Sunrakshakk Industries India Ltd Management Discussions

A review of our performance, industry outlook and strategies for sustainable growth.

8 Sunrakshakk FY 2025-26

Global Economic Outlook

CY2025 was a year of two distinct halves for the global economy. Through most of the year, the world economy demonstrated steady, if modest, growth of an estimated 3.4% supported by resilient labour markets, gradual disinflation and a recovery in global trade following the tariff-related disruptions of the prior year. This resilience, however, was tested sharply in the closing months of the year and into early CY2026 by the outbreak of a major armed conflict in the Middle East between the US/Israel and Iran, which has since become the single largest swing factor for the global macro-outlook.

Geopolitical Shock and the Oil Market

The conflict led to a near-total halt in tanker traffic through the Strait of Hormuz - a chokepoint that under normal conditions carries close to 20 million barrels of oil and petroleum products a day, roughly a fifth of global oil shipments. Several Gulf producers, including Iraq, Saudi Arabia and the UAE, were forced to temporarily shut-in production, and attacks on regional energy infrastructure (including a strike on Saudi Arabias Ras Tanura refinery) added to the supply shock. Brent crude, which had been trading around USD 61-72/barrel in January-February 2026, spiked past USD 100/barrel by mid-March and touched an intraday high close to USD 140/barrel - the highest level since 2008 - before easing as diplomatic efforts (including an Iran-Oman monitoring protocol for the Strait) and a partial, gradual recovery in Gulf exports brought prices back down to a range of roughly USD 88-106/barrel through mid-CY2026. By August 2026, Gulf oil exports had recovered to an estimated two-thirds of pre-war levels (around 15-16 million barrels/day), still 7-8 million barrels/day below the pre-conflict baseline. The IEA and EIA both flagged this as the largest inflation-adjusted quarterly oil price increase in decades, with OPECs May 2026 outlook cutting global oil demand growth for the year to 1.17 million barrels/day, down from 1.38 million barrels/day previously, citing the conflicts drag on trade and industrial activity.

The energy shock has fed directly into the price of vegetable oils, a key input for Sunrakshakks soap, detergent and edibles businesses. The World Bank pegs average crude palm oil (CPO) prices at USD 1,089/tonne for CY2026, up from USD 1,007/tonne in CY2025, with CIF Rotterdam prices already averaging USD 1,356/tonne in January-March 2026 versus USD 1,230/tonne a year earlier. Industry forecasters expect CPO prices to climb further, potentially to USD 1,500/tonne in the second half of CY2026, driven by the higher energy-cost pass-through, Indonesias planned B50 biodiesel mandate (which will divert more palm oil to domestic fuel use and away from exports) and emerging El Ni?o-related production risk in Indonesia and Malaysia, the worlds two largest producers and Indias principal import sources for edible and industrial oils.

Growth and Inflation

Assuming the Middle East conflict remains contained in scope, the IMFs April 2026 World Economic Outlook projects global growth to slow to 3.1% in CY2026, from the estimated 3.4% in CY2025, before a modest recovery to 3.2% in CY2027. Among advanced economies, the US is projected to grow 2.3% in CY2026 and 2.1% in CY2027, aided by continued technology and AI-related investment, even as trade barriers weigh on activity; the Euro Area is expected to remain the weakest major bloc, growing just 0.9% in CY2026 and around 1.0-1.1% in CY2027 on subdued industrial output and elevated energy costs. World trade volume growth is projected to decelerate sharply, from 5.1% in CY2025 to 2.8% in CY2026, before rebounding to 3.8% in CY2027, as higher freight, insurance and energy costs raise the cost of moving goods globally. Global headline inflation, which had been on a declining path, is now projected to tick back up to 4.4% in CY2026 from an estimated 4.1% in CY2025, before resuming its decline to 3.7% in CY2027 - with the upward revision entirely a function of the oil and commodity price shock rather than a change in underlying demand conditions. Emerging market and developing economies, which are more exposed to energy and food-price volatility, are expected to see a more pronounced growth slowdown and inflation increase than advanced economies over CY2026.

