NSE
BSECompany insights, generated from the most recent coverage.
Strong liquidity (Current Ratio 1.81) and low leverage (D/E 0.52) provide resilience in sugar cycle reversals, but extreme P/E of 67.26 limits upside.
Margins pressured despite higher sugar realizations due to sale of high-cost opening inventory from previous season when State Advised Price (SAP) was elevated.
High vulnerability to temporary restrictions due to small scale and high P/E (67x); forward contract coverage drops to 40-50% during restrictions with 15-20% price discounts, limiting pricing power until November 2026 expiry.
The Quarter story
The two most recent quarterly results, compared side-by-side.
Sugar pricing and sales volume remain strong, but seasonal shifts and lower ethanol output pulled consolidated profits into the red in Q1 FY27.
Average sugar realization rose from ₹3,962 in Q1 FY26 to ₹4,064 in Q1 FY27 — strong pricing power supports the core business.
Profit after tax swung from ₹574.1 in Q4 FY26 to -₹257.3 in Q1 FY27 — seasonal earnings volatility requires cash flow management.
Sugar sales volume climbed from 520.1 Quintal in Q3 FY26 to 750.4 Quintal in Q1 FY27 — robust seasonal off-take drives top-line stability.
Ethanol EBITDA margin dropped from 18.4% in Q4 FY26 to 3.2% in Q1 FY27 — weaker segment profitability impacts overall returns.
Depreciation expense fell from ₹124.5 in Q3 FY26 to ₹76.3 in Q1 FY27 — lower fixed costs ease operational pressure.
Ethanol revenue fell from ₹1,319.6 in Q4 FY26 to ₹482.6 in Q1 FY27 — lower production cycles reduce diversification benefits.
Other expenses declined from ₹272.2 in Q1 FY26 to ₹214.3 in Q1 FY27 — steady cost control protects margins.
Power generation fell from 15.4 units in Q2 FY26 to 3.0 units in Q1 FY27 — reduced plant utilization limits ancillary income.
Total revenue stabilized at ₹3,600.7 in Q1 FY27 after peaking at ₹4,267.4 in Q4 FY26 — consistent sales flow confirms market demand.
Inventory changes swung from -₹2,618.4 in Q4 FY26 to ₹3,325.2 in Q1 FY27 — active restocking cycles tie up working capital.
