Key Financial Performance (Q1FY27 vs Q1FY26)

  • Total Income: ₹781.05 crore (up 9% from ₹716.91 crore)
  • Raw Material Cost: ₹675.40 crore (up from ₹614.84 crore)
  • Employee Cost: ₹25.90 crore (vs ₹24.41 crore)
  • Other Expenditure: ₹41.50 crore (vs ₹49.13 crore)
  • EBITDA: ₹38.25 crore (up 34% from ₹28.53 crore)
  • Interest: ₹22.30 crore (down 15% from ₹26.13 crore)
  • Cash Profit: ₹15.95 crore (up 565% from ₹2.40 crore)
  • Depreciation: ₹15.58 crore (vs ₹14.99 crore)
  • Tax: ₹0.13 crore (vs tax credit of ₹4.18 crore)
  • Profit After Tax: ₹0.24 crore (vs loss of ₹8.41 crore)
  • EPS: ₹0.12 (vs negative ₹4.20)

Operational Highlights

Sugar Segment:

  • Sugar sales volume increased by 10%
  • Average sugar realization improved by 2%
  • Lower crushing, sugar production, and recovery due to reduced cane availability

Distillery Segment:

  • Ethanol sales volume: 258 lac liters (down 3% from 267 lac liters)
  • Improved product margins and favorable sales mix
  • Feedstock mix: B-Molasses (171 lac liters), C-Molasses (87 lac liters), Syrup (minimal)

Dividend Declaration

  • Paid 100% dividend (₹10 per equity share of ₹10 each) for FY25-26 on 01 August 2026
  • Recommended by Board and approved by shareholders at AGM

Production Capacity

  • Total Sugar Crushing Capacity: 34,800 TCD
  • Total Distillery Capacity: 325 KLPD
  • Unit-wise crushing capacity: Hargaon (13,000 TCD), Seohara (10,000 TCD), Hata (7,000 TCD), Rosa (4,800 TCD)

Industry Outlook and Market Scenario

Sugar Market:

  • Indian sugar industry in tight supply cycle with firm domestic prices
  • Government raised Sugarcane FRP for SS 2026-27 by 2.81% to ₹365/qtl from ₹355/qtl
  • SS 2025-26 net sugar production: 278 LMT (18% higher in Maharashtra, 8% higher in Karnataka)
  • Domestic consumption estimated at 270 LMT
  • Exports restricted to approximately 8 LMT
  • Closing stock expected at 47 LMT (∼2 months consumption)
  • Government imposed stock holding limits of 4,000 quintals per dealer/location

Ethanol Blending:

  • Ethanol blending reached 20% as of 30 June 2026
  • NITI Aayog working on roadmap for blending targets beyond E20
  • OMC tender details for ESY 2025-26 (1 Nov 2025-31 Oct 2026): Total tender 1,776 crore liters, allocated 1,048 crore liters, supplied 717 crore liters
  • Company-specific allocation: Total 7.54 crore liters (Juice: 1.71 cr, B-Heavy: 4.78 cr, C-Heavy: 1.05 cr)
  • Company-specific supply: Total 6.37 crore liters supplied as of 24 July 2026

Key Risks Identified

  • Monsoon variability and possible El Niño impact
  • Delay in export permissions
  • Regulatory intervention if sugar prices rise sharply
  • Revision in ethanol pricing
  • Increase in FRP/SAP without corresponding sugar price increases
  • Lower cane availability affecting crushing volumes
  • Working capital constraints due to inventory carrying costs