Outlook

The balance of risks to the global outlook remains firmly to the downside. A longer or broader Middle East conflict, renewed trade tensions, or a reassessment of AI-driven productivity gains could all weaken growth further and unsettle financial markets, while elevated public debt levels globally leave many governments with limited fiscal buffers to absorb further shocks. For a manufacturing business such as Sunrakshakk that relies on imported and crude-oil-linked inputs (palm oil, LABSA and packaging materials), the trajectory of the Strait of Hormuz situation and its knock-on effect on vegetable oil and petrochemical prices through the remainder of FY27 will be an important variable to track, even as the softer rupee and stable domestic demand provide some offsetting support.

References:

IMF World Economic Outlook, April 2026 – Global Economy in the Shadow of War – https://www.imf.org/en/Publications/WEO/Issues/2026/04/14/world-economic-outlook-april-2026
IMF Cuts global growth outlook for 2026 as geopolitical risks intensify – Euronews – https://euronews.net/imf-cuts-global-growth-outlook-for-2026-as-geopolitical-risks-intensify
IMF lowers global growth forecast for 2026 to 3.1 pc – XinHua – https://english.news.cn/20260414/2e7e2473c0744c5e8fa6d90d35d7d4/c.html
IEA – Oil Market Report, March 2026 – https://www.iea.org/reports/oil-market-report-march-2026
EIA – Crude oil and petroleum product prices increased sharply in Q1 2026 – https://www.eia.gov/todayinenergy/detail.phpRs.id=64444
Brent crude oil – Historical Data and News, Trading Economics – https://tradingeconomics.com/commodity/brent-crude-oil
Crude Oil Price Forecast – Strait of Hormuz Closure – Capital.com – https://capital.com/en-int/market-updates/crude-oil-price-forecast-19-03-2026
Palm oil prices could reach $1,500 per tonne in H2 2026 – UkrAgroConsult – https://ukragroconsult.com/en/news/palm-oil-prices-could-reach-1500-per-tonne-in-the-second-half-of-2026/
Palm Oil Seen Climbing to $1,500 a Ton as B50 and El Nino Tighten Supply – Jakarta Globe – https://jakartaglobe.id/business/palm-oil-seen-climbing-to-1500-a-ton-as-b50-and-el-nino-tighten-supply
Palm oil price forecast and production outlook 2026 – Fastmarkets – https://www.fastmarkets.com/insights/palm-oil-price-forecast-and-production-outlook-2026/

Indian Economic Outlook

India remained among the worlds fastest-growing major economies through FY 2025-26. As per the Provisional Estimates of Annual GDP released by the Ministry of Statistics and Programme Implementation (MoSPI), real GDP grew by 7.7% in FY 2025-26, up from 7.4% in FY 2024-25 — an acceleration that surprised most forecasters through the year. Growth built through the year: real GDP grew 7.8% in Q1 FY26, accelerated further to 8.2% in Q2 FY26 (a six-quarter high), and the full-year Q4 FY26 print came in at 7.8%. Nominal GDP grew 9.1% for the full year, with Gross Fixed Capital Formation (GFCF) — a key indicator of investment activity — rising 8.2% in FY26 compared to 6.4% in the previous year, and Private Final Consumption Expenditure (PFCE) remaining resilient, accounting for over 61% of GDP, the highest share since FY22. On the sectoral side, the Secondary sector (manufacturing, construction, utilities) and Tertiary sector (services) were the principal growth engines, while the Primary sector, led by agriculture and fisheries, grew more moderate 3.2%, aided by a favourable monsoon.

