Dhampur Sugar Q1 FY27 Results (NSE: DHAMPURSUG)
Signal: Growth reaccelerated
The read
Q1FY27 shows a revenue inflection (+6.1% YoY) after several quarters of decline, and operating margin (segment PBIT/revenue) improved to 3.6% from 2.2% YoY, but the headline PAT recovery is fragile as it relies on other income (70.9% of PBT). The core business remains thinly profitable, with EBITDA margin at 4.7%. Management notes sugar seasonality; Q1 is typically a low-volume quarter for sugar, but the sequential jump from Q4FY26 is encouraging.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹786.17 Cr | 6.1% | 14.4% |
| EBIT | ₹24.06 Cr | 40.9% | |
| Net profit | ₹6.03 Cr | 609.4% | |
| EPS | ₹0.94 | 623.1% | |
| EBIT margin | 4.7% |
P&L walk
Revenue grew 6.1% YoY, but operating profit before other income remained very low; PAT boosted by other income (70.9% of PBT). Gross margin expanded ~70bps as raw material cost (incl. inventory changes) fell faster than revenue, but EBITDA margin stayed at 4.7% due to high excise duty and fixed costs.
Segments
Sugar segment turned profitable (PBIT ₹7.52 Cr vs -₹3.11 Cr YoY) and Chemicals more than tripled PBIT (₹4.72 Cr vs ₹1.54 Cr), while Power segment PBIT collapsed to ₹0.90 Cr from ₹5.48 Cr. Ethanol PBIT rose 22% to ₹10.68 Cr. Consolidated segment PBIT of ₹28.38 Cr (+71% YoY) drove the overall profit, but after finance costs and unallocable expenses, net PBT was only ₹8.24 Cr.
Key positives
- Revenue grew 6.1% YoY to ₹786.17 Cr, ending a streak of YoY declines seen in prior quarters.
- Sugar segment turned profitable (PBIT ₹7.52 Cr vs -₹3.11 Cr YoY), reflecting better realisations or lower cost.
- Chemicals segment PBIT surged 207% YoY to ₹4.72 Cr, indicating strong demand or pricing.
- Gross margin expanded ~70bps YoY to 12.0%, as cost of materials fell faster than revenue.
Key concerns
- EBITDA margin remains thin at 4.7%, leaving little buffer for interest costs (₹15.82 Cr).
- Other income (₹5.84 Cr) constituted 70.9% of PBT, masking weak core operating profitability.
- Power segment PBIT dropped 84% YoY to ₹0.90 Cr, likely due to lower generation or tariff.
- QoQ PAT collapsed 86.8% from Q4FY26's ₹45.64 Cr, though that quarter included seasonally stronger cane crushing.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.