Dalmia Bharat Sugar Reports 90% Growth in Q2 EBITDA to ₹144 Crore; Revenue Rises 7% to ₹1,061 Crore

Sugar realisations and higher distillery volumes support profitability in Q2 FY2026-27

05 November 2026, New Delhi: Dalmia Bharat Sugar and Industries Limited reported a 90% year-on-year (YoY) increase in EBITDA to ₹144 crore for the quarter ended September 30, 2026. Revenue from operations increased 7% to ₹1,061 crore, while profit after tax (PAT) rose 203% to ₹71 crore.

The company’s performance during the quarter was supported by sugar realisations and distillery volumes. Sugar sales stood at 1.6 lakh metric tonnes (LMT), with an average net sales realisation (NSR) of ₹46.8 per kg. The distillery segment recorded volumes of 4.4 crore litres, registering 10% YoY growth.

Sugar Segment

The company reported sugar sales of 1.6 LMT during the quarter, with an average sugar NSR of ₹46.8 per kg. Sugar inventory stood at 0.81 LMT as of September 30, 2026, valued at ₹37.3 per kg.

Distillery Segment

The distillery segment recorded volumes of 4.4 crore litres during the quarter, marking a 10% increase year on year.

The segment’s contribution is expected to be affected by changes in ethanol feedstock regulations for Ethanol Supply Year (ESY) 2026-27, following the government’s restriction on the use of B-heavy molasses and sugarcane juice/syrup for ethanol production.

Company Updates

The Board of Directors, at its meeting on November 3, 2026, approved a Scheme of Arrangement between Hippostores Technology Private Limited and Dalmia Bharat Sugar and Industries Limited under Sections 230 to 232 of the Companies Act, 2013.

The scheme proposes the transfer of Hippostores’ business, which includes multi-supplier aggregation, AI/ML-driven optimisation and the development and implementation of technology-led solutions, to Dalmia Bharat Sugar on a going-concern basis.

In consideration of the transfer, Dalmia Bharat Sugar will issue redeemable preference shares with a face value of ₹10 each to the equity and preference shareholders of Hippostores, in the proportions specified under the scheme. The appointed date is January 1, 2027.

The company also reported that its ongoing projects are progressing within their target timelines. These include a sugarcane plantation and sugar manufacturing project in Tanzania, a compressed biogas (CBG/Bio-CNG) project at Kolhapur, and the conversion of its existing cane-based distillery at Ramgarh into a 100 KLPD dual-feed distillery.

During the quarter, Dalmia Bharat Global Holdings Limited, a wholly owned subsidiary, was incorporated in the United Arab Emirates to hold the company’s existing and future investments.

Regulatory Developments

The Fair and Remunerative Price (FRP) of sugarcane for the 2026-27 season has been increased from ₹355 to ₹365 per quintal at a base recovery rate of 10.25%. State Advised Prices (SAP) are yet to be announced.

The Department of Food and Public Distribution (DFPD), through its direction dated October 22, 2026, prohibited the diversion of B-heavy molasses and sugarcane juice/syrup for ethanol production during ESY 2026-27.

The Government of India also prohibited sugar exports and subsequently permitted imports of up to one million tonnes of raw sugar under the Tariff Rate Quota (TRQ) mechanism. The measure aims to maintain domestic supply-demand balance and contain increases in sugar prices. The company noted that the import arrangement may continue into the following year.

In Uttar Pradesh, the state government increased the levy obligation on B-heavy molasses from 18% to 19%, followed by a further increase to 20%. The changes were notified on August 3 and September 25, 2026, respectively.

Outlook

The company expects sugarcane availability and recovery to remain key factors during the 2026-27 sugar season. Uneven monsoon rainfall has raised concerns over cane availability, while potential El Niño-related disruptions could affect production in Maharashtra and Karnataka.

Restrictions on the use of B-heavy molasses and sugarcane juice/syrup for ethanol production are expected to reduce the contribution of sugar-based ethanol. Grain-based distilleries are likely to play a greater role in meeting ethanol demand.

Dalmia Bharat Sugar said its grain-based distillery capacity of 350 KLPD would support its operations under the revised feedstock framework.

However, maize prices have increased from approximately ₹18 to ₹25 per kg, while maize-based ethanol realisations have declined. The company expects these factors to put pressure on margins during the upcoming ethanol supply year.

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