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DWARKESH - Dwarikesh Sugar

📊 NSE: DWARKESH 🏢 Sugar 📅 Last Updated: 12/13/2025 21:42

📢 Recent Corporate Announcements

Dwarikesh Sugar Q3 PAT Rises 44% to ₹15.4 Cr; 9M Losses Widen Amid Rising Cane Costs

🔵 WATCH ⭐ 7/10

EARNINGS 📅 11 Feb 2026, 04:31 PM

Dwarikesh Sugar reported a 44% YoY increase in Q3 FY26 PAT to ₹154.4 million, driven by improved sugar realizations of ₹4,012.7 per quintal. However, the company recorded a net loss of ₹265.7 million for the nine-month period (9M FY26), widening from a loss of ₹229.9 million in the previous year. While revenue grew 8.5% in 9M FY26 due to higher ethanol volumes, the industry faces margin pressure from a ₹30 per quintal hike in the State Advised Price (SAP) for sugarcane in Uttar Pradesh. Management highlighted lower-than-expected ratoon crop yields and subdued global sugar prices as ongoing challenges.

Q3 FY26 PAT increased to ₹154.4 million from ₹107.3 million in Q3 FY25, with EBITDA margins improving to 12.5%.
9M FY26 revenue rose to ₹9,765.1 million, primarily supported by increased ethanol sales volumes.
Average domestic sugar realization improved to ₹4,012.7 per quintal compared to ₹3,772.3 per quintal in the previous year.
The UP Government announced a sharp increase in sugarcane SAP to ₹400 per quintal for the 2025-26 season.
Finance costs for 9M FY26 decreased to ₹85.8 million from ₹108.4 million due to scheduled term loan repayments.

💡 Investors should remain cautious as the 9-month loss and rising input costs (SAP hike) may offset the benefits of higher sugar realizations. Monitor the recovery in plant cane yields and government policy on sugar MSP increases which could provide a necessary floor for margins.

Dwarikesh Sugar Q3 PAT Jumps 44% to Rs 15.44 Cr; Realizations Improve to Rs 4,013/qtl

🟢 POSITIVE ⭐ 7/10

EARNINGS 📅 11 Feb 2026, 04:29 PM

Dwarikesh Sugar reported a strong Q3 FY26 with PAT rising 44% YoY to Rs 15.44 crore, supported by higher domestic sugar realizations of Rs 4,013 per quintal. Despite the quarterly growth, the company recorded a net loss of Rs 26.57 crore for 9M FY26, slightly wider than the Rs 22.99 crore loss in the previous year. Total income for the quarter stood at Rs 328.16 crore, up from Rs 316.39 crore. Management highlighted that while recovery trends are encouraging, lower cane yields due to weather conditions remain a challenge for the current season.

Q3 FY26 PAT rose 43.9% YoY to Rs 15.44 crore from Rs 10.73 crore.
Average sugar realization increased to Rs 4,013 per quintal from Rs 3,772 per quintal YoY.
9M FY26 net loss widened to Rs 26.57 crore compared to a loss of Rs 22.99 crore in 9M FY25.
Sugar sales volume for the quarter grew to 5.20 lakh quintals from 4.99 lakh quintals.
Long-term debt remains manageable at Rs 102.08 crore, primarily for the distillery project.

💡 The quarterly turnaround is a positive signal, but investors should remain cautious due to the year-to-date losses and yield concerns. Monitor sugar price trends and the impact of B-heavy molasses usage on distillery margins.

Dwarikesh Sugar Q3 FY26 Net Profit Rises 6% to ₹16.82 Cr; 9M Loss Stands at ₹35.17 Cr

🟡 NEUTRAL ⭐ 7/10

EARNINGS 📅 11 Feb 2026, 03:03 PM

Dwarikesh Sugar Industries reported a marginal 6% year-on-year increase in net profit to ₹16.82 crore for the quarter ended December 31, 2025. Total revenue for the quarter grew by 4% to ₹325.12 crore compared to ₹312.72 crore in the same period last year. Despite the quarterly recovery, the company faces a significant nine-month net loss of ₹35.17 crore, a sharp decline from the ₹52.46 crore profit recorded in 9M FY25. The company also began recognizing additional employee benefit costs due to the implementation of new labour codes effective November 2025.

