Sanstar Ltd

Business Overview

• India's second-largest maize-based specialty products manufacturer and exporter.
• Installed capacity of 2,350 TPD across Dhule (2,000) and Kutch (350).
• Exports contribute 34% of revenue across 34 countries.
• IPO proceeds of Rs 1,816 million allocated to Dhule expansion.
• Strategic Ingredion collaboration via Corn Products Development Inc.; enhanced global R&D access.
• Dhule landbank 210 acres; 50,000 MT maize storage; Kutch 64 acres; USFDA registered.

Operational Highlights

• Dhule native starch capacity expanded by 1,250 TPD to 2,350 TPD total.
• Derivatives facility at Dhule to be commissioned in FY2026-27.
• Export revenue rose 24.5% YoY to Rs 723 million.
• 3 MW solar plant commissioned at Kutch; ~40% of Kutch electricity from renewables.
• Preferential allotment raised Rs 1,983 million; Corn Products now ~9% stake.
• Maize storage at Dhule increased to 50,000 MT.

Financial Performance

• Q1 FY2027 revenue Rs 2,062 million; +21.5% YoY.
• Gross profit Rs 689 million; margin 33.4%.
• EBITDA Rs 154 million; margin 7.5%.
• PAT Rs 92 million; margin 4.5%.
• Export revenue Rs 723 million; +24.5% YoY.
• FY2026 revenue Rs 7,846 million; EBITDA Rs 377 million; PAT Rs 345 million.

Capital Structure & Liquidity

• IPO proceeds Rs 1,816 million allocated to Dhule expansion.
• Preferential allotment Rs 1,983 million; Corn Products holds ~9% stake.

Strategic Priorities & Outlook

• Ramp utilization of expanded Dhule capacity; commission derivatives facility.
• Increase value-added product share; expand domestic and export markets.
• Maintain cost discipline; leverage solar cost savings and Ingredion partnership.
• Long-term drivers: import restrictions, rising India demand, maize sourcing barriers.

Governance & Leadership

• Promoter CMD: Mr. Gouthamchand Chowdhary; experienced leadership.
• Independent Directors include Sejal Agarwal, Atul Agrawal, Niraj Shah, Aniket Talati.
• Jacques Guglielmi serves as Nominee Director.
• Corn Products Development Inc stake post-issue ~9%.

Financial highlights

• Revenue from operations: Rs 2,062 million; up 21.5% YoY.
• Gross profit: Rs 689 million; margin 33.4%.
• EBITDA: Rs 154 million; margin 7.5%.
• PBT: Rs 126 million; margin 6.1%.
• PAT: Rs 92 million; margin 4.5%.
• EPS: Rs 0.50.
• Export revenue: Rs 723 million; up 24.5% YoY.

Strategic developments

• Ingredion completed preferential allotment; 9% stake acquired.
• Corn Products Development Inc holds ~9% of Sanstar.
• Investment strengthens balance sheet to support capacity expansion.

Operational developments

• Dhule capacity expanded to 2,350 TPD from 1,100.
• Derivatives facility at Dhule to be commissioned FY2026-27.
• 3 MW solar plant commissioned at Kutch; capex Rs 7.5 crore.
• Annual power-cost savings about Rs 3 crore; renewables share grows.
• Captive energy share increases with renewables expansion.

Outlook & focus

• Ramp up utilization of expanded Dhule capacity.
• Commission derivatives facility; increase export volumes.
• Focus on value-added products; maintain cost discipline.

Issue overview

• Type: preferential issue of equity shares.
• Objects: Working Capital and General Corporate Purposes.
• No deviation or revision observed; financing remains unchanged.
• Issue size disclosed; net proceeds not detailed.

Utilisation of proceeds

• Utilisation as disclosed; no change in means of finance.
• During the quarter, no utilisation; objects remain unutilised.
• Unutilised funds deployed: 198.00 Cr into fixed deposits; 0.27 Cr in monitoring account.
• Fixed deposits mature on 10-07-2026; monitoring account held with Karur Vysya Bank.

