DBOL - Dhampur Bio

📊 NSE: DBOL 🏢 Sugar 📅 Last Updated: 12/13/2025 21:29

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 15.0% YoY to INR 2,714.40 Cr in FY25. Segmental growth in H1FY26 showed Sugar up 13.44%, Country Liquor up 50.75%, and Bio-Fuel & Spirits up 65.81% YoY. In FY25, Country Liquor volumes specifically grew by 55.63%.

Geographic Revenue Split

Not disclosed in available documents; however, operations are concentrated in Western-Central Uttar Pradesh (Asmoli, Mansurpur, and Meerganj).

Profitability Margins

Net profit margin declined from 1.92% in FY24 to 0.45% in FY25. H1FY26 PAT margin was negative at -2.16% (INR -34.90 Cr) compared to -1.96% in Q2FY25, driven by lower margins in Sugar and Bio-Fuel segments.

EBITDA Margin

EBITDA margin stood at 5.29% in FY25, down from 6.63% in FY24. H1FY26 EBITDA margin further deteriorated to -0.76% (INR 12.20 Cr) due to lower cane availability and pest infestation impacting recovery rates.

Capital Expenditure

The company is undertaking a minor capex of INR 60 Cr for converting its molasses-based distillery to a dual-feed (molasses and grain) facility. This is financed via a INR 42 Cr term loan and INR 18 Cr internal accruals.

Credit Rating & Borrowing

CARE Ratings maintains a 'Stable' outlook. Borrowing includes a INR 42 Cr term loan eligible for a 50% interest subvention scheme from the government. Interest coverage ratio deteriorated from 4.99x in FY23 to 2.76x in FY24, and further to 2.14x in FY25.

⚙️ Operational Drivers

Raw Materials

Sugarcane (primary), Grain (secondary for dual-feed distillery), and Molasses (B-Heavy, C-Heavy, and Syrup). Raw materials, excise, and inventory changes accounted for 82.42% of revenue (INR 2,237.10 Cr) in FY25.

Import Sources

Sourced locally from farmers in the catchment areas of Central and Western Uttar Pradesh (UP).

Key Suppliers

Procured from local sugarcane farmers through proactive farmer engagement and development programs in the UP region.

Capacity Expansion

Crushing capacity increased from 22,000 TCD to 29,500 TCD as of March 31, 2024. Country liquor capacity expanded from 4.2 million cases to 8 million cases per annum in FY25. Distillery capacity stands at 312.5 KLPD.

Raw Material Costs

Raw material costs are dictated by the State Advised Price (SAP) set by the Government of UP. Costs are impacted by recovery rates, which fell from 10.99% in 9MFY24 to 10.42% in 9MFY25 due to red rot infestation.

Manufacturing Efficiency

Gross recovery rate was 10.42% in 9MFY25. Efficiency is being targeted through debottlenecking initiatives and the commissioning of additional units in Asmoli (9000 to 12500 TCD) and Meerganj (5000 to 9000 TCD).

Logistics & Distribution

Not specifically disclosed as a percentage, but the company operates three integrated plants to minimize internal transport costs between crushing and distillery units.

📈 Strategic Growth

Expected Growth Rate

16.73%

Growth Strategy

Growth will be driven by the expansion of the country liquor segment (capacity doubled to 8 million cases), the conversion of the Asmoli distillery to a dual-feed facility to allow grain-based ethanol production, and increasing sugar crushing capacity to 29,500 TCD to capture higher market volumes.

Products & Services

Refined sugar, sulphitation sugar, pharma-grade sugar, ethanol, country liquor, and 95.5 MW of renewable power.

Brand Portfolio

Dhampur Bio Organics (DBO).

New Products/Services

Grain-based ethanol production via the new dual-feed facility expected to contribute incrementally to the Bio-Fuel segment from Q3FY25.

Market Expansion

Focusing on the country liquor market in Uttar Pradesh and expanding ethanol supply to Oil Marketing Companies (OMCs) under the national blending program.

Market Share & Ranking

Not disclosed in percentage terms, but identified as a leading Indian producer of ethanol and sulphur-free sugar.

🌍 External Factors

Industry Trends

The industry is shifting toward a biofuel-heavy model. The government's 20% ethanol blending target is a key driver, though current restrictions on B-heavy molasses diversion have temporarily slowed this transition.

Competitive Landscape

Competes with other UP-based mills; dynamics are governed by state-mandated cane prices (SAP) and central-mandated sugar quotas.

Competitive Moat

Moat is built on forward integration (Sugar-Distillery-Cogeneration) which cushions cyclicality. The 65-year experience of promoters (VK Goel) and established farmer relationships provide a durable operational advantage.

Macro Economic Sensitivity

Highly sensitive to inflation in the Wholesale Price Index (WPI) as sugar is an essential commodity, leading to government price interventions.

Consumer Behavior

Increasing demand for branded, sulphur-free, and pharma-grade sugar is driving a shift toward value-added sugar products.

Geopolitical Risks

Minimal direct impact due to domestic focus, but global sugar price fluctuations influence government export quota policies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily regulated by the Essential Commodities Act, State Advised Price (SAP) for cane, and government-allocated monthly sugar sale quotas.

Environmental Compliance

Focus on eco-friendly practices and renewable energy generation (95.5 MW) from sugar by-products.

Taxation Policy Impact

Effective tax rate not explicitly stated, but the company reported a tax credit/adjustment leading to a PAT of INR 12.09 Cr despite lower PBT in FY25.

⚠️ Risk Analysis

Key Uncertainties

Agro-climatic risks (pest infestation) and sudden changes in government policy regarding ethanol diversion or sugar exports could impact margins by 2-4%.

Geographic Concentration Risk

100% of manufacturing assets are located in Uttar Pradesh, making the company highly vulnerable to state-specific policy changes and regional weather patterns.

Third Party Dependencies

High dependency on the Government of UP for cane pricing and the Central Government for sugar sales quotas and ethanol pricing.

Technology Obsolescence Risk

Low risk in core sugar; however, the company is proactively upgrading to dual-feed distillery technology to avoid obsolescence of molasses-only plants.