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SUNRAKSHAKK INDUSTRIES INDIA LIMITED — Q1 FY27 earnings call

Call held 17 Aug 2026

Company page: SUNRAKSHAKK INDUSTRIES INDIA share price, financials & guidance record

Management summary

Sunrakshakk Industries reported a strong Q1 FY27 with consolidated revenue growing 120.64% YoY to ₹276.33 crores and PAT increasing 130.67% YoY to ₹15.04 crores. The company's strategic shift towards FMCG is evident, with these segments now contributing over 90% of revenue. Despite macroeconomic headwinds causing raw material cost inflation and impacting margins, particularly in the textile segment, management remains optimistic about achieving ₹1,000 crores revenue by FY28 through existing capacities and continued operational efficiency.

Highlights

  • Consolidated revenue from operations increased by 120.64% YoY to ₹276.33 crores in Q1 FY27.

  • Profit after tax grew by 130.67% YoY to ₹15.04 crores in Q1 FY27.

  • FMCG segment EBITDA margin improved to 8.55% in Q1 FY27 from 7.90% in Q1 FY26.

  • FMCG, FMCG intermediate, and edible businesses now contribute approximately 90.60% of consolidated revenue, up from 83% in FY26.

  • Commissioned a new source line at Roorkee, adding 1,700 metric tons of monthly capacity, increasing aggregate FMCG capacity to 20,840 tons per month.

Concerns

  • Consolidated EBITDA margin moderated to 8.18% in Q1 FY27 from 9.28% in Q1 FY26 and 10.19% in Q4 FY26 due to higher raw material costs.

  • Geopolitical tensions led to volatile crude oil prices, impacting input costs (dyes, chemicals, fuel, packaging material) and affecting profitability, especially in the textile business.

  • Textile business performance was not good in Q1 FY27, though management expects improvement by Q3 FY27.

Key financials

  1. Consolidated Revenue from Operations ₹276.33 Cr +120.6%YoY
  2. Consolidated EBITDA ₹22.59 Cr +94.4%YoY
  3. Consolidated PAT ₹15.04 Cr +130.7%YoY
  4. Basic EPS ₹4.85 +101.2%YoY
  5. Consolidated EBITDA Margin 8.2%
  6. FMCG Segment EBITDA Margin 8.6%
  7. Consolidated PAT Margin 5.4%

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
₹250.34 Cr Total
  • Roorkee Noodle ₹87.62 Cr 35.0%
  • Bhilwara Home Care & Detergent ₹40.98 Cr 16.4%
  • Guwahati Noodle ₹37.75 Cr 15.1%
  • Bhilwara Edible ₹30.34 Cr 12.1%
  • Roorkee Soap ₹27.5 Cr 11.0%
  • Guwahati Cosmetics ₹26.15 Cr 10.4%

Capital allocation

high confidence
  • Capex Capex disclosed Roorkee capacity funded from retained earnings of subsidiary; Bhilwara and Guwahati facilities funded by ₹98.65 crores raised through preferential issue.
    • New source line at Roorkee facility, adding 1,700 metric ton of monthly capacity for FMCG and FMCG intermediate
    • Acquiring food manufacturing facility in Bhilwara and soap noodle and cosmetic manufacturing facility in Guwahati ₹98.65 Cr
    On the manufacturing front, we commissioned a new source line at our existing Roorkee facility during the quarter, adding approximately 1,700 metric ton of monthly capacity. This has taken our aggregate installed capacity for FMCG and FMCG intermediate to 20,840 tons per month now, from 19,640 tons per month as of quarter four financial year 2026.
  • M&A Sunrakshakk Agro Product Private Limited Acquisition · Closed

    Integration into main business, showing encouraging growth trajectory.

    Agro business with us for more than four, five quarters, numbers are very encouraging, on a growth trajectory.

    So, with regard to Sunrakshakk Agro, it is with us for more than four, five quarters, right? The numbers are very encouraging from that company, the numbers are pretty good. The business of the Sunrakshakk Agro is continuously on a growth trajectory since last three, four quarters.

Guidance & targets

Revenue

  • Revenue Target Revenue · FY28 · High confidence ₹1,000 crores
    As shared earlier, our medium-term aspiration remains to achieve approximately INR1,000 crores in revenue by financial year 2028

    — Saurabh Chhabra

  • Revenue Target Revenue · FY26-27 · High confidence ₹900-1,000 crores
    we expect that the revenue or top line we will be closing somewhere in between the INR900 crores to INR1,000 crores mark. This is what is the expectation for FY'26-27.

    — Saurabh Chhabra

  • Revenue Growth Revenue · FY27-28 · Medium confidence 15-20%
    And we foresee a growth of around 15% to 20% in FY'27-'28 over the current year's figure or current year's revenue.

    — Saurabh Chhabra

Profitability

  • Profitability Profitability · FY26-27 · High confidence ~6%
    still we expect that we will be closing somewhere of 6% kind of profitability this year

    — Saurabh Chhabra

  • Profitability Improvement Profitability · FY27-28 · High confidence 0.75-1%
    which we again expect to get improved by additional 0.75% to 1% in the FY'28.

