Management Participants

  • Mr. Athar Shahab – Managing Director
  • Mr. Alok Saxena – Whole Time Director
  • Mr. Jatin Jain – Chief Financial Officer
  • Mr. Yadvinder Goyal – Company Secretary
  • Mr. Alok Banerjee – CEO, Zuari Infraworld India Limited (subsidiary)

Key Operational Performance Highlights

Sugar Division Performance

  • Achieved highest ever crushing of 159.7 lakh quintals for FY26 and 163.7 lakh quintals for the season
  • Record capacity utilization of 101.7%
  • Sugar recovery at 10.26% (lower than previous year but in line with regional trends)
  • Sugar production: 14.4 lakh quintals (FY26) vs 14.7 lakh quintals (FY25)
  • Season production increased by 13% to 14.8 lakh quintals
  • Sugar sales: 14.3 lakh quintals vs 15.1 lakh quintals in FY25
  • Sugar realizations improved to INR4,053 per quintal from INR3,894 per quintal (4.1% increase)
  • Power sales: 857 lakh units vs 907 lakh units in FY25 (mill not operating during April 2025)

Ethanol Business

  • Ethanol production increased by 10.1%
  • Ethanol sales grew by 0.7%
  • Average realization stood at INR62.6 per liter (up 1.1%)

Subsidiaries Performance

Zuari Infraworld India Limited (Real Estate Subsidiary)

  • Executing projects in Hyderabad, Kolkata, Bangalore (India) and Dubai
  • Aggregate GDV of Indian projects: INR4,900 crores
  • Projects include residential (Hyderabad), mixed-use (Kolkata Panihati), office (Adventz Corporate Center, Kolkata), plotted development (Bangalore)
  • Development management strategy with fee-based revenue model

St. Regis Dubai Project Status

  • Project 98% complete
  • Building Completion Certificate received from authorities on 21 May 2026
  • Handovers expected to commence soon
  • Project 100% sold with 50% payment collected during construction, 50% to be collected post-BCC
  • Expected inflows: INR850-900 crores over next 6 months
  • Estimated profit share: ~INR600 crores on capital investment of INR270-275 crores

Simon India Limited (Engineering & Construction)

  • Completed projects: ~INR50 crores (including 5th evaporator project at PPL Paradeep, 8,000 ton phosphoric acid tank project at PPL Mangalore)
  • Projects under execution: INR95 crores (TG4 project and sulfur melting facility at PPL Paradeep)
  • Strategic partnerships with global technology licensors and academic institutions (NML Jamshedpur, IIT Bombay, ISM Dhanbad)

Financial Services Businesses

  • Zuari Finserv: EBITDA grew >60%; implementing new tech platform for financial product distribution
  • Zuari Insurance Brokers: EBITDA grew 54%; robust renewal ratio and claim settlement performance

Zuari Envien Bioenergy Private Limited (Bioethanol JV)

  • Plant commissioned on 1 January 2026
  • Currently under stabilization
  • Has orders until October 2026
  • Awaiting OMC tenders (second and third rounds not yet announced)

Financial Performance

Standalone (Zuari Industries Limited)

  • Total income: INR995 crores (FY26)
  • EBITDA: INR191 crores (up 6.8% from FY25)
  • PBT before exceptional items: INR54 crores (up 70% from FY25)
  • PAT: INR12 crores vs loss of INR37 crores (FY25)
  • Finance cost: INR111 crores vs INR123 crores (reduced by INR11 crores YoY)

Consolidated

  • Total income: INR1,155 crores vs INR1,082 crores (FY25)
  • EBITDA: INR181 crores (up 12.2% from FY25)
  • PBT before exceptional items: INR131 crores vs loss of INR67.8 crores (FY25)
  • PAT: INR105 crores vs loss of INR94.4 crores (FY25)
  • Finance cost reduced by INR19.4 crores on consolidated basis

