Avadh Sugar Q1 FY27 Results (NSE: AVADHSUGAR)
Signal: Loss reversed
The read
Revenue grew 8.7% YoY, supported by sugar segment, and EBITDA margin improved 100bps YoY to 4.91% on lower other expenses and finance costs. However, net profit of ₹23.43 lakhs (0.03% margin) is negligible, reflecting the off-season for sugar crushing. The quarter shows a marked improvement from the year-ago loss but remains far below the Q4 peak.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹779.25 Cr | +8.74% | +16.2% |
| EBIT | ₹22.67 Cr | N/A (from negative) | |
| Net profit | ₹0.23 Cr | N/A (loss of ₹841.38 lakhs in Q1FY26) | |
| EPS | ₹0.12 | N/A (from loss) | |
| EBIT margin | 4.91% |
P&L walk
Revenue growth driven by sugar (+12.7% YoY) offset distillery and co-generation declines; EBITDA margin improved 100bps YoY to 4.91% primarily due to a sharp reduction in other expenses (-15.5% YoY) and stable finance cost decline; net profit turned positive from a loss year ago but remains negligible at 0.03% margin.
Segments
Sugar segment revenue grew 12.7% YoY to ₹66,219.81 lakhs and segment profit more than doubled to ₹917.51 lakhs (from ₹426.29), driving the consolidated improvement; distillery also contributed higher profit (₹2,074.54 vs ₹1,790.98), while co-generation remained loss-making (₹-336.61).
Key positives
- Revenue growth of 8.7% YoY driven by sugar segment (+12.7%).
- EBITDA margin expanded 100bps YoY to 4.91% due to a 15.5% reduction in other expenses.
- Net profit turned positive from a loss of ₹841.38 lakhs in Q1FY26.
- Finance cost declined 12.9% YoY, aiding profitability.
Key concerns
- Net profit margin remains razor-thin at 0.03% (₹23.43 lakhs on revenue of ₹77,925 lakhs).
- Co-generation segment continued to incur losses (-₹336.61 lakhs).
- Sequential profit drop of 99.6% from Q4 FY26, though partly seasonal.
- Distillery revenue declined 4.6% YoY, indicating potential demand softness.
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