Financial Performance Highlights

K M Sugar Mills reported strong financial results for FY26 with 53% YoY growth in standalone net profit to ₹53.4 crore, despite marginal revenue decrease to ₹658.4 crore. Consolidated financials show revenue of ₹65,838.08 lakhs and net profit of ₹5,342.39 lakhs with EPS of ₹5.81. Key profitability metrics improved significantly:

  • Profit before tax: ₹72.56 crore (48.3% increase)
  • EBITDA: ₹106.28 crore (19.3% increase)
  • Net profit ratio: 8.11% (272 bps improvement)
  • Return on equity: 14.63% (32.0% increase)

Significant Corporate Action: Demerger

The Board approved the demerger of the distillery division into wholly-owned subsidiary KM Spirits and Allied Industries Limited. The NCLT Allahabad Bench approved the first motion application on 24th March 2026. The share exchange ratio is set at 1 equity share of ₹10 each in KM Spirits for every 5 equity shares of ₹2 each held in KM Sugar Mills, with an appointed date of 1st April 2026.

Operational Performance

Sugar Division: Cane crushed increased to 111.63 lakh quintals, though sugar production decreased to 121.59 lakh quintals with average recovery of 10.90%.

Distillery Division: Ethanol sales grew to ₹52.94 crore with volume of 88.33 lakh BL.

Power Generation: 25 MW bagasse-based cogeneration plant supplied power to UPPCL.

Management Changes

Chairman L.K. Jhunjhunwala passed away in March 2026. Mrs. Naina Devi Jhunjhunwala was appointed as Additional Director and is recommended as Whole-Time Director at the upcoming AGM. Ms. Ritika Tandon replaced Ms. Pooja Dua as Company Secretary.

Audit and Compliance

Auditors issued an unmodified opinion but highlighted key audit matters including sugar inventory valuation at ₹37,521.75 lakhs and contingent liabilities from various litigations. Significant contingent liabilities include corporate guarantees for Sonar Castings Limited (₹617.42 crore) and income tax disputes under appeal (₹6.91 crore).

Capital Structure and Dividend

The company maintained equity share capital at ₹18.40 crore and increased general reserve to ₹15,000.00 lakhs. No dividend was declared for FY26 to retain funds for business expansion.

Related Party Transactions

Significant transactions include corporate guarantees for Sonar Castings Limited (₹61.74 crore), investment in preference shares (₹51.35 crore), and loans to related parties (₹15.25 crore outstanding).

Forward-looking Statements and AGM

The 53rd Annual General Meeting scheduled for 28th July 2026 will address adoption of financial statements, re-appointment of directors, and appointment of Mrs. Naina Devi Jhunjhunwala as Whole-Time Director. The company emphasized digital transformation and sustainable development initiatives in forward-looking statements.