Dwarikesh Sugar Industries Q2 FY27 results: net loss narrows to ₹13.12 crore, revenue up 4.3%

How did Dwarikesh Sugar Industries perform in Q2 FY27?

Dwarikesh Sugar Industries reported standalone revenue of ₹256.59 crore for Q2 FY27, up 4.3% from ₹245.93 crore in Q2 FY26 but down 28.4% from ₹358.13 crore in Q1 FY27. Total income was ₹262.11 crore, against ₹248.23 crore a year earlier and ₹360.07 crore in the previous quarter. EBITDA remained negative at ₹14.57 crore, although it improved from negative ₹41.25 crore in Q2 FY26 and negative ₹25.70 crore in Q1 FY27. The EBITDA margin was negative 5.7%, compared with negative 16.8% and negative 7.2%, respectively.

The company reported a loss before tax of ₹17.52 crore in Q2 FY27, compared with a loss of ₹52.94 crore in Q2 FY26 and ₹34.38 crore in Q1 FY27. After tax of ₹4.40 crore, the net loss was ₹13.12 crore, compared with a net loss of ₹32.62 crore in Q2 FY26 and ₹25.73 crore in Q1 FY27. Basic EPS was negative ₹0.71, compared with negative ₹1.76 in the year-ago quarter and negative ₹1.39 in the previous quarter. The investor presentation also reported consolidated results, while the figures in this article are standalone.

What changed in Dwarikesh Sugar Industries' costs and profit?

Total expenses fell 7.2% year on year to ₹279.63 crore from ₹301.18 crore, and were down 29.1% from ₹394.45 crore in Q1 FY27. Employee benefit expense was ₹25.74 crore, down ₹0.22 crore from ₹25.96 crore in Q2 FY26, while finance costs fell ₹0.71 crore to ₹1.04 crore and depreciation fell ₹4.81 crore to ₹7.43 crore. Other expenses were ₹26.19 crore, up ₹0.63 crore from ₹25.56 crore, and cost of materials consumed was ₹0.68 crore, up ₹0.19 crore from ₹0.49 crore.

Other income increased ₹3.22 crore year on year to ₹5.52 crore from ₹2.30 crore and was up ₹3.58 crore from ₹1.94 crore in Q1 FY27. There was no exceptional item. Tax expense was ₹4.40 crore against ₹20.32 crore in Q2 FY26 and ₹8.64 crore in Q1 FY27. Management said that nil crushing, curtailed distillery operations, fixed-cost under-absorption and lower margins on high-cost inventory weighed on Q2 FY27 and H1 FY27 results, while higher sugar realisations supported the year-on-year improvement.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹614.72 crore, down 5.6% from ₹651.40 crore in H1 FY26. Total income fell 4.9% to ₹622.18 crore from ₹654.20 crore. The company reported a loss before tax of ₹51.90 crore, compared with ₹65.97 crore in H1 FY26, and a net loss of ₹38.85 crore against ₹42.01 crore. Basic EPS was negative ₹2.10, compared with negative ₹2.27 in H1 FY26.

Management said the first-half loss reflected nil crushing and sugar production, curtailed distillery activity, fixed-cost under-absorption, feedstock unavailability for ethanol and the sale of high-cost opening inventory. It also said that higher sugar realisations narrowed the Q2 FY27 loss year on year, while the sugar segment EBITDA turned positive in Q2 FY27 and H1 FY27.

What do the balance sheet and cash flow show?

H1 FY27 operating cash flow was ₹556.95 crore, compared with ₹558.77 crore in H1 FY26. Investing cash flow was negative ₹290.27 crore against negative ₹5.54 crore, financing cash flow was negative ₹225.45 crore against negative ₹351.46 crore, and capital expenditure was ₹2.41 crore compared with ₹4.74 crore.

How has Dwarikesh Sugar Industries done over the last 8 quarters?

