Financial Performance
The Andhra Sugars Limited reported exceptional FY26 results with standalone net profit surging 166% to ₹83.67 crores (₹8,367.47 lakhs) from ₹31.49 crores in FY25. Revenue grew 22.7% to ₹1,437.32 crores, driven primarily by strong performance in the chemical division which reported profit after depreciation of ₹65.61 crores (FY25: ₹16.84 crores). On a consolidated basis, revenue reached ₹2,465.99 crores (up 22.1% YoY) with net profit surging 221% to ₹87.13 crores.
Segment Performance & Operations
The chemical division was the standout performer with chlor-alkali segment revenue of ₹727.69 crores and chemicals segment at ₹910.07 crores. Sugar operations declined significantly to ₹107.34 crores revenue, leading to the implementation of a Voluntary Retirement Scheme costing ₹4.40 crores. Power generation remained stable with windmills producing 32.45 million KWH and captive power plants generating 230.29 million KWH.
Dividend & Corporate Actions
The board recommended a final dividend of ₹1.20 per equity share (60% on face value of ₹2), comprising normal dividend of ₹1.00 (50%) and special dividend of ₹0.20 (10%). The total dividend payout amounts to approximately ₹16.27 crores, with record date set for September 18, 2026, and payment to be made electronically to registered bank accounts.
Strategic Initiatives & Projects
The company is progressing with several expansion projects including a 12MW solar plant at Saggonda and a 10MT compressed bio-gas plant at Taduvai. However, the 100 TPD sodium hypochlorite project at Parawada has been temporarily suspended due to land allotment issues with APIIC. The board accorded in-principle approval for merger of unlisted subsidiaries (The Andhra Farm Chemicals Limited and Hindustan Allied Chemicals Limited) with the holding company.
Corporate Governance & Compliance
The company maintained full compliance with SEBI LODR regulations, with audit committee comprising three non-executive independent directors. CSR expenditure of ₹2.15-2.16 crores met regulatory requirements. ICRA reaffirmed the company's credit rating at Long-term [ICRA] A+ (Stable) and Short-term [ICRA] A1+.
Risk Factors & Contingencies
The company disclosed contingent liabilities of ₹131.36 crores including excise demands (₹10.46 lakh), GST/service tax claims (₹3.92 lakh), sales tax (₹275.01 lakh), and electricity disputes with DISCOMs (₹226.67 lakh). Related party transactions totaled ₹47.10 crores, primarily comprising sales to related parties (₹17.46 crores) and remuneration to KMPs (₹12.10 crores).
Forward Outlook
The company continues to focus on chlor-alkali and chemical businesses while reviewing sugar operations. The 79th Annual General Meeting is scheduled for September 24, 2026, where shareholders will vote on dividend approval, director reappointments, and auditor remuneration ratification.