KMSUGAR - KM Sugar Mills
📢 Recent Corporate Announcements
K.M. Sugar Mills Limited has reported the passing of its Chairman, Promoter, and Whole Time Director, Shri Laxmikant Dwarkadas Jhunjhunwala, on March 14, 2026. Mr. Jhunjhunwala was a significant stakeholder, holding 15.55% of the company's equity individually and another 10.94% through an HUF. Following his demise, he will cease to be part of the Promoter Group as per SEBI regulations. The company has expressed that his leadership was vital to its growth, and investors should now look for updates regarding succession planning.
- Demise of Chairman and Promoter Shri Laxmikant Dwarkadas Jhunjhunwala on March 14, 2026
- Held 14,302,600 equity shares (15.55%) in an individual capacity
- Held 10,065,900 equity shares (10.94%) through Hindu Undivided Family (HUF)
- Total promoter stake affected by the demise is approximately 26.49%
- Cessation of promoter status in accordance with Regulation 31A(6)(c) of SEBI LODR
K.M. Sugar Mills reported a robust performance for the quarter ended December 31, 2025, with standalone Profit After Tax (PAT) rising 62.9% YoY to ₹20.59 crore. Although revenue growth was modest at 2% YoY, profitability was significantly enhanced by a 60.5% reduction in finance costs and a one-time insurance claim of ₹6.84 crore. The sugar segment remains the dominant contributor with ₹153.25 crore in revenue, while the distillery segment successfully turned profitable at the EBIT level compared to the previous year's quarter.
- Standalone PAT grew 62.9% YoY to ₹20.59 crore from ₹12.64 crore in Q3 FY25.
- Finance costs significantly decreased to ₹1.05 crore in Q3 FY26 from ₹2.66 crore in the same period last year.
- Other income included a one-time insurance claim of ₹6.84 crore related to a 15MW turbine.
- Sugar segment PBIT (Profit Before Interest and Tax) increased 35% YoY to ₹28.77 crore.
- Nine-month FY26 PAT of ₹44.18 crore has already surpassed the total FY25 annual PAT of ₹35.55 crore.
K.M. Sugar Mills reported a robust 63% YoY growth in Net Profit to ₹20.59 crore for Q3 FY26, despite a modest 2% revenue growth to ₹169.08 crore. The performance was significantly aided by a 60% reduction in finance costs and a one-time insurance claim of ₹6.84 crore. Segmentally, the sugar business remains the core driver with improved margins, while the distillery segment showed a turnaround from a loss to a small profit. The company's nine-month profit of ₹44.18 crore has already surpassed the total profit of the previous full financial year.
- Net Profit increased 63% YoY to ₹20.59 crore from ₹12.64 crore in Q3 FY25.
- Finance costs decreased sharply by 60% YoY to ₹1.05 crore from ₹2.66 crore.
- Other income includes a one-time insurance claim of ₹6.84 crore for a 15MW turbine.
- Sugar segment EBIT improved to ₹28.77 crore compared to ₹21.30 crore in the previous year's quarter.
- Nine-month PAT for FY26 reached ₹44.18 crore, exceeding the full FY25 PAT of ₹35.55 crore.
K.M. Sugar Mills Limited has filed its quarterly compliance report for the period ended December 31, 2025, as per SEBI (Depositories and Participants) Regulations. The company confirmed that 99.99% of its total 92,000,170 shares are held in dematerialized form, with only 1,030 shares remaining in physical mode. Significantly, the company reported zero investor grievances received or pending during the entire quarter. This routine disclosure confirms the company's adherence to regulatory standards and efficient registrar operations.
- Total share capital consists of 92,000,170 shares held by 55,397 shareholders.
- Dematerialized holdings are split between CDSL (48,311,900 shares) and NSDL (43,687,240 shares).
- Zero investor complaints were received, attended, or pending during the quarter ended December 31, 2025.
- Only 3 shareholders still hold shares in physical form, totaling 1,030 shares.
- MUFG Intime India Private Limited confirmed compliance with SEBI Regulation 74(5) regarding share certificates.
K.M. Sugar Mills Limited has informed the stock exchanges that its trading window will be closed for all designated persons starting January 1, 2026. This closure is a mandatory regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015, preceding the announcement of financial results. The window will remain closed until 48 hours after the company declares its financial results for the quarter ending December 31, 2025. The specific date for the Board Meeting to approve these results will be announced at a later date.