Revenue over the last eight quarters peaked at ₹458.85 crore in Q4 FY25 and fell to ₹245.93 crore in Q2 FY26 before recovering to ₹325.12 crore in Q3 FY26 and ₹425.43 crore in Q4 FY26. It then declined to ₹358.13 crore in Q1 FY27 and ₹256.59 crore in Q2 FY27. The latest revenue reading was below the Q4 FY25 peak but above the Q2 FY26 low.

Net profit ranged from a loss of ₹32.62 crore in Q2 FY26 to profit of ₹57.41 crore in Q4 FY26. It turned positive at ₹15.44 crore in Q3 FY26, then fell to a loss of ₹25.73 crore in Q1 FY27 and narrowed to a loss of ₹13.12 crore in Q2 FY27. EBITDA margin bottomed at negative 16.8% in Q2 FY26 and was negative 5.7% in the latest quarter, compared with a peak of 23.3% in Q4 FY25.

Which businesses drove the quarter?

The Sugar Segment reported revenue of ₹256.37 crore and EBIT of negative ₹7.58 crore in Q2 FY27, with an EBIT margin of negative 3.0%. Year-ago segment revenue and EBIT were not provided, so a growth comparison cannot be stated from the available filing data. Management said the segment’s EBITDA turned positive in Q2 FY27 and H1 FY27.

The Distillery Segment reported revenue of ₹0.22 crore and EBIT of negative ₹9.80 crore, with an EBIT margin of negative 4,542.4%. Year-ago segment revenue and EBIT were not provided. Management said feedstock unavailability and policy restrictions affected ethanol production and contributed to the distillery segment’s negative performance.

What else did the company announce?

The board adopted the unaudited financial results for Q2 FY27 and H1 FY27, together with the statement of assets and liabilities, cash flow statement and limited review report from the statutory auditors. It approved a postal ballot seeking members’ special resolution to continue Rajan K. Medhekar and Gopal B. Hosur as non-executive independent directors upon attaining 75 years of age. The 13 November 2026 cut-off date and the e-voting period from 18 November to 17 December 2026 were also approved. No dividend or fund raise was disclosed in the same-day filings.

What did Dwarikesh Sugar Industries' management say?

Management said crushing for SS 2026-27 is expected to commence on 5 November 2026 at the DN and DP units in Bijnor and on 11 November 2026 at the DD unit in Bareilly. It expects improved crushing volumes despite unseasonal rainfall, supported by crop protection and varietal development initiatives. Management also said varietal migration is progressing satisfactorily and is expected to support better crushing performance, sugar recovery and operational efficiency in coming seasons.

Management said the company will prioritise maximising sugar production while undertaking ethanol production using C-heavy molasses, in compliance with restrictions on certain feedstocks for SS 2026-27. It said the company remains committed to improving operational efficiencies, strengthening cost controls and optimising performance despite external challenges.

Management identified nil crushing, curtailed distillery operations, fixed-cost under-absorption, high-cost opening inventory and feedstock unavailability as pressures on results. It also cited unseasonal and excessive rainfall in Uttar Pradesh, which caused waterlogging, crop lodging and stunted-growth concerns, and said the crop season may fall short of earlier expectations. The presentation noted government restrictions on B-heavy molasses and sugarcane juice or syrup for ethanol production during SS 2026-27 and revised dealer stockholding limits.

How did Dwarikesh Sugar Industries shares react?

The stock initially fell after the filing, declining 2.0% after five minutes, 2.0% after 15 minutes and 3.5% after 30 minutes from the price when the results appeared. On the reaction day, it closed 4.4% above the pre-results close of ₹40.71. By the next day’s close, it was up 0.2% from that pre-results close, on a base price of ₹44.22.

How did other Sugar companies do?

Five other Sugar companies that had filed for the quarter were compared with Dwarikesh Sugar Industries, and the median revenue growth among them was 1.7% as of 4 November 2026. Three peers grew revenue more slowly than Dwarikesh Sugar Industries and two grew faster. Of the six peers for which profit was compared, six reported higher profit.