Sonal Adhesives reported a 14.87% rise in FY26 revenue to Rs 128.27 crore, driven by a 104.97% surge in exports. Despite this top-line growth, net profit declined 22.16% to Rs 1.37 crore due to rising raw material and finance costs. The company did not declare a dividend.
Sonal Adhesives FY26 Financial Results Overview
Revenue: Rs 128.27 crore (up 14.87% YoY); Net Profit: Rs 1.37 crore (down 22.16% YoY).
Reader Takeaway: Strong export growth drives top-line performance, but margin compression from input costs and rising debt levels persist.
What just happened
Sonal Adhesives held its 35th Annual General Meeting on September 24, 2026, confirming financial results for FY 2025-26. While the company grew its total revenue significantly, bottom-line profitability was hit by higher operating and finance expenses. Shareholders were informed that no dividend was recommended for the fiscal year.
Why this matters
The results highlight the company's struggle to translate revenue gains into earnings. With export turnover more than doubling to Rs 33.97 crore, the company is successfully scaling internationally. However, volatile petrochemical prices continue to erode margins, forcing the company to rely more heavily on working capital debt, with the debt-to-equity ratio rising to 1.98.
Management and Governance
Shareholders approved the re-appointment of Mr. Sandeep Arora as Managing Director for a three-year term beginning June 1, 2026, at a monthly remuneration of Rs 3.00 lakh. The board also underwent changes with the appointment of Mr. Vipul Desai as an Independent Director and Mr. Amish Ashar as the new Company Secretary.
Risks to watch
Investors should monitor the ongoing GST litigation involving claims totaling Rs 1.54 crore for the 2017-2024 period. Additionally, the increasing debt profile poses a challenge to future interest coverage, and continued volatility in raw material costs remains a primary threat to margin recovery.
Context metrics (FY 2025-26)
- Export Turnover: Rs 33.97 crore (+104.97% YoY)
- Debt-to-Equity Ratio: 1.98 (vs 1.12 in FY25)
- Total Revenue: Rs 128.27 crore (+14.87% YoY)