Sayaji Industries Ltd (540728)
Q2 FY27 results
📅 Next results: 22 Oct 2026 (board meeting)Sayaji Industries Ltd's board meets on 22 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Sayaji Industries' revenue was ₹288 Cr (+5.9% year on year, +7.5% on the previous quarter), and net profit ₹7.3 Cr (against a loss a year earlier); the operating margin was 6.1%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹288 | +5.9% | +7.5% |
| Operating profit | ₹17.7 | +342.0% | -23.1% |
| Net profit | ₹7.3 | from loss | -33.4% |
| EPS (₹) | 2.78 | from loss | -35.9% |
| Operating margin | 6.1% | — | — |
📢 Recent Corporate Announcements
CARE Ratings has reaffirmed the credit rating of Sayaji Industries Limited at 'CARE BB+' / 'CARE A4+' while revising its rating outlook from 'Stable' to 'Positive'. The rating action applies to ₹217.30 crore in bank facilities (comprising ₹58.80 crore long-term, ₹23.50 crore short-term, and ₹135.00 crore long/short-term facilities) and a ₹40.00 crore Fixed Deposit programme. The outlook revision reflects recent operational and financial performance improvement across FY26 and Q1FY27.
- CARE reaffirmed 'CARE BB+' rating and revised outlook from Stable to Positive for ₹58.80 Cr long-term bank facilities and ₹40.00 Cr FD programme.
- Long-term/short-term bank facilities of ₹135.00 Cr reaffirmed at 'CARE BB+; Positive / CARE A4+'.
- Short-term bank facilities of ₹23.50 Cr reaffirmed at 'CARE A4+'.
- Fixed deposit outstanding stood at ₹30.03 Cr as of March 31, 2026, against a rated limit of ₹40.00 Cr.
Sayaji Industries Limited has issued the notice for its 85th Annual General Meeting (AGM) scheduled for September 21, 2026, via video conferencing. Key agenda items include the adoption of FY26 financial results, the re-appointment of Director Mr. Varun P. Mehta retiring by rotation, and ratification of cost auditor remuneration of ₹1.20 lakh. Additionally, shareholders will vote on a special resolution approving a salary of up to ₹20 lakh per month plus perquisites for Mr. Varun P. Mehta as Executive Director from April 1, 2027, to March 31, 2029 (he was paid ₹265.96 lakh in FY26).
- 85th Annual General Meeting scheduled for Monday, September 21, 2026, at 3:30 PM IST via video conference.
- Proposed approval of monthly salary up to ₹20,00,000 plus perquisites for Executive Director Mr. Varun P. Mehta for April 1, 2027 to March 31, 2029.
- Mr. Varun P. Mehta was paid a total remuneration of ₹265.96 lakh during FY25-26.
- Approval sought for FY26-27 cost auditor remuneration of ₹1,20,000 plus applicable taxes.
Sayaji Industries has submitted its 85th Annual Report for FY 2025-26 and issued notice for its Annual General Meeting (AGM) scheduled for September 21, 2026. Key agenda items include the approval of audited financial statements and proposed remuneration for Executive Director Varun P. Mehta up to ₹20,00,000 per month starting April 2027. The annual report also records the appointment of Nirav C. Mistry as CFO effective August 8, 2026. Related-party disclosures show ₹1,414.12 lakh in goods purchased from N.B. Commercial Enterprises Ltd in FY26.
- 85th Annual General Meeting convened for Monday, September 21, 2026 at 3:30 PM via video conference.
- Proposed salary cap of ₹20,00,000 per month for Executive Director Varun P. Mehta for April 1, 2027 to March 31, 2029.
- Nirav C. Mistry appointed Chief Financial Officer effective August 8, 2026, replacing Nilesh A. Pandya.
- Related-party purchases of goods from entity under common control N.B. Commercial Enterprises stood at ₹1,414.12 lakh in FY26.
Sayaji Industries reported a strong turnaround in Q1FY27, posting a PAT of ₹7 Cr compared to a loss of ₹4 Cr in Q1FY26. Revenue grew 6% YoY to ₹288 Cr, while EBITDA margins expanded significantly by 532 bps to 7.3%, driven by a 3-4% average increase in sales prices. A major Technology Modernization and Automation Project is 95% complete and scheduled for commissioning by late September 2026, which is expected to drive sustainable cost savings. Despite high energy and logistics costs, the company maintained volume growth and is progressing on two new joint venture plants for Gum Arabic and Caramel Colours.
- Q1FY27 Revenue increased 6% YoY to ₹288 Cr from ₹272 Cr in Q1FY26.
- EBITDA surged 287% YoY to ₹21 Cr, with margins improving from 2.0% to 7.3%.
- Technology Modernization project is 95% complete with commissioning expected by end of September 2026.
- Average sales prices increased by 3-4% in Q1 to offset food and energy inflation.
- Consolidated PAT turned positive at ₹7 Cr against a loss of ₹4 Cr in the year-ago period.
Sayaji Industries reported a strong YoY turnaround in Q1FY27, with revenue growing 6% to ₹288 Cr. Net profit reached ₹7 Cr, a significant recovery from a loss of ₹4 Cr in Q1FY26, driven by a 532 bps expansion in EBITDA margins to 7.3%. While YoY performance is robust, sequential (QoQ) profit declined by 33% from ₹11 Cr in Q4FY26 due to higher operating expenses. The company is nearing completion of its Technology Modernisation project, which is expected to be commissioned by September 2026.
