VISHWARAJ - Vishwaraj Sugar

📊 NSE: VISHWARAJ 🏢 Sugar 📅 Last Updated: 12/14/2025 15:11

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations fell 16.4% YoY to INR 461.55 Cr in FY2025. Segment performance: Sugar revenue decreased 10.1% to INR 277.34 Cr; Co-generation revenue dropped 42.8% to INR 24.40 Cr; Distillery revenue declined 23.6% to INR 136.32 Cr.

Geographic Revenue Split

Not disclosed in available documents, though operations are concentrated in Belgaum, Karnataka.

Profitability Margins

Operating margin fell sharply from 12.49% in FY2024 to 4.26% in FY2025. Net profit margin deteriorated from 2.64% to -8.16% over the same period, resulting in a net loss of INR 37.02 Cr compared to a profit of INR 14.50 Cr in the previous year.

EBITDA Margin

EBITDA margin was 4.18% in FY2025 (INR 19.32 Cr), a 71.9% decrease from the 12.44% margin (INR 68.69 Cr) recorded in FY2024.

Capital Expenditure

The company expanded its distillery capacity to 250 KLPD to increase ethanol production. It raised INR 49.99 Cr through a Qualified Institutional Placement (QIP) of 3,00,47,700 equity shares to fund future operations and enhance financial resources.

Credit Rating & Borrowing

Ratings were downgraded to [ICRA]BB (Stable) from [ICRA]BB+ (Stable) in November 2025. Finance costs increased 12.4% YoY to INR 34.27 Cr, while the Interest Service Coverage Ratio (ISCR) fell from 2.25 to 0.56.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material, representing the bulk of input costs. Crushing volume dropped by 2.13 lakh MT in FY2025 due to adverse agro-climatic conditions.

Import Sources

Sourced locally from the rural areas surrounding the manufacturing unit in Bellad Bagewadi, Hukkeri, Belgaum, Karnataka.

Key Suppliers

Not disclosed in available documents; however, the company provides corporate guarantees of INR 85 Cr for its cane harvesters and transporters.

Capacity Expansion

Distillery capacity has been expanded to 250 KLPD. Current production includes 5,52,900 quintals of sugar and 20,812.38 kilo liters of ethanol.

Raw Material Costs

Raw material costs increased in FY2025, contributing to the net loss. Specific percentage of revenue not disclosed, but the company cited higher raw material costs as a primary driver for the INR 37.02 Cr loss.

Manufacturing Efficiency

Crushing volume decreased significantly by 2.13 lakh MT YoY, leading to lower production of finished products and reduced capacity utilization.

📈 Strategic Growth

Growth Strategy

The company aims to achieve growth by increasing sugarcane crushing productivity and leveraging its expanded 250 KLPD distillery capacity to boost ethanol revenue. It raised INR 49.99 Cr via QIP and has approval for up to INR 99 Cr to fund organic and inorganic expansion.

Products & Services

Sugar (5,52,900 quintals), Ethanol (20,812.38 KL), Power (7,81,33,800 KWh), and Vinegar.

New Products/Services

The company has established a Vinegar unit and is increasing its focus on ethanol production from B-heavy molasses and direct sugar syrup.

🌍 External Factors

Industry Trends

The industry is shifting toward ethanol blending (B-heavy molasses/direct syrup) to reduce sugar surplus. MSP by the Central Government helps curtail sharp contractions in sugar prices.

Competitive Landscape

The sugar industry is highly cyclical and fragmented, with volatility partially mitigated by government pricing controls like MSP.

Competitive Moat

Forward integration into distillery and co-generation provides a cost-leadership moat by utilizing by-products (molasses and bagasse), though sustainability is tied to raw material availability.

Macro Economic Sensitivity

Highly sensitive to monsoon patterns and agro-climatic conditions in Karnataka, which dictate sugarcane yields and recovery rates.

Consumer Behavior

Increasing demand for ethanol-blended fuels is driving a shift in production focus away from pure sugar.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Sugar (Control) Order 1966, Sugarcane (Control) Order 1966, and the Karnataka Sugarcane (Regulation of Purchase and Supply) Act 2013.