitely there also we had grown in a decent pace in last a year or so, and in coming year also we will be growing at the rate of again 15 to 20% kind of.

    — Sandeep Hinger, Finance Head of FMCG Division

What to watch in Q1 FY27

PAT Margin Achievement

FY27
Current 6.12% (Q4 FY26)
Target Nearby 7%

Why it matters

Tracking progress towards the stated profitability target is crucial for assessing operational efficiency and value creation.

So currently we are at 6% kind of, tentatively 6.12. And last quarter it was 5.7. So another 1.25% kind of operational leverage can be taken from the better utilization or more utilization of the capacity.

Risks & concerns

  • Raw material price pressure due to ongoing war

    medium

    Experienced pricing pressure in Q4 FY26 and Q1 FY26, but supply was stable due to strategic sourcing.

    Analyst acknowledged

  • Competition in FMCG segment

    low

    Management believes there is no major competition risk due to focus on cost, quality, and strong existing customer relationships.

    Analyst downplayed

Q&A highlights

6 direct
INR1000 Cr Revenue Target & Capex Needs Direct
So this INR1,000 crores turnover can be achieved with the existing capacity and we don't see much of the expansion or investment in the capex side for achieving this INR1,000 crores topline.

Clarifies that the ambitious revenue target is achievable with current capacity, indicating efficient asset utilization and limited immediate capex needs.

Asked by Ujjwal Jain

Sustainable Margins & Operating Leverage Direct
we are aiming to have a stable 7% profit margins in a near future... So another 1.25% kind of operational leverage can be taken from the better utilization or more utilization of the capacity.

Provides specific PAT margin targets and explains how improved capacity utilization will drive operating leverage and margin expansion.

Asked by Nishita

B2B vs B2C Strategy and Advertising Partial
So actually we are currently into the B2B segment of business. So in B2B business segment, there is not much of the need for any kind of publicity and advertisement. So this is not going to happen in near future.

Clarifies the company's current B2B focus and rationale for not engaging in public advertising, while also acknowledging B2C as a longer-term aspiration.

Asked by VK Soni

Guwahati Facility Performance Direct
So actually that unit has, is doing very well and we see potential in the market which is catering to the Northeast region and which also includes the other adjacent states including Bengal, Bihar. That plant is catering and it is growing at a decent pace if you see the performance.

Highlights the successful commissioning and strong performance of the Guwahati facility, contributing to regional growth and overall organic expansion.

Asked by Rohan Mehta

Edibles Business Growth and Contribution Direct
So in the edible categories, we are mainly into the spice and savories. So both the categories are growing at a decent pace and in near future, whatever product line we want to add, we can, and we will add into this segment.

Details the focus areas within the edibles segment (spices and savories) and its strong growth trajectory, indicating future diversification within this category.

Asked by Rohan Mehta

Raw Material Price Risk Direct
So definitely there was a bit pressure in terms of pricing during the end of the Quarter 4 and the beginning of Q1 FY26. With regard to supplies, we don't force or we didn't face any challenges.

Acknowledges raw material price pressure due to geopolitical events but reassures on supply stability due to strategic supplier relationships.

Asked by Sachi Jain

NSE Listing Plans Partial
So there are certain conditions to get it registered on NSE and once we comply all the conditions we will be registered on NSE.

Indicates the company's intent to list on NSE once regulatory conditions are met, which could improve liquidity and visibility for investors.

Asked by Lalit Duggar

Capacity Constraints Direct
No, no. I mean like there's no capacity constraint as of now. We have expanded, we've grown the capacity, so we have sufficient capacities to cater to the market.

Reassures investors that current capacity is sufficient to meet demand and support growth, mitigating concerns about potential bottlenecks.

Asked by Akash Sharma

3 min read 7 chapters

Detailed narrative

Strong Q4 and FY26 Financial Performance

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%.

FMCG as the Primary Growth Engine

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.

Strategic Capacity Expansion and Operational Efficiency

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.

Capital Deployment and Balance Sheet Strengthening

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.

Future Growth Outlook and Profitability Targets

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.

Segmental Dynamics and Diversification

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.

B2B Focus and Future B2C Exploration

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.

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