RENUKA - Sh.Renuka Sugar

📊 NSE: RENUKA 🏢 Sugar 📅 Last Updated: 12/14/2025 13:06

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 was INR 2,486.5 Cr, growing 5.02% YoY from INR 2,367.5 Cr. Segment revenue contributions for Q2 FY26: Sugar Refinery INR 1,667.2 Cr (71.1% of gross), Sugar Milling INR 299.6 Cr (12.8%), Distillery INR 285.8 Cr (12.2%), Trading INR 82.1 Cr (3.5%), and Co-generation INR 8.2 Cr (0.4%).

Geographic Revenue Split

Not disclosed in available documents, though the company operates subsidiaries in the UAE (Renuka Commodities DMCC) and Ethiopia.

Profitability Margins

Profitability saw a sharp decline in Q2 FY26: Operating Margin fell to -6.91% from 9.80% YoY, and Net Profit Margin dropped to -13.72% from 0.83% YoY. This was primarily driven by a net loss from commodity derivatives of INR 66.2 Cr compared to a gain of INR 197.1 Cr in the previous year.

EBITDA Margin

Operating profit margin for H1 FY26 was -5.38%, a significant reversal from 5.98% in H1 FY25, indicating core operational losses due to commodity price volatility and high input costs.

Credit Rating & Borrowing

The company held an [ICRA]A-(Stable)/[ICRA]A2+ rating, which was recently withdrawn. Finance costs for H1 FY26 were INR 376.5 Cr, representing approximately 8.4% of total revenue, highlighting a high interest burden.

⚙️ Operational Drivers

Raw Materials

Sugarcane and Raw Sugar are the primary raw materials. Raw sugar is a critical input for the refinery segment, which accounts for 71% of gross revenue.

Import Sources

Not disclosed in available documents, though the refinery business typically relies on global raw sugar imports.

Key Suppliers

Not disclosed in available documents, but the company is a Wilmar Group subsidiary, suggesting integrated supply chain links.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the refinery segment's results swung from a profit of INR 301 Cr in Q2 FY25 to a loss of INR 35.8 Cr in Q2 FY26, indicating high sensitivity to raw sugar procurement costs.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company is leveraging its position as a Wilmar Group company to focus on the sugar refinery and distillery segments. The distillery segment (Ethanol) is a key growth area, contributing INR 285.8 Cr in Q2 FY26 and achieving a small segment profit of INR 2.5 Cr while other major segments reported losses.

Products & Services

Refined sugar, milled sugar, ethanol, and co-generated power.

Brand Portfolio

Shree Renuka Sugars, Wilmar.

Strategic Alliances

Strategic partnership and ownership by the Wilmar Group (A Wilmar Group Company).

🌍 External Factors

Industry Trends

The industry is shifting toward a bio-energy model; Renuka's distillery segment is becoming a critical stabilizer, though it currently represents only 12.2% of revenue.

Competitive Landscape

The company competes with other large integrated sugar mills and standalone refineries in India and globally.

Competitive Moat

The primary moat is the company's scale in refining (INR 1,667.2 Cr quarterly revenue) and its integration with the Wilmar Group's global supply chain, providing a durable cost advantage in raw material sourcing.