EID Parry , a leading player in the sugar industry, reported mixed results for the second quarter, reflecting the challenges faced by the sector. The company's performance was marked by flat sugar segment revenue and a significant decline in consumer products, while navigating industry-wide headwinds.

Sugar Segment Performance

The sugar segment revenue remained flat at INR 368.00 crores compared to the corresponding quarter of the previous year. The company crushed 3.66 lakh metric tons (LMT) of sugarcane, down from 5.62 LMT in the same period last year. However, the recovery rate improved to 7.97% from 7.60% year-over-year.

Consumer Products Face Headwinds

The Consumer Products Group experienced a substantial 30% decline in turnover, dropping to INR 169.00 crores from INR 236.00 crores in the previous year. This decrease was primarily attributed to:

1. Restrictions on release quota in the sweetener category
2. Lower realizations
3. Significant fall in market prices of pulses

Ethanol and Distillery Operations

Despite industry challenges, EID Parry maintained strong performance in its distillery operations:

• Total alcohol sales: 409 lakh litres (170 lakh litres ENA, 233 lakh litres ethanol)
• Improved price realization: INR 67.50 per litre (up from INR 64.45 per litre)
• Revenue: INR 292.00 crores (up from INR 281.00 crores)

Industry Challenges and Government Policies

The company highlighted several challenges facing the sugar industry:

1. Expected 8 MMT sugar closing stocks for Sugar Year
2. Reduced ethanol allocations, with a shift towards grain-based feedstock
3. Additional INR 50.00 per metric ton cane price burden in Karnataka

Future Outlook and Strategies

EID Parry outlined several strategies to navigate the current market conditions:

1. Consumer Products:

   • Channel consolidation and strengthening commercial terms
   • Focus on more value-added products
   • Exploring new product categories, including convenience foods and snacking

2. Ethanol Production:

   • Maintaining capacity utilization at around 90%
   • No immediate plans for capacity expansion due to industry overcapacity

3. Sugar Operations:

   • Actively representing industry concerns to policymakers
   • Seeking revision of Minimum Support Price (MSP) and increased blend percentage for ethanol

Financial Highlights

Muthiah Murugappan, Whole Time Director & CEO, commented on the results: "We are navigating through a challenging period for the sugar industry. While our sugar segment remains stable, we are focusing on strengthening our consumer products business and optimizing our ethanol operations. We continue to engage with policymakers to address industry concerns and look forward to a more supportive policy environment."

As EID Parry adapts to the evolving market dynamics, the company remains committed to its growth strategy in the consumer products segment while maintaining its strong position in the sugar and ethanol markets.

EID Parry , one of India's largest sugar manufacturers, has reported a robust financial performance for the second quarter of fiscal year 2026, with a significant increase in net profit and revenue.

Key Financial Highlights

Performance Analysis

EID Parry demonstrated strong growth across key financial metrics in Q2 FY2026. The company's net profit saw a substantial increase of 39%, rising to ₹424.41 crore from ₹305.63 crore in the corresponding quarter of the previous year. This growth is particularly impressive given the challenging market conditions.

Revenue from operations also showed significant improvement, reaching ₹8,723.70 crore, a 29.30% increase compared to ₹6,746.80 crore in Q2 FY2025. This growth in revenue indicates strong demand for the company's products and effective sales strategies.

The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) saw a remarkable growth of 69.54%, reaching ₹895.00 crore. This substantial increase in EBITDA suggests improved operational efficiency and cost management.

Operating profit for the quarter stood at ₹805.30 crore, representing a significant 72.18% year-over-year growth. This increase in operating profit underscores the company's ability to manage its core operations effectively and generate higher returns from its primary business activities.

Segment Performance

While specific segment-wise data was not provided, the overall financial performance indicates strong growth across the company's business segments, which include sugar manufacturing, distillery operations, and nutraceuticals.

Management Commentary

Muthiah Murugappan, Whole-time Director and Chief Executive Officer of EID Parry, commented on the results, stating, "Our Q2 performance reflects the company's resilience and strategic focus. The significant growth in revenue and profitability is a result of our efforts to optimize operations, manage costs effectively, and capitalize on market opportunities. We remain committed to delivering value to our shareholders and maintaining our position as a leader in the sugar industry."

Outlook

The company's strong Q2 performance positions it well for the remainder of FY2026. With continued focus on operational efficiency and strategic growth initiatives, EID Parry aims to sustain its positive momentum in the coming quarters.

As one of the largest sugar manufacturers in India, EID Parry's robust financial results may also be indicative of positive trends in the broader sugar industry, potentially reflecting favorable market conditions and demand patterns.

Investors and industry observers will be keen to see if the company can maintain this growth trajectory in the face of evolving market dynamics and potential challenges in the agricultural sector.