Subsidiary Financial Highlights

Zuari Infraworld India Limited: Total income grew 78% YoY

Simon India Limited:

  • Q4 income: INR29.8 crores vs INR8.9 crores (Q4 FY25)
  • FY26 total income: INR89.4 crores vs INR18.8 crores (FY25)
  • FY26 EBITDA: INR6.8 crores vs INR0.9 crores (FY25)

Zuari Finserv:

  • Total income: INR20.1 crores vs INR19.3 crores (4.1% growth)
  • EBITDA: INR5.6 crores vs INR3.5 crores (60% growth)

Zuari Insurance Brokers:

  • Gross return premium: INR99.4 crores vs INR91.2 crores (9% growth)
  • Brokerage income: INR10.2 crores vs INR7.3 crores (40% growth)

Strategic Investments Portfolio

Maintains strategic investments in:

  • Chambal Fertilisers
  • Zuari Agro Chemicals (which holds Paradeep Phosphates)
  • Texmaco Rail & Engineering
  • Texmaco Infrastructure & Holdings

Deleveraging Plans

  • Core objective to reduce debt
  • Expected inflows from Dubai project (INR850-900 crores) and associate company (INR258 crores)
  • Target net debt: INR700-800 crores by FY27 end
  • Current external borrowings: ~INR1,900 crores

Operational Challenges and Outlook

  • Macroeconomic situation affecting capex plans in India and Middle East
  • Increased input prices for sugar business
  • Sugar prices expected to remain stable with closing stocks estimated at 5.6 million tons (2 months consumption)
  • Ethanol prices stagnant, putting pressure on profitability
  • Expected ethanol price revision pending government decision
  • Overcapacity in ethanol sector (2,000 crore liters capacity vs 1,050 crore liters tender)

Future Strategy

  • Evaluating inorganic growth opportunities across businesses
  • Adopting digital solutions to improve efficiency
  • Sugar division: Focus on cost optimization, technology deployment, and profitable product mix
  • Real estate: Continue development management model; may consider joint development/land banks post-deleveraging
  • Financial services: Expand customer base using technology platforms

Q&A Session Key Points

Dubai Project Details

  • Recourse: Dubai RERA allows forfeiture of 40% apartment value if buyers default
  • Currency risk: Rupee depreciation viewed as advantageous; monitoring and may take forward covers if necessary
  • No buyer backouts anticipated despite Middle East investment climate

Goa Land Banks

  • Holding 260 acres with book value of INR163 crores
  • Monetization challenges due to political situation in Goa
  • Not factoring monetization in future plans

Sugar Operations

  • Lower recovery due to early operation start and agro-climatic conditions
  • Varietal replacement program ongoing (replacing 238 variety)
  • Farmer education through Saksham app and demo plots
  • Focus on reducing chemical, steam, and energy consumption

Ethanol Strategy

  • No major expansion plans due to overcapacity
  • Focusing on optimizing existing plant (syrup diversion and B-heavy diversion)
  • Running distillery for 316 days (highest ever performance)
  • Long-term positive outlook with government push for higher blends (E27, E30, E85, E100)

Real Estate Business Model

  • Development management fee-based revenue recognition
  • Fee recognized over construction period (3-4 years per apartment)
  • EBITDA margins: 70-75% (service revenue)
  • Project timelines: Bangalore plotted development (18 months), Hyderabad/Kolkata projects (~5 years)

Technology Initiatives

  • Zuari Finserv: Tech platform for financial product distribution
  • Simon India: Digital tools for engineering and procurement; patented tech tools
  • Sugar division: Saksham app for farmers, GPS-enabled trucks, handheld devices at cane centers
  • Agri equipment trading app for farmers

Closing Remarks

Management expressed confidence in operational performance across businesses and outlined clear deleveraging roadmap using Dubai project proceeds. Focus remains on operational efficiencies, digital transformation, and strategic growth opportunities post-deleveraging.