Dwarikesh Sugar Industries reported a net loss of ₹25.73 crore for the quarter ended June 30, 2026 (Q1FY27), a significant widening from the ₹9.38 crore net loss recorded in Q1FY26. The deterioration in profitability was primarily driven by lower contributions from both the sugar and ethanol segments, alongside the absence of by-product sales. Although domestic sugar realizations improved to ₹4,064 per quintal from ₹3,964 per quintal year-on-year, the benefit was offset by the sale of high-cost opening inventory produced during Sugar Season 2025-26. This inventory carried higher costs due to elevated State Advised Prices (SAP) for sugarcane, compressing margins despite steady demand.

Financial Performance Overview

Total income for the quarter stood at ₹360.07 crore, down from ₹405.97 crore in Q1FY26. EBITDA turned negative at ₹-23.76 crore, compared to a positive ₹4.43 crore in the prior year period. Finance costs decreased to ₹2.98 crore from ₹5.40 crore, but this reduction was insufficient to counteract the operational losses. Profit before tax declined to a loss of ₹34.38 crore from ₹13.03 crore. A tax benefit of ₹8.65 crore helped mitigate the final loss, resulting in an earnings per share (EPS) of ₹-1.39, compared to ₹-0.51 in Q1FY26.

Operational Highlights

Sugar sales volume increased to 7.50 lakh quintals in Q1FY27, up from 6.63 lakh quintals in Q1FY26. However, no new sugar was produced during the quarter, compared to 0.54 lakh quintals in the corresponding period last year. As of June 30, 2026, closing sugar stock stood at 7.80 lakh quintals, down from 9.71 lakh quintals a year earlier.

The ethanol segment faced significant headwinds. Industrial alcohol production dropped sharply to 28.85 lakh litres from 214.99 lakh litres in Q1FY26, while sales fell to 78.17 lakh litres from 216.49 lakh litres. Management attributed the lower ethanol profitability to under-absorption of fixed manufacturing overheads due to reduced production volumes, which increased the per-liter production cost. Additionally, lower cane crushing resulted in reduced generation of by-products like bagasse, all of which was utilized for captive power consumption, leaving no surplus for sale.

Sector Outlook and Future Prospects

The global sugar market is expected to shift from a surplus in 2025-26 to a deficit in 2026-27, with the International Sugar Organization estimating a 0.262 MMT deficit. This outlook, coupled with concerns over below-normal monsoon rainfall in India, has strengthened global sugar prices. Ex-factory sugar prices have strengthened to ₹4,200–4,300 per quintal, supported by a balanced supply-demand outlook and potential El Niño impacts on future production. The company remains focused on enhancing cane availability in the ensuing sugar season, with initiatives yielding encouraging results in varietal mix and crop development. Subject to normal weather conditions, the company expects a healthy sugarcane crop in the coming season.

Dwarikesh Sugar Industries Limited has scheduled its 32nd Annual General Meeting (AGM) for Thursday, August 6, 2026, at 12:15 p.m. at its registered office in Dwarikesh Nagar, District Bijnor, Uttar Pradesh. The meeting will consider the audited financial statements for the year ended March 31, 2026, which show a revenue of ₹1,40,194 lakhs and a net profit of ₹3,084 lakhs. The company has also sent physical letters to shareholders who have not registered their email addresses, providing the web-link to access the full Annual Report for FY 2025-26 in compliance with Regulation 36 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company's financial performance for FY 2025-26 reflected resilience amid lower sugarcane availability and adverse weather conditions. Revenue from operations increased by 3.17% to ₹1,40,194 lakhs, while Earnings After Tax (EAT) rose by 32% year-on-year to ₹3,084 lakhs. The increase in net profit was primarily due to a lower tax provision from the transition to a new tax regime. Key financial metrics are summarised below:

Operational Highlights

Sugarcane crushing volumes declined by 7.51% to 243.21 lakh quintals due to excessive rainfall and the phase-out of the Co 0238 variety. However, gross-adjusted sugar recovery improved by 44 basis points to 11.38%. Sugar production increased to 23.73 lakh quintals, aided by the absence of juice diversion to ethanol. Ethanol production reached 602.70 lakh litres across its units.

AGM Agenda and Resolutions

The AGM agenda includes the re-appointment of Shri Gautam R. Morarka as Executive Chairman for five years effective January 1, 2027, and the ratification of remuneration for cost auditors. The Board has recommended a final dividend of ₹0.10 per equity share for FY 2025-26. The record date for dividend entitlement is July 30, 2026.