GST 2.0 and its Impact on Consumption

One of the most consequential policy developments of the year for FMCG companies, including Sunrakshakk, was the GST Councils 56th meeting rate rationalisation exercise ("GST 2.0"), effective September 22, 2025. The Council collapsed the earlier four-slab structure into two principal slabs of 5% and 18%, with a special 40% rate reserved for sin and luxury goods. Several daily-use personal care and household essentials directly relevant to Sunrakshakks FMCG portfolio — toilet soap bars, toothpaste, toothbrushes, dental floss, shampoo, face powder and talcum powder — were cut from 18%/12% to 5%, a move explicitly aimed at lowering monthly household expenditure for lower and middle-income consumers. Notably, detergents (classified separately under HSN 3402) were left unchanged at 18%, as the Council held these were not "essential" items in the same sense as soaps and dental-hygiene products - a distinction that matters for Sunrakshakk given its presence in both the (now cheaper) soap/toothpaste categories and the (unchanged-rate) detergent category. Several leading FMCG companies passed on the benefit of the lower rates to consumers through revised MRPs effective September 22, 2025, and the reform is widely credited with supporting a sequential improvement in FMCG volumes from Q3 FY26 onward.

Monetary Policy and Inflation

The Reserve Bank of India pursued an accommodative policy stance for most of FY26, cutting the repo rate by a cumulative 100 basis points through the first half of the year before holding it steady. Retail (CPI) inflation fell to an eight-year low of around 1.6% in July 2025 and stayed below 2% for much of the second half of CY2025, comfortably within the RBIs 2-6% tolerance band, driven by a sustained, nine-month decline in food prices. This benign inflation backdrop allowed the RBI to progressively raise its own FY26 GDP growth forecast - from an initial 6.5% to 6.8% to 7.3% and finally to 7.4% by its February 2026 policy review - even as the actual outturn (7.7%) surprised further on the upside. The picture shifted materially after the Middle East conflict broke out: with global energy prices elevated and the rupee under pressure, Indias headline CPI inflation climbed back to 4.45% by July 2026, still within the RBIs tolerance band but the highest reading since December 2024. The RBI held the repo rate at 5.25% through its June 2026 review, retaining a neutral stance while flagging elevated energy prices, global supply-chain disruption and monsoon risk as the principal upside risks to inflation, and revised its FY27 inflation forecast up to 5.1% while retaining its FY27 GDP growth estimate at 6.6%.

Union Budget 2026-27

The Union Budget for FY 2026-27 has continued to prioritise capital expenditure, manufacturing competitiveness and rural income growth. Key measures relevant to Sunrakshakks operating environment include continued support for the Production Linked Incentive (PLI) scheme for food processing (with a budget outlay of Rs. 109 billion / USD 1.46 billion, disbursed through FY27), incentives for MSME growth via a Rs. 10,000 crore SME Growth Fund, and continued infrastructure investment in freight corridors and industrial regions that should support the movement of goods from Sunrakshakks Bhilwara, Roorkee and Guwahati facilities. The governments Budget Estimate projects total central government expenditure of ?53.47 lakh crore for FY27, a growth of 7.7% over the FY26 Revised Estimate, with nominal GDP projected to grow around 10% for FY27.

Outlook

Indias macroeconomic backdrop remains constructive for consumption-led sectors even as near-term inflation risk has risen. With robust domestic demand, a resilient services and manufacturing sector, and continued government spending, India is expected to grow at a more moderate but still healthy 6.6% in FY 2026-27 as the exceptional momentum of FY26 normalises. The principal watch-items for the year ahead are the trajectory of global energy prices (linked to the Middle East conflict), the extent of pass-through of raw-material cost inflation to consumers, and the monsoon outcome, all of which have a direct bearing on rural demand and input costs for FMCG manufacturers such as Sunrakshakk.

