Ugar Sugar Works Q2 FY27 Results (NSE: UGARSUGAR)
Signal: Loss widened
The read
The quarter shows a sharp gross-margin tailwind but a deterioration in business mix: gross margin expanded 1,434bps YoY as raw-material intensity fell to 20.56%, yet revenue declined 17.7% and industrial alcohol swung to a ₹746.34 lakh loss, pushing PAT loss to ₹3,337.31 lakh from ₹3,217.39 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹350 Cr | -17.7% | -27.3% |
| Net profit | ₹-33.37 Cr | N/M (loss widened 3.7%) | |
| EPS | ₹-2.97 | -3.8% |
P&L walk
Standalone revenue fell to ₹34,999.84 lakh, -17.7% YoY and -27.3% QoQ; gross margin expanded to 79.44% from 65.10% YoY as raw-material intensity dropped, but the industrial alcohol segment moved from a ₹619.48 lakh profit to a ₹746.34 lakh loss and drove the ₹3,337.31 lakh PAT loss.
Segments
Industrial alcohol was the main drag: revenue fell 47.0% YoY to ₹13,479.32 lakh and its result swung from a ₹619.48 lakh profit to a ₹746.34 lakh loss; sugar improved from a ₹1,148.79 lakh loss to a ₹641.13 lakh profit but could not offset the alcohol weakness.
Key positives
- Gross margin expanded to 79.44%, up 1,434bps YoY, as raw-material cost fell to 20.56% of revenue from 34.89%; the filing does not disclose the cause.
- Sugar segment result turned positive at ₹641.13 lakh versus a ₹1,148.79 lakh loss YoY.
- Finance cost declined 7.9% YoY to ₹1,631.42 lakh, while net debt fell 22,316.55 lakh to ₹42,903.14 lakh by 30-09-2026.
- Operating cash flow was ₹29,402.44 lakh in H1FY27 versus ₹4,373.11 lakh in FY26, although the inflow was largely supported by a ₹50,432.69 lakh inventory reduction.
Key concerns
- Revenue fell 17.7% YoY to ₹34,999.84 lakh and 27.3% QoQ, reversing the prior quarter's growth momentum.
- Industrial alcohol revenue declined 47.0% YoY to ₹13,479.32 lakh and swung to a ₹746.34 lakh loss from a ₹619.48 lakh profit.
- Consolidated earnings are not applicable because the company states it had no subsidiary, associate or joint venture; the result is standalone-only.
- PAT loss widened 3.7% YoY to ₹3,337.31 lakh despite gross-margin expansion, indicating that the margin benefit did not translate into operating profitability.
Research and educational content only. Not investment advice.