Dwarikesh Sugar Industries Limited — PPTs, 31-10-2025: Investor Presentation

Dwarikesh Sugar's Q2 and H1 FY26 performance was significantly impacted by production halts at its sugar and distillery units, leading to unabsorbed overheads and losses. Revenue from operations for H1 FY26, however, increased by 10.9% to ₹651.4 Cr, primarily due to higher ethanol sales volumes, despite zero distillery sales in Q2. Sugar sales saw improved realisations (up 4-5% YoY), though volumes remained largely stable.

The company is strategically shifting to more robust, disease-resistant sugarcane varieties, phasing out older susceptible ones. A strong focus remains on enhancing operational efficiencies and maintaining strict cost controls.

Crushing operations for the 2025-26 season are set to begin in early-mid November across its units. Ethanol blending currently stands at 19.17%, and OMCs saw overwhelming bids for upcoming ethanol supply.

For Q2 FY26, revenue was ₹245.9 Cr with a PAT of -₹32.6 Cr. H1 FY26 recorded a PAT of -₹42.0 Cr.

Management expresses optimism for the upcoming 2025-26 sugar season, anticipating improved crushing volumes, a diversified cane mix, and better sugar recovery. They expect domestic sugar prices to remain firm, though the lack of revision in ethanol prices for sugarcane-based ethanol continues to be a key challenge.