Sanstar Limited reported a decline in FY26 revenue to ₹784.63 crore and PAT to ₹34.45 crore, citing global pricing pressures and maintenance shutdowns. Despite the softer financials, the company successfully doubled its native starch capacity to 2,350 TPD at its Dhule facility using IPO funds. Management expects the new infrastructure and an upcoming derivatives facility to drive future growth, while maintaining a lean debt profile.
Sanstar FY26 Results: Revenue Softens Amid Major Capacity Expansion
Revenue from operations reached ₹784.63 crore in FY26, down from ₹957.45 crore in the prior year.
Profit After Tax stood at ₹34.45 crore, compared to ₹43.80 crore reported in FY25.
Reader Takeaway: Capacity doubled at Dhule to support future growth, though FY26 earnings faced headwinds from pricing and maintenance.
What just happened
Sanstar Limited has released its financial results for the fiscal year ending 2025-26. While topline and bottom-line figures saw a contraction compared to the previous year, the company successfully executed a major capital expenditure program. The Dhule facility's native starch capacity was expanded from 1,100 TPD to 2,350 TPD using proceeds from the company's IPO. Finance costs saw a significant reduction of 81%, falling to ₹1.4 crore.
Why this matters
The decline in performance was largely attributed to external pricing pressures from Chinese starch exports and planned maintenance shutdowns during the first half of the year. However, the second half showed improved plant utilization. For investors, the completion of the Dhule expansion is a critical step in scaling operations. The company has opted not to declare a dividend for FY26 to retain capital for these strategic investments.
What changes now
The leadership team remains focused on increasing the revenue mix from higher-margin, value-added products. A new derivatives facility is slated to come online in FY 2026-27, which management believes will diversify the product portfolio. Furthermore, the board has proposed the re-appointment of the existing leadership trio—Gouthamchand Chowdhary, Sambhav Chowdhary, and Shreyans Chowdhary—for five-year terms.
Risks to watch
Continued pricing volatility in the global starch market, particularly from aggressive exports by competitors, remains a key risk. Additionally, the company must now prove the profitability of its expanded capacity through sustained high utilization rates.
What to track next
Watch for the upcoming commissioning of the derivatives facility in FY27 and quarterly updates on capacity utilization rates at the expanded Dhule plant.