    — Saurabh Chhabra

  • Profitability Target Profitability · FY28 · High confidence 7%
    with regard to profitability also, we can say that because we are aiming a target of 7% by FY'28

    — Saurabh Chhabra

EBITDA Margin

  • EBITDA Margin Improvement EBITDA Margin · by FY28 · High confidence 2-2.5%
    definitely the EBITDA margin will also go up by another 2% to 2.5% from here.

    — Saurabh Chhabra

Capacity Utilization

  • Capacity Utilization Increase Capacity Utilization · by FY28 · High confidence 25-30%
    in near-term, by FY'28, we at least expect another 25% to 30% capacity utilization into that.

    — Saurabh Chhabra

Revenue Mix

  • Textile Business Contribution Revenue Mix · longer run · Medium confidence 8-10%
    So, in the longer run, we expect that the textile business will contribute somewhere in between 8% to 10% of the total revenue.

    — Saurabh Chhabra

  • FMCG Segment Contribution Revenue Mix · longer run · Medium confidence 90-92%
    Remaining 90% to 92% revenue will come from the FMCG segment.

    — Saurabh Chhabra

What to watch in Q2 FY27

Raw material cost normalization

Q3 or Q4 FY27
Current Volatile, impacting Q1 margins
Target Normalization

Why it matters

Direct impact on consolidated EBITDA and PAT margins.

We believe that by Q3 or Q4 things will get normalized because Q2 we are seeing the impact of this situation again.

Risks & concerns

  • Higher raw material costs due to geopolitical tensions and crude oil volatility

    medium

    Impacted input costs (dyes, chemicals, fuel, packaging material like PP), leading to consolidated EBITDA margin moderation.

    Both acknowledged, expect normalization by q3/q4 fy27

  • Textile business sensitivity to input cost movements

    medium

    Textile business was more impacted by volatile input costs, affecting its profitability in Q1 FY27.

    Management acknowledged, expect improvement by q3 fy27

Q&A highlights

7 direct
Raw material and crude-linked input costs outlook. Direct
during the last quarter, the major impact was mainly in the textile business where the dyes, chemical, and fuel prices got high and accordingly we couldn't increase the prices for the textile business in last quarter. This is what was the situation of last quarter. We believe that by Q3 or Q4 things will get normalized because Q2 we are seeing the impact of this situation again.

Addresses the primary reason for margin compression and provides a timeline for potential recovery.

Asked by Shravan Modi

PAT and turnover expectations for current and next FY. Direct
we expect that the revenue or top line we will be closing somewhere in between the INR900 crores to INR1,000 crores mark. This is what is the expectation for FY'26-27. And we foresee a growth of around 15% to 20% in FY'27-'28 over the current year's figure or current year's revenue. With regard to profitability, this year because this quarter one was bit affected because of the several and various aspect, still we expect that we will be closing somewhere of 6% kind of profitability this year, which we again expect to get improved by additional 0.75% to 1% in the FY'28.

Provides specific revenue and profitability guidance for the current and next fiscal years.

Asked by Mudit

Capacity utilization and future CapEx plans. Direct
almost if I say majority of the expansion or capacity increase activities had been completed. There will be some investments or CapEx which we will be doing in the coming period just to balance out the production line. Nothing much is expected out in next one, one and a half year with regard to capacity addition.

Clarifies that major CapEx is largely complete, indicating a period of consolidation and focus on utilization rather than new large-scale investments.

Asked by Mudit

Textile business profitability and demerger plans. Direct
So as of now, during the last quarter, the number was not good. But internally we had re-evaluated and discussed a lot about it. So by quarter three this year, we are expecting to get good in in textile business also. As of now, we don't have any plan for demerger or that kind of thing.

Addresses concerns about the underperforming textile segment and confirms no immediate plans for demerger, while setting expectations for improvement.

Asked by Mudit

Rationale for Roorkee capacity expansion vs new location. Direct
So choosing that location is going to definitely reduce our investment with regard to civil and other activities as well as we are catering all almost every customer from that location. So from management perspective, from controlling perspective, from the operation side, so it was very convenient for us also to go for the Roorkee location.

Explains the strategic and cost-efficiency benefits of expanding at an existing site rather than establishing a new one.

Asked by Muskan Patel

Deployment of INR 98.65 crores fund and capital allocation for FMCG pivot. Direct
fund which we raise of INR98.65 crores was not being utilized for acquiring Sunrakshakk Agro Product Private Limited. That activity had happened prior to the fundraising itself. With regard to application of this fund which we have raised amounting to INR98.65 crores, that is being majorly utilized for acquiring the food manufacturing facility in Bhilwara and soap noodle and cosmetic manufacturing facility in Guwahati.

Clarifies the specific use of the recently raised funds, correcting a potential misconception about the Agro acquisition.

