UGARSUGAR - Ugar Sugar Works
📢 Recent Corporate Announcements
The Ugar Sugar Works Limited has announced the completion of its sugar crushing season for 2025-26 at both its Ugar and Jewargi units. The Ugar unit concluded operations on March 10, 2026, after crushing 15,50,178 MT of cane. The Jewargi unit followed on March 13, 2026, with a total crushing volume of 4,00,595 MT. This operational update provides investors with the final raw material processing figures for the current season, which are critical for estimating total sugar production and upcoming quarterly revenue.
- Total cane crushed for the 2025-26 season reached 19,50,773 MT across two units.
- Ugar Unit processed 15,50,178 MT of cane, ending its season on March 10, 2026.
- Jewargi Unit processed 4,00,595 MT of cane, ending its season on March 13, 2026.
- The completion of the crushing season marks the end of primary production activity for the fiscal year.
The Ugar Sugar Works reported a strong turnaround in Q3 FY26, with net profit surging to ₹13.76 crore compared to ₹4.53 crore in the same quarter last year. Revenue from operations grew by 19.6% YoY to ₹328.93 crore, driven by robust performance in the Industrial Alcohol and Co-generation segments. While the Sugar segment revenue saw a decline, the Industrial Alcohol segment's profit before tax more than doubled to ₹13.33 crore. Despite the quarterly profit, the company remains in a net loss of ₹32.15 crore for the nine-month period ending December 2025, though this is a significant improvement from the ₹67.33 crore loss in the previous year.
- Net Profit for Q3 FY26 rose 204% YoY to ₹1,375.79 Lakhs from ₹452.54 Lakhs.
- Revenue from operations increased to ₹32,892.98 Lakhs, up from ₹27,497.97 Lakhs in Q3 FY25.
- Industrial Alcohol segment profit surged to ₹1,333.21 Lakhs compared to ₹443.69 Lakhs in the previous year.
- Earnings Per Share (EPS) for the quarter improved to ₹1.22 from ₹0.40 YoY.
- Crushing for the 2025-26 sugar season commenced in November 2025 at both Ugar and Jewargi units.
The Ugar Sugar Works Limited reported a strong recovery in Q3 FY26, with a net profit of ₹13.76 crore compared to ₹4.53 crore in the same quarter last year. Revenue from operations grew 19.6% YoY to ₹328.93 crore, driven largely by the Industrial Alcohol segment. The company successfully turned around from a significant loss of ₹32.17 crore in the preceding quarter (Q2 FY26). While 9-month figures still show a net loss of ₹32.15 crore, it is a substantial improvement over the ₹67.33 crore loss reported in the corresponding 9-month period of the previous year.
- Net Profit for Q3 FY26 stood at ₹1,375.79 Lakhs, a 204% increase from ₹452.54 Lakhs in Q3 FY25.
- Revenue from operations increased to ₹32,892.98 Lakhs from ₹27,497.97 Lakhs in the year-ago period.
- Industrial Alcohol segment revenue grew 36.5% YoY to ₹17,670.68 Lakhs, becoming a major profit driver.
- Earnings Per Share (EPS) for the quarter improved significantly to ₹1.22 from ₹0.40 YoY.
- Crushing for the 2025-26 sugar season commenced in November 2025 at both Ugar and Jewargi units.
The Ugar Sugar Works Limited has received formal approval from both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for the reclassification of specific promoter group members. Babasaheb Neelkanth Kalyani and Sunita Babasaheb Kalyani have been officially moved from the 'Promoter/Promoter Group' category to the 'Public' category. This regulatory update follows the company's application under Regulation 31A of SEBI (LODR) Regulations, 2015. The change is primarily administrative regarding the company's shareholding structure and does not impact business operations.
- Approval granted by NSE and BSE under Regulation 31A of SEBI (LODR) Regulations, 2015.
- Two individuals, Babasaheb Neelkanth Kalyani and Sunita Babasaheb Kalyani, reclassified to the 'Public' category.
- The approval was communicated via NSE letter Ref: NSE/LIST/401 dated February 03, 2026.
- The company is mandated to disclose this reclassification as a material event to the exchanges.
The Ugar Sugar Works Limited has submitted an application to the stock exchange for the reclassification of two promoters, Babasaheb N. Kalyani and Sunita B. Kalyani, from the 'Promoter' category to 'Public'. Babasaheb N. Kalyani holds 15,83,880 shares (1.41%), and Sunita B. Kalyani holds 15,14,800 shares (1.35%). This move involves a combined stake of 2.76% and follows the procedural requirements under Regulation 31A of SEBI Listing Regulations. The reclassification is subject to approval from the stock exchange.
