SBEC Sugar Ltd (532102)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, SBEC Sugar's revenue was ₹99.0 Cr (-17.5% year on year, -37.7% on the previous quarter), and net profit ₹9.2 Cr (against a loss a year earlier); the operating margin was 8.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹99.0 | -17.5% | -37.7% |
| Operating profit | ₹8.1 | from loss | -63.3% |
| Net profit | ₹9.2 | from loss | -89.9% |
| EPS (₹) | 1.92 | from loss | -89.9% |
| Operating margin | 8.2% | — | — |
📢 Recent Corporate Announcements
SBEC Sugar Limited has dispatched letters to shareholders whose email addresses are not registered with the company, RTA, or Depositories. The communication provides web-links to access the Annual Report for FY 2025-26 and the Notice for the 32nd Annual General Meeting scheduled for September 29, 2026, at 03:30 PM IST via Video Conferencing. It also details the procedure for KYC updates and reminds shareholders about the SEBI special transfer window open until February 4, 2027.
- 32nd Annual General Meeting scheduled for September 29, 2026, at 03:30 PM IST via Video Conferencing.
- Dispatched letters under Regulation 30 & 36(1)(b) to shareholders without registered email addresses.
- Provided links for Annual Report FY2025-26 and 32nd AGM Notice on the company website.
- Notified SEBI special window open from February 5, 2026 to February 4, 2027 for physical share transfer deeds lodged before April 1, 2019.
SBEC Sugar reported a consolidated net profit of ₹9.15 cr for Q1 FY27, turning around from a net loss of ₹26.05 cr in Q1 FY26, largely driven by a ₹17.03 cr share of profit from a joint venture. Consolidated revenue from operations fell 17.4% YoY to ₹98.99 cr from ₹119.88 cr. On a standalone basis, the company posted a net loss of ₹4.32 cr. Statutory auditors issued a qualified opinion, citing that standalone losses are understated by ₹10.63 cr due to improper inventory valuation above cost and by ₹7.76 cr due to non-provisioning of cane dues interest.
- Consolidated revenue from operations declined 17.4% YoY to ₹98.99 cr in Q1 FY27 compared to ₹119.88 cr in Q1 FY26
- Consolidated PAT stood at ₹9.15 cr (EPS ₹1.92) vs a net loss of ₹26.05 cr in the year-ago period, aided by ₹17.03 cr JV profit share
- Auditors qualified standalone results due to ₹10.63 cr inventory overstatement and unprovided cane dues interest of ₹7.76 cr
- Company Secretary Madhur Agarwal resigned effective August 13, 2026; M/s M.K. Singhal & Co. re-appointed as Cost Auditor for FY 2026-27
SBEC Sugar reported consolidated revenue of Rs 98.99 Cr for Q1 ended June 30, 2026, marking a 17.4% YoY decline compared to Rs 119.88 Cr in Q1 FY26. The company turned a consolidated net profit of Rs 9.15 Cr against a net loss of Rs 26.05 Cr in the prior year period, primarily driven by a Rs 17.03 Cr share of profit from its Joint Venture. On a standalone basis, operations incurred a net loss of Rs 4.32 Cr. Crucially, statutory auditors issued a qualified opinion highlighting an unprovided cane interest expense of Rs 7.76 Cr and an inventory overstatement of Rs 10.63 Cr.
- Consolidated revenue from operations fell 17.4% YoY to Rs 98.99 Cr in Q1 ended June 30, 2026.
- Consolidated PAT turned positive to Rs 9.15 Cr (EPS Rs 1.92) vs a loss of Rs 26.05 Cr (EPS Rs -5.47) in Q1 FY26, boosted by Rs 17.03 Cr JV profit.
- Standalone business posted a net loss of Rs 4.32 Cr with revenue of Rs 95.35 Cr.
- Auditors issued a qualified report due to unprovided cane interest of Rs 7.76 Cr and inventory valuation above cost by Rs 10.63 Cr.
- Board noted debenture conversion to equity in WOS (SBEC Stockholding) and resignation of Company Secretary Madhur Agarwal.
SBEC Sugar reported a consolidated revenue of ₹98.99 Cr for Q1 FY27, declining 17.4% YoY from ₹119.88 Cr in Q1 FY26. Consolidated net profit swung to ₹9.15 Cr against a net loss of ₹26.05 Cr in the year-ago period, primarily supported by a ₹17.03 Cr share of profit from joint ventures. However, standalone operations stayed in the red with a net loss of ₹4.32 Cr. Crucially, statutory auditors qualified the results due to unprovided cane interest of ₹7.76 Cr and inventory valued at NRV resulting in an overstatement of ₹10.63 Cr.