Asked by Seema Mishra

Revenue bridge to INR 1,000 crores by FY28 using existing capacities. Direct
So whatever capacities we had increased till now, that will give us a revenue of INR1,000 crores by FY28. We will not be needing any additional capacity to accelerate our revenue. Once the capacity utilization reaches to a certain level, thereafter we may think upon or we may think for the capacity expansion. As of now, whatever capacities which we do have, we are confident that we will be achieving the targeted number of FY28 by this existing capacity only.

Reassures investors that the ambitious revenue target can be met with current infrastructure, implying efficiency and utilization focus.

Asked by Seema Mishra

Plans for acquiring FMCG businesses/brands/assets or new product lines. Partial
So as of now, we don't have anything in our discussion for acquiring any manufacturing facility. As of now, that is not there. But yes, definitely if something comes up which is very lucrative, any proposal comes up which is very lucrative, we are open for -- this is how it is. With regard to additional new products, so we are in the phase of process of developing some more products with which we can produce with our existing capacity. Also, we are looking for some opportunity or some products in the FM -- food sector or food business which may need some amount of capacity expansion or capex.

Indicates a cautious but open approach to M&A, focusing on internal product development and specific opportunities in the food sector.

Asked by Mansavi Mukerjee

3 min read 8 chapters

Detailed narrative

Q1 FY27 Performance Overview

Sunrakshakk Industries reported its strongest quarter to date in Q1 FY27, with consolidated revenue from operations surging by 120.64% year-on-year to ₹276.33 crores. Profit after tax (PAT) also saw a significant increase of 130.67% year-on-year, reaching ₹15.04 crores. Basic EPS for the quarter stood at ₹4.85, marking a 101.24% increase compared to Q1 FY26. Sequentially, revenue grew by 39.85% and PAT by 24.30% over Q4 FY26.

Strategic Shift to FMCG Dominance

The company's strategic pivot towards FMCG-led businesses has gained momentum, with FMCG, FMCG intermediate, and edible segments now contributing approximately 90.60% of consolidated revenue, significantly up from 83% in FY26. This shift reinforces the company's position as a diversified growth-led FMCG entity. Management expects this trend to continue, with textile business contributing 8-10% and FMCG 90-92% of total revenue in the longer run.

Manufacturing Expansion and Capacity

During the quarter, a new soap production line was commissioned at the existing Roorkee facility, adding 1,700 metric tons of monthly capacity. This expansion increased the aggregate installed capacity for FMCG and FMCG intermediate to 20,840 tons per month, up from 19,640 tons per month in Q4 FY26. The company currently operates at 50-55% capacity utilization and aims to increase this by another 25-30% by FY28, leveraging existing infrastructure for future growth.

Macroeconomic Headwinds and Impact

Geopolitical tensions and crude oil price volatility led to higher raw material costs for dyes, chemicals, fuel, and packaging materials like PP. This impacted the consolidated EBITDA margin, which moderated to 8.18% in Q1 FY27 from 9.28% in Q1 FY26 and 10.19% in Q4 FY26. The textile business was particularly sensitive to these cost movements, affecting its profitability in Q1 FY27, though management expects normalization of costs by Q3 or Q4 FY27.

Financial Performance Highlights

The FMCG segment's EBITDA margin improved to 8.55% in Q1 FY27 from 7.90% in Q1 FY26, reflecting continued operating leverage. However, the consolidated PAT margin moderated sequentially from 6.12% in Q4 FY26 to 5.44% in Q1 FY27, primarily due to the raw material cost pressures. Segment-wise, Roorkee's soap and noodle sections, Bhilwara's home care, detergent, and edible businesses, and Guwahati's cosmetics and noodle sections all showed sequential revenue growth, contributing to the overall strong top-line performance.

Future Outlook and Growth Targets

Sunrakshakk has set an internal target of achieving ₹1,000 crores in revenue by FY28, with an expected revenue of ₹900-1,000 crores for FY26-27. Management foresees a revenue growth of 15-20% for FY27-28. Profitability is targeted at approximately 6% for FY26-27, with an expected improvement of 0.75-1% in FY27-28, aiming for around 7% by FY28, driven by scale and increased capacity utilization. The company is confident in achieving the FY28 revenue target with its existing capacities.

Capital Allocation and Fund Utilization

The ₹98.65 crores raised through a preferential issue were primarily utilized for acquiring the food manufacturing facility in Bhilwara and the soap noodle and cosmetic manufacturing facility in Guwahati. The Roorkee capacity expansion was funded through retained earnings of the subsidiary. Management stated that major CapEx activities are largely complete, with minimal new investments expected in the next 1-1.5 years, focusing instead on optimizing working capital and utilizing existing capacities more efficiently.

Product Development and Innovation

The company is actively developing new products, particularly in the food sector, to leverage existing capacities and explore new market opportunities. While there are no immediate plans for acquiring manufacturing facilities, management remains open to lucrative investment or acquisition proposals that align with their strategic growth objectives. This focus on internal product development and strategic opportunities aims to drive future growth and diversification.

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