💰 Financial Performance

Revenue Growth by Segment

Revenue from the sugar manufacturing segment declined by 55.53% YoY, falling from INR 152.08 Cr in FY24 to INR 67.63 Cr in FY25.

Geographic Revenue Split

100% of revenue is generated from operations and sales within the State of Uttar Pradesh.

Profitability Margins

Net profitability worsened significantly; Total Comprehensive Income fell from a loss of INR 5.42 Cr in FY24 to a loss of INR 12.36 Cr in FY25, representing a 128.18% increase in net loss.

EBITDA Margin

Core profitability is negative; Profit Before Tax (PBT) margin declined from -5.10% (INR -7.75 Cr) in FY24 to -18.32% (INR -12.39 Cr) in FY25.

Capital Expenditure

Depreciation and amortization expenses were INR 3.63 Cr in FY25 compared to INR 3.60 Cr in FY24, indicating a stable asset base with no major new capital projects disclosed.

Credit Rating & Borrowing

Finance costs decreased by 47.32% YoY to INR 1.37 Cr from INR 2.60 Cr, although the company remains in a loss-making position with total liabilities of INR 93.59 Cr.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material, with consumption costs totaling INR 41.42 Cr, representing 61.25% of total revenue in FY25.

Import Sources

Raw materials are sourced locally within the State of Uttar Pradesh.

Key Suppliers

Sourced from local farmers and cooperatives in Uttar Pradesh; specific company names are not disclosed.

Raw Material Costs

Raw material costs decreased by 63.82% YoY from INR 114.50 Cr to INR 41.42 Cr, mirroring the sharp decline in production and revenue.

📈 Strategic Growth

Growth Strategy

The company is focused on maintaining its sugar manufacturing operations in Uttar Pradesh; however, current financials show a 55.53% revenue contraction, suggesting a focus on operational stabilization rather than expansion.

Products & Services

Sugar.

Brand Portfolio

Oswal Overseas.

🌍 External Factors

Industry Trends

The sugar industry is cyclical and highly regulated; the company's 55.53% revenue drop to INR 67.63 Cr reflects severe industry headwinds or operational downtime.

Competitive Landscape

Competes with other regional sugar mills in the Uttar Pradesh sugar belt.

Competitive Moat

Geographic proximity to sugarcane supply in Uttar Pradesh provides a logistical cost advantage, but this moat is currently insufficient to offset widening losses.

Macro Economic Sensitivity

Highly sensitive to agricultural output in Uttar Pradesh and domestic sugar price cycles.

Consumer Behavior

Demand for sugar remains stable as a staple commodity, though industrial demand fluctuates with economic cycles.

Geopolitical Risks

Minimal, as operations are localized within India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Essential Commodities Act and state-specific sugarcane pricing (SAP) in Uttar Pradesh.

Taxation Policy Impact

The company reported a deferred tax credit of INR 0.077 Cr on other comprehensive income items.

Legal Contingencies

Pending entry tax dispute with the Sales Tax Department involving a contingent liability of INR 1.81 Cr (INR 180.84 Lakhs).

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the company's ability to reverse the 55.53% revenue decline and the widening net loss of INR 12.36 Cr.

Geographic Concentration Risk

100% of revenue and operations are concentrated in Uttar Pradesh, creating high regional risk.

Third Party Dependencies

High dependency on local sugarcane farmers for raw materials costing INR 41.42 Cr.

Technology Obsolescence Risk

The company is currently upgrading its accounting software to include audit trail features as required by Rule 3(1) of the Companies (Accounts) Rules, 2014.

Credit & Counterparty Risk

Cash and cash equivalents stood at INR 2.71 Cr as of March 31, 2025, providing limited liquidity against total liabilities of INR 93.59 Cr.