Dalmia Bharat Sugar Q2 Profit Nearly Triples to Rs 68 Crore on Strong Sales

New Delhi: Dalmia Bharat Sugar and Industries Ltd on Wednesday reported a nearly three-fold jump in consolidated net profit to Rs 68.40 crore for the September quarter of FY27, helped by strong sales.

The Tamil Nadu-based sugar maker had posted a net profit of Rs 23.32 crore in the year-ago period, the company said in a statement.

Total income rose 7.29 per cent to Rs 1,060.81 crore from Rs 988.72 crore a year earlier. Expenses increased to Rs 997.84 crore from Rs 977.18 crore.

The board, in its meeting held on November 3, approved a scheme of arrangement between Hippostores Technology Pvt Ltd (the demerged company) and the company under Sections 230 to 232 of the Companies Act, 2013.

The scheme provides for transfer of Hippostores’ business, which is engaged in multi-supplier aggregation, AI/ML-driven optimisation and development and scaling of technology-led solutions, on a going-concern basis.

In consideration, Dalmia Bharat Sugar will issue redeemable preference shares of face value of Rs 10 each to the equity and preference shareholders of Hippostores in the proportion defined in the scheme. The appointed date is January 1, 2027.

The company said its ongoing projects are progressing within targeted timelines. These include a sugarcane plantation and sugar manufacturing unit in Tanzania, a compressed biogas (Bio-CNG) project at Kolhapur, and the conversion of the existing cane distillery at Ramgarh into a dual-feed 100 KLPD (Kilo Liters Per Day) unit.

During the quarter, the company also incorporated Dalmia Bharat Global Holdings Ltd, a wholly-owned subsidiary in the UAE, to hold its present and future investments.

For the 2026-27 sugar season, the company said uneven monsoon rainfall has raised concerns over cane availability and recovery.

Possible El Nino-related disruptions pose additional risks, particularly in Maharashtra and Karnataka.

With the prohibition on the use of B-heavy molasses and sugarcane juice/syrup for ethanol production due to cyclical feedstock constraints, the contribution of sugar-based ethanol is set to decline. Grain distilleries will be critical to meet projected ethanol demand, the company said, adding that this reinforces the strategic value of its 350 KLPD grain-based distillery capacity.

However, a rise in maize prices from about Rs 18 to Rs 25 per kg, along with lower realisations from maize-based ethanol, will put pressure on margins in the upcoming ethanol year, it added.

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