Avadh Sugar Q2 FY27 Results (NSE: AVADHSUGAR)
Signal: Loss reversed
The read
The operating inflection is concentrated in sugar rather than broad-based: Q2 revenue declined 2.8% YoY to ₹65,156.67 lakh, but sugar profit swung to ₹3,589.53 lakh and lower finance costs helped PAT turn positive at ₹1,004.43 lakh; distillery and co-generation remain drags.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹651.57 Cr | -2.8% | -16.4% |
| Net profit | ₹10.04 Cr | turnaround from ₹659.03 lakh loss | |
| EPS | ₹5.01 | turnaround from loss |
P&L walk
Revenue declined 2.8% YoY and 16.4% QoQ to ₹65,156.67 lakh, while raw-material intensity fell to 1.7% from 5.5%; lower finance costs and a sugar-segment turnaround lifted PBT to ₹1,267.26 lakh from a ₹1,082.50 lakh loss, with PAT reaching ₹1,004.43 lakh despite ₹262.83 lakh of tax.
Segments
Sugar drove the turnaround: its result rose to ₹3,589.53 lakh from a ₹748.62 lakh loss, while distillery slipped to a ₹24.42 lakh loss and co-generation widened its loss to ₹873.07 lakh from ₹283.54 lakh profit.
Key positives
- Sugar segment result turned around to ₹3,589.53 lakh from a ₹748.62 lakh loss, contributing the main earnings inflection.
- Finance costs declined 16.7% YoY to ₹1,316.09 lakh and borrowings fell materially, supporting the PAT turnaround to ₹1,004.43 lakh.
- Operating cash flow was ₹1,09,584.35 lakh in H1FY27 versus ₹92,577.12 lakh in H1FY26, helped by a ₹1,16,516.43 lakh inventory reduction.
Key concerns
- Consolidated revenue declined 2.8% YoY to ₹65,156.67 lakh, with distillery revenue down 39.2% and co-generation revenue down 79.7%.
- Distillery and co-generation moved into losses of ₹24.42 lakh and ₹873.07 lakh respectively, leaving the quarterly recovery dependent on sugar.
- Gross margin expansion is derived from lower raw-material intensity, but the filing does not disclose the driver; sustainability is therefore not yet established.
Research and educational content only. Not investment advice.