Incorporated in 1995, Shree Renuka Sugars Ltd does manufacturing and refining of sugar, ethyl alcohol, ethanol, generation and sale of power. Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Net Profit (PAT): Loss of ₹264 crore, significantly worse than the loss of ₹165.5 crore in Q1 FY25 (YoY decline of 59%).
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Revenue/Sales: ₹2,010 crore, down sharply by 34.18% YoY from ₹3,030.3 crore in Q1 FY25.
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Operating Profit Margin (OPM): -4.29% versus +2.76% YoY, reflecting an operating loss due to adverse realizations and higher costs.
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Profit Before Tax (PBT): Loss of ₹341.4 crore (Q1 FY25: Loss of ₹178.1 crore).
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Profit Before Depreciation & Tax (PBDT): -₹269.1 crore (vs -₹109 crore YoY).
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Key Observations: Steep sales decline was the main driver of increased losses, as total expenses and margin compression outweighed efforts to control costs. Pricing and volume challenges persisted in the quarter.
Key Management Commentary & Strategic Highlights
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Management flagged ongoing industry headwinds, notably lower sugar realization prices and subdued exports, which impacted the company’s sales and profitability.
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The company continues to focus on cost optimization, maximizing utilization of its ethanol and distillery units, and leveraging cogeneration during crushing season to partially offset sugar sector volatility.
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Strategic long-term investments are being made in expanding ethanol blending and renewable energy capacity to reduce dependence on cyclical sugar markets.
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Emphasis remains on debt management and working capital control as elevated losses are expected to persist until market conditions improve.
Q4 FY25 Earnings Results
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Q4 FY25 Revenue/Sales: Approx. ₹2,691 crore (down 23.6% YoY from ₹3,376 crore in Q4 FY24).
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Q4 FY25 PAT: Reversed to marginal profit of ₹93 crore after two loss-making quarters.
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FY25 Analysis: Sales for FY25 fell to ₹10,914 crore, with net loss mounting to ₹300 crore for the year, building on a multi-year trend of profit volatility due to sugar price and input cost swings.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.