Financial Performance Overview
Dalmia Bharat Sugar and Industries Limited reported FY26 revenue of ₹3,618.08 crore, representing a 3% decline from FY25's ₹3,724.94 crore. Net profit declined significantly by 35% to ₹237.81 crore from ₹365.50 crore in the previous year, primarily due to the absence of a one-time ₹85 crore tax benefit received in FY25. EBITDA stood at ₹520 crore with a margin of 14.37%, showing modest compression of 10 basis points. The company maintained a strong balance sheet with debt-to-equity ratio of 0.16x and net worth of ₹3,244 crore.
Operational Performance
Sugar operations saw cane crushed decline to 5.10 million MT from 5.56 million MT, with sugar production at 539,000 MT. Net sugar realization improved 4.5% to ₹39.7/kg. Distillery operations showed growth with ethanol production reaching 192.3 million liters at average realization of ₹60.5/liter, utilizing a feedstock mix of 65% molasses and 35% grain. Power generation totaled 406 million units with 188 million units sold to grid.
Strategic Developments & Expansion
The company completed the NCLT-sanctioned demerger of non-core refractory (DMC) and travel (GT) units, effective July 1, 2023, establishing itself as a pure-play agro-energy entity. Significant expansion included acquiring 51% stake in Eagle Agrotech Holdings Limited for Tanzania entry, securing 20,000-hectare footprint with 50-hectare seed nursery established. The company commissioned 100 KLPD grain-based distillery at Gangapur, enhancing feedstock flexibility with total grain-based ethanol capacity now at 350 KLPD out of 950 KLPD total.
ESG & Sustainability Performance
Dalmia Bharat Sugar demonstrated strong environmental performance with 50% reduction in specific steam consumption, 100% renewable fuel usage in cogeneration, and zero liquid discharge across all operations. The company distributed ~1.75 lakh quintals of press mud/boiler ash to farmers and analyzed 18,000 soil samples. Social initiatives included CSR investment of ₹6.64 crore, DIKSHa skill development program training 1,497 youth, and Gram Parivartan program covering 13,750+ households. No complaints were received on sexual harassment, discrimination, child labor, or forced labor.
Governance & Compliance
The board composition includes 7 Directors (3 Independent, 2 Non-Executive Non-Independent, 2 Executive) with Mr. Pankaj Rastogi as CEO responsible for sustainability oversight. The company maintained full compliance with SEBI LODR Regulations 2015, Companies Act 2013, and BRSR framework. Auditors NSBP & Co. issued an unmodified opinion, highlighting inventory valuation (₹1,346.25 crore) and litigation matters as key audit areas.
Dividend & Capital Structure
The company declared interim dividend of ₹4.50 per share and recommended final dividend of ₹1.50 per share, totaling ₹6.00 per share for FY26. Total dividends paid during the year amounted to ₹48.56 crore. Total borrowings increased to ₹1,790.66 crore from ₹1,044.08 crore, while cash equivalents stood at ₹327.57 crore as of March 31, 2026.
Outlook & Future Plans
The company targets sugar capacity utilization >93% and distillery utilization >85% in FY2027, with continued focus on asset optimization and operational efficiency. Phased development of Tanzania project is underway with factory construction targeted in approximately three years. The board approved ₹107 crore efficiency projects including 13 TPD CBG plant at Kolhapur and 10% steam-saving initiative at Jawaharpur to improve operational efficiency.