Shree Renuka Sugars Q2 FY26 Earnings Results

Incorporated in 1995, Shree Renuka Sugars Ltd does manufacturing and refining of sugar, ethyl alcohol, ethanol, generation and sale of power.

 

Q2 FY26 Earnings Results:

• Revenue from Operations: ₹2,422.80 crore, up 20.53% QoQ, down 5.59% YoY from ₹2,566.20 crore in Q2 FY25.

• Operating profit (PBDIT excluding other income): Loss of ₹182.20 crore compared to a profit of ₹227.40 crore in Q2 FY25.

• Profit Before Tax (PBT): Loss of ₹401.30 crore, worsening from ₹-22.30 crore in Q2 FY25.

• Profit After Tax (PAT): Net loss of ₹368.60 crore, a sharp deterioration of 1552.91% YoY from a minor loss of ₹22.30 crore in Q2 FY25.

• PAT margin: -15.21%, compared to -0.87% in Q2 FY25.

• Segment revenues (Standalone Q2 FY26):

  • Sugar Refinery: ₹1,667.2 crore (Loss of ₹35.6 crore PBT vs profit of ₹300.8 crore YoY).

  • Sugar Milling: ₹299.6 crore (Loss of ₹68.7 crore PBT).

  • Distillery: ₹285.8 crore (Profit of ₹1.4 crore PBT).

  • Co-generation: ₹8.2 crore (Loss of ₹29.1 crore PBT).

  • Trading: ₹82.1 crore (Profit of ₹5 crore PBT).

• Total expenses increased to ₹2,861.6 crore from ₹2,619.4 crore in Q2 FY25, driven by higher operational costs and interest expenses.

• Interest expense: ₹183.60 crore, slightly down from ₹192.90 crore in Q1 FY26.

 

Management Commentary & Strategic Decisions:

• Management cited challenging market conditions marked by seasonality and tough sugar sector dynamics.

• Highlighted structural issues beyond normal industry cyclicality, impacting sales and profitability.

• Emphasized efforts on cost control despite fixed cost pressures and high interest burden.

• Confident about the company’s going concern status and ongoing strategic initiatives to improve financial health.

• Focus remains on operational restructuring, debt management, and exploring growth opportunities within and beyond core sugar business.

 

 

Q1 FY26 Earnings Results:

• Revenue from Operations: ₹2,010.20 crore, down 34.18% YoY from ₹3,030.3 crore in Q1 FY25.

• Operating Profit Margin (OPM): -4.29%, reflecting an operating loss due to adverse pricing and higher costs (compared to +2.76% in Q1 FY25).

• Profit Before Tax (PBT): Loss of ₹341.4 crore, a significant increase from a loss of ₹178.1 crore in Q1 FY25.

• Profit After Tax (PAT): Net loss of ₹264 crore, worsening compared to a loss of ₹165.5 crore in Q1 FY25.

• Highlighted steep sales decline as the main driver of increased losses.

• Continued pressure on pricing and volume in sugar and allied segments.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.