Business Updates and Operational Highlights

  • The conversion of Narkatiaganj Sugar Plant from sulphitation process to refinery expected to be completed before Sugar Season 2026-27, enabling production of higher-quality sugar
  • Installation of incineration boiler at Narkatiaganj Distillery expected by September 2026, increasing annual operating days to around 340 from current 270 days
  • Company operates 3 sugar mills with combined crushing capacity of 21,500 TCD, 2 distilleries with total capacity of 155 KLPD, and co-generation facility generating 38 MW power
  • Sugar sales volume declined 7% YoY due to lower production and reduced sugar quota allocation
  • Ethanol sales volume decreased 5% due to lower offtake by Oil Marketing Companies (OMCs)

Financial Performance (Q1FY27 vs Q1FY26)

  • Total Income: ₹311.27 crore (declined 7% from ₹333.88 crore)
  • Raw Material Cost: ₹272.52 crore (₹276.10 crore)
  • Employee Cost: ₹15.68 crore (₹14.97 crore)
  • Other Expenditure: ₹21.61 crore (₹22.89 crore)
  • EBIDTA: ₹1.46 crore (declined 93% from ₹19.92 crore)
  • Interest: ₹9.94 crore (declined 19% from ₹12.24 crore)
  • Cash Profit: (₹8.48) crore (₹7.68 crore)
  • Depreciation: ₹7.82 crore (₹7.42 crore)
  • Tax: (₹4.08) crore (₹0.04 crore)
  • Profit/(Loss) after Tax: (₹12.22) crore (₹0.22 crore)
  • EPS: (₹8.67) (₹0.16)

Segment-wise Performance

Sugar Segment

  • Crushing volume SS2025-26: 191.11 lacs qtls (SS2024-25: 215.51 lacs qtls)
  • Q1FY27 Sugar quota allocation: 61,765 tons (Q1FY26: 63,387 tons)
  • Average sugar realization improved marginally by 1% supported by firm domestic market

Distillery Segment

  • Ethanol sales volume: 104.70 lac ltrs (decreased 5% from 110.25 lac ltrs in Q1FY26)
  • Ethanol production: 121.22 lac ltrs (increased 6% from 114.29 lac ltrs in Q1FY26)
  • Feedstock utilization: B-Molasses 29.05 lac ltrs, C-Molasses 69.90 lac ltrs, Maize/SFG & DFG Rice 5.75 lac ltrs

Industry Context and Market Developments

  • Government raised Sugarcane FRP for SS2026-27 by 2.81% to ₹365/qtl from ₹355/qtl
  • Indian sugar industry in tight supply cycle with net sugar production SS2025-26 estimated at 278 LMT
  • Domestic consumption estimated at 270 LMT, exports around 8 LMT
  • Closing stock expected at 47 LMT, sufficient for approximately two months' consumption
  • Ethanol blending reached 20% as of June 30, 2026
  • Bihar approved Sugarcane Industry Investment Promotion Policy 2026 to attract investments

Capital Structure and Shareholder Information

  • Market Capitalization: ₹647 crore
  • Shares Outstanding: 1.41 crore
  • Free-float: 39% (Free Float Market Cap: ₹252 crore)
  • Shareholding Pattern: Promoters 61%, Individual/HUF 30%, Others (including NRIs) 9%
  • Dividend: Paid 125% i.e., ₹12.5 per equity share of ₹10 each for 2025-26 on August 1, 2026