Sanstar Ltd Q2 FY26 – When a Maize King Loses Its Popcorn Crunch but Plans a 2,100 TPD Comeback

1. At a Glance

Sanstar Ltd — the third-largest manufacturer of maize-based specialty products in India — is having what can only be called a “carb coma.” Once racing at a revenue CAGR of 45% between FY22 and FY24, the company seems to have found its post-IPO sugar crash. In Q2 FY26, Sanstar reported₹1,964 million revenue (₹196.4 crore)and anEBITDA of ₹14 million, a far cry from its earlier glory days. PAT for the quarter stood at a modest₹0.63 crore, down91.6% YoY, which is the financial equivalent of a banana peel slip.

With amarket cap of ₹1,739 crore,P/E of 86.6, and aROCE of 11.8%, investors might be wondering if the company’s starch business is getting sticky for all the wrong reasons. Yet, the company boasts acurrent ratio of 6.04, almost debt-free status with adebt-to-equity of just 0.03, and big plans for a₹1,816 million Dhule expansion. The plant will double capacity to2,100 TPD— perhaps the comeback mix Sanstar needs to rise again like perfectly puffed popcorn.

So, dear reader, the question is simple — will Sanstar’s FY26 story be a tale of expansion glory, or a sticky mess of maize and missed margins?

2. Introduction

Welcome toSanstar Ltd, the company that turns maize into everything except popcorn happiness for investors this quarter. This Gujarat–Maharashtra powerhouse converts humble corn into starches, syrups, glucose, and sweet dreams of market domination — dreams that look slightly soggy after Q2 FY26 results.

The company’s charm lies in its “plant-based specialty ingredients” — a fancy way of saying they squeeze, grind, and process maize until it becomes food stabilizers, pet food ingredients, and industrial coating agents. Think of it as the Tinder of molecules: connecting starch with whoever needs thickening.

From₹261 crore revenue in FY20to₹1,110 crore in FY24, the growth was nothing short of “starch wars.” But TTM sales dropped to₹812 crore, and profits followed suit — the FY25 PAT of₹44 croreis now a nostalgic poster on the office wall.

Still, Sanstar remains thesasta,sundar, andalmostswadeshi version of global starch giants. It’s expanding fast, with Dhule becoming the epicentre of its next industrial transformation.

So grab your cup of corn soup — we’re diving into a business that’s literally built on kernels and chemistry.

3. Business Model – WTF Do They Even Do?

In the simplest terms, Sanstar is India’s premium corn processor that doesn’t make popcorn but everything else that touches it. The company crushes maize into components that quietly power your kitchen, pharma, and factory.

Theirproduct portfolioincludes maize starch, dextrin, maltodextrin, sorbitol, and liquid glucose — all of which you’ve probably consumed today without realizing. These ingredients land in food items like ketchup, biscuits, soups, and ice creams — so yes, Sanstar may be the reason yoursamosa chutneyflows just right.

Revenue Split (FY24):

• Food products:58%
• Animal Nutrition:10.5%
• Others (Industrial/Pharma):31.5%

Product-wise:

• Starches: 63%
• Derivatives: 16.5%
• Co-products: 6.5%
• Others: 14%

Two mega factories fuel this empire —Kutch (USFDA registered)andDhule (Maharashtra). Combined installed capacity? 1,100 TPD and counting. And with the new 1,000 TPD expansion at Dhule (commissioning Dec 2025), Sanstar aims to become thethird-largest maize-based manufacturer in India.

So, if you ever wondered who’s behind that silky chocolate texture or your protein shake’s smooth finish — meet the unsung hero: a company that makes “boring” starch look sexy on a balance sheet.

4. Financials Overview

Let’s crunch the maize numbers (in ₹ crore):

Commentary:This is what you call a “corn crash.” The topline is flat, but the bottom line nearly vanished. AnEBITDA margin of 0.69%means the company is currently earning less than a street vendor selling popcorn outside multiplexes. The good news? The previous quarter’s loss has turned into a thin profit — like the first drizzle after