💰 Financial Performance

Revenue Growth by Segment

Total income grew 5.40% YoY to INR 994.49 Cr in FY25. The Agri Seeds segment revenue increased 19.3% to INR 46.38 Cr, while the Spray Dried Food Products segment saw a significant 72.5% growth to INR 31.03 Cr. In H1FY26, consolidated Total Operating Income (TOI) reached INR 521.27 Cr, a 6.8% increase from INR 488.08 Cr in H1FY25.

Geographic Revenue Split

The standalone operations in India remain the primary contributor, accounting for approximately 94% of consolidated turnover in H1FY26 (INR 488.14 Cr) and 95% in FY25. International presence is maintained through Sayaji Industries FZC in Dubai, though its specific revenue contribution percentage is not disclosed.

Profitability Margins

Profitability is currently under pressure with a net profit ratio of -1.20% in FY25. The company reported a net loss of INR 12.72 Cr and a cash loss of INR 10.19 Cr in H1FY26. Return on Equity (ROE) stood at -0.12 in FY25 compared to -0.10 in FY24, reflecting continued bottom-line stress due to high input costs.

EBITDA Margin

EBITDA improved to INR 10.57 Cr in FY25 from a loss of INR 10.58 Cr in FY24. However, the PBILDT margin remained subdued at 0.42% in H1FY26, down from historical levels, primarily because high maize and coal prices could not be fully passed on to customers due to market competition.

Capital Expenditure

In FY25, the company made net additions to Property, Plant, and Equipment (PPE) totaling INR 26.80 Cr. Historically, capex for process improvements has been funded through internal accruals and working capital, which has contributed to a current ratio below unity (0.46 in FY25).

Credit Rating & Borrowing

Ratings were downgraded in November 2025 to 'CARE BB+; Negative' from 'CARE BBB-; Negative' for long-term bank facilities (INR 58.80 Cr) and fixed deposits (INR 40.00 Cr). Short-term facilities were downgraded to 'CARE A4+'. The downgrade reflects continued cash losses and a deteriorating capital structure.

⚙️ Operational Drivers

Raw Materials

Maize (Corn) is the primary raw material, representing the bulk of production costs. Coal is the secondary critical input used for power and steam generation in the wet milling process.

Import Sources

Sourced primarily from domestic Indian markets; the company monitors global supply disruptions, such as the Russia-Ukraine war, which impact local maize availability and pricing.

Capacity Expansion

Current installed capacity is 1,000 Metric Tonnes Per Day (MTPD), making it one of the largest corn refiners in India. Specific expansion timelines are not detailed, though the company is focusing on shifting the product mix toward value-added derivatives.

Raw Material Costs

Maize prices remained high throughout FY25 and H1FY26, significantly impacting the bottom line. The company's inability to fully pass on these costs resulted in operating losses in FY25. Procurement strategies involve working closely with agricultural suppliers to encourage sustainable sourcing.

Manufacturing Efficiency

The company focuses on process improvements and technology upgrades to maintain its leadership in the corn wet milling industry. Return on Capital Employed (ROCE) improved to 1.38% in FY25 from -1.93% in FY24, aided by higher other income.

📈 Strategic Growth

Expected Growth Rate

6.8%

Growth Strategy

Growth is targeted through a shift toward value-added derivative products and spray-dried food products, which saw a 72.5% revenue jump. The company is also monetizing non-core assets (INR 34 Cr in FY25) to improve liquidity and is converting subsidiaries like Sayaji Seeds LLP into private limited companies to streamline the corporate structure.

Products & Services

Maize starch, liquid glucose, dextrose, sorbitol, and other corn derivatives; spray-dried food products; and agricultural seeds (wheat and wheat-based produce).

Brand Portfolio

Maize Products (flagship division), Sayaji Seeds.

New Products/Services

Aggressive focus on evolving the business model toward value-added derivative products to fulfill long-term growth objectives; specific revenue contribution % for new launches is not disclosed.

Market Expansion

The company is expanding its footprint in the food, cattle feed, and poultry farming sectors by tailoring products for softness and flexibility in food applications.

Market Share & Ranking

Among the largest corn refiners in India with an 80-year track record; specific market share percentage is not disclosed.

Strategic Alliances

Maintains a Joint Venture, ASL, which contributed INR 2.20 Cr in H1FY26. The company also holds a 64% stake in Sayaji Seeds Private Limited.

🌍 External Factors

Industry Trends

The corn wet milling industry is seeing growing demand for starch derivatives from multiple end-user industries. There is a shift toward sustainable sourcing and production processes as customers increasingly demand environmental responsibility.

Competitive Landscape

Operates in a highly competitive agriculture processing industry with both domestic and international players, which limits the ability to pass on raw material price hikes.

Competitive Moat

The moat is built on an 80-year established track record, a large-scale 1,000 MTPD capacity, and high entry barriers due to the long gestation period required for product approvals by established players.

Macro Economic Sensitivity

Highly sensitive to agricultural commodity inflation (Maize) and energy inflation (Coal). Government support through Minimum Support Price (MSP) for maize and ethanol blending policies provides a macro tailwind.

Consumer Behavior

Increasing demand for sustainable and socially responsible sourcing is forcing a shift in supplier selection criteria.

Geopolitical Risks

The Russia-Ukraine war is specifically cited as a factor that increased maize prices and impacted global supply chains.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and Ind AS accounting standards. Operations are subject to government regulations on maize MSP and environmental sustainability norms.

Environmental Compliance

Monitoring the National Emissions Trading Scheme (ETS) in India to comply with greenhouse gas reduction targets under the Paris Agreement.

Legal Contingencies

The company identifies legal risks including compliance with government regulations, intellectual property disputes, and contractual obligations as material, though no specific pending case values in INR are provided.

⚠️ Risk Analysis

Key Uncertainties

Volatility in maize and coal prices poses a significant risk to profitability. The 'Negative' outlook reflects the uncertainty regarding the company's ability to return to profitability and improve its debt coverage indicators.

Geographic Concentration Risk

High concentration in India, with 94-95% of revenue derived from domestic operations, primarily centered around the Ahmedabad manufacturing hub.

Third Party Dependencies

High dependency on agricultural growers and maize suppliers; disruptions in these relationships or crop failures would directly halt production.

Technology Obsolescence Risk

The company recognizes technology risks in the corn wet milling industry and is investing in process technology to remain competitive and meet evolving customer needs.

Credit & Counterparty Risk

Receivable days stood at 27 in H1FY26 (up from 24 in FY25), indicating a slight increase in credit risk from customers. The current ratio of 0.46 indicates a high risk of meeting short-term liabilities.