Back-to-Back 82 Upper Circuits: Sampre Nutritions Limited Secures Three-Year Manufacturing Agreement Worth Rs 12-15 Crore Annually with Reliance Consumer Products

Sampre Nutritions Limited (SNL) has announced the signing of a Manufacturing Agreement with Reliance Consumer Products Limited (RCPL). The agreement, executed on October 8, 2025, and disclosed to BSE Limited on October 17, 2025.

The Manufacturing Agreement is valid for three years, during which Sampre Nutritions expects to generate business worth Rs 12–15 crore annually. This arrangement is expected to strengthen the company’s nutraceutical and food product operations while contributing significantly to its overall revenues.

As per the agreement, SNL will manufacture, pack, and supply a range of products to RCPL for sale and distribution. The product categories include confectionery items such as hard-boiled candies, lollIPOps, and toffees, along with nutraceutical and food products. SNL will ensure compliance with RCPL’s product specifications, formulations, and quality standards throughout the production process.

Pricing for the manufactured goods will be determined by RCPL based on the pricing mechanism mentioned in the agreement. Payments will be made to SNL after invoice generation upon delivery of finished goods. The title and risk of goods will remain with Sampre Nutritions Limited until RCPL formally accepts delivery at the designated location.

In addition, Sampre Nutritions’ board approved a bonus issue and stock split in its September 19, 2025 meeting. Each equity share of face value Rs 10 will be split into two shares of Rs 5 each. Alongside this, a bonus issue in the ratio of 1:1 will be implemented, issuing one bonus equity share of Rs 5 for every fully paid equity share of Rs 5. The bonus issue will be funded with Rs 21.55 crore from the company’s securities premium account, which holds free reserves of Rs 59.86 crore as per audited financials for the year ending March 31, 2025. The bonus shares are expected to be credited on or before December 19, 2025.

Sampre Nutritions has also strengthened promoter holdings through the conversion of 550,000 warrants into equity shares. Of these, 500,000 were allotted to Mr. Brahma Gurbani and 50,000 to Mr. Vishal Ratan Gurbani. The conversion was done for cash, realising 75 per cent of the exercise price at Rs 45.375 per warrant from the full price of Rs 60.50. This follows shareholder approval on December 8, 2023, and BSE in-principle approval on October 29, 2024.

The company has entered into new manufacturing agreements to drive revenue growth. A contract with Tolaram Wellness Ltd., Nigeria, signed on August 16, 2025, will generate approximately Rs 10 crore annually, totalling around Rs 30 crore over three years. Payment terms include 50 per cent advance and the balance on dispatch, with transportation costs borne by Tolaram Wellness. Another three-year agreement with Rama Exports, signed on August 19, 2025, is expected to generate Rs 15 crore over its tenure, strengthening the company’s operational depth in nutraceutical and food production.

Sampre Nutritions reported strong financial performance for Q1FY26 ending June 30, 2025. Revenue from operations reached Rs 10.87 crore, marking a 141 per cent year-on-year increase from Rs 4.51 crore in Q1FY25. Net profit for the quarter stood at Rs 70.76 lakh, up 615 per cent from Rs 9.89 lakh in Q1FY25.

The company is planning further capital-raising initiatives through preferential issues, qualified institutional placements (QIP), and public or private offerings. A board meeting will be scheduled to seek shareholder approval for these plans, aimed at supporting ongoing expansion and strengthening financial structure. Sampre Nutritions has also been recognised with the Certificate of Recognition under the India 5000 Best MSME Awards 2024 for excellence in quality, customer satisfaction, and societal impact.

Sampre Nutritions’ share price has been on a remarkable run, hitting 82 back-to-back Upper Circuits. On Friday, the stock locked in the 2 per cent upper circuit at Rs 153.45 per share, delivering returns of over 500 per cent during this streak.

Disclaimer: The article is for informational purposes only and not investment advice