Uttam Sugar Mills will pay its final dividend for FY26 on or before October 17, 2026. The Board of Directors recommended a payout of ₹2.50 per equity share, subject to shareholder approval at the upcoming Annual General Meeting.

Dividend Timeline and Eligibility

The company holds its 31st Annual General Meeting on September 18, 2026. Shareholders whose names appear in the register as of the record date, September 11, 2026, are eligible for the dividend.

Key dates for the dividend process include:

The Board approved the 25% final dividend on May 15, 2026. The payout is contingent upon approval by shareholders at the AGM. Once declared, the company will distribute dividends via Reserve Bank-approved electronic modes within 30 days.

Tax Deduction at Source (TDS) Guidelines

Dividend income is taxable under the Income Tax Act, 2025. Uttam Sugar Mills will deduct tax at source (TDS) at prescribed rates during payment. Shareholders must submit necessary tax documents by September 11, 2026, to avail applicable exemptions or lower rates.

Resident Shareholders

For resident individuals with a valid PAN, TDS is deducted at 10%. If PAN is not linked with Aadhaar or is invalid, the rate rises to 20%. No tax is deducted if:

• Total dividend received in Tax Year 2026-27 does not exceed ₹10,000.
• The shareholder submits Form 121 meeting all eligibility conditions.
• An exemption certificate is issued by the Income-tax Department.

Other resident entities, such as insurance companies, mutual funds, and AIFs, may claim nil TDS by providing specific self-declarations and registration certificates.

Non-Resident Shareholders

Non-resident shareholders face a withholding tax of 20% plus applicable surcharge and cess under domestic law. However, they can opt for beneficial rates under Double Tax Avoidance Agreements (DTAA). To claim DTAA benefits, shareholders must submit:

• Self-attested PAN card.
• Valid Tax Residency Certificate (TRC).
• Form 41 filed online.
• Self-declaration of treaty eligibility and beneficial ownership.

Foreign Portfolio Investors must also provide SEBI registration certificates. The company reserves the right to reject incomplete documentation.

Action Required from Shareholders

Shareholders must ensure their bank account details are updated with Depository Participants or the RTA to facilitate electronic dividend credit. Physical mode holders should update email addresses with the company or RTA to receive communications.

Documents such as Form 121 and Form 41 must be uploaded via the RTA portal by September 11, 2026. Any submissions received after this date will not be considered. Failure to link PAN with Aadhaar will result in higher TDS deductions.

Uttam Sugar Mills Ltd reported a steep decline in profitability for the quarter ended June 30, 2026 (Q1FY27), driven by lower operational volumes and compressing margins. Standalone net profit after tax (PAT) fell 94.67% year-on-year to ₹0.85 crore, compared to ₹15.96 crore in the corresponding quarter of FY26. Consolidated PAT also dropped 91.05% to ₹1.30 crore from ₹14.53 crore. The results reflect the seasonal nature of the sugar business, with minimal cane crushing activity in the first quarter offsetting strong performance in the ethanol and branded sugar divisions.

The company’s total revenue from operations declined 2.83% to ₹588.46 crore on a standalone basis, down from ₹605.57 crore in Q1FY26. Consolidated revenue also decreased to ₹607.65 crore from ₹629.96 crore. EBITDA contracted sharply by 51.11% to ₹25.23 crore (standalone), causing the EBITDA margin to halve to 4.29% from 8.52% in the prior year period. Profit before tax (PBT) plummeted 94.96% to ₹1.07 crore, underscoring the impact of fixed costs on reduced operating leverage.

Operational Performance

Sugar production volumes were minimal during the quarter, recording only 0.60 lakh quintals against 2.90 lakh quintals in Q1FY26. However, sugar sales remained robust at 10.09 lakh quintals, supported by inventory drawdowns. Average sugar realisation improved to ₹4,192 per quintal from ₹4,074 per quintal, indicating stable pricing despite lower fresh production. Inventory levels stood at 9.95 lakh quintals, down from 17.67 lakh quintals in the previous year.

In the ethanol segment, distillery production was 223.95 lakh litres, down from 260.63 lakh litres in Q1FY26. Distillery sales totaled 262.09 lakh litres, with realisation rising to ₹57.21 per litre from ₹55.43 per litre. Power exports were negligible at 5.10 lakh KWH, compared to 97.79 lakh KWH in the prior year, consistent with seasonal power generation patterns.

What the Numbers Show

The divergence between declining revenue and sharply higher interest expenses relative to profit highlights the pressure on margins during low-volume quarters. While interest costs decreased slightly to ₹12.40 crore from ₹18.96 crore, they consumed nearly all of the EBITDA, leaving a thin PBT margin of just 0.18%. This suggests that fixed financial obligations remain a significant drag on profitability when operational throughput is low. The growth in branded specialty sales, which have tripled over six years, provides a counterbalance but remains a smaller contributor to overall top-line stability.

Financial Position

Depreciation charges increased marginally to ₹11.76 crore from ₹11.40 crore. Total comprehensive income stood at ₹1.20 crore (standalone). The company maintains a promoter holding of 74.71%, with public holding at 25.29%. Uttam Sugar operates four sugar units with a total crushing capacity of 27,000 TCD and distillery capacity of 350 KLPD, positioning it for recovery as the new crushing season begins.