Dalmia Bharat Sugar & Industries reported a broad-based decline in its audited financial results for the quarter and full year ended March 31, 2026, with the Board of Directors approving the results at its meeting held on May 05, 2026. For the full year (12M'26), total income from operations stood at Rs. 3,712 Cr, down 2% year-on-year from Rs. 3,786 Cr, while profit after tax (PAT) fell sharply by 35% to Rs. 236 Cr from Rs. 366 Cr in the previous year. The statutory auditors issued an audit report with an unmodified opinion on both standalone and consolidated financial results. The company noted that its performance was driven by operational efficiencies and improved sugar realisations, even as cane pricing and cane availability posed challenges during the year.

Q4'26 Financial Performance

For the fourth quarter (Q4'26), total income from operations came in at Rs. 1,025 Cr, a decline of 1% year-on-year. Operating EBITDA for the quarter fell 13% to Rs. 171 Cr from Rs. 197 Cr in Q4'25, with the EBITDA margin contracting to 17.26% from 19.16% in the year-ago period. PAT for Q4'26 declined steeply by 48% to Rs. 104 Cr compared to Rs. 199 Cr in Q4'25, while earnings per share (EPS, not annualised) fell to Rs. 12.79 from Rs. 24.55.

The following table provides a consolidated view of key financial metrics for both Q4 and the full year:

Segment Performance

Sugar Segment

The sugar segment saw mixed trends during the period. For Q4'26, sugar sales volume stood at 1.5 Lakh MT, up 2% year-on-year, while the average realization (including exports) improved marginally to Rs. 39.4/kg from Rs. 38.9/kg. However, gross revenue for the quarter rose 2% to Rs. 893 Cr, and EBIT declined 14% to Rs. 132 Cr. For the full year, sugar sales volume fell 8% to 5.5 Lakh MT, though the company achieved an all-time high average sugar NSR of Rs. 39.7/kg, up 4.5% year-on-year. Sugar inventory as on March 31, 2026 stood at 3.7 Lakh MT, valued at Rs. 36.7/kg.

Distillery Segment

The distillery segment delivered a stronger performance on profitability metrics despite a volume dip in Q4. Distillery sales volume for Q4'26 stood at 4.7 Cr litres, down 4% year-on-year, while gross revenue fell 9% to Rs. 312 Cr. However, EBIT for the segment surged 49% to Rs. 32 Cr from Rs. 21 Cr in Q4'25. For the full year, distillery volume grew 3% to 18.7 Cr litres, with gross revenue rising 1% to Rs. 1,214 Cr and EBIT jumping 40% to Rs. 97 Cr from Rs. 70 Cr.

Management Appointments

At the same Board meeting, two key management decisions were approved. The Board approved the re-appointment of Shri Gautam Dalmia (DIN: 00009758) as Managing Director of the company, effective January 16, 2027, for a period of five years, subject to shareholder approval at the ensuing Annual General Meeting. Shri Gautam Dalmia holds B.S. and M.S. degrees in Electrical Engineering from Columbia University and has approximately 33 years of experience in the cement and sugar industries, having been part of the team that led the diversification of the sugar business in the company.

Additionally, the Board approved the appointment of Shri Rangaprasad S. as Unit Head, Nigohi Unit, Uttar Pradesh, in the category of Senior Management Personnel, effective May 05, 2026. Shri Rangaprasad S. brings over 40 years of experience with leading brands in India, having previously served in senior roles at Sri Gurudatt Sugars, NSL Sugars Limited, EID Parry India Limited, and Shree Renuka Sugars Limited, among others.

Dividend and Outlook

The board has recommended a final dividend of Rs. 1.50 per share (face value Rs. 2 per share) for FY 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. On the outlook front, the industry has been seeking an increase in the Minimum Support Price (MSP) of sugar, which the company believes would substantially improve sector economics and help mitigate ongoing margin pressures. Additionally, geopolitical tensions in the Middle East may continue to disrupt crude supply, potentially supporting a stronger push for ethanol blending beyond 20%, with 25% cited as a medium-term possibility — a development that could provide upside to ethanol prices, subject to policy support.

Dalmia Bharat Sugar and Industries Limited has filed an e-appeal against an Income Tax assessment order for Assessment Year 2023-24, challenging disallowances and additions amounting to Rs. 42.54 Crore. The company disclosed this development to stock exchanges under Regulation 30 of SEBI Listing Regulations on April 23, 2026.

Assessment Order Details

The company received the assessment order on March 26, 2026, issued under Section 143(3) read with Sections 144C(3) and 144B of the Income Tax Act, 1961. After examining the order and consulting with tax and legal experts, Dalmia Bharat Sugar filed the e-appeal on April 22, 2026, before the National Faceless Appeal Centre, Commissioner of Income Tax.

Disputed Amount Breakdown

The appeal challenges specific disallowances and additions made by the Income Tax Department:

Appeal Process and Expectations

The e-appeal has been filed with the Commissioner of Income Tax (Appeals) against the National Faceless Assessment Center, Income Tax Department. The company has expressed confidence in receiving relief from the appellate authority, indicating strong grounds for challenging the assessment order.

Regulatory Compliance

Dalmia Bharat Sugar has fulfilled its disclosure obligations under Regulation 30 read with Schedule III of SEBI Listing Regulations. The company has committed to updating stock exchanges regarding any material developments in the appeal proceedings as they unfold.

The disclosure was signed by Rachna Goria, Company Secretary and Compliance Officer (FCS 6741), ensuring proper corporate governance protocols were followed in communicating this significant tax matter to stakeholders.