References:

MoSPI - Press Note on GDP Estimates for Q4 2025-26 and Provisional Estimates for FY 2025-26 - https://www.mospi.gov.in/uploads/latestReleases/latest release_1780655857536 5ac01869-ca4a-422d-b7a7-57b81da60932_Press_Note_on_GDP_Estimates_for_Q4_2025-26_and_PE_FY_2025-26_F.pdf Indias Real GDP grows by 7.7% in 2025-26 - News on Air / PIB - https://newsomair.gov.in/indias-real-gdp-grows-by-7-7-in-2025-26/ PIB - Real GDP estimated to grow by 7.4% in FY 2025-26, with nominal GDP growth at 8% - https://www.pib.gov.in/PressReleasePage.aspxRs.PRID=2221389&reg=3&lang=1 PIB - Quarterly GDP Estimates, Q2 FY 2025-26 - https://www.pib.gov.in/PressReleasePage.aspxRs.PRID=2195851&reg=3&lang=2 PIB - 2025: A Defining Year for Indias Growth - https://www.pib.gov.in/PressReleasePage.aspxRs.PRID=2209412&reg=3&lang=1

PIB - Press Note on Factsheet, RBI GDP/CPI projections FY26-27 - https://www.pib.gov.in/FactsheetDetails.aspxRs.id=150328&reg=48&lang=2 PIB - GST Reforms 2025: Relief for Common Man, Boost for Businesses - https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/sep/doc202594628401.pdf PIB - FAQs on the decisions of the 56th GST Council - https://www.pib.gov.in/PressReleasePage.aspxRs.PRID=2163560&reg=3&lang=2 GST Rate Cut: Leading FMCG Companies Slash Prices of Soaps, Shampoos, Toothpastes - Free Press Journal - https://www.freepressjournal.in/business/gst-rate-cut-leading-fmcg-companies-slash- prices-of-soaps-shampoo-baby-diapers-toothpaste-razors-effective-from-september-22 Detergent Powder GST Rates: Old vs New (2025 Verified Update) - https://calculator.co.in/detergent- powder-gst-rates-old-vs-new/ RBI Holds Repo Rate at 5.25% in June 2026 - CorplawUpdates - https://www.corplawupdates.in/updates/rbi-mpc-repo-rate-june-2026 India Inflation Rate - Trading Economics - https://tradingeconomics.com/india/inflation-cpi India Holds Rates, Revises Up FY25/26 GDP Forecasts - Trading Economics - https://tradingeconomics.com/india/interest-rate/news/523674

FMCG & FMCG Intermediates Industry Outlook

Indias FMCG sector continued its steady expansion through FY 2025-26. The domestic FMCG market was valued at approximately USD 287.91 billion in CY2025 and is projected by IMARC Group to reach USD 1,150.21 billion by 2034, growing at a CAGR of 16.64%, driven by rising disposable incomes, rapid urbanisation, and a continuing shift in consumer preference toward branded, convenience-oriented and premium products. Personal care and cosmetics remain the largest product category, accounting for approximately 48% of the market, while packaged food and home care continue to gain share as rural and semi-urban penetration deepens.

GST 2.0: A Structural Tailwind for Volumes

The GST 2.0 rate rationalisation, effective September 22, 2025, has been a meaningful positive catalyst for the FMCG sector. With GST on personal-care essentials such as soaps, toothpaste, shampoos and talcum powder cut from 18%/12% to 5%, and companies passing the benefit through to consumers via revised MRPs, the reform has made these categories materially more affordable and is expected to support volume growth, particularly in price-sensitive rural and semi-urban markets, and to help organised players compete more effectively with unbranded and unorganised competition. Detergents, however, were left outside the scope of this relief and remain taxed at 18%, meaning the tailwind is more pronounced for Sunrakshakks soap, toothpaste and personal-care lines than for its detergent business.

Raw Material Cost Pressure: A Key Watch-item

Even as GST 2.0 has supported demand, the FMCG and FMCG-intermediates industry has faced an unusually sharp spike in the cost of key imported and crude-oil-linked raw materials following the Middle East conflict and the disruption to the Strait of Hormuz. Linear Alkylbenzene Sulphonic Acid (LABSA), the primary surfactant used in detergent and soap manufacturing, saw its price in the Indian market nearly triple - from around 105/kg in November 2025, to 135/kg in February 2026, and to almost 300/kg by March 2026 - as feedstock (LAB, benzene, kerosene-linked n-paraffin) costs rose sharply on the back of the oil-price shock. Soda ash costs rose by approximately 6,000 per tonne over the same period, and plastic packaging costs (a function of crude-linked polymer prices) rose by roughly 50%. The Gujarat Small Scale Detergent Manufacturers Association reported that this raw-material spike forced the closure of a significant share of small detergent manufacturing units in the state, underscoring the severity of the input-cost shock across the value chain. Palm oil, a key input for soap noodles and Sunrakshakks edibles business, has followed a similar trajectory, with CIF Rotterdam prices up from USD 1,230/tonne to USD 1,356/tonne year-on-year in Q1 CY2026, and forecasts of a further climb toward USD 1,500/tonne in H2 CY2026 as Indonesias B50 biodiesel mandate diverts supply away from exports.

