Sunrakshakk's Guwahati plant running at less than half of guided capacity
Revenue grew 92% in Q4 to ₹197.6 cr, but the company’s new Assam facility is operating at 45-55% utilisation against an earlier projection of over 85%.
What's new
- Q4 revenue jumped 92% year-on-year to ₹197.6 cr; full-year revenue grew 237% to ₹607.8 cr.
- Guwahati plant utilisation is 45-55%, well below the earlier projection of over 85%.
- Management repeated its FY28 target of ₹1,000 cr in revenue and aims to lift PAT margin to 7% this fiscal.
Why this matters
The FMCG platform is driving top-line growth, but a new plant running at half its guided capacity is a red flag for execution. It raises questions about demand assumptions and capital allocation at a company growing fast enough to mask operational misses.
What we're watching
- How quickly Guwahati utilisation climbs toward the original 85% target.
- Whether the ₹1,000 cr FY28 revenue goal survives the capacity shortfall.
- The path to the 7% PAT margin target from 6.12% in Q4.
The full read
Sunrakshakk is growing fast. Q4 revenue jumped 92% year-on-year to ₹197.6 cr, and the full-year number landed at ₹607.8 cr, up 237%. The FMCG platform is the engine. But the company’s newly built Guwahati plant is running at 45-55% of capacity, a stark miss against its own guidance of over 85%. For a business growing this quickly, a half-empty plant is more than a footnote. It is a question about where the next phase of growth comes from, and whether the ₹35 cr in FY26 profit after tax will bear the cost of underutilised assets. Management is holding to its ₹1,000 cr revenue target for FY28 and wants to push PAT margin to 7% this fiscal year from 6.12% in Q4. The growth story is real. The execution question is now.
Questions answered
- Why is the Guwahati utilisation miss significant?
- The plant was commissioned to support the 237% full-year revenue growth trajectory. Running at 45-55% means the asset is underperforming its business case, which could weigh on margins and returns if demand doesn't catch up.
- How strong was the top-line growth in Q4 and for the full year?
- Q4 revenue rose 92% year-on-year to ₹197.6 cr. For FY26, revenue surged 237% to ₹607.8 cr, with profit after tax hitting ₹35 cr.
- What is the company's margin target for the current fiscal year?
- Management wants to lift PAT margin to 7% in FY27, up from the 6.12% recorded in the fourth quarter of FY26.
- Is the FY28 revenue target still intact?
- Management reiterated the ₹1,000 crore revenue target for fiscal 2028. The gap between current FY26 revenue of ₹607.8 cr and that target implies significant growth is still required.