Dwarikesh Sugar's Q1 loss widens to Rs 26 crore, revenue falls 12 pc
Mumbai, July 28
Dwarikesh Sugar Industries Limited on Tuesday reported a wider consolidated net loss of Rs 25.73 crore for the quarter ended June 2026, compared with a net loss of Rs 9.38 crore in the corresponding quarter last fiscal.
The company's revenue from operations declined 11.7 per cent year-on-year to Rs 358 crore from Rs 405.5 crore in the year-ago period, according to its stock exchange filing.
It also reported an EBITDA loss of Rs 26 crore during the quarter, compared with a positive EBITDA of Rs 4 crore in the corresponding quarter of the previous financial year.
Loss before tax widened to Rs 34.38 crore in the April-June quarter from Rs 13.03 crore a year earlier, while the net loss expanded to Rs 25.73 crore from Rs 9.38 crore.
Despite the weaker financial performance, the company sold 7.50 lakh quintals of sugar during the quarter, up from 6.63 lakh quintals in the corresponding period last fiscal.
Average domestic sugar realisation improved to Rs 4,064 per quintal from Rs 3,962 per quintal a year ago.
Sugar inventory stood at 7.80 lakh quintals as of June 30, 2026, lower than 9.71 lakh quintals recorded a year earlier.
The company's distillery operations witnessed a sharp decline during the quarter as industrial alcohol production fell to 28.85 lakh litres from 214.99 lakh litres in the corresponding quarter last year.
Sales also declined to 78.17 lakh litres from 216.49 lakh litres, as per its regulatory filing.
As of June 30, 2026, Dwarikesh Sugar's outstanding long-term debt stood at Rs 83.52 crore, relating to the distillery project at its DD unit. The company said the loan carries a concessional rate of interest.
Looking ahead, the company said it remains focused on improving sugarcane availability for the upcoming crushing season.
It noted that initiatives undertaken over the past year have started delivering encouraging results through improved varietal balance and satisfactory crop development.
However, it cautioned that final cane availability will depend on weather conditions after September.
— IANS
Reader Comments
The distillery business collapse is shocking - industrial alcohol production fell from 215 lakh litres to just 29 lakh litres! That's a 86% drop. No wonder the company is bleeding. They need to sort out their operations quickly.
I invested in this stock thinking sugar prices would rise. Now looking at this loss, I'm worried. 😞 But at least they reduced their inventory from 9.71 lakh quintals to 7.80 lakh. That's one positive sign. Management needs to explain how they plan to turn this around.
Farmers in UP are getting lower prices for sugarcane. When companies suffer, it eventually impacts the growers. The government should step in with better support for the sugar sector. Otherwise, next crushing season might see reduced acreage.
EBITDA went from +4 crore to -26 crore. That's a ₹30 crore swing in just one year. The only silver lining is higher sugar sales volume (7.50 lakh qtl vs 6.63 lakh). But with such losses, even the concessional loan of ₹83.52 crore won't help much. Risky stock.
As someone from a sugar cooperative background, I can tell you the industry is cyclical. This Q1 is always weak. The company is investing in better sugarcane varieties - that's the right long-term move. Waith and watch for the next 2-3 quarters.
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