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SANSTAR - Sanstar

📊 NSE: SANSTAR 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:49

📢 Recent Corporate Announcements

Sanstar Q3 FY26 PAT Recovers to ₹137 Mn; Dhule Expansion to Commission in Feb 2026

🔵 WATCH ⭐ 7/10

EARNINGS 📅 13 Feb 2026, 07:54 PM

Sanstar Limited reported a sequential recovery in Q3 FY26 with revenue of ₹2,018 million and a PAT of ₹137 million, following a volatile first half. EBITDA margins improved significantly to 8.9% in Q3 from a low of 0.7% in Q2, driven by higher plant utilization and better cost control. However, 9M FY26 performance remains subdued with revenue down 22.3% YoY to ₹5,679 million due to pricing pressure from Chinese exports in Southeast Asia. The company's major capacity expansion at Dhule is on track, with the native starch plant expected to commission by late February 2026.

Q3 FY26 Revenue stood at ₹2,018 million, reflecting a 2.7% sequential growth over Q2.
EBITDA recovered to ₹179 million in Q3 from ₹14 million in Q2, with margins reaching 8.9%.
9M FY26 Revenue declined 22.3% YoY to ₹5,679 million, impacted by global pricing headwinds.
Dhule expansion to 2,100 TPD is nearing completion, with the native starch unit set for Q4 FY26 commissioning.
Exports contributed ₹644 million to Q3 revenue, serving 58 countries despite Chinese competition.

💡 Investors should focus on the successful commissioning and ramp-up of the Dhule expansion in Q4 FY26, which is critical for future volume growth. While sequential recovery is positive, the impact of Chinese export intensity on global starch realizations remains a key risk to monitor.

Sanstar Q3 FY26 Net Profit at ₹13.67 Cr; Sequential Recovery but 9M Profit Down 63% YoY

🔵 WATCH ⭐ 7/10

EARNINGS 📅 13 Feb 2026, 07:33 PM

Sanstar Limited reported a strong sequential recovery in the quarter ended December 31, 2025, with net profit rising to ₹13.67 crore from a low of ₹0.63 crore in Q2 FY26. However, the year-on-year performance remains weak, with Q3 revenue declining 8.9% to ₹201.76 crore. For the nine-month period (9M FY26), net profit has fallen sharply to ₹13.96 crore compared to ₹38.28 crore in the previous year. On a positive note, finance costs have reduced significantly following the repayment of ₹100 crore in borrowings using IPO proceeds.

Net Profit for Q3 FY26 stood at ₹13.67 crore, recovering from ₹0.63 crore in the previous quarter.
Revenue from operations for Q3 FY26 was ₹201.76 crore, down from ₹221.42 crore in Q3 FY25.
9M FY26 Net Profit dropped to ₹13.96 crore from ₹38.28 crore in 9M FY25, a 63.5% decline.
Finance costs for 9M FY26 decreased to ₹1.72 crore from ₹6.72 crore YoY due to debt repayment.
Company has utilized ₹357.23 crore of IPO proceeds, with ₹181.56 crore spent on the Dhule plant expansion.

💡 While the sequential recovery in margins is encouraging, the significant year-on-year decline in 9M profitability warrants caution. Investors should monitor the impact of the Dhule plant expansion on future revenue growth.

Sanstar Limited Submits SEBI Compliance Certificate for Q3 FY2025-26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 06 Jan 2026, 05:19 PM

Sanstar Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter and nine-month period ended December 31, 2025. The certificate, issued by the Registrar and Share Transfer Agent (RTA) MUFG Intime India Private Limited, confirms that share certificates received for dematerialization were processed and cancelled according to regulatory timelines. This filing ensures that the company's shareholding records are accurately maintained with the depositories NSDL and CDSL. As a routine administrative disclosure, it has no direct impact on the company's financial performance or stock valuation.

Compliance certificate submitted for the third quarter and nine months ended December 31, 2025.
Confirmation received from RTA MUFG Intime India Private Limited regarding dematerialization requests.
Verification that dematerialized securities are listed on the BSE and NSE stock exchanges.
Confirms that physical security certificates were mutilated and cancelled after due verification within prescribed timelines.

💡 No action is required from investors as this is a standard regulatory compliance filing. Investors should continue to monitor the company's upcoming quarterly earnings reports for fundamental performance updates.

Sanstar Limited Reports Full Compliance with SEBI Insider Trading Regulations for Q3 FY26

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 06 Jan 2026, 05:15 PM

Sanstar Limited has submitted its Structured Digital Database (SDD) compliance certificate for the quarter and nine months ended December 31, 2025. This filing confirms the company's adherence to SEBI (Prohibition of Insider Trading) Regulations, ensuring all Unpublished Price Sensitive Information (UPSI) is tracked. The company successfully recorded 3 specific UPSI events during the quarter, including sharing information with the Audit Committee and Board members. Such filings are mandatory for listed entities to demonstrate transparency and prevent insider trading.

Complied with Regulation 3(5) and 3(6) of SEBI (Prohibition of Insider Trading) Regulations, 2015
Captured 3 specific UPSI events during the third quarter ended December 31, 2025
Maintains a non-tamperable internal database with an 8-year record retention capability
Confirmed that all UPSI disseminated in the previous quarter has been captured with audit trails

💡 This is a routine regulatory filing indicating standard corporate governance practices. No immediate action is required as this does not impact the company's financial fundamentals.

