Sakthi Sugars Q1 Results: Net Loss ₹18.3 Lakh, Revenue Up 25% YoY
Sakthi Sugars Ltd posted a Q1FY26 net loss of ₹18.3 lakh on revenue of ₹376.9 crore, up 25% YoY. The power segment drove profits while sugar incurred losses. The board re-appointed key directors and approved internal audit changes.

*this image is generated using AI for illustrative purposes only.
Sakthi Sugars reported a standalone net loss of ₹18.3 lakh for the first quarter of FY26 (ended June 30, 2026), widening slightly from a net loss of ₹11.0 lakh in the corresponding period of FY25. Total income stood at ₹381.4 crore, while total expenses were ₹383.8 crore. The company’s revenue from operations grew 24.6% year-on-year to ₹376.9 crore, up from ₹302.4 crore in Q1FY25.
Financial Performance
The quarterly result was influenced by divergent performance across segments. The power segment contributed significantly to profitability with a pre-tax profit of ₹220.5 crore, while the core sugar business recorded a pre-tax loss of ₹29.5 crore. Industrial alcohol operations generated a pre-tax profit of ₹13.8 crore.
| Metric | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| Revenue from Operations | ₹376.9 crore | ₹302.4 crore | +24.6% |
| Other Income | ₹4.5 crore | ₹3.5 crore | +25.8% |
| Total Expenses | ₹383.8 crore | ₹307.9 crore | +24.7% |
| Net Profit/(Loss) | ₹(18.3) lakh | ₹(11.0) lakh | Wider Loss |
| EPS (Basic) | ₹(0.15) | ₹(0.09) | - |
Finance costs remained relatively stable at ₹24.2 crore, compared to ₹25.4 crore in the previous year. The company recognized ₹66.0 lakh under other income as carrying costs related to tariff revisions for its co-generation units, following a judgment by the Appellate Tribunal for Electricity dated December 22, 2025.
What the Numbers Show
A significant divergence exists between top-line growth and bottom-line performance. While revenue expanded by nearly 25%, the company returned to a net loss position after posting a full-year net profit of ₹28.1 crore in FY25. This shift is largely attributable to the seasonal nature of the sugar industry, where the crushing season typically drives costs and inventory changes that impact quarterly profitability. The power segment’s robust contribution of ₹220.5 crore in pre-tax profit helped cushion the overall impact of the sugar segment’s losses.
Board Approvals and Corporate Actions
During its meeting on August 13, 2026, the Board of Directors approved several key appointments and re-appointments:
- Additional Director: S. Chandrasekhar was appointed as Additional Non-Executive Non-Independent Director until the next Annual General Meeting (AGM).
- Managing Directors: M. Balasubramaniam and M. Srinivaasan were re-appointed as Managing Director and Joint Managing Director, respectively, for a five-year term starting August 27, 2026. Both will serve without remuneration, subject to shareholder approval.
- Internal Audit: Smt. R. Jeysree, Manager – Costing, was appointed to head the Internal Audit Department following the retirement of Sri P. Sankararaja Pandian.
- Cost Auditors: STR & Associates was appointed as Cost Auditors for FY27.
The 64th Annual General Meeting is scheduled for September 25, 2026, to be conducted via Video Conferencing or Other Audio-Visual Means. The statutory auditors, M/s P.N. Raghavendra Rao & Co., issued a limited review report on the unaudited financial results.
Historical Stock Returns for Sakthi Sugars
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.00% | -3.28% | +2.58% | -3.55% | -25.78% | +3.01% |
How will the seasonal recovery of the sugar segment in the upcoming crushing season impact Sakthi Sugars' ability to return to net profitability in Q2FY26?
What is the sustainability of the power segment's ₹220.5 crore pre-tax profit contribution, and how might regulatory tariff revisions affect this revenue stream in FY27?
Given the widening net loss despite 24.6% revenue growth, what specific cost-control measures is management implementing to bridge the gap between top-line expansion and bottom-line performance?


































