DWARKESHNSEDwarikesh Sugar Industries Limited· SugarHighNeutral
Announced Thu, 14 May · 17:08 IST

Dwarikesh Sugar Industries Limited has informed the Exchange regarding a press release dated May 14, 2026, titled "Press Release on Financial Results for the Quarter and Year Ended March 31, 2026 and Company Outlook.".

Pat Growth 25pctEbitda Margin CompressionResults View source PDF

DWARKESH · price

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AI summary

Dwarikesh Sugar Industries reported FY26 total income of ₹1,409.09 crore, up 3.2% from ₹1,365.32 crore in FY25. However, EBITDA declined sharply to ₹94.03 crore from ₹119.91 crore in the prior year, indicating significant margin compression. PAT grew 32% to ₹30.84 crore (vs ₹23.34 crore) mainly due to a lower effective tax rate from the new tax regime, which offset underlying operational weakness. The company faced headwinds from a ₹30 per quintal increase in State Advised Price (SAP) for sugarcane, lower cane availability due to excessive rainfall and crop diversification, and an 8% decline in ethanol sales volume to OMCs. Sugar volumes improved marginally to 24.21 lakh quintals with better realization at ₹3,980 per quintal. The company has ₹92.80 crore in long-term debt for a distillery project and maintains ICRA AA- long-term rating.

Likely market impact

While PAT growth of 32% appears positive, the underlying business showed operational stress with EBITDA declining 22% and PBT falling 19%. The stock may face pressure from margin compression unless sugar prices improve significantly or cane availability normalizes in the 2026-27 season. The company's focus on farmer engagement and varietal replacement aims to address the cane supply issues.