Q3 FY26 Net Profit increased to ₹16.82 crore from ₹15.86 crore in Q3 FY25.
Total Income for the quarter rose 4% YoY to ₹325.12 crore.
Sugar segment profit for Q3 stood at ₹23.01 crore, while Distillery segment profit was ₹4.69 crore.
Nine-month (9M FY26) performance shows a net loss of ₹35.17 crore versus a profit of ₹52.46 crore in 9M FY25.
Finance costs for the quarter reduced significantly to ₹1.43 crore from ₹2.62 crore YoY.

💡 While the Q3 results show a return to profitability, investors should remain cautious due to the heavy cumulative loss for the nine-month period. Monitor the impact of new labour codes on operating margins and the recovery pace of the distillery segment in upcoming quarters.

Dwarikesh Sugar Q3 Net Profit Rises 51% YoY to ₹18.52 Crore; 9M Performance Remains in Red

🔵 WATCH ⭐ 7/10

EARNINGS 📅 11 Feb 2026, 02:54 PM

Dwarikesh Sugar Industries reported a strong recovery in Q3 FY26 with net profit jumping 51.4% YoY to ₹18.52 crore, up from ₹12.24 crore in the previous year. Revenue from operations saw a modest growth of 4% to reach ₹325.12 crore for the quarter. Despite the positive quarterly result, the company faces a cumulative net loss of ₹35.17 crore for the nine-month period ending December 2025, compared to a profit of ₹52.46 crore in the same period last year. The sugar segment remains the primary revenue driver, contributing ₹283.39 crore to the quarterly top line.

Net Profit for Q3 FY26 increased by 51.4% YoY to ₹18.52 crore from ₹12.24 crore.
Revenue from operations for the quarter grew 4% YoY to ₹325.12 crore.
Earnings Per Share (EPS) for the quarter improved to ₹0.98 from ₹0.65 YoY.
Nine-month (9M FY26) performance shows a net loss of ₹35.17 crore versus a profit of ₹52.46 crore in 9M FY25.
Sugar segment revenue stood at ₹283.39 crore while Distillery revenue contributed ₹112.53 crore before inter-segment adjustments.

💡 While the Q3 recovery is encouraging, investors should remain cautious due to the significant year-to-date loss. Monitor government ethanol pricing and sugar export policies as they will be critical for a full turnaround in FY27.

Dwarikesh Sugar Fined ₹5 Lakh for Molasses Storage Violations at Two Units

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 09 Feb 2026, 05:24 PM

Dwarikesh Sugar Industries Limited has received orders from the State Excise Department regarding its Dwarikesh Nagar and Dwarikesh Puram units. The department has imposed a compounding penalty of ₹2.50 lakh per unit, totaling ₹5 lakh, due to a shortfall in prescribed molasses storage capacity. The company has stated that this financial impact is limited to the penalty amount and will not materially affect its operations or other activities. This is a minor regulatory compliance issue and does not impact the company's fundamental business outlook.

Total penalty of ₹5 lakh imposed across two manufacturing units
Dwarikesh Nagar Unit (Bundki) and Dwarikesh Puram Unit (Afzalgarh) each fined ₹2.50 lakh
Violation relates to shortfall in prescribed molasses storage capacity under excise regulations
Orders received from the Assistant Excise Commissioner (Molasses), State Excise Department
Company confirms no material impact on operational or other business activities

💡 This is a minor regulatory update with negligible financial impact on the company. Investors should continue to focus on sugar prices and ethanol policy developments as primary value drivers.

