At a Glance
Tirupati Starch just dropped Q1 FY26 numbers with revenue at ₹92 Cr and PAT at ₹1.45 Cr (+170% YoY). Margins have improved (OPM 7.2%), and EPS stands at ₹1.51. However, growth is uneven, cash flow is a rollercoaster, and the company’s refusal to pay dividends makes investors chew on dry maize.
1. Introduction
Founded in 1985, Tirupati Starch & Chemicals Ltd is the humble underdog of India’s agro-processing space. They turn maize into everything – starch, dextrose, dextrin, cattle feed – basically, if it can be derived from corn, they have a product. The company has seen volatile profits, a history of muted sales growth, and now is trying to capitalize on increased industrial demand for starch-based products. The Q1 results hint at a recovery, but investors still need to ask: Is this a growth story or just a sugar rush?
2. Business Model (WTF Do They Even Do?)
Tirupati Starch:
- Core Products: Maize starch powder, dextrose, dextrin, IP starch, glucose.
- By-Products: Corn gluten, maize bran, cattle feed – yes, they monetize even the husk.
- Customers: Food, pharma, paper, textiles.
Roast: They squeeze every penny from corn, but shareholders are still waiting for their share of the cob.
3. Financials Overview
Q1 FY26 Results
- Revenue: ₹92.2 Cr (flat YoY)
- EBITDA: ₹6.7 Cr (OPM 7.2%)
- PAT: ₹1.45 Cr (+170% YoY)
- EPS: ₹1.51
Comment: Profit looks good, but it’s coming off a low base. This is less of a victory lap and more of a baby step.
4. Valuation
- P/E: 16.7x – reasonable for FMCG-adjacent business.
- P/B: 3.05x – slightly pricey.
- Fair Value Range: ₹160 – ₹200.
Humour: The stock is priced like premium popcorn – expensive for what it is.
5. What’s Cooking – News, Triggers, Drama
- Management shuffle: New independent director onboarded.
- Auditors re-appointed: Compliance in place, nothing spicy.
- AGM scheduled: Policy updates and governance tweaks.
- Industry tailwinds: Rising demand for starch in packaged foods and pharma.
6. Balance Sheet
| (₹ Cr) | Mar 2024 | Mar 2025 |
|---|---|---|
| Total Assets | 226 | 230 |
| Borrowings | 154 | 136 |
| Net Worth | 54 | 61 |
Remark: Debt is manageable, but working capital remains tight.
7. Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash | 23 | -34 | 49 |
| Investing Cash | -25 | -32 | -26 |
| Financing Cash | 9 | 59 | -24 |
Joke: Cash flows flip more than a dosa on a hot pan.
8. Ratios – Sexy or Stressy?
| Ratio | 2023 | 2024 | TTM |
|---|---|---|---|
| ROE | 13% | 8% | 13.2% |
| ROCE | 13% | 8% | 10.4% |
| OPM | 6% | 6% | 7% |
| D/E | 1.4x | 0.9x | 0.6x |
Verdict: Improving, but not yet in “sexy” territory.
9. P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | TTM |
|---|---|---|---|
| Revenue | 364 | 306 | 392 |
| EBITDA | 21 | 20 | 29 |
| PAT | 7 | 2 | 11 |
Observation: Revenue back on growth track, profits recovering fast.
10. Peer Comparison
| Company | P/E | ROE | OPM |
|---|---|---|---|
| Manorama Ind. | 62x | 28% | 26% |
| Krishival Foods | 65x | 10.5% | 15% |
| Freshara Agro | 17x | 37% | 14% |
| Tirupati Starch | 17x | 13.2% | 7% |
Comment: Cheap compared to peers, but peers are scaling faster.
11. Miscellaneous – Shareholding
- Promoters: 73% (stable)
- Public: 27%
- FIIs/DIIs: Negligible
Sarcasm: Promoters love the corn; retail investors get the crumbs.
12. EduInvesting Verdict™
Tirupati Starch is steady, not spectacular. Profits are rising, leverage is under control, and demand for starch-based products remains strong. However, margins remain modest, cash flows inconsistent, and no dividends for years.
SWOT
- Strengths: Established player, diversified product line, strong promoter holding.
- Weaknesses: Low margins, dividend drought, erratic growth.
- Opportunities: Processed foods boom, pharma demand, export potential.
- Threats: Raw material price volatility, intense competition.
Final Word: A slow-burn recovery story—worth tracking but not yet a blockbuster.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Tirupati Starch Q1 FY26, Tirupati Results, Agro Stocks, Starch Manufacturers