- Consolidated revenue from operations fell 17.4% YoY to ₹98.99 Cr in Q1 FY27 vs ₹119.88 Cr in Q1 FY26
- Consolidated net profit stood at ₹9.15 Cr (Basic EPS ₹1.92) vs a net loss of ₹26.05 Cr in Q1 FY26, aided by ₹17.03 Cr JV profit share
- Standalone business posted a net loss of ₹4.32 Cr for the quarter compared to a loss of ₹23.38 Cr in Q1 FY26
- Statutory auditor issued qualified conclusion over unprovided cane interest of ₹7.76 Cr and inventory overstatement of ₹10.63 Cr
SBEC Sugar Ltd has announced the resignation of Mr. Madhur Agarwal from the position of Company Secretary and Compliance Officer (Key Managerial Personnel). The resignation is effective from the close of business hours on August 13, 2026. This is a routine administrative change for the company, which has a market capitalization of Rs 352 Cr and TTM revenue of Rs 549 Cr. The company will need to appoint a successor to ensure continued adherence to SEBI Listing Regulations.
- Mr. Madhur Agarwal resigned as Company Secretary and Compliance Officer effective August 13, 2026.
- The company reported TTM revenue of Rs 549 Cr and a PAT of Rs 19 Cr.
- SBEC Sugar currently operates with a debt of Rs 273 Cr and a D/E ratio of 1.62.
- The resignation was formally communicated to the exchange on August 13, 2026.
SBEC Sugar has scheduled a board meeting for Aug u st 14, 2026, to approve un audited stand alone and con solidated finan cial result s for the quarter ended June 30, 2026. The company recently reported a TTM PAT of ₹19 cr, largely driven by a stron g March 2026 quarter (₹91 cr PAT) which off set prior los ses. Investor s will be watching if the company can main tain profit ability given the June 2025 quarter had a net los s of ₹26 cr. The tradin g window remain s closed for director s and design ated person s un til 48 hour s after the result s declaration.
- Board meeting scheduled for Aug u st 14, 2026, to review Q1 FY27 performance.
- Tradin g window clos ure in effect un til 48 hour s post-result s an noun cement.
- Company reported a TTM reven ue of ₹549 cr and a market cap of ₹321 cr.
- Previou s cor res pon din g quarter (Jun 2025) reported a net los s of ₹26 cr.
SBEC Sugar Ltd has fully repaid an unsecured loan of ₹5 crore to Priyadarshini Polysacks Limited. The loan, originally obtained on December 31, 2025, was settled in full on July 10, 2026. Following this repayment, the outstanding balance for this specific facility is nil. The company has officially closed the loan agreement and stated that this action has no material impact on its financial or operational performance.
- Total loan amount of ₹5,00,00,000 (₹5 Crores) fully repaid
- Loan was held for approximately 6 months, originating on 31-12-2025
- Repayment completed on 10-07-2026 with zero outstanding balance remaining
- The loan was unsecured, meaning no company assets were pledged as collateral
SBEC Sugar Ltd has entered into an inter-corporate loan agreement on July 7, 2026, to avail an unsecured loan of ₹5 crore. The lender is Priyadarshini Polysacks Limited, and the transaction is classified as a non-related party transaction. No security or special rights (like board seats) have been granted to the lender. This move appears to be a small-scale liquidity arrangement for the company's operations.
- Total loan amount of ₹5 Crores availed as unsecured financial assistance
- Agreement executed on July 7, 2026, with Priyadarshini Polysacks Limited
- Zero security provided by SBEC Sugar Limited for this facility
- No special rights or board representation granted to the lender
- Transaction confirmed as not falling under related party transactions
Financial Performance
Revenue Growth by Segment
Total income for FY 2024-25 was INR 621.58 Cr, representing a 3.57% decline from INR 644.61 Cr in FY 2023-24. Segment-specific revenue splits were not explicitly detailed in absolute INR values, though the company operates in sugar production and bioenergy through subsidiaries.
Geographic Revenue Split
The company's operations are concentrated in Western Uttar Pradesh, specifically at Village Malakpur, Baghpat. 100% of manufacturing revenue is derived from this region.
Profitability Margins
The company reported a Net Profit Margin of -1.90% for FY 2024-25, a significant decline from a positive 0.72% in FY 2023-24. Operating Profit Margin also softened slightly to 6.83% from 7.09% YoY.
EBITDA Margin
EBITDA for FY 2024-25 was INR 42.48 Cr with a margin of 6.83%, compared to INR 45.67 Cr and a 7.09% margin in FY 2023-24, reflecting a 6.98% decrease in absolute EBITDA.
