Dwarikesh Sugar Industries Reports Q1 FY27 Results; Loss Narrowed Compared to Previous Year

Dwarikesh Sugar Industries Reports Q1 FY27 Results; Loss Narrowed Compared to Previous Year​

Mumbai, July 28, 2026: Dwarikesh Sugar Industries Limited announced its unaudited financial results for the quarter ended June 30, 2026. In Q1 FY27, the company reported a loss before tax (LBT) of Rs. 34.38 crore and a loss after tax (LAT) of Rs. 25.73 crore, reflecting changes compared to the results in Q1 FY26, when it posted an LBT of Rs. 13.03 crore and a LAT of Rs. 9.38 crore.

The company's performance was characterized by lower contributions from both sugar and ethanol segments, coupled with the absence of byproduct sales during the quarter.

Financial Performance Overview​

Total income stood at Rs. 360.07 crore for Q1 FY27, down from Rs. 405.97 crore in Q1 FY26, but remains lower than the full fiscal year (FY26) total of Rs. 1,409.09 crore.

The financial summary across the periods is presented below:


Key metrics from the Profit and Loss statement also showed variations:

Operational Highlights and Industry Context​

During Q1 FY27, the company sold 7.50 lakh quintals of sugar, compared to 6.63 lakh quintals in the corresponding quarter of the previous year. The average realization on domestic sugar sold during this period was Rs. 4,064 per quintal, up from Rs. 3,962 per quintal in Q1 FY26.

Operational data for industrial alcohol showed production of 28.85 lakh liters and sales of 78.17 lakh liters. This contrasts with the previous year's performance where production reached 214.99 lakh liters against sales of 216.49 lakh liters.

As of June 30, 2026, the sugar stock stood at 7.80 lakh quintals, down from 9.71 lakh quintals held on June 30, 2025. The company's outstanding long-term loan as of June 30, 2026, amounted to Rs. 83.52 crore, which pertains to the distillery project at the DD unit and benefits from a concessional interest rate.

The broader sugar industry context suggests that net sugar production for Sugar Season (SS) 2025-26 is expected to be lower than earlier estimates. Net sugar production achieved so far stands at approximately 276 lakh tons, and the season is now projected to conclude with a net output of around 280 lakh tons. Accounting for exports and consumption, the closing stock is estimated to equate to nearly two months' domestic supply.

Ex-factory sugar prices, which averaged around ₹4,000 per quintal during FY 2025-26, have shown an upward trend in the first quarter of FY 2026-27, with current prices ranging between ₹4,200 and ₹4,300 per quintal.

Analysis and Outlook​

The financial performance for Q1 FY27 was negatively impacted by lower contributions from both the sugar and ethanol segments, alongside the absence of byproduct sales. Although sugar realizations improved, this benefit was substantially offset by the sale of a high-cost opening inventory from Sugar Season 2025-26. The increased production costs resulting from the higher State Advised Price (SAP) of sugarcane led to lower sugar margins for the company.

Furthermore, there was no sugar production during the quarter, compared with 0.54 lakh quintals produced in the corresponding period last year. Ethanol profitability also suffered due to reduced production and sales, leading to fixed manufacturing overheads being under-absorbed and resulting in a higher per-liter production cost. Reduced cane crushing and sugar output led to limited byproduct generation, as all available quantity was utilized for captive consumption.

Looking ahead, ex-factory sugar prices appear strengthened, supported by a balanced domestic supply-demand situation and growing uncertainty over future production due to potential impacts from El Niño and other weather-related factors. The company maintains cautious optimism regarding the coming quarters. Management remains focused on enhancing cane availability in the ensuing sugar season and expects a healthy sugarcane crop, provided normal weather conditions prevail during the critical post-September period.

DWARKESH Stock Price Movement​

Dwarikesh Sugar Industries Limited's shares today slipped by 2.05% in post-market trading, finally settling at approximately ₹41.63 after the equity sheds nearly ₹0.87 per share. The stock saw significant activity through the day, recording a traded volume of 2.77 million shares against its previous close.