Company Overview

Financial Performance Highlights FY 2025-26

Dhampur Bio Organics reported strong financial results for FY26 with standalone revenue from operations increasing 14.43% to ₹3,106.17 crore from ₹2,714.40 crore in FY25. Profit After Tax surged 107% to ₹24.97 crore (FY25: ₹12.09 crore), with Earnings Per Share (Basic) at ₹3.78. The Board recommended a final dividend of ₹1.50 per equity share (15%) for FY2025-26.

Revenue was driven by multiple segments: Sugar (₹1,600.62 crore), Bio Fuels & Spirits (₹369.14 crore), and Country Liquor (₹1,136.41 crore). Key expenses included Cost of Raw Materials Consumed (₹1,476.30 crore net of capitalization), Excise Duty (₹1,024.16 crore), Employee Benefits (₹112.70 crore), and Finance Costs (₹62.96 crore). Total tax expense was ₹15.34 crore with an effective tax rate of 38.02%.

Operational Performance

Sugar operations saw cane crushing of 32.92 lakh tonnes with net sugar recovery improving to 10.74% from 9.80% in FY25, resulting in sugar production of 3.54 lakh tonnes. No cane was diverted for syrup-based ethanol production compared to 3.37 lakh tonnes diverted in FY25.

Renewable energy operations generated 23.84 crore units of power, with 9.06 crore units sold to UPPCL at an average tariff of ₹4.43 per unit. Bio Fuels & Spirits operations produced 680.90 lakh bulk litres of ethanol (FY25: 609.80 lakh bulk litres), comprising B Heavy molasses (228.7 lakh bulk litres), C Heavy molasses (277.3 lakh bulk litres), and grain including ENA (174.9 lakh bulk litres). Country liquor sales reached 44.13 lakh cases.

Strategic Developments

The company entered into a Business Transfer Agreement on April 20, 2026, to sell its Meerganj sugar manufacturing unit (9,000 TCD crushing capacity and 19 MW renewable energy capacity) for ₹305 crore on a slump sale basis. Shareholders approved this divestment in an EGM held on May 18, 2026, with completion expected within 60 days from the agreement date.

Subsidiary activities included Dhampur International Pte Ltd (revenue ₹1.15 crore) and Sonitron Bio Organics Private Limited (revenue ₹149.47 crore). The company incorporated a new WOS in Dubai (DBOL International Food and Beverages Trading FZE) and approved acquisition of up to 100% equity stake in Sonitron Chemicals Private Limited.

Financial Position & Risk Management

Property, plant and equipment stood at ₹1,733.27 crore (gross block) with net carrying amount of ₹1,124.69 crore. Inventories were ₹994.45 crore (primarily finished goods), trade receivables ₹84.94 crore, and cash and cash equivalents ₹4.50 crore.

Borrowings totaled ₹1,054.17 crore, including secured term loans of ₹206.98 crore and working capital loans of ₹758.08 crore. Long-term secured borrowings of ₹289.93 crore were from PNB (₹120.43 Cr at 8.60-9.10%), HDFC Bank (₹95.00 Cr at 6.77-7.95%), and ICICI Bank (₹74.50 Cr at 8.10%), all with covenant compliance maintained.

Financial risk management covered credit risk (trade receivables gross ₹64.37 Cr with ECL allowance ₹0.59 Cr), liquidity risk (₹1,203.03 Cr undiscounted liabilities maturing primarily within 1 year), and market risk including foreign currency exposure (₹27.62 Cr net exposure) and interest rate sensitivity (50 bps change impacting PAT by ±₹1.51 Cr).

Employee benefit obligations for gratuity and leave encashment totaled ₹26.67 crore with detailed actuarial assumptions (discount rate 7.29-7.70%, salary growth 5.00%). The DBO Employee Stock Option Scheme 2025 granted 357,881 options at exercise price ₹40.00 per share.

Corporate Governance & Compliance

The Board composition included 9 Directors with Mr. Gautam Goel redesignated as Chairman and CEO effective May 31, 2026, following the passing of Mr. Vijay Kumar Goel on May 10, 2026. Mr. Nalin Kumar Gupta was appointed as Whole-time Director and CFO.

The company maintained CARE BBB+ (Stable) long-term and CARE A2 short-term credit ratings. Regulatory matters included an Income Tax Department search conducted from October 29 to November 4, 2025, with no adjustments identified in financial results. Contingent liabilities stood at ₹42.58 crore in disputed demands.

CSR expenditure was ₹55.15 lakhs focused on education and healthcare, benefiting 7,140 persons for eradicating hunger/poverty and 158 persons for promoting education. The company strengthened ESG commitments with Bonsucro certification and maintained various ISO accreditations.

All financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and comply with the Companies Act, 2013, approved by the Board of Directors on May 30, 2026.