India sources the substantial majority of its edible and industrial palm oil requirements from Indonesia and Malaysia, making the sector directly exposed to policy and weather developments (including El Nino risk) in these two markets.

Distribution, Channels and Consumption Trends

Distribution within the sector continues to evolve rapidly. Quick commerce platforms, while still commanding only around 7% penetration of a total addressable market estimated at USD 45 billion, are reshaping urban shopping behaviour and increasingly functioning as brand-building tools for FMCG companies, not just delivery channels. Modern Trade and organised retail continue to gain share from General Trade, although General Trade has shown signs of recovery after a period of weakness. Rural demand, aided by government transfer programmes and a broadly favourable monsoon, has shown signs of outpacing urban demand in recent quarters, which is a relevant tailwind for Sunrakshakks edibles and home-care categories given its manufacturing presence in the Northeast (Guwahati) and Rajasthan (Bhilwara).

Implications for FMCG intermediates Suppliers

The FMCG intermediates segment, in which Sunrakshakks soap-noodle and specialty-chemicals business operates, continues to benefit structurally from the broader FMCG sectors growth, as large branded players increasingly rely on third-party manufacturing partners for intermediates and finished goods, allowing them to focus capital on brand-building and distribution.

Outlook

The medium-term outlook for Indias FMCG sector remains structurally positive, underpinned by rising per-capita incomes, continuing premiumisation and expanding rural and Tier-2/Tier-3 distribution. In the near term, however, the sectors profitability trajectory will depend heavily on how quickly the current raw-material cost spike — LABSA, soda ash, palm oil and packaging — normalises as Gulf oil exports recover and the Strait of Hormuz situation stabilises, versus how much of the increased cost can be absorbed through pricing actions without denting the volume recovery that GST 2.0 has helped support.

References:

India FMCG Market Size, Share Industry Analysis 2034 - IMARC Group -https://www.iamcgroup.com/india-fmcg-market

Thriving FMCG Industry in India Driving Its Sales - IBEF - https://www.ibef.org/industry/fmcg

Indian FMCG Industry Analysis - IBEF - https://www.ibef.org/industry/fmcg-presentation

PIB - GST Reforms 2025: Relief for Common Man, Boost for Businesses -https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/sep/doc202594628401.pdf

Detergent Powder GST Rates: Old vs New (2025 Verified Update) - https://calculate.co.in/detergent-powder-gst-rates-old-vs-new/

Raw Material Surge Forces Closure of 80% Detergent MSMEs in Gujarat - KNN India -https://knnindia.co.in/news/newsdetails/msme/raw-material-surge-forces-closure-of-80-detergent-msmes-in-gujarat

Linear Alkyl Benzene Price Trend, June 2026 - Procurement Resource -https://www.procurementresource.com/resource-center/linear-alkyl-benzene-price-trends

LABSA Market Price - Trends & Forecast - Iran Chemical Mine -https://iranchemicalmine.com/portfolio/labsa-market-price-trends-forecast-global-labsa-price-outlook/ outlook/

Palm oil prices could reach $1,500 per tonne in H2 2026 - UkrAgroConsult -https://ukragroconsult.com/en/news/palm-oil-prices-could-reach-1500-per-tonne-in-the-second-half-of-2026/ half-of-2026/

