Dalmia Bharat Sugar & Industries Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, under Regulation 30 of SEBI Listing Regulations. The company demonstrated strong operational efficiency with significant EBITDA margin expansion and robust profit growth despite revenue challenges. The Board also approved an interim dividend of ₹4.50 per equity share and major capital expenditure projects totaling ₹107 crore.

Financial Performance Overview

The company delivered impressive profitability metrics for Q3FY26, showcasing operational excellence despite seasonal revenue pressures. The significant margin expansion reflects improved cost management and operational efficiency.

Board Meeting Outcomes

The Board of Directors meeting held on February 05, 2026, approved several key decisions under Regulation 30 and 33 of SEBI Listing Regulations. The unaudited financial results were prepared on standalone and consolidated basis as recommended by the Audit Committee.

Nine Months Performance

For the nine months ended December 31, 2025, the company showed stable revenue performance but faced challenges in maintaining profit levels compared to the previous year.

Segment-wise Performance

The company operates across sugar and distillery segments, with both showing mixed performance during the quarter.

Sugar Segment Performance:

Distillery Segment Performance:

Capital Expenditure Approvals

The Board approved two major capital expenditure projects totaling ₹107 crore to enhance operational efficiency and sustainability.

Compressed Bio-Gas (CBG) Project:

Steam Saving Project:

Recent Developments

The company has made significant operational improvements including the commencement of commercial operations at its 100 KLPD grain-based distillery on December 27, 2025. This facility was converted from the Baghauli Sugar and Distillery Limited acquisition, increasing total distillery capacity from 850 KLPD to 950 KLPD. Additionally, Eagle Agrotech Holdings Limited became a subsidiary on December 18, 2025, following a 51% stake acquisition. The company also received sugar export quota allocation of 5.286% of its 3-year average production under the government's 15 LMT export quota announcement.

Dalmia Bharat Sugar & Industries has received a significant boost to its short-term borrowing capabilities with ICRA Limited reaffirming its top-tier credit rating while doubling the commercial paper program amount. On December 12, 2025, ICRA reaffirmed the [ICRA]A1+ rating for the company's commercial paper program, enhancing the amount from ₹500.00 crore to ₹1000.00 crore.

Rating Enhancement Details

The rating action demonstrates ICRA's continued confidence in the company's financial strength:

ICRA's Rationale for Rating Reaffirmation

ICRA's rating reaffirmation takes into account several key strengths of Dalmia Bharat Sugar and Industries Limited. The rating agency highlighted the company's operationally-efficient sugar mill operations with healthy gross recovery rates reported over the years. This performance has been aided by high-yielding cane in the varietal mix and comprehensive cane developmental activities undertaken by the company.

Operational Strengths and Diversification

The company operates with a crushing capacity of 43,200.00 tonnes of cane per day (TCD) across Uttar Pradesh and Maharashtra, providing buffer against agro-climatic fluctuations. ICRA noted the scale-up in distillery operations over the past two years, coupled with cogeneration that provides alternative revenue streams and acts as a cushion against the cyclicality of the sugar business.

Financial Performance Metrics

The rating agency emphasized the company's strong financial profile with comfortable debt coverage metrics:

Capacity Expansion and Future Outlook

Dalmia Bharat Sugar is enhancing its distillery capacity to 950.00 KLPD from the current 850.00 KLPD, with completion expected in the current fiscal. The company also operates a co-generation capacity of 138.00 MW. ICRA expects sucrose diversion towards B-heavy molasses/juice-based ethanol and the resultant lower sugar inventory, along with the likely capacity expansion of the grain-based distillery, to keep leverage low.

Liquidity Position

ICRA assessed the company's liquidity position as strong, with cash and bank balance of around ₹662.98 crore and liquid investments of ₹328.45 crore as of September 30, 2025. The agency expects the company to comfortably meet its debt repayment obligations in the medium term with healthy cash flows from operations.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to transparency in financial dealings. This rating enhancement provides Dalmia Bharat Sugar with greater financial flexibility and access to competitive short-term funding options.