Dhampur Sugar Mills has announced its financial results for the second quarter ended September 30, 2025, showing improved performance despite posting a net loss. The company demonstrated resilience in challenging market conditions while pursuing strategic growth initiatives.

Financial Performance Overview

The company's consolidated financial results for Q2 FY26 reflect a mixed performance with significant improvements in key metrics:

Segment-wise Performance

Dhampur Sugar Mills operates across multiple business segments, each contributing differently to the overall performance:

The potable spirits and ethanol segments showed particularly strong growth, reflecting the company's diversification strategy beyond traditional sugar operations.

Strategic Acquisition Initiative

In a significant corporate development, Dhampur Sugar Mills executed a Share Purchase Agreement on October 28, 2025, to acquire 51% stake in Venus India Asset-Finance Private Limited. The acquisition involves purchasing 4,72,87,537 equity shares from Venus India Structured Finance Master Limited, subject to regulatory approvals from the Reserve Bank of India and completion of specified conditions.

Financial Position and Liquidity

The company's balance sheet shows substantial changes from the previous year:

Commercial Paper and Credit Rating

Dhampur Sugar Mills maintains commercial paper listings on the Bombay Stock Exchange with an IND A1+ credit rating. As of September 30, 2025, the company had ₹200 crores outstanding in commercial papers, with repayment schedules of ₹100 crores each on October 10 and October 13, 2025.

Industry Context and Outlook

The sugar industry continues to face seasonal challenges, with the company noting that quarterly performance may not represent annual results due to the seasonal nature of sugar operations. The UP Government's redetermination of lower levy molasses obligation for 2024-25 positively impacted results by ₹1.72 crores during the quarter.

Despite posting losses, the company's revenue growth across multiple segments and strategic acquisition plans indicate management's focus on diversification and long-term value creation in the challenging sugar industry environment.

Dhampur Sugar Mills is currently undergoing income tax search operations at its offices and production sites. The company has stated that it is providing full cooperation to the authorities during the search process.

Details of the Search Operation

According to a regulatory filing by the company, the Income Tax Department conducted a search under the Income Tax Act, 1961 at Dhampur Sugar Mills' corporate office and manufacturing units. The company has emphasized its full cooperation with the officials during the proceedings.

Company's Response

In response to the search operations, Dhampur Sugar Mills has:

• Offered clarifications and details sought by the tax officials
• Committed to providing any further clarification or information that may be required
• Assured compliance with legal obligations for disclosure from time to time

Regulatory Compliance

The company has duly informed the stock exchanges about the ongoing search operations, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Impact on Operations

While the search operations are ongoing, there is no information available regarding any potential impact on the company's day-to-day operations or financial standing. Investors and stakeholders are advised to monitor further updates from the company for any material developments.

As the situation unfolds, Dhampur Sugar Mills is expected to provide additional information through appropriate channels, maintaining transparency with its shareholders and the market regulators.