KM Sugar Mills Q2 FY27 Results (NSE: KMSUGAR)
Signal: Steady quarter
The read
The key inflection is the post-demerger standalone sugar business: continuing-operations revenue grew 21.4% YoY to ₹19,433 lakh and PAT grew 123.3% to ₹2,336 lakh, while H1 operating cash flow reached ₹28,185 lakh; however, the distillery exclusion and restated comparatives make the apparent acceleration less clean, and finance cost still rose 61.5% YoY to ₹407 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹194.33 Cr | +21.4% | +14.9% |
| Net profit | ₹23.36 Cr | +123.3% | |
| EPS | ₹2.54 | +122.8% | |
| EBIT margin | N/A |
P&L walk
Standalone continuing-operations revenue increased to ₹19,433 lakh, while PAT rose to ₹2,336 lakh as expenses grew 12.1% YoY versus revenue growth of 21.4%; the comparison is restated for the demerged distillery division.
Key positives
- Continuing-operations revenue increased 21.4% YoY to ₹19,433 lakh and 14.9% QoQ, although the filing does not provide volume or realisation data.
- PAT rose 123.3% YoY to ₹2,336 lakh as total expenses grew 12.1%, below revenue growth of 21.4%.
- H1 operating cash flow increased 11.1% YoY to ₹28,185 lakh, supported by a ₹29,015 lakh inventory reduction.
- Net debt fell to approximately ₹104 lakh from ₹24,327 lakh at March 31, 2026, following the demerger-related transfer and repayment of borrowings.
- EPS rose 122.8% YoY to ₹2.54, broadly tracking PAT growth.
Key concerns
- Finance cost increased 61.5% YoY to ₹407 lakh and 16.3% QoQ despite the much lower period-end borrowing balance.
- The filing provides no sugar volume, realisation, EBITDA margin, capacity utilisation or cost-per-tonne data, limiting assessment of the operating driver behind the 21.4% revenue growth.
- PPE plus CWIP declined 31.1% to ₹13,569 lakh, while the demerger and restatement make historical asset and earnings comparisons difficult.
- The 2025 comparative and current results exclude the demerged distillery division, so headline growth is not comparable with previously reported group results.
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