Malaysia poised to gain as Indonesia likely to cut palm oil exports - Malay Mail -https://www.malaymail.com/amp/news/money/2026/07/13/malaysia-poised-to-gain-as-indonesia-likely-to-cut-palm-oil-exports-says-mpoc/227436 likely-to-cut-palm-oil-exports-says-mpoc/227436

FMCG Distribution Trends in India 2026: Beyond General Trade - Biziine - https://biziine.com/fmcg-distribution-trends-india-2026/

Textile Industry Outlook

Indias textile market grew from USD 152.40 billion in 2025 to an estimated USD 158.23 billion in 2026, and is projected by IMARC Group to reach USD 213.75 billion by 2034, at a CAGR of 3.83% over 2026-2034. Growth continues to be supported by rising domestic consumption, a shift toward man-made fibres (which have accounted for over 95% of recent sector growth), and continued government support through the Production Linked Incentive (PLI) scheme and the PM MITRA integrated textile parks initiative. North India, where Sunrakhakks Roorkee textile-processing facility is located, remains one of the leading textile-manufacturing regions, alongside the Surat-led western cluster.

On the export front, Indias textile and apparel exports (including handicrafts) stood at USD 9.40 billion in the first quarter of FY26 (April-June 2025), with Ready-Made Garments (RMG) contributing the largest share at 45% (USD 4,193 million), followed by Cotton Textiles at 30% (USD 2,860 million) and Man-Made Textiles at 12% (USD 1,167 million). For full-year FY25, textiles contributed Rs. 3,30,010 crore (USD 36.55 billion) to Indias merchandise exports, representing around 5% of the total. Globally, the textile market is estimated at over USD 2,100 billion for 2025, with several forecasters projecting continued high-single-digit CAGR growth through the early 2030s, driven by rising apparel demand, technical textiles and continued growth in emerging-market consumption.

While the textile segment has become a progressively smaller share of Sunrakhakks overall business as its FMCG platform has scaled - from being effectively the Companys entire revenue base as recently as FY24 to roughly 17% of consolidated revenue in FY26 - it continues to be a stable, cash-generating core business.

References:

India Textile Industry Size, Growth & Market Report 2034 - IMARC Group - https://www.imarcgroup.com/india-textile-market Indian Textiles and Apparel Industry Analysis Presentation - IBEF -https://www.ibef.org/industry/indian-textiles-and-apparel-industry-analysis-presentation Textile Market Size Expected to Reach USD 4,016.50 Billion by 2034 - Precedence Research (via Yahoo Finance) - https://finance.yahoo.com/news/textile-market-size-expected-reach-094700851.html

Company Overview

FY 2025-26 was the strongest year in Sunrakhakks history on every key financial metric. Consolidated revenue from operations grew 237.34% year-on-year to 607.75 crore, from 180.16 crore in FY25. EBITDA grew 128.72% to 58.69 crore from 25.66 crore, though EBITDA margin moderated to 9.66% from 14.24% reflecting the change in revenue mix toward the lower-margin FMCG and FMCG-intermediates business as the Company scaled. Profit after tax grew 217.71% to 34.98 crore from 11.01 crore, with basic EPS rising to 11.65 from 4.38. This growth was not linear through the year but built progressively: quarterly revenue rose from 125.24 crore in Q1 FY26 to 120.97 crore in Q2, 163.95 crore in Q3 and 197.59 crore in Q4 - the Companys best-ever quarter at the time - with quarterly PAT rising correspondingly from 6.52 crore in Q1 to 12.10 crore in Q4, and EBITDA margin improving sequentially from 9.28% in Q1 to 10.19% in Q4, aided by better capacity utilisation and operating leverage as the Guwahati facility ramped up.

FMCG Platform Scale-Up

The central driver of this performance was the continued scale-up of the Companys integrated FMCG platform. FMCG and FMCG Intermediates revenue crossed the 500 crore milestone during FY26 for the first time, and the segments share of consolidated revenue rose to approximately 83%, from 58% in FY25 and effectively nil in FY24, while the textile segments contribution correspondingly declined to approximately 17%. The Companys manufacturing network today spans three locations - Bhiwara (Rajasthan), Roorkee (Uttarakhand) and Guwahati (Assam) - with one fabric-processing plant and five FMCG/FMCG-intermediates plants, serving a B2B customer base of over 200 companies on a pan-India basis.

