Avadh Sugar & Energy Limited has informed the Exchange about Investor Presentation
AVADHSUGAR · price
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Avadh Sugar & Energy released its Q4 & FY26 investor presentation showing flat revenue of Rs 2,694 Cr for FY26 (up 2% YoY), but a sharp 35% decline in PAT to Rs 57 Cr due to higher sugarcane costs. The sugarcane price in Uttar Pradesh was increased by Rs 30 per quintal to Rs 400 per quintal, which compressed EBITDA by 19% to Rs 226 Cr for FY26. Sugar realization improved 4% to Rs 4,011 per quintal, partially mitigating cost pressures. Ethanol sales showed strong 10% growth to 849 lac litres, helping offset lower sugar volumes. The company recommended a dividend of Rs 10 per share. Looking ahead, management notes that India's sugar output for 2025-26 season is unlikely to exceed 28 MMT against domestic consumption of 29 MMT, marking a second consecutive deficit year with thin opening stocks expected for next season.
The stock faces pressure from margin compression due to higher cane prices without equivalent sugar price increases. However, the ethanol business growth and improving sugar realizations provide some support. Thin opening stocks for next season could tighten supply and potentially improve sugar realizations.