Financial Performance Overview

For the full year FY26, the company reported a total income of ₹2,000.2 crores, reflecting a growth of 6% year-on-year from ₹1,886.9 crores in FY25. EBITDA expanded by 15.8% to ₹139.3 crores compared to ₹120.3 crores last year, with the EBITDA margin stabilizing at around 7%. The company reported a profit after tax (PAT) of ₹3.5 crores, a turnaround from a loss reported in FY25. Finance costs reduced significantly by approximately 32% year-on-year to ₹49.1 crores, supported by a debt repayment of ₹240 crores made during FY25.

For Q4 FY26, revenue from operations stood at ₹564 crores. EBITDA for the quarter was ₹92 crores, translating to a strong EBITDA margin of 16.2%. Profit after tax for the quarter stood at ₹52.9 crores, reflecting a strong recovery from ₹8.3 crores reported in Q3 FY26. This sequential improvement was driven by better absorption of fixed costs, higher operating efficiency in the sugar segment, and improved realizations.

Operational and Segmental Performance

The integrated sugar, ethanol, and co-generation business together reported full-year revenues of approximately ₹1,383 crores and EBITDA of ₹97.4 crores, which increased by 19% year-on-year. During the 2025-2026 crushing season, the company achieved its highest ever cane crushing of 2.5 million tons.

The bio-based chemical segment reported full-year revenue of ₹578 crores. The contribution from specialty chemicals within this segment improved to 61% of total bio-based chemical revenue, compared to 58% year-on-year. The segment faced some challenges due to geopolitical disruptions impacting sales and logistics.

In the ethanol business, revenue for FY26 stood at ₹658 crores. The company sold approximately 98 million liters of ethanol equivalent across the ethanol blending program, ENA, and other grades. The sales mix was 81% contributed under the Ethanol Blending Program (EBP).

The consumer business, Jivana, reported revenue of ₹129 crores for FY26, showing strong growth and an expanding retail presence across South India.

Strategic Updates and Outlook

Management highlighted that ongoing geopolitical developments, particularly in West Asia, have created volatility in fossil fuel supply chains but have also accelerated a structural shift towards sustainable and bio-based alternatives, improving the competitiveness of their integrated biorefinery model.

The company is progressing on its 200 KLPD grain-based distillery expansion, which is expected to add approximately 60 million liters of annual ethanol capacity. Most equipment for the project is on site, and commissioning trials are targeted for June 2026.

The regulatory environment remains supportive, with the Government of India issuing draft standards for ethanol blending beyond E20 (E85 and E100), creating a stronger long-term demand outlook.

The company is also advancing its innovation initiatives. Through its step-down subsidiary, Sathgen Therapeutics, it is developing an oral therapy candidate for triple-negative breast cancer. Safety trials for the molecule are complete, and an application to the CDSCO for research in preliminary efficacy is planned for the next quarter. A Japanese patent was also recently secured for its antiviral platform.

Q&A Highlights

Management addressed questions on the bio-based chemicals segment, confirming that debottlenecking efforts done last year are expected to show results in FY27, with a stronger outlook due to improved competitiveness from higher global energy costs.

Regarding the new distillery, it was clarified that the asset is not expected to commission into a margin squeeze. The company can use the ethanol produced to meet its own demand for bio-based chemicals, as imports have become more expensive.

On product mix, management stated that the strategic objective remains to increase bio-based specialty chemicals, but the company will opportunistically produce ethyl acetate if margins are attractive, especially given the current surplus in the ethanol blending program.

Logistics and freight costs were confirmed to have been impacted by the West Asia crisis, affecting the chemicals segment in Q4.

The timeline for out-licensing the triple-negative breast cancer molecule was estimated at 2 to 3 years, pending successful trials.

Net realizations for ethanol were stated as approximately ₹60-plus for B-molasses, ₹65-plus for juice, and ₹72 for maize-based ethanol, as per government-declared prices.