The Guwahati facility — comprising 2,160 MT/month of soap-noodle capacity and 1,000 MT/month of cosmetics capacity — was a key contributor to the years growth, ramping up progressively from January 2026 and, as of the Q4 FY26 earnings call, running at capacity utilisation of approximately 45-55% across both its cosmetics and soap-noodle lines, leaving meaningful headroom for further volume growth without incremental capex. Management indicated the plant is well positioned to serve not just Assam but the broader Northeast, Bengal and Bihar markets. The Bihlwara edibles facility (850 MT/month of savouries and 650 MT/month of spices) has been contributing to revenue since September 2025, and management expects the edibles category to grow approximately 20% annually over the coming years, with the FMCG-intermediates business (soap noodles and specialty chemicals, of which approximately 15% is captively consumed and 85% sold externally to other FMCG manufacturers) also targeted to grow 15-20% annually.

Location-wise Revenue Breakup (Q4 FY26)

By manufacturing location, Q4 FY26 revenue broke down as follows: Roorkee contributed 17.63 crore from its Soap Section and 44.47 crore from its Noodle Section; Bihlwara contributed 7.96 crore from Home Care, 24.54 crore from Detergent and 29.26 crore from Edibles; and Guwahati contributed 20.91 crore from Soap and 26.01 crore from Noodle sections. Aggregate FMCG and FMCG-intermediates manufacturing capacity stood at approximately 19,640 tonnes/month as of Q4 FY26, alongside 45 lakh metres/month (5.40 crore metres/year) of textile-processing capacity at Roorkee, where fabric processed came in at 5.10 crore metres in FY26, broadly stable versus 4.92 crore metres in FY25.

Balance Sheet and Capital Deployment

Shareholders funds increased to 184.98 crore as on March 31, 2026, from 51.76 crore a year earlier, driven by the 98.65 crore preferential allotment completed in FY25 and the substantial increase in retained earnings. Total assets grew to 323.95 crore from 158.07 crore, with current assets (led by inventories of 85.17 crore and trade receivables of 50.50 crore) rising in line with the scale-up in FMCG operations. Of the funds raised through the preferential allotment, management has indicated that approximately 55 crore was deployed toward the FMCG segment (Guwahati capacity), a further tranche toward the Bihlwara edibles facility, and approximately 10 crore was retained in fixed deposits. Management estimates the capital deployed has driven an incremental PAT run-rate of approximately 7.2 crore per quarter, an annualised PAT uplift of 28-29 crore, and an implied return on incremental capital of approximately 28-30%.

the funds raised through the preferential allotment, management has indicated that approximately 55 crore was deployed toward the FMCG segment (Guwahati capacity), a further tranche toward the Bihlwara edibles facility, and approximately 10 crore was retained in fixed deposits. Management estimates the capital deployed has driven an incremental PAT run-rate of approximately 7.2 crore per quarter, an annualised PAT uplift of 28-29 crore, and an implied return on incremental capital of approximately 28-30%.

Outlook

Sunrakhakk enters FY 2026-27 with clear strategic priorities: continuing to scale its FMCG, FMCG-Intermediates and Edibles businesses toward the 1,000 crore medium-term revenue aspiration by FY28; improving capacity utilisation and operating leverage at its Guwahati and Roorkee facilities, both of which currently run at less than full capacity; and maintaining its position as a trusted, quality-focused manufacturing partner to some of Indias largest FMCG companies, while continuing disciplined, profitable operations in its core textile business. The Companys medium-term growth is expected to be supported by continuing structural tailwinds in Indias FMCG sector — GST 2.0-driven volume growth in personal care and hygiene categories, rising rural and semi-urban consumption, and the continuing trend of large FMCG brands outsourcing manufacturing to specialist partners such as Sunrakhakk.