Governance and compliance

• Government/statutory approvals: not applicable; none required for objects.
• No material events affecting viability detected.
• No other information likely to affect investor decisions.

General Corporate Purpose

• GCP proceeds: no utilisation during the period.
• Original GCP allocation: 49.07 Cr; not utilised.

Financial highlights

• Standalone Q1 FY2027 revenue from operations: Rs 206.16 crore.
• Standalone total income: Rs 208.93 crore.
• Standalone net profit: Rs 9.21 crore; EPS basic/diluted Rs 0.50.
• Standalone PBT: Rs 12.55 crore; tax: Rs 3.34 crore.

Capex, investments & funding

• Invested Rs 0.15 crore for 30% in Spark Ingredients (Jun 13, 2026).
• Preferential issue of 1,80,24,157 equity shares at Rs 110; aggregate Rs 198.27 crore (Jun 24, 2026).
• Utilisation of proceeds: working capital Rs 149.20 crore; general corporate Rs 49.07 crore; no Utilised as of Jun 30, 2026.
• Unutilised balances: Rs 149.20 crore (working capital) and Rs 49.07 crore (GCP).

Governance & corporate actions

• AGM scheduled for 23 Sep 2026; book closure 17–23 Sep 2026.
• Gouthamchand Sohanlal Chowdhary reappointed as MD for 5 years from 01 Sep 2026.
• Sambhav Gautam Chowdhary reappointed as Joint MD for 5 years from 01 Sep 2026.
• Shreyans Gautam Chowdhary reappointed as Joint MD for 5 years from 01 Sep 2026.
• Jacques Georges Florent Guglielmi appointed as Nominee Director; regularisation subject to AGM.
• Niraj Yogeshbhai Shah appointed as Independent Director; regularisation at AGM.
• Shreyans Gautam Chowdhary to retire by rotation at AGM.
• Scrutinizer Keyur J. Shah appointed; NSDL authorised for remote e-voting.

Labour codes impact

• Labour Codes → gratuity liability increased by Rs 0.67 crore; recognized in year 2026 P&L.

Business model & notes

• Company operates in a single segment: manufacturing and trading of commodities.
• Consolidated results include 30% stake in Spark Ingredients; first-time consolidation.

Solar plant commissioning

• 3 MW solar plant commissioned at Moda village, Rapar Taluka, Kutch, Gujarat.
• Investment of approximately Rs 7.5 crore.
• To be used for captive consumption by Sanstar.
• Expected annual power cost savings of around Rs 3 crore.
• Meets about 40% of Kutch facility's electricity requirement.
• Adds to existing 3.5 MW solar and 1.6 MW biogas capacity at Dhule.

Strategic JV / capital action

• Relates to proposed preferential issue and joint venture with Ingredion Incorporated; subject to approvals.
• Subject to shareholder, stock exchange, and regulatory approvals plus execution of definitive documents.
• No financial impact or timeline disclosed yet.

Dematerialisation/Rematerialisation status

• Dematerialisation/rematerialisation requests were processed during the quarter.
• Securities dematerialised were listed on the stock exchanges where listed previously.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification.
• The depository's name was substituted as registered owner in the records within prescribed timelines.

Key details

• Trading approvals granted by BSE and NSE for 1,80,24,157 preferential equity shares.
• Share price Rs 110 per share, including Rs 108 premium.
• Allotment date 24/06/2026; recipient Corn Products Development Inc (non-promoter).
• Distinctive numbers 182244251 to 200268407; equity ranking pari-passu with existing shares.
• Lock-in period until 14/01/2027 for the new shares.
• Listing effective from 10 July 2026.

Listing update

• In-principle listing approval granted by NSE for 18,024,157 equity shares.
• Shares issued on preferential basis; par value Rs 2 each.
• Distinctive numbers range from 182244251 to 200268407 for the issued shares.
• Listing subject to depository confirmation (NSDL/CDSL) credit to beneficiaries.
• Date of in-principle approval: 02 July 2026.
• No final listing status; approvals pending completion.