- Application submitted to reclassify Babasaheb N. Kalyani holding 15,83,880 shares (1.41%)
- Sunita B. Kalyani seeking reclassification for 15,14,800 shares representing 1.35% stake
- Total promoter group holding to decrease by 2.76% upon successful reclassification to public category
- Submission made in compliance with Regulation 31A of SEBI (LODR) Regulations
The Ugar Sugar Works Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Bigshare Services Pvt Ltd, confirms that all dematerialization requests received during the quarter ended December 31, 2025, were processed correctly. It ensures that security certificates were mutilated and cancelled after due verification and the depositories' names were updated in the register of members. This is a standard administrative filing required by all listed companies in India.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Confirmation that dematerialized securities are listed on the relevant stock exchanges
- Verification that security certificates were mutilated and cancelled within the mandated 15-day period
- Bigshare Services Pvt Ltd acted as the Registrar and Share Transfer Agent (RTA) for these transactions
The Ugar Sugar Works Limited has successfully obtained a waiver of fines from the National Stock Exchange (NSE) regarding past non-compliance with SEBI (LODR) Regulations. The fines were originally levied for the quarter ended September 30, 2024, concerning board and committee composition requirements under Regulations 17(1), 18, 19, 20, and 21. Following a favorable decision by the designated exchange (BSE), the NSE has aligned its decision to grant the waiver. This resolution clears a minor regulatory and financial overhang for the company.
- NSE approved the waiver of fines for non-compliance with SEBI (LODR) Regulations for the quarter ended September 30, 2024.
- The waiver covers violations related to Board Composition (17(1)) and various committees including Audit (18) and Risk Management (21).
- The decision follows the NSE/CML/2025/35 circular ensuring uniformity in waiver decisions between BSE and NSE.
- The Relevant Authority of the Exchange considered the company's waiver application favorably.
The Ugar Sugar Works Limited has announced the closure of its trading window for all designated persons and insiders starting January 1, 2026. This move is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter ending December 31, 2025. The trading window will remain closed until 48 hours after the board meeting where the unaudited standalone financial results are approved. This is a standard regulatory procedure for listed companies in India.
- Trading window closure effective from January 1, 2026
- Closure pertains to the financial results for the quarter ended December 31, 2025
- Restriction applies to Promoters, Directors, Designated Employees, and Insiders
- Window to reopen 48 hours after the conclusion of the Board meeting for result approval
Financial Performance
Revenue Growth by Segment
The company experienced a dip in revenue in FY24 due to macroeconomic factors and government restrictions on sugar syrup diversion for ethanol. For H1 FY26 (ended September 30, 2025), the company reported a net loss before tax of INR 45.80 Cr, compared to a loss of INR 22.11 Cr in FY25, reflecting a significant deterioration in profitability.
Geographic Revenue Split
Operations are concentrated in Karnataka, with primary units in Ugar Khurd (Dist. Belagavi) and Jewargi (Dist. Kalburgi). Revenue is derived from these regions, serving local power Escoms and national Oil Manufacturing Companies (OMCs).
Profitability Margins
Profitability has been severely impacted by high raw material costs and lower crushing volumes. Net profit before tax margin is negative, with a loss of INR 45.80 Cr on total assets of INR 783.79 Cr in H1 FY26. PBDIT for FY24 was estimated to be 20% lower than original projections due to underutilization of the grain-based distillery.
EBITDA Margin
Core profitability (PBDIT) is under pressure due to a 30% utilization rate of the grain-based ethanol plant and increased Fair and Remunerative Price (FRP) for sugarcane. The company reported a net loss of INR 42.34 Cr in H1 FY24 despite a healthy cash flow from operations of INR 203 Cr.
Capital Expenditure
The company has invested in a debt-funded ethanol plant expansion. Capital Work-in-Progress (CWIP) stood at INR 108.35 Cr as of September 30, 2025, while Property, Plant & Equipment (PPE) was valued at INR 275.43 Cr.
Credit Rating & Borrowing
CARE Ratings downgraded the company from CARE BBB-; Stable to CARE BB+; Negative in May 2025. This reflects significant under-achievement of profitability. Long-term bank facilities are rated for INR 700 Cr and Fixed Deposits for INR 80 Cr.
