Weak quarter – revenue flat, EBITDA down 19% YoY, PAT down 22% as higher sugarcane cost pressures outweighed improved sugar realisations. quarter Investor Presentation One-Pager? Mar 2026

Revenue

₹672 Cr

-0.9% YoY (Q4FY25: ₹678 Cr)

EBITDA Margin

18.0%

-400 bps YoY (Q4FY25: 22.0%)

PAT

₹56 Cr

-22.2% YoY (Q4FY25: ₹72 Cr)

Sugar Realisation

₹4,024 per qtl

+1.2% YoY (Q4FY25: ₹3,976)

What Went Right

Sugar realisation for FY26 rose 4% to ₹4,011 per qtl, partially offsetting cost inflation.
Ethanol production grew 21% YoY to 893 lac ltrs in FY26, driven by higher B-molasses and C-molasses usage.
Co-gen EBIT improved to ₹34 Cr in FY26 from ₹15 Cr in FY25, nearly doubling.
Operating cash flow stable at ₹157 Cr in FY26 vs ₹154 Cr in FY25.
Q4 Co-gen EBIT rose to ₹20 Cr from ₹14 Cr in Q4FY25, adding to earnings resilience.

What to Watch

EBITDA margin shrank to 8.4% in FY26 from 10.6% in FY25, as cane cost rose ₹30/quintal (~8% SAP hike) without full pass-through.
Q4 Ethanol sales volume dropped 18% YoY to 182 lac ltrs due to lower OMC allocation, leading to inventory build-up (109 vs 65 lac ltrs).
Q4 PAT declined 22% YoY to ₹56 Cr, and full-year PAT fell 35% to ₹57 Cr.
Total debt increased to ₹1,406 Cr from ₹1,370 Cr, indicating higher working capital absorption.
Q4 sugar production recovery improved but overall cane crush fell 1% for FY26, limiting volume leverage.

Investor Lens

Avadh Sugar's Q4 performance underscores persistent margin pressure from sugarcane cost inflation, with EBITDA falling 19% YoY despite a 1% rise in sugar realisation. While the multi-engine model is structurally intact—ethanol production surged 21% for the full year and co-gen EBIT doubled—near-term headwinds from higher SAP and subdued OMC ethanol offtake weakened quarterly earnings. Balance sheet leverage crept higher as total debt reached ₹1,406 Cr. Key watchpoints for next quarter: revision of ethanol procurement prices, progress on OMC allocations (only 4.19 Cr ltrs supplied out of 7.54 Cr allocated as of Apr 30), and any government decision on sugar MSP revision. Without margin relief, the thesis of a stable core plus growth levers remains under quarterly check.

From investor presentation · AI-generated analysis · Not investment advice

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📊 MIXED Revenue flat, PAT down 22% YoY but QoQ margins double; D/E 1.25

Revenue

Revenue for Mar 2026 quarter was ₹671 Cr, down 1.2% YoY from ₹679 Cr but up 5.2% QoQ from ₹638 Cr. The YoY decline suggests muted demand or pricing pressure despite sequential improvement.

Profitability

Net profit fell 22.2% YoY to ₹56 Cr from ₹72 Cr, though QoQ it surged 229.4% from ₹17 Cr. EPS stood at ₹27.78 vs ₹35.81 a year ago, reflecting margin compression.

Margins

Operating profit margin dropped YoY from 22% to 18%, but recovered sharply from 9% in Dec 2025. The sequential margin doubling indicates improved operating leverage or cost control in the current quarter.

Cash Flow

No cash flow data provided in the release. Cannot comment on cash generation quality or coverage of PAT.

Balance Sheet

Total borrowings stand at ₹1,407 Cr against reserves of ₹1,104 Cr, resulting in a debt-to-equity ratio of 1.25. Total assets are ₹2,880 Cr. The high leverage is a key risk factor.

Key Risks

High debt (D/E 1.25) with low ROCE of 6.58% and ROE of 5.27% indicates weak capital efficiency. YoY profit decline and margin drop raise concerns about sustained earnings recovery.

Outlook

The sharp QoQ margin recovery offers a positive signal, but the YoY decline in profits and elevated leverage warrant caution. Sustained improvement in demand and debt reduction will be critical for performance.

Generated by AI · Mar 2026 results · Not investment advice

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