Source Natural Foods & Herbal Supplements Ltd (531398)
🎯 Key Takeaways
- Source Natural Foods & Herbal Supplements Ltd is transitioning from a traditional herbal supplements business toward a dual-track strategy with renewable energy expansion, marked by the incorporation of its solar-focused subsidiary SN Solar Mangaluru Private Limited in August 2026. The company maintains a conservative balance sheet with minimal debt and stable promoter holding, but financial performance remains flat, with stagnant revenue and margins over the past year.
- Revenue grew 1.5% QoQ to ₹21 in Q1FY27.
- ⚠️ 1) Core herbal supplements business shows no growth momentum, with flat revenue and margins over multiple periods. 2) Entry into solar energy carries
📖 The Story
Source Natural Foods & Herbal Supplements Ltd is transitioning from a traditional herbal supplements business toward a dual-track strategy with renewable energy expansion, marked by the incorporation of its solar-focused subsidiary SN Solar Mangaluru Private Limited in August 2026. The company maintains a conservative balance sheet with minimal debt and stable promoter holding, but financial performance remains flat, with stagnant revenue and margins over the past year.
📰 What's Happening
The company incorporated SN Solar Mangaluru Private Limited on August 31, 2026, to develop solar PV projects, signaling a strategic pivot into renewable energy infrastructure. This move is part of broader regulatory and operational restructuring, creating a dedicated vehicle for clean energy investments while preserving full ownership control. No operational updates or project timelines were disclosed in the filing.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Revenue | 12 | 21 | 21 |
| Operating Profit | 1 | 2 | 1 |
| OPM % | 8.3% | 10.2% | 4.8% |
| Net Profit | 1 | 1 | 1 |
| EPS | ₹0.98 | ₹1.93 | ₹1.06 |
Revenue has plateaued over the past two years, declining from ₹12 crore in June 2025 to ₹21 crore in June 2026, with operating margins fluctuating between 4.8% and 10.2% and net profit remaining flat at ₹1 crore. Despite higher revenue in recent quarters, profitability has not improved meaningfully, suggesting pricing pressure or cost inefficiencies in core operations.
🔮 Management Outlook & What's Next
Management has not provided forward guidance on revenue, margins, or growth expectations for either the herbal supplements or solar segments in the latest filings. The incorporation of SN Solar Mangaluru is framed as a compliance-driven step rather than a growth announcement, leaving future capital allocation and operational plans unspecified.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 6 | 6 | 6 | 6 |
| Reserves | 14 | 16 | 17 | 19 |
| Borrowings | 6 | 7 | 7 | 8 |
| Total Liabilities | 31 | 36 | 41 | 41 |
| Fixed Assets | 4 | 5 | 4 | 4 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 31 | 36 | 41 | 41 |
The balance sheet remains stable with minimal leverage (D/E of 0.33), consistent equity of ₹6 crore, and rising reserves. Total assets have increased modestly from ₹36 crore to ₹41 crore, reflecting incremental investments likely tied to subsidiary setup, though no major capex or financing activity is evident in cash flow data.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +0 |
| Investing | -5 |
| Financing | +5 |
| Net Cash Flow | +0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 74.4% | 74.4% | 74.4% | 74.4% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 18.8% | 18.7% | 18.7% | 19.6% |
| # Shareholders | 3,778 | 3,705 | 3,638 | 3,628 |
Promoter holding remains stable at 74.37% with no signs of dilution or sale, while public shareholding has slightly declined due to growing shareholder count. FII and DII holdings are consistently zero, indicating limited institutional interest or accessibility, and no recent changes in shareholder composition.
⚖️ Peer Comparison — Pharmaceuticals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| SUNPHARMA | 4.42 L Cr | 36.5 | 18.7% | 14.6% | 0.05 |
| DIVISLAB | 2.48 L Cr | 84.6 | 23.0% | 17.4% | 0.00 |
| TORNTPHARM | 1.89 L Cr | 79.4 | 15.1% | 25.7% | 1.76 |
| ZYDUSLIFE | 1.12 L Cr | 24.9 | 16.8% | 16.6% | 0.43 |
| CIPLA | 1.10 L Cr | 32.7 | 13.2% | 9.8% | 0.01 |
| LAURUSLABS | 1.06 L Cr | 97.3 | 20.8% | 20.6% | 0.45 |
| DRREDDY | 96,906 | 30.0 | 10.1% | 8.4% | 0.17 |
| AUROPHARMA | 96,402 | 26.2 | 12.8% | 9.8% | 0.20 |
| LUPIN | 95,836 | 16.9 | 27.9% | 24.7% | 0.26 |
| MANKIND | 94,039 | 46.0 | 13.9% | 12.7% | 0.38 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Core herbal supplements business shows no growth momentum, with flat revenue and margins over multiple periods. 2) Entry into solar energy carries execution and regulatory risks without disclosed project pipeline or revenue contribution timelines. 3) Lack of institutional ownership may limit liquidity and analyst coverage. 4) No forward guidance or strategic roadmap has been provided for either business segment.
📋 Recent Filings
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🔴 Corporate Action 8 September 2026Source Natural Foods & Herbal Supplements Ltd announced a book closure from September 24 to 30, 2026, to hold its 31st Annual General Meeting, with th...
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🔴 annual report 8 September 2026Source Natural Foods & Herbal Supplements Limited announced its 31st Annual General Meeting on September 30, 2026, at 11:30 AM IST via video conferenc...
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🟡 Board Meeting 8 September 2026Source Natural Foods & Herbal Supplements Ltd announced its 31st Annual General Meeting will be held on September 30, 2026, at 11:30 AM IST via video ...
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🟡 Board Meeting 3 September 2026The Board appointed K B Nambiar & Associates as statutory auditors for the upcoming AGM, designated Tejagna K. Katpitia as CFO and Executive Director ...
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🟡 Board Meeting 3 September 2026Source Natural Foods announced on September 3, 2026, that its board appointed K B Nambiar & Associates as statutory auditors for the upcoming AGM, des...
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🟡 Board Meeting 3 September 2026Source Natural Foods & Herbal Supplements Ltd announced the appointment of K B Nambiar & Associates as its new statutory auditor, replacing Srinaga & ...
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🔴 Announcement 31 August 2026Source Natural Foods & Herbal Supplements Ltd announced the incorporation of its wholly owned subsidiary SN Solar Mangaluru Private Limited on August ...
🧠 Analyst's Read
The company is in an early-stage transformation with limited visibility into how its solar ambitions will contribute to future value creation. Investors should monitor upcoming disclosures for project updates, capital allocation plans, or operational metrics from SN Solar Mangaluru to assess the viability of this strategic shift.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-13.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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