Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26):

  • Total Income: ₹262.11 crore (vs ₹248.23 crore in Q2 FY26)
  • EBITDA: Loss of ₹9.05 crore (vs loss of ₹38.95 crore in Q2 FY26)
  • Finance Cost: ₹1.04 crore (vs ₹1.75 crore in Q2 FY26)
  • PBT: Loss of ₹17.52 crore (vs loss of ₹52.94 crore in Q2 FY26)
  • PAT: Loss of ₹13.12 crore (vs loss of ₹32.62 crore in Q2 FY26)
  • EPS: Loss of ₹0.71 per share (vs loss of ₹1.76 per share in Q2 FY26)

Half-Yearly Performance (H1 FY27 vs H1 FY26):

  • Total Income: ₹622.18 crore (vs ₹654.20 crore in H1 FY26)
  • EBITDA: Loss of ₹32.81 crore (vs loss of ₹34.52 crore in H1 FY26)
  • Finance Cost: ₹4.02 crore (vs ₹7.15 crore in H1 FY26)
  • PBT: Loss of ₹51.90 crore (vs loss of ₹65.97 crore in H1 FY26)
  • PAT: Loss of ₹38.85 crore (vs loss of ₹42.01 crore in H1 FY26)
  • EPS: Loss of ₹2.10 per share (vs loss of ₹2.27 per share in H1 FY26)

Full Year FY26 Reference:

  • Total Income: ₹1,409.09 crore
  • PAT: ₹30.84 crore
  • EPS: ₹1.66 per share

Operational Metrics

Sugar Sales Performance:

Q2 FY27:

  • Sugar sales: 5.61 lakh quintals (marginally lower than 6.03 lakh quintals in Q2 FY26)
  • Average realization: ₹4,530 per quintal (significantly improved from ₹3,963 per quintal in Q2 FY26)

H1 FY27:

  • Sugar sales: 13.11 lakh quintals (marginally higher than 12.65 lakh quintals in H1 FY26)
  • Average realization: ₹4,263 per quintal (improved from ₹3,963 per quintal in H1 FY26)

Inventory Position:

  • Sugar inventory as of 30th September 2026: 2.20 lakh quintals (significantly lower than 3.68 lakh quintals as of 30th September 2025)

Industrial Alcohol Sales:

  • Q2 FY27: 35 KL (vs nil sales in Q2 FY26)
  • H1 FY27: 7,852 KL (vs 21,649 KL in H1 FY26)

Debt and Financial Position

  • Outstanding long-term borrowings as on 30th September 2026: ₹74.24 crore
  • Entire borrowing pertains to the distillery project at the DD unit
  • Borrowings availed at concessional rate of interest
  • Long-term rating: ICRA A+ (stable)

Industry Context and Market Outlook

Sugar Season 2025-26:

  • Season concluded on 30th September 2026
  • Net sugar production estimated at approximately 279.47 lakh tons (per ISMA)
  • Estimated diversion of ~32 lakh tons sugar equivalent towards ethanol production
  • Domestic consumption estimated at ~285 lakh tons

Sugar Season 2026-27 Outlook:

  • Production expected to decline in Maharashtra and Karnataka
  • Production expected to remain broadly stable in Uttar Pradesh
  • Government imposed restrictions on use of sugarcane juice/syrup and B-heavy molasses for ethanol production

Sugar Price Trends:

  • Previous quarter: hovering around ₹4,100 per quintal
  • Current quarter average: over ₹4,500 per quintal
  • Current prevailing price: approximately ₹4,700 per quintal
  • Prices expected to moderate with fresh supplies from Maharashtra mills
  • Medium-term outlook: prices expected to remain firm due to anticipated production constraints and supply-demand scenario

Operational Update and Future Plans

Crushing Operations Schedule:

  • DN and DP units (Bijnor district): Commencement expected on 5th November 2026
  • DD unit (Bareilly district): Commencement expected on 11th November 2026

Challenges and Initiatives:

  • Excessive, unseasonal rainfall during September and early October 2026
  • Focused initiatives in crop protection and varietal development to address adverse weather and red-rot infestation
  • Varietal migration progressing satisfactorily with encouraging results
  • Expected improvements in crushing performance, sugar recovery, and operational efficiency

Production Strategy:

  • Maximize sugar production due to government restrictions on ethanol feedstocks
  • Ethanol production to be undertaken using C-heavy molasses to extent feasible
  • Compliance with applicable regulatory requirements

Company Background

Dwarikesh Sugar Industries Limited operates three fully automated sugar mills in Uttar Pradesh's Bijnor and Bareilly districts with combined crushing capacity of 21,500 tons of sugarcane per day. The company produces ethanol/industrial alcohol and bagasse-based power as growth enablers.

Key strengths include high recovery, plant efficiencies, cane development initiatives, and ethical business conduct. The company focuses on R&D initiatives to ensure streamlined operations and quality sugarcane supply.