Dwarikesh Sugar Submits SEBI Reg 74(5) Compliance Certificate for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 02 Jan 2026, 02:33 PM

Dwarikesh Sugar Industries has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by MUFG Intime India Private Limited, confirms that all dematerialization requests for the quarter ended December 31, 2025, were processed correctly. It verifies that physical security certificates were mutilated and cancelled after verification, and the names of depositories were updated in the register of members. This is a standard administrative filing required by all listed Indian companies to ensure the integrity of electronic shareholding records.

Compliance certificate submitted for the quarter ended December 31, 2025.
Issued by Registrar and Share Transfer Agent (RTA) MUFG Intime India Private Limited.
Confirms that securities received for dematerialization were listed on the relevant stock exchanges.
Confirms that physical certificates were mutilated and cancelled within prescribed SEBI timelines.
Ensures that the register of members has been updated with depository names as the registered owners.

💡 No action is required as this is a routine regulatory filing. Investors should monitor the company's upcoming quarterly financial results for material performance updates.

Dwarikesh Sugar to Close Trading Window from Jan 1, 2026 for Q3 FY26 Results

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 24 Dec 2025, 11:43 AM

Dwarikesh Sugar Industries Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations ahead of the declaration of financial results for the quarter and nine months ending December 31, 2025. The trading window will remain closed until 48 hours after the results are officially declared. The company will announce the specific date for the board meeting to consider these results in a separate filing.

Trading window closure for designated persons begins on Thursday, January 1, 2026.
Closure pertains to the Unaudited Financial Results for the quarter and nine months ended December 31, 2025.
The window will reopen 48 hours after the financial results are declared to the exchanges.
PAN of Designated Persons will be frozen by NSDL for trading during this period per SEBI circular dated April 21, 2025.

💡 This is a routine regulatory announcement with no immediate impact on stock fundamentals; investors should monitor for the upcoming board meeting date to assess Q3 performance.

Dwarikesh: Re-appointment of Directors Medhekar & Hosur for 2nd Term

🟡 NEUTRAL ⭐ 5/10

MANAGEMENT 📅 13 Dec 2025, 03:15 PM

Dwarikesh Sugar Industries Limited announced the re-appointment of Shri Rajan Krishnanath Medhekar (DIN: 07940253) and Shri Gopal Bhimrao Hosur (DIN: 08884883) as Non-Executive Independent Directors. Both directors are appointed for a second term of five consecutive years, effective from November 2, 2025, to November 1, 2030. The re-appointments were approved by the members of the company through a postal ballot. These appointments ensure continuity and stability in the board's oversight and governance.

Shri Rajan Krishnanath Medhekar re-appointed as Non-Executive Independent Director for 5 years.
Shri Gopal Bhimrao Hosur re-appointed as Non-Executive Independent Director for 5 years.
Re-appointment effective from November 2, 2025 to November 1, 2030.
Postal Ballot approved the re-appointments as per Regulation 30 of SEBI (LODR) Regulations, 2015.

💡 Investors should note the continuity in the board's composition. Monitor the company's performance and governance practices under the guidance of the re-appointed directors.

Dwarikesh Sugar: Independent Directors Re-appointed via Postal Ballot

🟡 NEUTRAL ⭐ 5/10

MANAGEMENT 📅 13 Dec 2025, 02:52 PM

Dwarikesh Sugar Industries Limited announced the successful re-appointment of two Independent Directors, Shri Rajan Krishnanath Medhekar and Shri Gopal Bhimrao Hosur, for a second term of five years each. The re-appointments were approved via postal ballot with the requisite majority, effective from November 2, 2025, to November 1, 2030. The remote e-voting period commenced on November 13, 2025, and concluded on December 12, 2025. A total of 1,84,341 shareholders were eligible to participate in the postal ballot as of the cut-off date, November 7, 2025.

