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Dhampur Sugar Mills Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤2nd Feb 26

Summary : Dhampur Sugar Mills reported positive Q3 and 9M results, driven by lower molasses obligation, with stable credit ratings and an unmodified audit opinion.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed: ₹829.50 Cr (9M Dec 2025 Consolidated)
  2. Purchases of stock-in-trade: ₹9.77 Cr (9M Dec 2025 Consolidated)
  3. Changes in inventories: ₹350.34 Cr (9M Dec 2025 Consolidated)
  4. Excise duty on sales: ₹643.43 Cr (9M Dec 2025 Consolidated)
  5. Employees benefits expense: ₹63.37 Cr (9M Dec 2025 Consolidated)
  6. Finance costs: ₹34.59 Cr (9M Dec 2025 Consolidated)
  7. Depreciation and Amortisation expense: ₹43.73 Cr (9M Dec 2025 Consolidated)
  8. Other expenses: ₹135.54 Cr (9M Dec 2025 Consolidated)
  9. Bad debt to accounts receivable ratio: 0.00% (Q3 Dec 2025 Consolidated).
  10. Sugar: ₹1,084.02 Cr (9M Dec 2025 Consolidated)
  11. Power: ₹133.98 Cr (9M Dec 2025 Consolidated)
  12. Ethanol: ₹345.81 Cr (9M Dec 2025 Consolidated)
  13. Chemicals: ₹132.51 Cr (9M Dec 2025 Consolidated)
  14. Potable Spirits: ₹707.53 Cr (9M Dec 2025 Consolidated)
  15. Others: ₹124.87 Cr (9M Dec 2025 Consolidated)
  16. Total Consolidated Assets: ₹2,109.06 Cr (Dec 31, 2025)
  17. Total Consolidated Liabilities: ₹954.95 Cr (Dec 31, 2025)
  18. Consolidated Net Worth: ₹1,153.05 Cr (Dec 31, 2025)
  19. Both standalone and consolidated financial results are presented and reviewed.

Corporate Overview

  1. Primarily India, with registered office in Dhampur, Uttar Pradesh and corporate office in New Delhi.
  2. Managing seasonality of the sugar industry.
  3. Monitoring evolving regulatory landscape for new labour codes.
  4. Performance is subject to the seasonal nature of the sugar industry.
  5. Impacted by government regulations, such as molasses levy obligations.
  6. Diversified sugar-based business, including sugar, power, ethanol, chemicals, and potable spirits production.
  7. Factual and compliance-oriented, reporting financial results and auditor's review.
  8. Sugar
  9. Power
  10. Ethanol
  11. Chemicals
  12. Potable Spirits
  13. Others

Risk Factors

  1. Sugar industry performance is seasonal.
  2. Uncertainty from new labour codes.
  3. Reliance on other auditors for subsidiaries.

Key Drivers

  1. Lower molasses obligation boosted profit.
  2. Diversified revenue streams enhance stability.
  3. Strong credit ratings reaffirmed by Fitch.
  4. Positive profit after tax growth.

Auditor’s Report

  1. Unmodified conclusion on both standalone and consolidated financial results.
  2. Reliance on review reports of other auditors for subsidiaries DETS Limited and EHAAT Limited.

Board Commentary

  1. Seasonal nature of the sugar industry.
  2. Uncertainty regarding finalisation of Central/State Rules for new labour codes.
  3. U.P. Government redetermined lower levy molasses obligation for 2024-25.
  4. Government of India notified four new labour codes in 2019-2020.

Corporate Governance

  1. Audit Committee reviewed and approved the financial results.

Management Discussion & Analysis

Future Strategy

  1. Continued monitoring of regulatory changes, especially new labour codes.

Operational Focus Areas

  1. Ensuring compliance with new accounting standards and regulations.

Performance Drivers

  1. Redetermination of lower levy molasses obligation positively impacted profit before tax.
  2. Growth across diversified segments like power, ethanol, and chemicals.

Risk Control Measures

  1. Assessed new labour codes to have no material financial impact.
  2. Maintaining strong credit ratings for financial stability.

Critical Risks

  1. Seasonal nature of the sugar industry affecting quarterly performance.
  2. Potential, though currently assessed as immaterial, impact from new labour codes.
Dhampur Sugar Mills Ltd (DHAMPURSUG) Quarterly Report Analysis & Insights | Dhanarthi