11 August 2026, Mumbai: Dalmia Bharat Sugar and Industries Limited reported revenue from operations of ₹848 crore and EBITDA of ₹71 crore for the quarter ended June 30, 2026 (Q1 FY2026-27), despite higher sugarcane costs and lower sugar sales volumes.
The company said higher sugarcane prices during the previous sugar season increased the cost of opening sugar inventories. The impact was partly offset by an improvement in sugar prices during the quarter.
Sugar sales stood at 1.3 lakh tonnes during the quarter, while average sugar net selling realisation (NSR) increased to ₹40.6 per kg from ₹39.9 per kg in Q1 FY2025-26. Sugar prices in July were in the range of ₹43–44 per kg, according to the company.
Distillery volumes stood at 4.3 crore litres during the quarter.
Sugar Segment
The sugar business faced pressure from higher cane prices and lower sales volumes compared with the previous year. The impact was partly offset by the improvement in sugar NSR.
Sugar inventory stood at 2.36 lakh tonnes as of June 30, 2026, valued at an average of ₹36.9 per kg. The company said the lower sales volume during Q1 resulted in higher inventory at the end of the quarter, with the shortfall expected to be recovered in the coming quarters.
For the 2026-27 sugar season, the Fair and Remunerative Price (FRP) of sugarcane has been increased to ₹365 per quintal from ₹355 per quintal at a basic recovery rate of 10.25%.
Bioenergy and Distillery Projects
Dalmia Bharat Sugar said construction of its compressed biogas (CBG/Bio-CNG) project at Kolhapur is progressing according to schedule, with operations targeted to begin in November 2026.
The company’s Board has also approved the conversion of its existing cane distillery at Ramgarh into a dual-feed 100 KLPD distillery. The project has an estimated cost of ₹49 crore and is expected to be commissioned by April 2027.
Tanzania Sugar Project
Dalmia Bharat Sugar received approval on July 14, 2026, for its Tanzania project, which involves developing a 10,000-hectare sugarcane plantation and establishing a sugar manufacturing facility with an annual capacity of around 70,000 tonnes. The project will also include a 20 MW cogeneration facility.
The estimated investment for the project is US$132 million. Over the medium to long term, the company plans to expand the plantation area to 20,000 hectares and sugar production capacity to 150,000 tonnes.
The company said it plans to develop the integrated complex into a broader bioenergy platform by using sugar production by-products for commercially viable and environmentally sustainable applications.
Outlook
Dalmia Bharat Sugar expects the lower sugar sales recorded in Q1 FY2026-27 to be recovered during the remaining quarters of the financial year.
The company expects sugar prices to remain firm in the near term, supported by steady domestic demand and a balanced supply position. Sugar NSR in July was reported at ₹43–44 per kg.
The company currently expects a healthy sugarcane crop for the upcoming season, although the final crop outlook will depend on weather conditions, including the potential impact of El Niño and other agro-climatic factors.
Dalmia Bharat Sugar’s long-term credit rating has been reaffirmed at CARE AA+ with a Stable outlook, while its short-term credit rating has been reaffirmed at CARE A1+.
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