Avadh Sugar & Energy Limited announced its unaudited financial results for Q3FY26 and nine months ended December 31, 2025, showcasing robust quarterly performance despite mixed nine-month results. The Board of Directors approved these results at their meeting held on February 5, 2026, in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Strong Q3FY26 Financial Performance

The company delivered exceptional quarterly results with significant improvements across key profitability metrics. Revenue from operations for Q3FY26 reached ₹638.15 crore compared to ₹616.80 crore in Q3FY25, marking steady revenue growth.

Nine-Month Performance Overview

While quarterly results remained strong, the nine-month performance showed mixed trends with revenue growth offset by margin pressures. The company reported revenue from operations of ₹2,022.90 crore for 9MFY26 against ₹1,956.81 crore in the corresponding previous period.

Segment-wise Performance Analysis

The company's diversified business model across sugar, distillery, and co-generation segments showed varied performance during Q3FY26. Sugar segment revenue reached ₹676.85 crore while distillery operations contributed ₹128.84 crore to total segment revenue.

Regulatory Impact and Exceptional Items

The company recognized an exceptional item of ₹2.99 crore during Q3FY26 related to the Government of India's consolidation of multiple labour legislations into four unified Labour Codes. The new framework was consolidated on November 21, 2025, with draft Central Rules issued on December 30, 2025.

Additionally, the Uttar Pradesh Electricity Regulatory Commission revised power tariffs upward with effect from April 1, 2024, resulting in differential revenue recognition of ₹98.94 crore for the period from April 1, 2024, to June 30, 2025.

Operational Infrastructure

Avadh Sugar operates an integrated business model across four strategic locations in Uttar Pradesh, maintaining strong operational capacity across its diversified revenue streams.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors, with Limited Review conducted by Statutory Auditors S.R. Batliboi & Co. LLP as required under SEBI regulations.

Avadh Sugar & Energy Ltd , a prominent player in the Indian sugar industry, has reported its financial results for the second quarter. The company's performance reflects the challenges faced by the sugar sector, with a mix of revenue growth and profitability pressures.

Financial Highlights

Avadh Sugar & Energy reported a 5.72% year-over-year increase in revenue from operations, reaching 668.15 crore rupees. However, the company's profitability metrics showed a significant decline:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 46.73% to 17.90 crore rupees.
• EBITDA margin contracted sharply from 5.32% to 2.68%.
• The company reported a net loss of 6.60 crore rupees, compared to a profit of 8.30 crore rupees in the same quarter last year.

Segment Performance

The company's performance varied across its business segments:

• Sugar Segment: Reported a loss of 7.49 crore rupees, down from a profit of 6.62 crore rupees in Q2 FY2025.
• Distillery Segment: Remained profitable with earnings of 11.94 crore rupees, although lower than the 20.40 crore rupees reported in the previous year's quarter.
• Co-generation Segment: Showed improvement with a profit of 2.84 crore rupees, compared to a loss of 4.67 crore rupees in Q2 FY2025.

Balance Sheet and Cash Flow

As of September 30, 2025, Avadh Sugar & Energy's balance sheet showed:

• Total assets of 1,815.41 crore rupees
• Total equity of 1,059.94 crore rupees
• Current borrowings reduced to 278.70 crore rupees from 1,073.43 crore rupees at the end of the previous fiscal year

The company's cash flow statement for the six months ended September 30, 2025, indicated:

• Net cash generated from operating activities: 915.77 crore rupees
• Net cash used in investing activities: 74.60 crore rupees
• Net cash used in financing activities: 842.62 crore rupees

Regulatory Update

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has revised the power tariff upwards with effect from April 1, 2024. As a result, Avadh Sugar & Energy recognized a differential revenue of 9.89 crore rupees for the period from April 1, 2024, to June 30, 2025, in the current quarter.

The sugar industry often experiences seasonal variations, with crushing typically occurring between November and May, while sales are distributed throughout the year. Investors and analysts will be watching closely to see how Avadh Sugar & Energy navigates the challenges in the sugar industry and works towards improving its profitability in the coming quarters.