Sukhjit Starch (SUKHJITS) Q2 FY27 Profit Surges 560% as Revenue Doubles
The starch maker's quarterly revenue crossed ₹800 crore, driven by strong demand and cost management, lifting margins to a five-quarter high.
Sukhjit Starch & Chemicals reported a 155% yearly jump in revenue to ₹803.6 crore for Q2 FY27. Net profit surged over 559% to ₹28.4 crore, with margins expanding on the back of cost optimization.
For Sukhjit Starch & Chemicals, the story this quarter is a sharp rebound from a challenging year. The company, one of India's oldest maize processors, saw its revenue more than double from last year and sequentially from the June quarter. This surge was powered by resilient industrial demand and a disciplined focus on costs, which together delivered a profit jump far outpacing sales growth.
The numbers tell a story of dramatic acceleration. Revenue for the September quarter hit ₹803.6 crore, up 155% from a year ago and more than double the ₹395.7 crore reported in Q1. Net profit soared to ₹28.4 crore, a 559% increase year-on-year and a 133% jump sequentially.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 803.61 | 395.65 |
| Profit (₹ Cr) | 28.36 | 12.15 |
| Net Profit Margin | 3.5% | 3.1% |
Why margins finally expanded
The profit surge was not just about higher sales. The net profit margin expanded by 210 basis points year-on-year to 3.5%. According to a StockFin.ai analysis, this improvement is part of a broader turnaround from margin pressure seen through much of FY26. Management has attributed recent quarters' performance to cost optimization and stable pricing, reversing a trend where high maize prices had squeezed profitability.
The demand engine and its fuel
The revenue leap appears broad-based, driven by the company's core starch and derivatives business, which contributes over 95% of sales. A CNBC TV18 report from July highlighted that maize supply concerns were building just as demand from poultry, cattle feed, starch, and ethanol industries continued to grow. This structural demand, coupled with potential pre-buying ahead of a tight supply outlook, likely fueled the quarter's exceptional volume.
A looming squeeze on the raw material
The sustainability of this performance faces a direct test. The very industrial demand that boosted sales is now competing fiercely for maize. The Economic Times and Hindustan Times report that ethanol producers, poultry feed makers, and starch manufacturers are in a "tug of war" over the grain, pushing prices higher. With a government shift towards grain-based ethanol and a forecast of lower production, maize prices are under upward pressure.
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· SUKHJITS
(BSE)
ISIN: INE450E01029
This creates a clear tension. Sukhjit's improved margins are vulnerable to a resurgence in its primary raw material cost. The company's ability to maintain pricing discipline and pass on costs will be critical in the coming quarters.
Key Points
- Revenue more than doubled year-on-year and sequentially, reaching ₹803.6 crore in Q2 FY27.
- Net profit surged 559% YoY to ₹28.4 crore, with the net profit margin expanding to 3.5%.
- The performance is attributed to strong industrial demand for starch and derivatives, coupled with successful cost optimization efforts.
- Future margin sustainability faces a challenge from rising maize prices, driven by competition from the ethanol and poultry feed industries.
- The company has announced a ₹500 crore capacity expansion in Nashik, though execution depends on state government timelines.
Hexa Perspective
Sukhjit Starch's quarter is a powerful demonstration of operating leverage when demand meets cost control. The jump from ₹395 crore to ₹804 crore in revenue suggests a step-change in volumes, likely capitalizing on a tight market before new crop arrivals.
The catch is in the raw material. With maize demand structurally rising and supply forecasts tightening, the cost tailwind that aided margins could quickly reverse. The next few quarters will test whether the company's pricing power and product mix can absorb higher input costs without eroding the profitability gains just achieved. The stock's valuation, trading at a significant discount to the industry average, seems to price in this uncertainty.
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