Financial Performance Summary (Q1 FY27 vs Q1 FY26 vs FY26)
All figures are in INR million.
Income Statement:
- Revenue from operations: ₹3,581.3 (Q1 FY27) vs ₹4,054.7 (Q1 FY26) vs ₹14,019.4 (FY26) — an 11.7% YoY decrease.
- Other income: ₹19.4 (Q1 FY27) vs ₹5.0 (Q1 FY26) vs ₹71.5 (FY26).
- Total Revenue: ₹3,600.7 (Q1 FY27) vs ₹4,059.7 (Q1 FY26) vs ₹14,090.9 (FY26).
- Cost of material consumed: ₹9.3 (Q1 FY27) vs ₹213.1 (Q1 FY26) vs ₹10,271.1 (FY26). The minimal cost in Q1 FY27 is attributed to the 2025–26 sugar season concluding early in March 2026, resulting in no sugarcane procurement or crushing during Q1 FY27.
- Purchase of stock in trade: ₹40.7 (Q1 FY27) vs ₹52.3 (Q1 FY26) vs ₹85.0 (FY26).
- Changes in inventories: ₹3,325.2 (Q1 FY27) vs ₹3,223.7 (Q1 FY26) vs ₹632.5 (FY26).
- Employees benefit expense: ₹248.9 (Q1 FY27) vs ₹254.2 (Q1 FY26) vs ₹1,119.9 (FY26) — largely flat QoQ.
- Finance cost: ₹29.8 (Q1 FY27) vs ₹53.9 (Q1 FY26) vs ₹147.7 (FY26) — lower YoY due to scheduled term loan repayments.
- Depreciation and amortization expense: ₹76.3 (Q1 FY27) vs ₹120.6 (Q1 FY26) vs ₹367.4 (FY26). The decrease is due to a revision in the estimated useful lives of certain assets undertaken in Q4 FY26 per Schedule II of the Companies Act, 2013.
- Other expense: ₹214.3 (Q1 FY27) vs ₹272.2 (Q1 FY26) vs ₹1,042.1 (FY26) — declined due to absence of crushing and lower manufacturing/selling expenses.
- Total expenses: ₹3,944.5 (Q1 FY27) vs ₹4,190.0 (Q1 FY26) vs ₹13,665.7 (FY26).
- Profit before taxes: Loss of ₹-343.8 (Q1 FY27) vs Loss of ₹-130.3 (Q1 FY26) vs Profit of ₹425.2 (FY26).
- Tax expense: ₹-86.5 (credit) (Q1 FY27) vs ₹-36.5 (credit) (Q1 FY26) vs ₹116.8 (expense) (FY26).
- Profit for the period: Loss of ₹-257.3 (Q1 FY27) vs Loss of ₹-93.8 (Q1 FY26) vs Profit of ₹308.4 (FY26).
- Earnings Per Share (EPS): ₹(1.39) (Q1 FY27) vs ₹(0.51) (Q1 FY26) vs ₹1.66 (FY26).
Operational Performance & Business Segments
Sugar Business:
The financial performance was adversely impacted by lower contribution from sugar sales. Although sugar realizations improved, the benefit was offset by the sale of high-cost opening inventory carried forward from Sugar Season 2025–26. Production costs were high in the previous season due to a higher State Advised Price (SAP) for sugarcane. Profitability was further affected by the complete absence of sugar production during Q1 FY27. Lower cane crushing in the previous season also led to reduced by-product sales.
Cogeneration (Power Business):
The early closure of the sugar season resulted in virtually no power generation during Q1 FY27. Revenue from power evacuation and sales was ₹0.47 million, compared to ₹2.96 million in Q1 FY26.
Distillery (Ethanol Business):
Industrial alcohol (ethanol) sales volumes declined significantly during Q1 FY27 due to the absence of cane crushing and resultant lower ethanol production. This led to a decline in both revenue and EBITDA from this segment compared to Q1 FY26.
Company Overview & Capacity
Dwarikesh Sugar operates three plants with the following capacities:
- Dwarikesh Nagar (Bijnor District): 6,500 TCD (Sugar) | 20 MW (Power) | 162.5 KLPD (Ethanol)
- Dwarikesh Puram (Bijnor District): 7,500 TCD (Sugar) | 33 MW (Power)
- Dwarikesh Dham (Bareilly District): 7,500 TCD (Sugar) | 41 MW (Power) | 175 KLPD (Ethanol)
Total Group Capacity: 21,500 TCD (Sugar) | 94 MW (Power) | 337.5 KLPD (Ethanol)
Management & Key Personnel
The presentation lists the key management team:
- G. R. Morarka: Executive Chairman
- Vijay S. Banka: Managing Director
- B. J. Maheshwari: Managing Director, Company Secretary cum Chief Compliance Officer
- Priyanka Morarka: Whole Time Director
- Salil Arya: Senior Executive Vice President & Group Compliance Officer
- Anil Kumar Tyagi: Senior Executive Vice President
- Sunil Kumar Goel: Chief Financial Officer
Sector Outlook & Company Commentary
Global & Domestic Sugar Market:
Global sugar production is projected to reach a record in 2025-26 (182.0-186.056 MMT), creating a surplus. For 2026-27, production is expected to moderate, shifting the market to a deficit and strengthening global prices (NY raw sugar at 14.50–15.00 cents/lb).
In India, SS 2025-26 net sugar production is estimated at ~280 lakh tons. After exports of ~7 lakh tons, closing stock is adequate for two months of domestic consumption. Ex-factory sugar prices, which averaged ~₹4,000/qtl in FY26, improved to ₹4,200–4,300/qtl in Q1 FY27 and are expected to remain firm.
The government has imposed stock holding limits on traders and warned mills to sell their entire monthly quota to contain price increases.
Ethanol Blending Program:
India's ethanol blending level is now around 20%. The program faces challenges including a lack of price revision for juice/B-Heavy molasses ethanol and preferential offtake of grain-based ethanol. Long-term opportunities exist, but concerns over vehicle compatibility and food security require addressing.
Crop Outlook for Uttar Pradesh:
The sugarcane crop in UP is in good condition, though the area under cultivation has declined marginally. The impact of red rot disease on the Co 0238 variety has receded. Subject to normal weather post-September, a healthy crop is expected for SS 2026-27.
Outlook
Dwarikesh Sugar is focused on enhancing cane availability for the ensuing season. Initiatives have improved varietal mix and crop development, though availability remains dependent on post-September weather. The company is cautiously optimistic due to improved sugar realizations and remains committed to operational efficiency and cost discipline.