Capital Expenditure
The company completed the first phase of capacity expansion to 9,000 TCD operative from the 2022-23 season. It is currently augmenting capacity further to 10,000 TCD, having received the necessary Consolidated Consent to Operate (CCA).
Credit Rating & Borrowing
Not disclosed in available documents; however, the Interest Coverage Ratio declined from 2.09 times in FY 2024 to 1.15 times in FY 2025, indicating increased pressure on debt servicing.
Operational Drivers
Raw Materials
Sugarcane is the primary raw material, accounting for the vast majority of input costs. The company crushed 128.49 Lac Qtl of cane in the 2024-25 season, a 4.33% decrease from 134.31 Lac Qtl in the previous season.
Import Sources
Raw materials are sourced locally from the sugarcane-rich belt of Western Uttar Pradesh, specifically around the Baghpat district.
Key Suppliers
Sugarcane is sourced from local farmers within the factory's designated command area in Western UP.
Capacity Expansion
Current installed capacity is 9,000 TCD (Tons of Cane per Day). The company is actively expanding this to 10,000 TCD following regulatory approval from the UP Pollution Control Board.
Raw Material Costs
Sugarcane costs are dictated by the State Administrative Price (SAP). High cane arrears remain a weakness, and unviable SAP increases by the State Government directly impact profitability as they are not linked to market sugar prices.
Manufacturing Efficiency
Sugar production was 13.82 Lac Qtl in 2024-25, down 9.44% from 15.26 Lac Qtl in 2023-24. Recovery rates dropped from 11.34% to 10.72% YoY.
Strategic Growth
Expected Growth Rate
18%
Growth Strategy
Growth will be driven by expanding crushing capacity to 10,000 TCD and leveraging the Ethanol Blending Programme. The subsidiary SBEC Bioenergy Limited is central to this, utilizing molasses to produce 1st Generation (1G) ethanol, supported by government financial assistance for capacity augmentation.
Products & Services
Primary products include refined sugar, ethanol (produced from molasses), and power (via bagasse co-generation).
Brand Portfolio
SBEC Sugar.
New Products/Services
Expansion into 1G ethanol production from feedstocks like cereals and sugarcane juice under the modified government scheme.
Market Expansion
Focus remains on maximizing recovery and production at the Malakpur plant while exploring increased ethanol supply under the national blending initiative.
Market Share & Ranking
Not disclosed in available documents; however, the company is noted as having one of the most modern and efficient sugar factories in India.
Strategic Alliances
The company is a member of the Umesh Modi Group of Companies. Material subsidiaries include SBEC Bioenergy Limited and SBEC Stockholding and Investment Limited.
External Factors
Industry Trends
The industry is shifting toward energy and fuel production. ISMA projects an 18% recovery in output for 2025-26 to 34.9 MMT. The sector is transitioning from pure sugar production to a 'sugar-ethanol-power' complex.
Competitive Landscape
The Indian sugar industry is one of the largest globally; SBEC competes with other mills in the Western UP region for cane supply.
Competitive Moat
Moat is based on its location in a high-sucrose sugarcane belt and its modern 9,000 TCD plant. Sustainability depends on maintaining high recovery rates (currently 10.72%) and managing state regulatory relationships.
Macro Economic Sensitivity
Highly sensitive to state-level agricultural policies (SAP) and national ethanol blending mandates.
Consumer Behavior
Stable retail prices despite production shortfalls due to high carry-forward stocks of 8-9 MMT.
Regulatory & Governance
Industry Regulations
Operations are governed by the Sugarcane (Control) Order, the Ethanol Blending Programme, and state-mandated SAP for cane procurement.
Environmental Compliance
The company received CCA (Consolidated Consent to Operate) for 10,000 TCD under the Water and Air Pollution Control Acts.
Legal Contingencies
The Supreme Court (order dated March 4, 2025) directed the promoter group to make a public announcement for an open offer and pay 10% p.a. interest from the date of violation of SAST Regulations. Auditors issued a qualified report for both standalone and consolidated financial results.
Risk Analysis
Key Uncertainties
The primary uncertainty is the mismatch between state-fixed cane prices and market-driven sugar prices, which led to a net loss margin of -1.90% this year.
Geographic Concentration Risk
100% of manufacturing is concentrated in Baghpat, Uttar Pradesh, making it vulnerable to regional weather patterns and state-specific regulations.
Third Party Dependencies
High dependency on local sugarcane farmers; failure to clear cane arrears (Weakness) poses a significant supply chain risk.
Technology Obsolescence Risk
Low risk due to the plant being described as one of the most modern in the country; digital internal audit systems are in place.
Credit & Counterparty Risk
Debtors turnover slowed from 46.28 times to 34.15 times, indicating a slight lengthening in the collection cycle.
