Uttam Sugar Mills submits FY26 sustainability report to exchanges

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Reviewed by
Riya DScanX News Team
Key Highlights
  • Uttam Sugar Mills filed its FY26 BRSR report with stock exchanges on August 24, 2026
  • Total energy consumption fell to 606,943.86 GJ, fully sourced from renewables
  • Groundwater withdrawal rose 18% YoY to 463,954 kilolitres despite zero-extraction claims for sugar units
  • Permanent employee turnover rate dropped to 6.66% from 8.17% in the prior year
  • No regulatory fines or penalties were recorded during the financial year
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Uttam Sugar Mills filed its Business Responsibility and Sustainability Report (BRSR) for FY26 with the National Stock Exchange of India Ltd and BSE Limited on August 24, 2026. The disclosure covers environmental performance, employee welfare, and governance metrics.

The company operates four plants across Uttar Pradesh and Uttarakhand. Its business activities account for 73.92% turnover from sugar production, 23.36% from distillery and allied products, and 2.72% from power generation. Exports contributed nil percentage to total turnover during the period.

Environmental Performance

Uttam Sugar Mills reported total energy consumption of 606,943.86 GJ in FY26, down from 704,377.49 GJ in FY25. All energy was sourced from renewable sources, primarily bagasse and slop. Total water withdrawal increased to 463,954 kilolitres from 393,528 kilolitres in the prior year, entirely sourced from groundwater.

The company implemented Zero Liquid Discharge (ZLD) processes at all distilleries. Total waste generated fell to 803.40 metric tonnes from 1,031.43 metric tonnes in FY25. Of this, 364 metric tonnes were recycled.

Metric FY26 FY25
Total Energy Consumption (GJ) 606,943.86 704,377.49
Water Withdrawal (kilolitres) 463,954.00 393,528.00
Total Waste Generated (tonnes) 803.40 1,031.43

Social Metrics

As of March 31, 2026, the company employed 504 permanent employees and 2,693 workers. Female representation among permanent employees stood at 2.38%. The permanent employee turnover rate declined to 6.66% in FY26 from 8.17% in FY25. Training coverage reached 88.31% of employees and 82.45% of workers.

Governance and Compliance

The report highlights no monetary or non-monetary penalties paid to regulators during FY26. Related-party purchases constituted 2.19% of total purchases, up from 0.25% in FY25. Sales to related parties were 0.64% of total sales. The company maintains a Code of Conduct and Whistle Blower Policy but does not have a dedicated anti-corruption policy or ESG committee.

What the Numbers Show

A notable divergence exists between water withdrawal trends and operational claims. While the company states it operates with "zero ground water extraction" at sugar units, total groundwater withdrawal rose by approximately 18% year-on-year to 463,954 kilolitres. This suggests increased reliance on groundwater sources, potentially linked to distillery operations or other non-sugar manufacturing processes not covered by the zero-extraction claim.

Historical Stock Returns for Uttam Sugar Mills

1 Day5 Days1 Month6 Months1 Year5 Years
-2.32%-12.82%-5.14%+31.19%-5.40%+30.85%

How will the 18% year-on-year increase in groundwater withdrawal impact Uttam Sugar Mills' regulatory compliance and long-term sustainability ratings, given the discrepancy with their 'zero groundwater extraction' claims for sugar units?

What specific strategies is the company planning to implement to address the low female representation (2.38%) among permanent employees and improve gender diversity in the coming fiscal years?

Given the absence of a dedicated ESG committee and anti-corruption policy, does management intend to establish these governance structures to meet evolving SEBI BRSR disclosure requirements?

Uttam Sugar Mills Q1 Results: Net profit drops 95% YoY to ₹0.85 crore

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Reviewed by
Naman SScanX News Team
Key Highlights

Uttam Sugar Mills Ltd saw standalone PAT crash 94.67% YoY to ₹0.85 crore in Q1FY27 due to low sugar production and halved EBITDA margins. Revenue fell 2.83% to ₹588.46 crore, while ethanol realisations rose to ₹57.21/litre. The company maintains 74.71% promoter holding.

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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.

Metric Q1FY27 Q1FY26 Change
Sugar Production (Lakh Qtls) 0.60 2.90 -79.31%
Sugar Sales (Lakh Qtls) 10.09 10.60 -4.81%
Realisation (₹/Qtl) 4192 4074 +2.89%

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.

Historical Stock Returns for Uttam Sugar Mills

1 Day5 Days1 Month6 Months1 Year5 Years
-2.32%-12.82%-5.14%+31.19%-5.40%+30.85%

How will the upcoming crushing season's cane supply and government policy changes impact Uttam Sugar's recovery trajectory in Q2FY27?

What specific strategies is management implementing to mitigate the drag of high fixed interest costs during low-volume seasonal quarters?

Can the ethanol division sustain its margin expansion given the recent dip in production volumes and potential shifts in government procurement policies?

More News on Uttam Sugar Mills

1 Year Returns:-5.40%