💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew 17% in FY24 to INR 528.62 Cr from INR 451.77 Cr in FY23. However, 9MFY25 revenue declined 12.89% YoY to INR 233.23 Cr from INR 267.75 Cr. Electricity sales doubled in FY24 due to enhanced cogeneration capacity utilization.

Geographic Revenue Split

The company operates primarily from its manufacturing unit in Mukerian, Hoshiarpur, Punjab, which serves as the principal place of business and catchment area for sugarcane procurement. Specific regional % split is not disclosed.

Profitability Margins

PAT margin declined to 6.04% in FY24 from 6.49% in FY23. FY25 Profit After Tax was INR 38.38 Cr, a 17.2% increase over FY24's INR 32.74 Cr. The company maintained stable profitability in 9MFY25 despite lower revenue due to better realizations.

EBITDA Margin

EBITDA margin declined to 13.04% in FY24 from 14.34% in FY23, primarily due to higher Fair and Remunerative Price (FRP) for sugarcane. 9MFY25 EBITDA increased by 0.85% YoY.

Capital Expenditure

Property, Plant and Equipment (PPE) stood at INR 197.77 Cr as of March 31, 2025, compared to INR 202.52 Cr in FY24. Capital Work in Progress (CWIP) was INR 2.14 Cr in FY25, up from INR 1.69 Cr in FY24.

Credit Rating & Borrowing

Infomerics upgraded the long-term rating to IVR BBB-/Stable in March 2025. However, CARE Ratings maintained a CARE D (Issuer Not Cooperating) rating in December 2025 due to lack of information. Interest coverage was 2.56x in FY24.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material. Procurement costs are highly sensitive to government-mandated Fair and Remunerative Price (FRP) and State Advised Price (SAP).

Import Sources

Sourced locally from the catchment area surrounding the Mukerian unit in Punjab to ensure freshness and minimize logistics costs.

Key Suppliers

Procured from local farmers and sugarcane growers within the designated command area of the Mukerian sugar mill.

Capacity Expansion

The company operates a 59.50 MW power cogeneration plant. Recent growth was driven by the doubling of electricity sales following optimal utilization of enhanced cogeneration capacity.

Raw Material Costs

Raw material costs are a major expense; EBITDA margins squeezed from 14.34% to 13.04% in FY24 due to higher sugarcane FRP. Profitability is vulnerable to volatility in cane procurement costs.

Manufacturing Efficiency

Efficiency is driven by the 'optimal utilization' of the enhanced 59.50 MW cogeneration capacity, which significantly boosted non-sugar revenue in FY24.

Logistics & Distribution

Distribution is centered around the Mukerian plant; proximity to the catchment area provides a locational benefit for procurement logistics.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

Growth is targeted through integrated operations, specifically leveraging the 59.50 MW cogeneration plant to increase electricity sales. The company also benefits from improved sugar realizations and government regulations favoring the industry.

Products & Services

White Crystal Sugar and Cogenerated Power (Electricity).

Brand Portfolio

Indian Sucrose Limited (ISL).

New Products/Services

Enhanced power generation from the 59.50 MW plant is the primary recent addition to the revenue mix, doubling electricity sales in FY24.

Market Expansion

Focus remains on the domestic Indian market, particularly leveraging the locational advantage in Punjab.

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company was originally promoted by Oswal Group and taken over by Yadu Corporation in 2000.

🌍 External Factors

Industry Trends

The industry is shifting towards integrated models (Sugar + Power + Ethanol). ISL is positioned with its 59.50 MW cogen plant to mitigate the 17-14% margin volatility inherent in pure-play sugar.

Competitive Landscape

Operates in a cyclical and fragmented industry with competition from other integrated sugar mills in North India.

Competitive Moat

Moat consists of locational benefit (proximity to sugarcane catchment area) and integrated power operations. This is sustainable as long as the command area remains productive and power purchase agreements are stable.

Macro Economic Sensitivity

Highly sensitive to government fiscal policies regarding sugar buffer stocks, export quotas, and ethanol blending mandates.

Consumer Behavior

Demand for sugar remains steady, while industrial demand for green power from cogeneration is increasing.

Geopolitical Risks

Impacted by global sugar price trends which influence domestic government policy on export restrictions.

⚖️ Regulatory & Governance

Industry Regulations

Subject to Fair and Remunerative Price (FRP) for cane, sugar release quotas, and pollution control norms for sugar and power units.

Environmental Compliance

The company operates a cogeneration plant which is considered a green energy initiative, though specific ESG compliance costs are not disclosed.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 27.1%, with a total tax expense of INR 14.24 Cr on a PBT of INR 52.61 Cr.

Legal Contingencies

The company reported no ongoing CSR projects. No specific values for pending litigation or court cases were disclosed in the provided financial notes.

⚠️ Risk Analysis

Key Uncertainties

Agro-climatic risks (monsoon dependency) and volatility in sugar realizations are primary risks. Profitability is highly vulnerable to government-mandated cane price hikes.

Geographic Concentration Risk

100% of manufacturing is concentrated at a single location in Mukerian, Punjab, creating high regional risk.

Third Party Dependencies

High dependency on local sugarcane farmers; procurement is seasonal and subject to local competition.

Technology Obsolescence Risk

The company noted a governance risk where its accounting software lacked an audit trail (edit log) feature for the duration of FY25, though it was implemented by May 2025.

Credit & Counterparty Risk

Trade receivables increased 78.9% YoY to INR 121.34 Cr in FY25, indicating a potential stretch in the collection cycle.