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ZUARI INDUSTRIES LIMITED
₹819 Cr
Market Cap
7.6
P/E
0.27
PEG
5.5%
ROCE
2.7%
ROE
0.75
D/E
4.2%
OPM
-34.1%
% from 52W High
42
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in 1967, Zuari Industries Ltd is in the business of real estate, investment services, engineering services, management services, manufacturing and trading of furniture, manufacturing and sale of sugar and its by products, ethanol and generation of power.

✓ Strengths 2
  • Stock is trading at 0.23 times its book value
  • Market value of investments Rs.3,099 Cr. is more than the Market Cap Rs.808 Cr.
! Concerns 4
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 4.62% over past five years.
  • Company has a low return on equity of -0.25% over last 3 years.
  • Earnings include an other income of Rs.346 Cr.
Key Ratios Snapshot
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📈 Growth Pattern
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3-Statement Financial Model
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Mixed quarter: standalone revenue grew 3% YoY and EBITDA improved 2%, but ethanol sales fell 16% YoY and the value of strategic investments dropped 20% QoQ, while consolidated losses widened to -₹31.6 Cr. quarter Investor Presentation One-Pager? Mar 2026
Revenue (Standalone)
₹267.3 Cr
+3% YoY (₹258.6 Cr)
EBITDA Margin (Standalone)
24.6%
-30 bps YoY (24.9%)
PAT (Standalone)
₹17.9 Cr
+97% YoY (₹9.1 Cr) – aided by lower exceptional losses
Sugar Production (Q4)
92 LQ
+11% YoY (83 LQ)
What Went Right
  • Sugar production rose 11% YoY to 92 LQ in Q4, while full-year crush reached a record 159.7 LQ.
  • Standalone EBITDA improved 2% YoY to ₹65.8 Cr in Q4, with full‑year EBITDA up 7% to ₹191.5 Cr.
  • Finance costs declined ₹11.4 Cr in FY26 YoY, and the cost of borrowing fell from 10.19% to 9.89%.
  • St. Regis, Dubai (ZIIL) is 100% sold (AED 1,304 Mn), with 98% construction complete and handover starting June 26.
  • Simon India secured new orders worth ~₹95 Cr and secured a copyright for its Proton SI platform.
What to Watch
  • Ethanol sales slumped 16% YoY in Q4 to 96 LL, and production fell 6% YoY; full‑year ethanol sales were flat (+0.7%).
  • Value of quoted strategic investments plunged 20% QoQ to ₹3,681 Cr, driven by sharp drops in Texmaco Rail (-43%) and Zuari Agro (-45%).
  • Consolidated net loss widened to -₹31.6 Cr in Q4 (vs -₹20.8 Cr in Q4FY25), as associate losses and exceptional items weighed.
  • Real estate segment EBITDA turned deeply negative at -₹16.1 Cr in Q4 (vs -₹5.8 Cr in Q4FY25), reflecting project expenses.
Investor Lens
Zuari Industries delivered a mixed quarter. Standalone revenue grew modestly (+3% YoY) and EBITDA inched up (+2%), helped by record sugar crush and lower borrowing costs. However, the ethanol business struggled with a 16% drop in sales and a delay in OMC tenders, while the quoted investment portfolio suffered a 20% sequential decline, eroding balance sheet strength. The consolidated loss more than doubled due to associate weakness and higher project costs in real estate. Positives include the near‑completion of the Dubai St. Regis project (handover from June 26) and continued order wins at Simon India. The thesis hinges on real estate monetisation and a recovery in agro‑commodity prices; next quarter watch ethanol margins, investment valuations, and the pace of Dubai revenue recognition.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue up 21% but operating profit slumps 44%; margins halve to 4.6%
Revenue
Revenue grew 21.2% YoY to ₹311.9 Cr and 10% QoQ, indicating strong demand momentum. The FMCG business delivered double-digit top-line growth, though the high growth base was against a relatively weak June 2025 quarter.
Profitability
Net profit rose 110.4% YoY to ₹0.05 Cr, aided by a negative tax expense of -108.77% and other income of ₹54.8 Cr. EPS improved to ₹0.20 from ₹0.02, but operating profit fell 43.8% YoY to ₹14.2 Cr, reflecting weak core earnings.
Margins
Operating margin contracted sharply to 4.55% from 9.80% YoY and 10.66% QoQ, indicating significant cost or input pressures. Interest cost of ₹61.5 Cr exceeded operating profit, but other income of ₹54.8 Cr partially buffered the bottom line.
Balance Sheet
Debt-to-equity ratio stands at 0.72, with interest expenses far exceeding operating profit, indicating a high fixed-cost burden. ROE at 2.69% and ROCE at 5.45% reflect low returns on capital, though no further balance sheet details were disclosed.
Key Risks
Operating margins halved YoY to 4.55%, raising concerns about sustainability. High interest costs of ₹61.5 Cr against operating profit of just ₹14.2 Cr create leverage risk. Profitability is heavily reliant on other income and tax credits, which may not recur.
Outlook
Continued revenue growth may support operating leverage, but margin recovery and debt reduction are critical. Without improvement in core profitability, PAT remains vulnerable to interest and other income volatility.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
a) Sugar and allied products
168
EBIT 2
222
EBIT -3
b) Power
10
EBIT 2
40
EBIT -2
c) Ethanol Plant
48
EBIT 3
61
EBIT -3
d) Real estate
7
EBIT -2
9
EBIT -3
e) Management services
9
EBIT -1
11
EBIT -1
f) Financial services
7
EBIT 3
6
EBIT 1
g) Engineering services
18
EBIT -1
23
EBIT -2
h) Furniture
0
EBIT 0
0
EBIT -1
Total 268 371

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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