Dalmia Bharat Sugar Reports Q1 Results: Revenue Stands at Rs 848 Cr Amid Inventory Costs

Dalmia Bharat Sugar Reports Q1 Results: Revenue Stands at Rs 848 Cr Amid Inventory Costs​

Dalmia Bharat Sugar and Industries Limited announced its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. Despite facing headwinds from higher sugarcane prices, which increased opening inventory costs, the company reported revenue of Rs 848 crore and an EB/TOA of Rs 71 crore for the quarter.

The company noted that better sugar prices partially offset these challenges. Nonetheless, the Sugar Net Realization (NSR) improved, rising to an average of Rs 40.6/kg in Q1 FY26-27 from Rs 39.9/kg in Q1 FY25-26.

The company's long-term credit rating was reaffirmed at CARE AA+ and short-term rating at CARE A+.

Financial Highlights Overview​

Financial performance indicators for the first quarter of FY2027 compared to the corresponding period last year are detailed below:

Sugar Segment Performance​

In the sugar segment, Q1 FY2027 saw a reduction in sales volume compared to Q1 FY2026, though realizations remained stable. The company recorded 1.3 million metric tonnes (LMT) in sugar sales for the quarter.

Key metrics for the sugar segment include:


As of June 30, 2026, the sugar inventory stood at 2.36 lakh MT, valued at Rs 36.9/Kg.

Distillery Segment Update​

The distillery segment maintained significant operations, achieving a sales volume of 4.3 crore litres (Cr Ltr) in Q1 '27 compared to 5.2 Cr Ltr in Q1 '26. Gross Revenue from the distillery segment was Rs 287 Cr, with an EBIT of Rs 35.3 Cr.

Project Milestones and Regulatory Changes​

The company shared updates on several key projects:

• CBG Project: The ongoing Bio-CNG (CBG) project at Kolhapur is progressing well and is scheduled for commencement of operations by November 2026.
• Tanzania Project: A project in Tanzania was approved on July 14, 2026. This project involves developing a 10,000 Ha sugarcane plantation and establishing a manufacturing unit with a sugar manufacturing capacity of approximately 10,000 MT and a 20 MW cogeneration facility, estimated at US$132 million. The project has potential for expansion to 20,000 Ha plantation and 150,000 MT sugar production capacity in the long term.
• Ramgarh Conversion: The Board approved the conversion of an existing Cane distillery in Ramgarh to a Dual feed 100 KLPD distillery with a project cost of Rs 49 Cr, expected to be commissioned by April 2027.
• FRP Increase: For the sugar season 2026-27, the Farmers Realization Price (FRP) has been increased from Rs 355/Qtl to Rs 365/Qtl at a basic recovery of 10.25%.

Outlook and Strategy​

The company noted that lower sales volume in Q1 resulted in stock accumulation by quarter end, and these accumulated stocks are expected to be recovered across upcoming quarters in FY 2026-27.

Looking ahead, sugar prices are anticipated to remain firm in the near term, given steady domestic demand and a balanced supply position. The company expects a healthy sugarcane crop in the forthcoming season, though actual crop outlook will depend on weather conditions, including the impact of El Nino and other Agro-climatic factors.

DALMIASUG Stock Price Movement​

Dalmia Bharat Sugar and Industries Limited edged higher on Friday, closing at ₹404.55 after gaining 2.21%. The stock saw activity amid a volume of 304,629 shares traded during the session.