ZUARIIND - Zuari Industries

📊 NSE: ZUARIIND 🏢 Sugar 📅 Last Updated: 12/14/2025 15:24

💰 Financial Performance

Revenue Growth by Segment

Standalone Q2 FY26 revenue was INR 204.5 Cr, down 1.4% YoY from INR 207.4 Cr. Zuari Infra World income grew 145.4% to INR 51.3 Cr. Zuari Finserv income fell 18.5% to INR 4.4 Cr. Zuari Insurance & Brokers income grew 62.5% to INR 3.9 Cr. Simon India income surged 781.8% to INR 19.4 Cr. Zuari International revenue was INR 45.8 Cr.

Geographic Revenue Split

Not explicitly disclosed by percentage, but operations are concentrated in India (Goa land banks, Bengaluru and Delhi NCR real estate) with a track record in Dubai for real estate development.

Profitability Margins

Standalone Q2 FY26 EBITDA margin improved to 4.35% from 1.68% YoY. Consolidated PBT before exceptional items surged to INR 174.02 Cr in Q2 FY26 from INR 4.8 Cr YoY, driven by a profit share from associate Zuari Agro Chemicals Ltd.

EBITDA Margin

Standalone Q2 FY26 EBITDA was INR 8.9 Cr, up 154.3% YoY from INR 3.5 Cr. Zuari Insurance & Brokers EBITDA grew 93.3% to INR 2.9 Cr. Zuari IAV Pvt Ltd reported 80% YoY growth in EBITDA for FY25.

Capital Expenditure

Internal generation is expected to be sufficient to meet routine capex requirements; the company has no major debt-laden capex plans in the near future as of October 2025.

Credit Rating & Borrowing

Long-term bank facilities of INR 661.64 Cr reaffirmed at CARE BBB-; Stable. Short-term bank facilities of INR 5.85 Cr reaffirmed at CARE A3 as of October 03, 2025.

⚙️ Operational Drivers

Raw Materials

Sugarcane is the primary raw material for the sugar, ethanol, and power (SPE) segment. Specific cost percentages per raw material are not disclosed.

Import Sources

Not explicitly disclosed, but sugarcane is typically sourced locally from the command area of the integrated sugar plant.

Capacity Expansion

Real Estate: Net saleable area of 2.8 Mn sqft planned over 5 years and 1.8 Mn sqft over 10 years. Ethanol: Achieved 44% higher production in Q2 FY26 with distillery operating days increasing to 311 from 262.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but standalone performance was supported by higher realization in sugar prices despite lower sales volumes.

Manufacturing Efficiency

Distillery operating days increased by 18.7% to 311 days. Ethanol production volume grew 44% YoY in Q2 FY26, reflecting improved capacity utilization.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Focusing on the Asset-light Development Management (DM) model in real estate with a 2.8 Mn sqft pipeline; expanding the bioethanol project in collaboration with partners; scaling digital platforms in Zuari Finserv and Management Services; and executing a ~INR 144 Cr order book in Simon India.

Products & Services

Sugar, ethanol, power, real estate units (residential/commercial), insurance policies, mutual funds, PMS/AIF, bonds, and EPC services.

Brand Portfolio

Adventz, Zuari, Simon India.

New Products/Services

Launched new SKUs for Pink Salt, Jaggery Powder, and Khandsari; launched new digital platforms for Zuari Finserv; and introduced AI-enabled EPC project control towers.

Market Expansion

Expanding distribution networks for consumer products and pursuing real estate development in Bengaluru, Delhi NCR, and international markets like Dubai.

Strategic Alliances

Joint ventures include Zuari Indian Oil Adani Ventures (oil tanking) and Zuari IAV Pvt Ltd (biofuels).

🌍 External Factors

Industry Trends

Strong net absorption in real estate led by tech ecosystems in Bengaluru and Delhi NCR; increasing focus on the biofuels value chain (biodiesel and bio-CNG); and momentum in SIPs driving a 48.4% increase in Finserv AUM to INR 560.25 Cr.

Competitive Landscape

Operates in highly competitive sectors like real estate and financial services, focusing on digital differentiation and group synergy.

Competitive Moat

Asset Moat: Market value of strategic investments (INR 4,014 Cr) is 4.26x the company's market cap (INR 942 Cr). Operational Moat: Integrated SPE model allows for high efficiency (311 distillery days) and waste reduction.

Macro Economic Sensitivity

Zuari Finserv income is highly sensitive to stock market movements, dropping 18.5% in Q2 FY26 due to market trends.

Consumer Behavior

Shift toward digital platforms for financial products and sustained demand for SIPs in the mutual fund segment.

Geopolitical Risks

Not explicitly detailed, though the company monitors overarching market and regulatory risks.

⚖️ Regulatory & Governance

Industry Regulations

Subject to sugar pricing controls, ethanol blending mandates, and real estate regulatory norms (RERA).

Environmental Compliance

Focusing on sustainability through bioethanol and bio-CNG projects to align with long-term environmental goals.

Taxation Policy Impact

Not explicitly disclosed in available documents.

Legal Contingencies

Settled worker dues for closed operations; currently spending INR 10 lakh per month on maintenance and security for these assets while exploring monetization.