Operating Leverage Inflection
What: Capacity Utilization: Expected >85% by Q4
Impact: PAT 5.8-5.85% for FY26
“And by end of the quarter we are expecting almost more than 85% of the capacity utilization.”
In , Sunrakshakk Industries India Ltd (Textiles - Processing/Texturising) is outperforming Nifty 500 with +40.5% relative strength. Fundamentals: Average. On a 8-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 earnings • Updated Apr 18, 2026
What: Capacity Utilization: Expected >85% by Q4
Impact: PAT 5.8-5.85% for FY26
“And by end of the quarter we are expecting almost more than 85% of the capacity utilization.”
What: New Facility: Guwahati, Assam
“The Guwahati facility, commissioned in January 2026... will meaningfully improve our presence in the high-growth North-East region.”
What: Product Portfolio: Cosmetics and Edibles
Impact: 7% PAT target
“In cosmetic products, we have already like, as I mentioned, almost quite a large portfolio in terms of facility.”
What: 9M FY26 Revenue of ₹410 crore
“For nine months FY 26, our consolidated revenue stood at INR410 crores, registering a year-over-year growth of 430%.”
What: 85:15 (FMCG:Textile) → 95:5 (FMCG:Textile)
“Going forward, we expect this transition to further strengthen with FMCG contributing nearly 95% of our revenue.”
Earnings deceleration risks from management commentary
Trigger: New US administration policies regarding textile imports.
Management view: Company presence is predominantly domestic; management states they are not getting affected.
Monitor: regulatory
Trigger: Volatility in global edible oil prices affects soap noodle production costs.
Management view: Strategic buying and efficient sourcing teams to manage value addition.
Monitor: commodity
Key quotes from recent conference calls
“Aiming to achieve ~₹1,000 crore revenue by FY28 by strengthening upcoming business verticals and expanding pan-India presence. [Previous Revenue Target guidance]”
“The Guwahati facility, commissioned in January 2026, has installed capacities of approximately 2,160 metric ton per month for soap noodles. [Initiative: Guwahati Facility Commissioning]”
“And lastly, I would like to say that automation will also help us out a lot in reduction in the operational cost. [Initiative: Automation and Robotics]”
“So our presence in the textile business is predominantly in the domestic market itself... We are not getting affected out of anything like this. [Risk (regulatory): LOW]”
Headline numbers from the latest earnings call
Revenue
₹164 crore
Why: Growth was primarily driven by the continued scaling of the FMCG and FMCG intermediate business along with increasing contributions from the edible segment.
The company has successfully transitioned from a textile-centric model to one where FMCG and intermediates are the dominant revenue contributors.
EBITDA
₹15.26 crore
Why: Improvement was supported by higher capacity utilization across FMCG facilities, operating leverage benefits, and a better product mix.
While absolute EBITDA grew, overall margins saw a slight sequential decline due to the higher revenue contribution from the lower-margin FMCG segment.
PAT
₹9.41 crore
Why: Growth reflected improved scale, better absorption of fixed costs, and disciplined financial management following the FMCG integration.
The company is demonstrating strong bottom-line growth as the newly acquired FMCG assets begin to contribute meaningfully.
Other Highlights
• FMCG and intermediates now account for 82% of total revenue as of 9M FY26.
• Preferential allotment in May 2025 raised ₹98.24 crores to support expansion.
• Share split in the ratio of 1:5 was completed during the current financial year.
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
FMCG Capacity Utilization
40-45%
Why: Capacities were added recently and are currently in the ramp-up phase.
FMCG Revenue Contribution
82%
Why: Strategic shift and acquisition of Sunrakshak Agro Products.
Soap Noodle Capacity (Guwahati)
2,160 MT/month
Why: Commissioning of the new Guwahati facility in January 2026.
Captive Soap Noodle Consumption
20%
Revenue from Parent Group (RCM)
35-40%
Fabric Processed (Q1 FY26)
1.25 Crore Meter
Edibles Capacity (Bhilwara)
1,500 TON/month
Working Capital Days (FY25)
22 days
Forward-looking targets from management for FY28
OPM Guidance
7%
₹1,000 crore
REAFFIRMED
REAFFIRMED
Guidance Changes
Revenue Mix: 85:15 (FMCG:Textile) → 95:5 (FMCG:Textile)
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +518% | +54% | Stable |
| PAT (Net Profit) | +328% | +38% | Stable |
| OPM | 9.3% | -1295 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Sunrakshakk Industries India Ltd's latest quarterly results (Dec 2025) show
Sunrakshakk Industries India Ltd's profit is growing with an stable trend.
Sunrakshakk Industries India Ltd's revenue growth trend is stable.
Sunrakshakk Industries India Ltd's operating margin is volatile.
Sunrakshakk Industries India Ltd's long-term compounding rates
Sunrakshakk Industries India Ltd's earnings growth is stable with strong momentum on a sequential basis.
Sunrakshakk Industries India Ltd's trailing twelve month (TTM) performance
Sunrakshakk Industries India Ltd appears significantly undervalued based on our fair value analysis.
Sunrakshakk Industries India Ltd's current PE ratio is 34.5x.
Sunrakshakk Industries India Ltd's current PE is 34.5x.
Sunrakshakk Industries India Ltd's price-to-book ratio is 6.2x.
Sunrakshakk Industries India Ltd is rated Average with a fundamental score of 53/100. This score is calculated from objective financial metrics
Sunrakshakk Industries India Ltd has a debt-to-equity ratio of N/A.
Sunrakshakk Industries India Ltd's return ratios over recent years
Sunrakshakk Industries India Ltd's operating cash flow is negative (FY2025).
Sunrakshakk Industries India Ltd currently does not pay a significant dividend (yield 0.00%).
Sunrakshakk Industries India Ltd's shareholding pattern (Mar 2026)
Sunrakshakk Industries India Ltd's promoter holding has remained stable recently.
Sunrakshakk Industries India Ltd has been outperforming Nifty 500 for 8 consecutive weeks, indicating consistent outperformance.
Sunrakshakk Industries India Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
Sunrakshakk Industries India Ltd has 5 key growth catalysts identified from recent earnings analysis
Sunrakshakk Industries India Ltd has 2 key risks worth monitoring
In Q3 FY26, Sunrakshakk Industries India Ltd's management highlighted
Sunrakshakk Industries India Ltd's management has provided the following forward guidance for FY28
Sunrakshakk Industries India Ltd's most important sub-sector-specific KPIs from the latest concall
Based on quantitative research signals, here is why Sunrakshakk Industries India Ltd may be worth studying
Sunrakshakk Industries India Ltd investment thesis summary:
Sunrakshakk Industries India Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.