Sarda Proteins has reported a FY26 profit of Rs 0.45 crore as it transitions from solar trading to an agri-food business. Following a Rs 83.38 crore capital raise and a change in control to Onix Renewable Limited, the company now plans a Rs 90 crore rights issue for acquisitions. Investors should note that 83.8% of assets remain tied to legacy solar supplier advances, posing a significant concentration risk during this transition phase.
Sarda Proteins FY26 Strategic Transition Update
FY26 Revenue: Rs 16.16 crore | FY26 Net Profit: Rs 0.45 crore
Reader Takeaway: Strong balance sheet post-infusion contrasts with high legacy asset concentration and significant execution risk in agri-food.
What just happened
Sarda Proteins Ltd has concluded FY2026 with a major strategic overhaul. The company, which previously focused on solar trading, is shifting into the agri-food sector following a change in control to Onix Renewable Limited. In March 2026, promoters completed a warrant conversion that injected Rs 83.38 crore into the company. The board has now approved a rights issue of up to Rs 90 crore, with Rs 70 crore earmarked to acquire controlling stakes in Fresita Food Private Limited and Urja Protein India Private Limited.
Why this matters
While the company’s net worth has surged to Rs 86.21 crore, the profit improvement to Rs 0.45 crore is driven by treasury income rather than operational growth. Revenue from operations declined by 33.2% year-on-year to Rs 16.16 crore, reflecting the intentional winding down of the legacy solar-trading business. The primary focus for shareholders is the upcoming rights issue, which serves as the sole funding mechanism for the company's planned pivot into the food sector.
Risks to watch
The company faces a critical liquidity and concentration risk: Rs 72.58 crore, or 83.8% of total assets, is locked in 'Advances to Suppliers'. Of this, 95.6% remains exposed to solar-sector counterparties like Kunal Power. Furthermore, the proposed agri-food acquisitions depend entirely on full subscription to the rights issue. There is also a regulatory challenge: the current promoter holding of 80.66% exceeds the mandatory public shareholding threshold.
What to track next
Watch the subscription status of the upcoming rights issue and any updates regarding the recovery or migration of capital currently tied up in legacy solar-sector supplier advances. The management has admitted that the core team is currently lean, making organizational scaling and execution in the unfamiliar agri-food space a key performance test for the year ahead.