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Dalmia Bharat Sugar & Industries Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤5th Feb 26

Summary : Dalmia Bharat Sugar approved new bio-energy and cost-saving projects, declared interim dividend, and reported Q3 FY26 financial results.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expenses Q3 FY26: ₹633.54 Crore.
  2. Consolidated Total Expenses 9M FY26: ₹2509.88 Crore.
  3. Key expenses include cost of materials, change in inventories, employee benefits, finance cost, depreciation, and other expenditure.
  4. Consolidated Revenue from Operations Q3 FY26: ₹697.75 Crore.
  5. Consolidated Revenue from Operations 9M FY26: ₹2627.35 Crore.
  6. Segment Revenue Q3 FY26: Sugar ₹546.15 Cr, Distillery ₹323.88 Cr, Others ₹1.21 Cr.
  7. Segment Revenue 9M FY26: Sugar ₹2056.19 Cr, Distillery ₹901.98 Cr, Others ₹5.97 Cr.
  8. Consolidated Total Segment Assets Q3 FY26: ₹5005.94 Crore.
  9. Consolidated Total Segment Liabilities Q3 FY26: ₹1749.60 Crore.
  10. Both standalone and consolidated financial results are presented.
  11. Consolidated results include Dalmia Bharat Sugar and Industries Limited and its subsidiaries (Eagle Agrotech Holdings Limited, Eagle Agrotech Tanzatia Limited).

Corporate Overview

  1. Primarily India (Mumbai, New Delhi, Tiruchirapalli, Ramgarh District Sitapur).
  2. Foreign subsidiaries: Eagle Agrotech Holdings Limited, Eagle Agrotech Tanzatia Limited.
  3. Assessing financial impact of new Labour Codes.
  4. Seasonal nature of the industry affecting quarterly results.
  5. Sugarcane prices (State Advised Price - SAP, Fair and Remunerative Price - FRP).
  6. Government regulations, including new Labour Codes.
  7. Sugar manufacturing and distillery operations.
  8. Expanding into bio-energy production (Compressed Bio-Gas).
  9. Factual and focused on reporting board decisions and financial performance.
  10. Sugar
  11. Distillery
  12. Others
  13. Approved 13 TPD Compressed Bio-Gas (CBG) project at Kolhapur Distillery.
  14. Converted 100 KLPD molasses-based distillery to grain-based distillery.
  15. Approved ₹58 Crore capital expenditure for 13 TPD CBG project at Kolhapur Distillery.
  16. Approved ₹49 Crore capital expenditure for Steam Saving Project at Jawaharpur Unit.
  17. Conversion of 100 KLPD molasses-based distillery to grain-based distillery post-acquisition.

Risk Factors

  1. New labor codes impact.
  2. Sugarcane price fluctuations.
  3. Seasonal industry nature.
  4. Unaudited foreign subsidiary results.

Key Drivers

  1. Approved new bio-gas project.
  2. Declared interim dividend of Rs. 4.50.
  3. Approved steam saving project.
  4. Converted molasses to grain distillery.

Auditor’s Report

  1. Unmodified review conclusion for unaudited consolidated and standalone interim financial results.
  2. Unaudited interim financial results of two foreign subsidiaries included in consolidated statement.

Board Commentary

  1. Interim dividend of Rs. 4.50 per equity share (225%) declared for FY 2025-26.
  2. Impact of new Labour Codes on employee benefits.
  3. Changes in sugarcane pricing (SAP/FRP) by government.
  4. Assessment of financial impact from new Labour Codes (Wages, Industrial Relations, Social Security, Occupational Safety).
  5. Approved ₹58 Crore for CBG project at Kolhapur Distillery.
  6. Approved ₹49 Crore for Steam Saving Project at Jawaharpur Unit.

Corporate Governance

  1. Audit Committee recommended financial results to the Board.

Management Discussion & Analysis

Future Strategy

  1. Investing in Compressed Bio-Gas production from spent wash.
  2. Implementing steam saving projects for operational efficiency.
  3. Expanding distillery capacity and converting to grain-based operations.

Industry Overview

  1. Impacted by increase in State Advised Price (SAP) and Fair and Remunerative Price (FRP) for sugarcane.
  2. Industry is seasonal, affecting quarterly profitability.

Operational Focus Areas

  1. Enhancing energy efficiency through steam saving.
  2. Utilizing by-products for bio-energy generation.

Performance Drivers

  1. Strategic capital investments in bio-energy and cost-saving projects.
  2. Acquisition and operationalization of new distillery capacity.

Risk Control Measures

  1. Company is evaluating impact of new Labour Codes.
  2. Diversification into distillery and bio-energy segments.

Critical Risks

  1. Uncertainty regarding full financial impact of new Labour Codes.
  2. Fluctuations in sugarcane procurement prices (SAP/FRP).
  3. Seasonal nature of the sugar industry.