Universal Starch Chem Allied achieved a significant turnaround in its financial performance during the quarter ended June 2026, reporting a standalone net profit of ₹325.46 lakh compared to a net loss of ₹250.60 lakh in the corresponding quarter of the previous year. According to the company's latest financial results approved by the Board on August 12, 2026, this represents a complete reversal of the company's financial position from a loss-making to a profit-making entity. The profit before tax improved dramatically to ₹462.22 lakh from a loss of ₹247.48 lakh in Q1FY25, while earnings per share (basic and diluted) were ₹7.75 compared to a loss per share of ₹5.97 in the previous year.
The company demonstrated strong revenue momentum with revenue from operations rising 21.4% to ₹1,474.61 crore in Q1 FY27, as compared to ₹1,214.42 crore recorded in the same quarter of the previous financial year. As reported in the company's latest financial results, this substantial revenue growth was driven by strong performance in its maize products segment, with the company's focus remaining on maize products manufacturing as its core business. Total income increased 21.5% to ₹1,478.06 lakh from ₹1,216.23 lakh in Q1FY25, while other income rose significantly to ₹34.50 lakh from ₹18.15 lakh, contributing modestly to total income.
Despite strong revenue growth, the company faced significant cost pressures with cost of materials consumed increasing substantially to ₹1,221.53 crore from ₹990.98 crore in the prior year, reflecting input cost pressures or volume changes. However, the company's operating leverage remained strong as total expenses increased by only 15.4% to ₹1,431.84 lakh from ₹1,240.98 lakh, indicating improved operational efficiency. The operating profit margin (OPM) improved to 4.96% in the June 2026 quarter, compared to 1.29% in the corresponding quarter of the previous year, demonstrating enhanced cost management despite higher material costs. Material costs increased, but overall profitability improved markedly due to the company's ability to control total expense growth below revenue growth.
Profit Before Depreciation and Tax (PBDT turned positive at ₹6.48 crore in Q1 FY27, marking a significant improvement from the negative ₹0.63 crore recorded in the same quarter last year. The company's tax expenses for the quarter were ₹136.76 lakh, comprising current tax of ₹128.64 lakh and deferred tax of ₹8.12 lakh. The primary driver of the turnaround was the expansion in revenue outpacing the growth in total expenses, with revenue growing by 21.4% while total expenses increased by only 15.4%, indicating improved operating leverage. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
