Suraj Industries Ltd achieved a remarkable financial turnaround in Q1FY27, posting a consolidated net profit of ₹4.3 crore compared to a net loss of ₹1.3 crore in Q1FY26. The company's standalone net profit reached ₹17.4 crore against a standalone loss of ₹0.3 crore in the corresponding quarter of the previous year. This significant profitability shift was driven by operational scale-up in contract manufacturing and exceptional items related to investment accounting, with the results reviewed by the Audit Committee and approved by the Board of Directors on August 6, 2026.
The company's consolidated revenue from operations surged to ₹30 crore in Q1FY27 from ₹8 crore in Q1FY26, representing nearly a four-fold increase. This growth was primarily driven by higher volumes in contract manufacturing for RSGSM and new tie-ups with Allied Blenders & Distillers and Radico Khaitan. However, standalone revenue declined slightly to ₹9.6 crore from ₹10.2 crore in Q1FY26, highlighting the impact of accounting adjustments on standalone figures.
A significant portion of the standalone profit surge was attributed to an exceptional gain of ₹16.3 crore from investment reclassification. M/s Shri Gang Industries & Allied Products Ltd ceased to be an associate of Suraj Industries on June 6, 2026, due to an increase in the associate company's equity share capital. Consequently, the investment was reclassified as a financial asset measured at fair value under Ind AS 109, resulting in an unrealized remeasurement gain for standalone accounts. In consolidated accounts, the resulting gain was ₹0.8 crore net of tax, with subsequent unrealized fair value gains of ₹1.4 crore recognized in Other Comprehensive Income.
The company demonstrated strong operational performance with consolidated EBITDA improving to ₹6.6 crore with an EBITDA margin of 22%, compared to an EBITDA loss of ₹0.5 crore (-6% margin) in Q1FY26. Basic EPS for standalone operations reached ₹5.56 compared to ₹1.63 in the previous year, while consolidated EPS stood at ₹1.63 versus ₹0.74 in Q1FY26. The company operates within a single primary business segment of Liquor (Alcohol & Alcoholic Beverages), with its trading operations having been discontinued.