Re-appointment of Shri Rajan Krishnanath Medhekar as Non-Executive Independent Director for a term until November 1, 2030.
Re-appointment of Shri Gopal Bhimrao Hosur as Non-Executive Independent Director for a term until November 1, 2030.
Postal ballot cut-off date was November 7, 2025, with 1,84,341 shareholders.
Remote e-voting period: November 13, 2025 to December 12, 2025.

💡 The re-appointment of the independent directors signals stability in the company's leadership. Investors should monitor the performance of the company under the guidance of the re-appointed directors.

Dwarikesh Sugar: Postal Ballot Results - Director Re-appointments Approved

🟡 NEUTRAL ⭐ 5/10

MANAGEMENT 📅 13 Dec 2025, 02:46 PM

Dwarikesh Sugar Industries Limited announced the results of its postal ballot, which concluded on December 12, 2025. Shareholders approved the re-appointment of Shri Rajan Krishnanath Medhekar and Shri Gopal Bhimrao Hosur as Non-Executive Independent Directors for a second term of five years, from November 2, 2025, to November 1, 2030. The e-voting period commenced on November 13, 2025, and the results were based on the Scrutinizer’s confirmation. The company had 1,84,341 shareholders as of the cut-off date, November 7, 2025.

Re-appointment of Shri Rajan Krishnanath Medhekar as Non-Executive Independent Director approved for term until November 1, 2030
Re-appointment of Shri Gopal Bhimrao Hosur as Non-Executive Independent Director approved for term until November 1, 2030
Postal ballot e-voting concluded on December 12, 2025 at 5:00 p.m. (IST)
1,84,341 shareholders as on cut-off date of November 7, 2025

💡 The re-appointment of independent directors signals stability in the company's leadership. Investors should monitor the company's performance and governance practices under the guidance of the re-appointed directors.

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💰 Financial Performance

Revenue Growth by Segment

H1 FY26 revenue reached INR 651.4 Cr, up 10.9% YoY. The Distillery segment grew 41.1% YoY to INR 133.66 Cr in H1 FY26. Power revenue increased 364% YoY to INR 0.44 Cr. The Sugar business contributed 72% of total revenue in FY24 (INR 1,230.9 Cr). Growth is driven by higher ethanol sales volumes and realizations.

Geographic Revenue Split

100% of revenue is generated from operations in Uttar Pradesh, India, specifically from the Bijnor and Bareilly districts where the three manufacturing plants are located.

Profitability Margins

FY25 Operating Margin (OPBDITA/OI) was 8.4%, down from 12.0% in FY24. PAT Margin for FY25 was 1.7% compared to 4.9% in FY24. H1 FY26 PAT margin further declined to -6.4% from -5.7% YoY due to unabsorbed overheads and high-valued opening inventory sales.

EBITDA Margin

H1 FY26 EBITDA margin was -5.3% (EBITDA loss of INR 34.52 Cr), a deterioration from -3.1% (EBITDA loss of INR 18.18 Cr) in H1 FY25. This was primarily caused by the early conclusion of crushing operations in SY2025, leading to lower operating leverage.

Capital Expenditure

Historical CAPEX includes the commissioning of the Dwarikesh Dham distillery in Bareilly. Planned CAPEX for future periods is not disclosed in available documents, though the company recently reached a distillery capacity of 337.5 KLPD.

Credit Rating & Borrowing

Long-term rating is [ICRA]AA- (Negative), reaffirmed in November 2024 with the outlook revised from Stable to Negative. Short-term rating for the INR 300 Cr Commercial Paper program is [ICRA]A1+.

⚙️ Operational Drivers

Raw Materials

Sugarcane (primary input, ~70-80% of total cost), Bagasse (internal byproduct for power), and Molasses (internal byproduct for ethanol).

Import Sources

100% domestic sourcing from the command areas in Bijnor and Bareilly districts, Uttar Pradesh, India.

