Dwarikesh Sugar Industries Ltd – Investor Presentation Summary
Key Operational Highlights
- Sugar sales in Q2 FY27 declined to 5.61 lakh quintals from 6.03 lakh quintals YoY, while average realization increased to ₹4,530 per quintal from ₹3,963
- For H1 FY27, sugar sales rose to 13.11 lakh quintals from 12.65 lakh quintals YoY, with average realization improving to ₹4,263 per quintal from ₹3,963
- Ethanol production across both distilleries declined to 28.85 lakh litres in H1 FY27 from 214.99 lakh litres in H1 FY26
- Power revenue was negligible in H1 FY27 at ₹0.78 million compared with ₹4.41 million in H1 FY26
- Key drivers: Nil sugar production and crushing operations during the period, curtailed distillery activities due to feedstock unavailability
Segment-wise Performance
Sugar Business:
- Q2 FY27 revenue not specified in segment breakdown
- H1 FY27 performance impacted by liquidation of high-cost inventory
Distillery Business:
- Q2 FY27 industrial alcohol sales increased by 35 KL, generating revenue of ₹2.13 million compared with nil sales in Q2 FY26
- H1 FY27 sales volume and revenue declined by 64% year-on-year
Power Cogeneration:
- Minimal revenue due to early closure of sugar season
Financial Highlights
Q2 FY27 (Quarter Ended September 30, 2026):
- Revenue from operations: ₹2,565.9 million
- Total Income: ₹2,621.1 million
- EBIDTA: ₹-90.5 million
- PAT: ₹-131.2 million
- EPS: ₹-0.71
H1 FY27 (Half Year Ended September 30, 2026):
- Revenue from operations: ₹6,147.2 million (declined 5.6% YoY from ₹6,514.0 million)
- Total Income: ₹6,221.8 million
- EBIDTA: ₹-328.1 million
- PAT: ₹-388.5 million
- EPS: ₹-2.10
YoY Comparison:
- Q2 FY27 performance improved year-on-year from PAT of ₹-326.2 million in Q2 FY26, supported by higher sugar realizations
- H1 FY27 performance declined from PAT of ₹-420.1 million in H1 FY26
Drivers of financial performance: Higher sugar realizations offset by nil crushing operations, under-absorption of fixed overheads, and lower margins on sale of high-cost opening inventory
Key Risks: Unseasonal rainfall affecting sugarcane yields, government restrictions on ethanol feedstocks, feedstock unavailability for distillery operations
Geographical Revenue Split
Not Specified
Balance Sheet Snapshot
Not Specified
Capex & Cash Flow Health
Not Specified
Strategic & R&D Initiatives
- Varietal migration process progressing satisfactorily with encouraging results expected to support better crushing performance, sugar recovery and operational efficiency
- Focus on maximizing sugar production while undertaking ethanol production using C-heavy molasses in compliance with regulations
- Commitment to improving operational efficiencies, strengthening cost controls and optimizing performance
Industry Trends & Business Environment
- Global sugar production for 2025–26 projected at record 180.1 MMT against consumption of 180.4 MMT, resulting in marginal deficit of 0.3 MMT
- India's 2025–26 sugar season concluded with provisional net sugar production of 279.47 lakh tons after diversion of 3.2 million tons toward ethanol
- Domestic consumption estimated at 285 lakh tons with closing stocks projected at 36.66 lakh tons
- Ex-factory sugar prices improved from approximately ₹4,000 per quintal in FY 2025–26 to over ₹4,500 per quintal in Q2 FY 2026–27, currently around ₹4,700 per quintal
- El Niño poses downside risk to sugarcane production, particularly in Maharashtra and Karnataka
- Government has banned use of B-heavy molasses and sugarcane juice/syrup for ethanol production during SS 2026-27 season
Management Commentary & Growth Outlook
- Crushing operations for SS 2026–27 expected to commence on 5th November 2026 at DN and DP units in Bijnor and on 11th November 2026 at DD unit in Bareilly
- Despite unseasonal rainfall, Company expects improved crushing volumes supported by crop protection and varietal development initiatives
- The Company will focus on maximizing sugar production while undertaking ethanol production using C-heavy molasses