SBEC Sugar Q1 FY27 Results (BSE: 532102)
Signal: Loss reversed
The read
The apparent PAT turnaround to ₹915.36 lakh is not yet an operating recovery: revenue fell 17.4% YoY, the core business posted a ₹787.69 lakh loss before the joint-venture contribution, finance cost rose 43.8%, and the result is exposed to a qualified review involving ₹776.15 lakh of unprovided cane-dues interest and ₹1063.32 lakh of inventory overstatement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹99 Cr | -17.4% | -38.6% |
| EBIT | ₹3.53 Cr | N/M | |
| Net profit | ₹9.15 Cr | N/M | |
| EPS | ₹1.92 | N/M | |
| EBIT margin | 3.6% |
P&L walk
Revenue declined to ₹9899.57 lakh, -17.4% YoY and -38.6% QoQ; gross margin expanded to 26.0% from 3.6% YoY, but finance cost rose 43.8% YoY and the core business remained at a ₹787.69 lakh loss before the ₹1703.05 lakh joint-venture contribution, resulting in PAT of ₹915.36 lakh.
Segments
No segment table was disclosed; the material standalone-versus-consolidated divergence shows that consolidated PAT of ₹915.36 lakh was driven by the ₹1703.05 lakh joint-venture profit share and subsidiary earnings while standalone operations remained loss-making.
Key positives
- Gross margin expanded to 26.0% from 3.6% YoY as raw-material cost declined to 4.6% of revenue from 11.9%.
- Consolidated PAT turned positive at ₹915.36 lakh from a ₹2604.91 lakh loss YoY, supported by ₹1703.05 lakh of joint-venture profit share.
- Depreciation declined 6.1% YoY to ₹454.77 lakh, despite the absence of disclosed asset-base data.
Key concerns
- Revenue declined 17.4% YoY to ₹9899.57 lakh, and the core business remained loss-making at ₹787.69 lakh before joint-venture profit share.
- Finance cost rose 43.8% YoY to ₹1231.95 lakh, a significant drag on operating profitability.
- Standalone operations remained loss-making at ₹432.31 lakh while consolidated PAT was ₹915.36 lakh, making the earnings quality dependent on subsidiaries and the joint venture.
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