Key Suppliers

Sourced from local farmers within the company's allocated command areas through established long-term relationships.

Capacity Expansion

Current crushing capacity is 21,500 TCD; distillery capacity is 337.5 KLPD (DN: 162.5, DD: 175); co-generation capacity is 94 MW. No specific future expansion timeline is disclosed.

Raw Material Costs

Sugarcane costs are determined by the State Advised Price (SAP) set by the Government of UP. Profitability is highly sensitive to SAP increases that are not matched by sugar MSP hikes.

Manufacturing Efficiency

Maintains one of the highest sugar recovery rates in Uttar Pradesh, which directly lowers the cost of production per unit of sugar.

Logistics & Distribution

Ethanol is supplied to nearby Oil Marketing Company (OMC) depots; distribution costs as a specific percentage of revenue are not disclosed.

📈 Strategic Growth

Growth Strategy

Strategy focuses on forward integration into distillery and co-gen to mitigate sugar cyclicality. The company is increasing sucrose diversion to ethanol (214.99 lakh liters produced in H1 FY26, up 119% YoY) to capitalize on the government's 20% blending target.

Products & Services

Sugar, Ethanol, Industrial Alcohol, Rectified Spirit, and Power.

Brand Portfolio

Dwarikesh.

New Products/Services

Ethanol production via the sugarcane juice route and B-heavy molasses, supported by the expanded 337.5 KLPD distillery capacity.

Market Expansion

Expansion is focused on the ethanol blending program and increasing power evacuation to the state grid.

Market Share & Ranking

Recognized as a leading efficient operator in the Uttar Pradesh sugar industry with superior recovery rates.

🌍 External Factors

Industry Trends

The industry is evolving toward a 'Sugar-to-Ethanol' model to reduce surplus sugar supply. The government's 20% ethanol blending target by 2025-26 is a key driver for distillery segment growth.

Competitive Landscape

Competes with other large integrated sugar mills in Uttar Pradesh for sugarcane procurement and ethanol quotas.

Competitive Moat

Moat is built on integrated operations (Sugar + Distillery + Power) and high recovery rates. This structure is sustainable as it provides alternative revenue streams that cushion against the cyclicality of the sugar business.

Macro Economic Sensitivity

Highly sensitive to monsoon patterns affecting cane availability and government fiscal policies regarding ethanol blending and sugar export quotas.

Consumer Behavior

Not applicable as the business is primarily B2B and commodity-based.

Geopolitical Risks

International sugar prices impact export prospects and domestic demand-supply balance; however, MSP provides a floor for domestic prices.

⚖️ Regulatory & Governance

Industry Regulations

Heavily regulated by Central Government (MSP for sugar, Ethanol pricing) and State Government (UP-SAP for sugarcane). Pollution norms and ethanol blending mandates also dictate operational standards.

Environmental Compliance

Emissions and waste generation are within permissible limits prescribed by CPCB/SPCB. No pending show cause or legal notices were reported as of FY2022.

Taxation Policy Impact

Effective tax rate impacted by higher provisioning in FY25; H1 FY26 tax expense was -INR 23.96 Cr on a loss before tax of -INR 65.97 Cr.

Legal Contingencies

No major pending environmental or labor litigation with significant case values was disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Agro-climatic risks affecting cane production and regulatory shifts in ethanol pricing or blending targets could impact margins by 10-15%.

Geographic Concentration Risk

100% of manufacturing assets are located in Uttar Pradesh, creating high vulnerability to state-specific policy changes and local weather patterns.

Third Party Dependencies

High dependency on local farmers for sugarcane supply and the state electricity grid for power revenue.

Technology Obsolescence Risk

Low risk; the company has modernized distilleries to handle multiple feedstocks, including B-heavy molasses and sugarcane juice.

Credit & Counterparty Risk

Exposure to OMCs for ethanol and the state grid for power; OMCs are considered low-risk counterparties, while the state grid represents moderate risk.