Dhampur Sugar FY26 Results (NSE: DHAMPURSUG)
Signal: Steady quarter
The read
Full-year PAT of ₹65 Cr (+24.6% YoY) was the highest in the prior results series (last 12 quarters), driven by other income and H2 margin recovery, but headline revenue of ₹2,807 Cr (+5.7%) was modest and EBITDA margin compressed 47bps YoY. The Q4 standalone performance (OPM 16%, +100bps YoY) marks a fourth consecutive quarter of sequential margin improvement since trough Q2FY26 (0%), suggesting the ethanol headwind is being offset by better sugar and spirits realisations. Net debt rose to ₹874 Cr from ₹796 Cr, and cash dropped to just ₹5.2 Cr — working capital stretched. The buyback signals management confidence but the low cash buffer warrants monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,807.57 Cr | 5.7% | |
| EBIT | ₹134.59 Cr | 7.3% | |
| Net profit | ₹65.33 Cr | 24.6% | |
| EPS | ₹10.09 | 26.4% |
P&L walk
Full-year revenue grew 5.7% YoY to ₹2,807.57 Cr, driven by Sugar (+6.3%) and Potable Spirits (+19.5%), while Ethanol segment declined 15.0% YoY (policy headwind) and Chemicals fell 22.4%. EBITDA margin for the full year was ~4.8% (estimated: revenue - cost of materials - purchases - inventory change - excise - employee - other expenses, excluding D&A and finance cost) vs ~5.3% prior year — a 47bps compression. However, H2FY26 showed a sharp margin recovery: Q3 OPM 12% (+200bps YoY) and Q4 OPM 16% (+100bps YoY), the third consecutive quarter of margin expansion. Net profit for FY26 rose 24.6% to ₹65.33 Cr, helped by lower finance costs (-3.0% YoY) and broadly flat depreciation. EPS grew 26.4% to ₹10.09, slightly outpacing PAT growth as shares outstanding fell (equity buyback of ₹20 Cr during the year reduced share count). Consolidated PAT was aided by other income of ₹23.40 Cr (vs ₹17.77 Cr), representing 35.8% of pre-tax profit — significant reliance.
Segments
Q4FY26 consolidated segment results: Sugar segment PBIT jumped to ₹25.07 Cr from ₹4.13 Cr in Q3 (sequential turnaround on seasonal crushing), Power at ₹42.06 Cr remained the largest profit contributor despite revenue decline, Ethanol PBIT slipped to ₹3.99 Cr from ₹7.53 Cr in Q3 (policy headwind), Chemicals swung to profit ₹3.43 Cr from a loss of ₹2.40 Cr in Q4FY25 — diversified recovery across segments, but still below FY25 aggregate segment profits of ₹91.23 Cr in Q4.
Key positives
- FY26 PAT ₹65.33 Cr (+24.6% YoY), highest in the trailing 12-quarter series, with EPS ₹10.09 (+26.4%)
- H2FY26 margin inflection: OPM expanded for 3 consecutive quarters (Q2: 2% → Q3: 12% → Q4: 16%)
- Potable Spirits segment grew 19.5% YoY to ₹934.52 Cr, diversifying beyond commodity sugar/ethanol
- Operating cash flow ₹243.09 Cr vs reported PAT of ₹65.33 Cr — strong cash conversion
- Share buyback of ₹20 Cr reduced equity base, benefiting per-share metrics
- Lower finance cost (-3.0% YoY) despite higher net debt
Key concerns
- Full-year OPM compressed ~47bps YoY to ~4.8% — margin levels remain thin for the integrated model
- Ethanol segment revenue declined 15.0% YoY to ₹433.56 Cr (policy-driven volume cuts) — structural headwind
- Cash and cash equivalents collapsed from ₹114.42 Cr to ₹5.23 Cr — liquidity buffer minimal
- Net debt increased to ₹874 Cr from ₹796 Cr (D/E 0.88x vs reported 0.75x in fundamentals block, reflecting higher borrowings vs equity)
- Other income of ₹23.40 Cr constituted 35.8% of pre-tax profit — operational earnings alone are modest
- Chemicals segment revenue declined 22.4% YoY to ₹175.32 Cr, though it turned profitable in Q4
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