Operational Drivers
Raw Materials
Sugarcane (primary), Maize, and Rice (sourced from FCI) are the critical raw materials. Sugarcane costs are dictated by government-fixed FRP, which recently increased, squeezing margins.
Import Sources
Sugarcane is sourced locally from a command area of 76,000 acres across 80 villages in Karnataka. Grains like rice and maize are sourced from the Food Corporation of India (FCI).
Key Suppliers
Primary suppliers include local farmers in the Ugar-Khurd and Jewargi regions and the Food Corporation of India (FCI) for grain-based ethanol production.
Capacity Expansion
The company operates a 4,200 TCD sugar unit at Jewargi and a larger unit at Ugar Khurd (crushing ~20 lakh MT over 3 seasons). Ethanol capacity includes a 250 KLPD grain-based plant (part of a 400 KLPD plan) and a juice-based distillery.
Raw Material Costs
Raw material costs are high due to government-mandated FRP increases. In H1 FY24, the company recorded old settlements of INR 7 Cr, further impacting the cost structure.
Manufacturing Efficiency
Capacity utilization for the grain-based ethanol plant was sub-optimum at 30% in H1 FY24. However, the sugar units benefit from being in a high-recovery zone in Karnataka.
Logistics & Distribution
Distribution is focused on OMCs for ethanol and state Escoms for power. Sugar is sold through established wholesale channels, though specific logistics costs are not disclosed.
Strategic Growth
Growth Strategy
Growth is driven by the expansion of distillery capacity to 400 KLPD and alignment with the government's Ethanol Blending Programme (EBP). The strategy involves utilizing grain-based ethanol during the sugar off-season (April to October) to ensure year-round revenue.
Products & Services
White crystal sugar, Ethanol (juice and grain-based), and Co-generated Power.
Brand Portfolio
The Ugar Sugar Works Limited (UGARSUGAR).
New Products/Services
Expansion into grain-based ethanol (maize/rice) to supplement traditional molasses/syrup-based production.
Market Expansion
Targeting increased ethanol supply to OMCs to meet national blending targets. The company operates two units in Karnataka to maximize regional cane procurement.
Strategic Alliances
The company maintains supply contracts with Oil Manufacturing Companies (OMCs) for ethanol and state electricity companies (Escoms) for power.
External Factors
Industry Trends
The industry is shifting toward ethanol-heavy models due to the Ethanol Blending Programme (EBP). Current trends show a move toward multi-feed distilleries (grain and syrup) to counter sugar seasonality.
Competitive Landscape
Key competitors in the Karnataka region include Athani Sugars Limited and Shiraguppi Sugars Works Limited.
Competitive Moat
The moat consists of a 76,000-acre command area and established relationships with farmers in a high-recovery zone. This geographic advantage is sustainable but vulnerable to local competition from factories like Athani Sugars.
Macro Economic Sensitivity
Highly sensitive to agro-climatic conditions affecting sugarcane yield and government fiscal policies regarding sugar export and ethanol pricing.
Consumer Behavior
Increasing national demand for green fuels (ethanol) is shifting the company's production focus away from pure sugar.
Geopolitical Risks
Trade barriers on sugar exports and national food security policies (e.g., FCI grain allocation) directly impact operational viability.
Regulatory & Governance
Industry Regulations
Operations are heavily regulated by the Essential Commodities Act, with government control over sugar release quotas, export limits, and cane pricing (FRP/SAP).
Environmental Compliance
The company is subject to pollution norms for its distillery and sugar units. Ethanol production is a key part of its ESG positioning.
Legal Contingencies
The company recorded old legal/operational settlements amounting to INR 7 Cr in H1 FY24.
Risk Analysis
Key Uncertainties
Raw material availability (sugarcane and FCI grain) and government policy shifts regarding ethanol feedstock are the primary uncertainties, potentially impacting PBDIT by 20% or more.
Geographic Concentration Risk
100% of manufacturing assets are located in Karnataka, making the company highly vulnerable to regional monsoon patterns and state-specific cane pricing.
Third Party Dependencies
High dependency on the Food Corporation of India (FCI) for grain supply and local farmers for sugarcane.
Technology Obsolescence Risk
The shift to grain-based ethanol requires ongoing technical optimization, as seen in the initial sub-optimum 30% utilization of the new plant.
Credit & Counterparty Risk
Receivables are generally healthy, with OMCs paying within 20 days and Escoms within 30 days. Trade receivables stood at INR 121.55 Cr in September 2025.