Sanstar Limited Announces Trading Window Closure from January 1, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 25 Dec 2025, 06:21 PM

Sanstar Limited has informed the stock exchanges that its trading window for dealing in company securities will be closed starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results. The closure pertains to the unaudited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the results are made public.

Trading window for Designated Persons and relatives to close on January 1, 2026
Closure is for the purpose of considering Q3 and nine-month financial results ending Dec 31, 2025
Window will reopen 48 hours after the official declaration of financial results
Board meeting date for result approval to be announced in due course

💡 This is a routine regulatory announcement with no direct impact on the company's fundamentals. Investors should monitor the upcoming board meeting date for the release of Q3 financial performance.

View All SANSTAR Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 was INR 366.1 Cr, representing a 28.1% YoY decline from INR 509.1 Cr in H1 FY25. Q2 FY26 revenue was INR 196.4 Cr, down 4.5% YoY from INR 205.6 Cr in Q2 FY25, but up 15.8% QoQ from INR 169.7 Cr in Q1 FY26.

Geographic Revenue Split

Exports contributed 36% of total revenue in FY25, amounting to INR 340 Cr. The company exports to 58 countries across all continents, with a growing share in North America and Europe.

Profitability Margins

Gross margin for Q2 FY26 was 24.8% compared to 27.1% in Q2 FY25. PAT margin for Q2 FY26 was -0.5% (INR -0.9 Cr) compared to 0.7% (INR 1.4 Cr) in Q2 FY25. H1 FY26 PAT margin stood at 0.1% (INR 0.3 Cr).

EBITDA Margin

EBITDA margin for Q2 FY26 was 0.7% (INR 1.4 Cr), a significant decline of 88.2% YoY from 5.6% (INR 11.5 Cr) in Q2 FY25. H1 FY26 EBITDA margin was 0.1% (INR 0.4 Cr) vs 7.8% (INR 39.7 Cr) in H1 FY25.

Capital Expenditure

The company is expanding its Dhule facility with an additional 1,000 TPA capacity expected to be commissioned in December 2025. In FY25, net cash used in investing activities was INR 174.6 Cr, primarily for property, plant, and equipment.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE BBB+; Stable and short-term facilities are rated CARE A2, upgraded from CARE BBB; Stable / CARE A3+ in April 2025. Finance costs decreased from INR 10.74 Cr in FY24 to INR 7.54 Cr in FY25 following debt repayment from IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Maize (corn) is the primary raw material. Maize grinding volume grew 32.61% YoY to 1,77,922 MT in FY22. Raw material price fluctuations directly impact the sales realization of maize starch.

Import Sources

Sourced domestically within India, primarily from maize-growing regions to support its manufacturing units in Dhule (Maharashtra) and Kutch (Gujarat).

Capacity Expansion

Current capacity is being expanded at the Dhule plant by an additional 1,000 TPA, with commissioning scheduled for December 2025.

Raw Material Costs

Raw material costs are a significant portion of the cost of goods sold, reflected in a gross profit margin of 24.8% in Q2 FY26. Profitability is sensitive to maize price declines which can lead to lower sales realizations.

Manufacturing Efficiency

Maize grinding volume increased by 32.61% in FY22, indicating high capacity utilization driven by demand from textile, paper, and pharma industries.

Logistics & Distribution

The company maintains a global distribution network covering 58 countries across all continents.

📈 Strategic Growth

Expected Growth Rate

33%

Growth Strategy

Growth is driven by a 33% CAGR in export sales (FY21-FY25), capacity expansion at the Dhule plant (1,000 TPA addition), and a strategic shift toward capturing incremental market share in higher-value derivative segments.

Products & Services

Maize-based specialty products and ingredient solutions including maize starch, liquid glucose, maltodextrin, dextrose monohydrate, and sorbitol.

Brand Portfolio

Sanstar

New Products/Services

Focus on higher-value derivative segments to improve margins beyond basic starch products.

Market Expansion

Expanding presence in North America and Europe, which currently show growing shares in the export portfolio.

Market Share & Ranking

Sanstar is one of the largest producers of maize-based specialty products and ingredient solutions in India.

🌍 External Factors

Industry Trends

The maize starch industry is seeing improved demand from pharmaceuticals and food products. The industry is evolving toward specialty derivatives which offer higher margins than commodity starch.

Competitive Landscape

Faces increasing competition in the maize starch industry, which CARE Ratings expects will keep profitability at moderate levels.

Competitive Moat

Moat is built on a 38-year track record, established procurement networks, and a diverse product portfolio with wide industrial applications, making it difficult for new entrants to scale quickly.

Macro Economic Sensitivity

Sensitive to general market and macro-economic trends, including agricultural output (maize) and industrial demand from end-user sectors like textiles and pharma.

Consumer Behavior

Shift toward processed foods and specialty pharmaceutical ingredients is driving demand for maize-based derivatives.

Geopolitical Risks

Global operations in 58 countries expose the company to international trade barriers and regulatory changes in North America and Europe.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to food safety standards and pharmaceutical-grade manufacturing regulations for its derivative products.

Environmental Compliance

Investment in Solar and Biofuel plants demonstrates a commitment to ESG and renewable energy to reduce carbon footprint and costs.

Taxation Policy Impact

The company incurred tax expenses of INR 1.8 Cr in Q2 FY26 despite a loss before tax, likely due to deferred tax adjustments or minimum alternate tax.