- Revenue from operations increased 6% YoY to ₹288 Cr, accounting for ~27% of total FY26 revenue.
- EBITDA surged 287% YoY to ₹21 Cr, although it saw a 19% sequential decline from Q4FY26.
- Gross margins improved significantly to 32.2% from 22.5% in the year-ago period.
- Technology Modernisation and Automation Project is ~95% complete with commissioning targeted for September 2026.
- Average sales prices were hiked by 3-4% during the quarter to mitigate rising input and logistics costs.
Sayaji Industries has appointed Mr. Niravkumar C Mistry as its Chief Financial Officer (CFO) and Key Managerial Personnel, effective August 8, 2026. Mr. Mistry brings over 20 years of experience from major conglomerates including Reliance Industries, Adani Group, and Arvind Ltd. This appointment is significant as the company manages a high debt-to-equity ratio of 2.44 and thin TTM net profit of Rs 3 Cr on a revenue base of Rs 1072 Cr. His expertise in fund raising and working capital management will be critical for the company's financial stability.
- Appointment of Mr. Niravkumar C Mistry as CFO effective August 8, 2026
- Mr. Mistry possesses 20+ years of experience in fund raising, M&A, and debt capital markets
- Previous professional background includes roles at Reliance Industries, Adani Group, and Megha Engineering
- Company currently operates with a high debt of Rs 227 Cr against a net worth of Rs 93 Cr
- TTM PAT stands at a marginal Rs 3 Cr despite a large revenue base of Rs 1072 Cr
Mr. Nilesh A Pandya has resigned as the Chief Financial Officer (CFO) of Sayaji Industries effective August 7, 2026, to pursue other career opportunities. This transition occurs as the company manages a high debt-to-equity ratio of 2.44 and a thin TTM PAT of ₹3 Cr on a ₹1072 Cr revenue base. The Board of Directors approved the resignation in a meeting held on the same day. No immediate successor was named in the filing, leaving the key managerial position vacant as of the announcement date.
- Resignation of Mr. Nilesh A Pandya as CFO effective from the closure of business hours on August 7, 2026.
- Company operates with a high debt of ₹227 Cr against a net worth of ₹93 Cr.
- TTM revenue stands at ₹1072 Cr with a low operating profit margin of 3.7%.
- The resignation was approved by the Board of Directors in their meeting on August 7, 2026.
Sayaji Industries reported a significant YoY turnaround in Q1 FY27, posting a Net Profit of ₹6.67 cr compared to a loss of ₹3.76 cr in the same quarter last year. Revenue from operations grew 5.9% YoY to ₹263.48 cr, although it saw a sequential decline in profit from ₹11.83 cr in March 2026. The company also announced the appointment of Niravkumar C Mistry as CFO, who brings over 20 years of experience from major groups like Reliance and Adani. Despite the turnaround, the company remains highly leveraged with a Debt-to-Equity ratio of 2.44.
- Revenue from operations increased 5.9% YoY to ₹263.48 cr from ₹248.88 cr.
- Net Profit turned positive at ₹6.67 cr vs a loss of ₹3.76 cr in the year-ago period.
- Cost of materials consumed rose to ₹180.08 cr, representing 68.3% of revenue.
- New CFO Niravkumar C Mistry appointed effective August 8, 2026, following the resignation of Nilesh A Pandya.
- Agro Processing-Maize remains the dominant segment with assets of ₹56,787 lakhs.
Sayaji Industries reported a standalone revenue of ₹263.48 Cr for Q1 FY27, a 5.8% increase YoY from ₹248.88 Cr. The company achieved a turnaround with a Net Profit of ₹6.67 Cr, compared to a Net Loss of ₹3.76 Cr in the same quarter last year. Sequentially, however, profit declined from ₹11.83 Cr in Q4 FY26. The company also announced a transition in the CFO role, with Niravkumar C Mistry replacing Nilesh A Pandya effective August 8, 2026.
- Revenue from operations grew 5.8% YoY to ₹263.48 Cr.
- Turnaround to Net Profit of ₹6.67 Cr from a loss of ₹3.76 Cr in Q1 FY26.
- Finance costs rose to ₹5.89 Cr, up from ₹5.35 Cr in the year-ago period.
- Change in inventory valuation method from FIFO to Weighted Average increased Q1 PAT by ₹27.38 lakhs.
- Appointment of Niravkumar C Mistry as CFO following the resignation of Nilesh A Pandya.
Sayaji Industries has scheduled a board meeting for August 7, 2026, to approve its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company is coming off a volatile FY26 where it reported a thin TTM PAT of Rs 3 Cr on a revenue base of Rs 1072 Cr. Investors will be watching for margin stability, as the company operates with a high Debt-to-Equity ratio of 2.44 and low operating margins of 3.7%. The trading window for designated persons remains closed until 48 hours after the results are announced.
- Board meeting scheduled for August 7, 2026, to approve Q1 results.
- Covers the three-month period ending June 30, 2026.
- Trading window closed since June 30, 2026, for designated persons.
- Company reported a significant recovery in March 2026 quarter with a PAT of Rs 11.0 Cr compared to losses in previous quarters.
- TTM revenue stands at Rs 1072 Cr with a high debt load of Rs 227 Cr.
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.
