Sunrakshakk Inds - Sunrakshakk Inds

📊 BSE: 539300 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for FY25 reached INR 180.16 Cr, representing a 53.67% YoY growth from INR 117.24 Cr in FY24. The growth was significantly accelerated in Q2 FY26, with revenue hitting INR 120.97 Cr, a 354.61% YoY increase from INR 26.61 Cr, primarily driven by the full consolidation of the FMCG and Edibles segments.

Geographic Revenue Split

The company operates a Pan-India footprint with manufacturing facilities in Bhilwara (Rajasthan), Roorkee (Uttarakhand), and Guwahati (Assam). While specific regional percentage splits are not disclosed, the expansion into the North-East via the Guwahati plant is expected to significantly increase the revenue contribution from that region by Jan 2026.

Profitability Margins

Consolidated PAT for FY25 was INR 11.01 Cr, up 30.34% YoY from INR 8.45 Cr. However, PAT margins compressed from 7.21% in FY24 to 6.11% in FY25 (a 110 bps decline). In Q2 FY26, PAT margin was 5.75%, down 128 bps YoY from 7.03% in Q2 FY25, reflecting the initial costs of scaling new business verticals.

EBITDA Margin

Consolidated EBITDA for FY25 stood at INR 26.24 Cr. In Q2 FY26, EBITDA was INR 11.67 Cr with a margin of 9.65%, which is a significant contraction of 1,002 bps compared to the 19.67% margin in Q2 FY25, due to the shift toward high-volume FMCG and Edibles segments which currently have lower operating leverage.

Capital Expenditure

The company raised INR 98.65 Cr in FY25 to accelerate future growth. Key investments include the INR 24.72 Cr acquisition of Sunrakshak Agro Products Pvt. Ltd. and the operationalization of the Guwahati facility for soap noodles and cosmetics.

Credit Rating & Borrowing

As of March 31, 2025, long-term borrowings stood at INR 28.73 Cr and short-term borrowings at INR 12.62 Cr. Specific credit ratings and weighted average interest rate percentages were not disclosed in the provided documents.

⚙️ Operational Drivers

Raw Materials

Specific raw materials include soap noodles intermediates, chemicals for cosmetics, and agricultural inputs for savories and spices. Raw material expenses in Q2 FY26 were INR 81.56 Cr, representing approximately 67.4% of total revenue.

Import Sources

Raw materials are primarily sourced domestically to support facilities in Rajasthan, Uttarakhand, and Assam. Specific international import sources are not detailed.

Key Suppliers

The company engages in significant related-party transactions for procurement with M/s. ACME Industries and M/s. RCM Consumer Product Private Limited.

Capacity Expansion

Current capacity includes 850 MT/month for Savories and 650 MT/month for Spices at the Bhilwara facility. The new Guwahati facility is expanding capacity by 2,160 MT/month for Soap Noodles and 1,000 MT/month for Cosmetics, with revenue visibility starting January 2026.

Raw Material Costs

Raw material costs increased significantly in absolute terms to INR 81.56 Cr in Q2 FY26 compared to INR 5.06 Cr in Q2 FY25, reflecting the massive scale-up in the FMCG and Edibles manufacturing operations.

Manufacturing Efficiency

The company is focusing on process modernization and quality control systems to improve yield efficiencies, particularly in the newly integrated FMCG and Edibles segments.

Logistics & Distribution

The company is leveraging its Pan-India footprint (Bhilwara, Roorkee, Guwahati) to optimize distribution and reduce time-to-market for its consumer goods.

📈 Strategic Growth

Expected Growth Rate

30-35%

Growth Strategy

The company aims to reach INR 1,000 Cr revenue by FY28 through a 'second growth engine' strategy: diversifying from textiles into high-growth FMCG, FMCG intermediates (soap noodles), and Edibles (savories/spices). This involves the operationalization of the Guwahati plant by Jan 2026 and scaling the Bhilwara edibles unit which became operational in Sept 2025.

Products & Services

Textiles, Soap Noodles, Cosmetics (Personal Care), Savories (Namkeen), and Spices.

Brand Portfolio

Sunrakshakk (formerly A.K. Spintex).

New Products/Services

New launches include Soap Noodles and Cosmetics from the Guwahati plant (expected Jan 2026) and the recently launched Savories and Spices lines which began contributing in Q2 FY26.

Market Expansion

Expansion into the North-East Indian markets via the Guwahati facility and strengthening the distribution network in Northern India through the Roorkee and Bhilwara units.

Strategic Alliances

Acquired 100% equity of Sunrakshak Agro Products Private Limited on January 1, 2025, for INR 24.72 Cr to facilitate the FMCG entry.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward branded consumer goods and FMCG intermediates. Sunrakshakk is positioning itself as a diversified conglomerate to capture this 30-35% CAGR opportunity in the FMCG landscape.

Competitive Landscape

The company faces stiff competition in the textile processing sector and established players in the FMCG and Edibles markets.

Competitive Moat

The company's moat is built on its multi-category manufacturing infrastructure and a Pan-India distribution footprint. Sustainability is driven by diversifying away from the cyclical textile industry into essential consumer staples (Edibles/FMCG).

Macro Economic Sensitivity

The business is sensitive to general market trends and macro-economic factors, particularly recessionary pressures which the management noted as a challenge for the textile segment.

Consumer Behavior

There is an increasing consumer preference for branded and packaged food products (savories/spices), which supports the company's expansion into the Edibles segment.

Geopolitical Risks

Not specifically detailed, though the company monitors regulatory trends and governmental policy changes.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013, Ind-AS accounting standards, and food safety/manufacturing standards for the Edibles and FMCG segments.

Environmental Compliance

The company spent INR 1.71 Lacs on CSR activities in FY25, down from INR 8.5 Lacs in FY24. It maintains a focus on environmental stewardship as part of its strategic roadmap.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 23.8% (Current Tax of INR 3.36 Cr on PBT of INR 14.12 Cr).

Legal Contingencies

The Statutory Auditors' report for FY25 does not contain any qualifications or adverse remarks. No specific pending court case values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful integration and scaling of the FMCG and Edibles segments to meet the INR 1,000 Cr revenue target by FY28, with potential margin pressure during the gestation period.