Ponni Sugars (Erode) declares ₹5 dividend as PAT surges to ₹48 crore
Ponni Sugars (Erode) Limited declared a dividend of ₹5 per equity share for FY26 at its 30th AGM. The company reported a record PAT of ₹48 crore, supported by a 15.63% rise in total revenue to ₹429 crore and exceptional income of ₹51.50 crore from an APTEL judgment on tariff arrears. Shareholders approved the reappointment of Mr N Gopala Ratnam as Director and fixed the cost auditor's remuneration at ₹2,00,000 plus GST.
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Ponni Sugars (Erode) Limited declared a dividend of ₹5 per equity share for the financial year 2025-26 at its 30th Annual General Meeting held on June 24, 2026. The company reported a record profit after tax of ₹48 crore for the year, a significant increase driven by exceptional income of ₹51.50 crore from the resolution of a long-standing electricity tariff dispute. Shareholders approved the adoption of the audited financial statements for the year ended March 31, 2026, alongside the reappointment of Mr N Gopala Ratnam as Director.
The meeting, conducted via video conference, was attended by 61 shareholders representing 47.56% of the total equity shares. The Chairman, Mr N Gopala Ratnam, highlighted that the company achieved a stellar turnaround in operational performance, with sugar recovery reaching 9.79% and power exports hitting a summit. The financial results received a substantial boost from the Appellate Tribunal for Electricity (APTEL) judgment regarding tariff arrears.
Financial Performance
The company’s total revenue for FY26 rose to ₹429 crore from ₹371 crore in the previous year, marking a 15.63% growth. Profit before tax surged to ₹90 crore, while profit after tax stood at ₹48 crore. The sugar segment reported a total revenue of ₹31,928 lakh, while the cogeneration segment contributed ₹9,571 lakh.
| Financial Metric | FY 2026 (₹ Crore) | FY 2025 (₹ Crore) | Variance % |
|---|---|---|---|
| Total Revenue | 429 | 371 | 15.63 |
| PBIDT | 39 | 28 | 39.29 |
| PBT | 90 | 28 | 221.43 |
| PAT | 48 | 19 | 152.63 |
Resolutions Passed
Shareholders passed five resolutions with the requisite majority. In addition to the financial statements and dividend, the meeting approved the reappointment of Mr N Gopala Ratnam as Director by a special resolution. An ordinary resolution was passed to pay commission to non-executive directors, not exceeding 1% of net profits annually for three years from April 1, 2026. The remuneration for the cost auditor, M/s S Mahadevan & Co, for FY 2026-27 was fixed at ₹2,00,000 plus GST and expenses.
Operational Highlights
Operational metrics showed strong improvement during the year. The company crushed 7,05,576 tonnes of cane, achieving a sugar recovery rate of 9.79%. The average sugar price realized was ₹4,051 per quintal, while the average cane cost was ₹3,916 per tonne. Exceptional items for the year totaled ₹51.50 crore, primarily comprising tariff income and related adjustments.
| Operational Metric | Value |
|---|---|
| Cane Crushed (tonnes) | 7,05,576 |
| Sugar Recovery (%) | 9.79 |
| Total Income (₹ Lakhs) | 42,946 |
| PBIDT (₹ Lakhs) | 5,021 |
| PBT After Exceptional Items (₹ Lakhs) | 9,025 |
Historical Stock Returns for Ponni Sugars Erode
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.50% | +1.78% | -2.98% | +20.16% | -5.48% | -4.27% |
How does Ponni Sugars plan to sustain profitability in FY27 without the exceptional income from the electricity tariff dispute?
What strategic investments will be made to further improve the sugar recovery rate beyond the current 9.79%?
Will the company maintain the current dividend payout ratio given the one-time nature of this year's profit surge?
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