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Kothari Sugars & Chemicals Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤4th Feb 26

Summary : Kothari Sugars reported positive profit before tax for Q3 and YTD Dec 2025, primarily driven by a significant one-time reversal of liabilities, despite operational challenges from lower sugarcane availability.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Cost of materials consumed (YTD Dec 2025): 8,541.72 lakhs.
  2. Changes in inventories (YTD Dec 2025): 7,830.37 lakhs.
  3. Employee benefits Expense (YTD Dec 2025): 2,100.38 lakhs.
  4. Finance costs (YTD Dec 2025): 371.85 lakhs.
  5. Depreciation and Amortization Expense (YTD Dec 2025): 1,088.43 lakhs.
  6. Other Expenses (YTD Dec 2025): 3,298.12 lakhs.
  7. Total Revenue from Operations (YTD Dec 2025): 20,482.29 lakhs.
  8. Segment Revenue (YTD Dec 2025): Sugar: 9,486.01 lakhs, Distillery: 10,486.61 lakhs, Power: 1,680.41 lakhs.
  9. Total Assets (Dec 31, 2025): 37,071.92 lakhs.
  10. Total Liabilities (Dec 31, 2025): 7,525.10 lakhs.
  11. Paid up Equity Share Capital (Dec 31, 2025): 8,288.86 lakhs.
  12. Other Equity (Mar 31, 2025): 28,930.27 lakhs.
  13. Standalone results, no subsidiaries/associates/JVs.

Corporate Overview

  1. India (Chennai, Tamilnadu)
  2. Reduction in profits due to lower crushing and sugarcane availability.
  3. Deficit rainfall and pest attack impacting sugarcane crops.
  4. Lower availability of sugarcane due to deficit rainfall and pest attack.
  5. Performance is seasonal, quarterly results may not represent annual.
  6. Sugar production, distillery operations, and power generation.
  7. Sugar is a seasonal industry.
  8. Formal and compliant with regulatory requirements.
  9. Sugar
  10. Distillery
  11. Power

Risk Factors

  1. Lower sugarcane availability due to rainfall.
  2. Pest attacks impact crop yield.
  3. Seasonal industry affects quarterly performance.
  4. Uncertainty from new labor code implementation.

Key Drivers

  1. Reversal of liabilities boosted current profit.
  2. Distillery segment shows strong performance.
  3. Effective monitoring of new labor codes.
  4. Improved sugarcane availability could boost future results.

Auditor’s Report

  1. Limited Review Report, not an audit opinion.
  2. No material misstatement found in financial statements.
  3. Management's reversal of liabilities (Rs. 1,977.78 lakhs) as exceptional items.

Board Commentary

  1. Lower sugarcane availability due to deficit rainfall and pest attack.
  2. Uncertainty regarding impact of new labor codes.
  3. New Codes on Wages, Industrial Relations, Social Security, Occupational Safety notified.
  4. Management expects no material impact from new labor codes.

Corporate Governance

  1. Audit Committee reviewed financial results.

Management Discussion & Analysis

Future Strategy

  1. Monitoring developments in new labor codes for future impact assessment.

Industry Overview

  1. Sugar industry is seasonal, affecting quarterly performance.

Performance Drivers

  1. Positive impact from reversal of non-payable liabilities (exceptional item).
  2. Negative impact from lower crushing and sugarcane availability.

Risk Control Measures

  1. Actively monitoring new labor code developments.

Critical Risks

  1. Lower sugarcane availability due to adverse weather and pests.
  2. Potential impact of new labor codes on financial results.
Kothari Sugars & Chemicals Ltd (KOTARISUG) Quarterly Report Analysis & Insights | Dhanarthi