- Trading window closure effective from January 1, 2026
- Closure applies to all designated persons and their immediate relatives
- Restriction remains until 48 hours after Q3 financial results are declared
- Complies with Clause 4 of Schedule B of SEBI Insider Trading Regulations
Financial Performance
Revenue Growth by Segment
Total Operating Income grew marginally by 0.28% to INR 659.01 Cr in FY25 from INR 657.16 Cr in FY24. The Sugar segment results grew 34.4% to INR 64.86 Cr, while the Distillery segment results declined 69.8% to INR 2.23 Cr.
Geographic Revenue Split
Not disclosed in available documents, but the company's primary operations and plants are located in Motinagar, Faizabad, Uttar Pradesh.
Profitability Margins
Net profit ratio improved by 112 bps to 5.39% in FY25 from 4.27% in FY24. Return on Equity (ROE) increased to 11.08% from 9.71% YoY, and Return on Capital Employed (ROCE) rose to 17.79% from 15.76%.
EBITDA Margin
Not explicitly stated as a percentage, but Profit Before Tax (PBT) grew 25.08% to INR 48.92 Cr in FY25 from INR 39.11 Cr in FY24, indicating improved core profitability.
Capital Expenditure
Not disclosed in available documents for future plans; however, the company maintained a Tangible Net Worth (TNW) of INR 214.54 Cr as of March 31, 2023.
Credit Rating & Borrowing
Credit rating reaffirmed at IVR A-/Stable for long-term facilities and IVR A2+ for short-term facilities as of July 11, 2025. Finance costs were INR 18.17 Cr in FY25, up 9.85% from INR 16.54 Cr in FY24.
Operational Drivers
Raw Materials
Sugarcane is the primary raw material, with procurement governed by the Sugarcane (Control) Order, 1966. Bagasse is used as a secondary raw material for power generation.
Import Sources
Sourced locally from the command area allocated to the mill in Uttar Pradesh, as mandated by government regulations.
Key Suppliers
Sourced from local farmers within the Masodha, Ayodhya, and Faizabad command areas.
Capacity Expansion
Current installed capacity includes a sugar plant of 9,500 TCD, a distillery of 50 KLPD, and a cogeneration plant of 25 MW. No specific expansion timeline was disclosed.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but performance is highly dependent on sugarcane availability and recovery rates, which stood at 11.01% in SY25 compared to 11.35% in SY24.
Manufacturing Efficiency
Sugar recovery rate was 11.01% in SY25 (down from 11.35% in SY24). The crushing period decreased to 121 days in SY25 from 144 days in SY24.
Strategic Growth
Growth Strategy
Growth is driven by integrated operations that allow for multiple revenue streams (sugar, ethanol, and power). The company focuses on improving recovery rates and maintaining a comfortable capital structure to support financial flexibility.
Products & Services
Sugar, industrial alcohol, ethanol, and surplus power supplied to the Uttar Pradesh Power Corporation Limited.
External Factors
Industry Trends
The industry is moving toward integrated models to mitigate cyclicality, with a strong focus on ethanol blending programs supported by government policy.
Competitive Landscape
The company operates in a cyclical and fragmented industry with competition from other sugar mills in the Uttar Pradesh region.
Competitive Moat
The moat is derived from integrated operations (9,500 TCD sugar + 50 KLPD distillery + 25 MW power) and experienced management, providing a sustainable cost advantage over non-integrated mills.
Macro Economic Sensitivity
Highly sensitive to monsoon and climatic conditions, which influence the crushing period and sugar recovery levels.
Regulatory & Governance
Industry Regulations
Operations are governed by the Sugarcane (Control) Order, 1966, which regulates sugarcane sourcing areas and pricing. Sugar trade and by-product pricing are also subject to government acts.
Taxation Policy Impact
Current tax for FY25 was INR 13.54 Cr, up from INR 10.48 Cr in FY24. Deferred tax was a credit of INR 0.17 Cr.
Risk Analysis
Key Uncertainties
High exposure to group entity Sonar Casting Limited (SCL) with corporate guarantees of INR 68.66 Cr and preference share investments of INR 49.60 Cr, which constrains financial flexibility.
Geographic Concentration Risk
100% of manufacturing operations are concentrated in Uttar Pradesh, making the company vulnerable to state-specific policy changes and local weather patterns.
Third Party Dependencies
High dependency on local farmers for sugarcane supply and the Uttar Pradesh Power Corporation Limited for power revenue.
Credit & Counterparty Risk
Trade receivable turnover ratio was 34.94x in FY25, indicating efficient collection, though it decreased by 5.97% from 37.16x in FY24.