DBSIL standalone September-quarter profit rises to Rs 70.61 crore

Dalmia Bharat Sugar and Industries Limited, referred to as DBSIL, reported standalone net profit of Rs 70.61 crore for the quarter ended September 30, 2026, up from Rs 8.57 crore in the June quarter, while its sugar segment result rose to Rs 79.22 crore from Rs 1.49 crore.

Why did DBSIL's quarterly profit rise?

DBSIL's quarterly profit rose as its sugar segment result increased to Rs 79.22 crore in the quarter ended September 30, 2026, lifting total segment results to Rs 109.46 crore from Rs 37.26 crore in the quarter ended June 30, 2026. After finance cost of Rs 14.73 crore, standalone profit before tax was Rs 94.73 crore, compared with Rs 11.49 crore in the preceding quarter.

Sugar segment result also exceeded Rs 19.32 crore in the quarter ended September 30, 2025, while profit before tax increased from Rs 31.26 crore a year earlier. Tax expense was Rs 24.12 crore in the latest quarter, compared with Rs 2.92 crore in the June 2026 quarter and Rs 7.94 crore in the September 2025 quarter. The resulting net profit was Rs 70.61 crore, against Rs 23.32 crore a year earlier.

Finance cost fell by Rs 11.04 crore from Rs 25.77 crore in the June 2026 quarter to Rs 14.73 crore in the September 2026 quarter. The latest finance cost remained above Rs 10.23 crore reported a year earlier. DBSIL reported no exceptional items in any of the three quarterly periods shown in its standalone financial statement.

How did DBSIL's revenue and segment earnings change?

DBSIL's revenue from operations rose to Rs 1,060.81 crore in the September 2026 quarter from Rs 848.19 crore in the June 2026 quarter and Rs 988.72 crore a year earlier. Total income, including other income of Rs 29.55 crore, reached Rs 1,090.36 crore, compared with Rs 875.71 crore sequentially and Rs 1,008.44 crore in the prior-year quarter.

Sugar revenue was Rs 769.00 crore, up from Rs 635.43 crore in the preceding quarter but below Rs 793.16 crore a year earlier. Despite the lower year-on-year sugar revenue, sugar segment result increased to Rs 79.22 crore from Rs 19.32 crore. The standalone statement presents segment results before interest and finance charges, which are deducted in arriving at profit before tax.

Distillery revenue reached Rs 327.25 crore, compared with Rs 267.15 crore in the June 2026 quarter and Rs 251.71 crore in the September 2025 quarter. Its segment result was Rs 28.37 crore, below Rs 35.29 crore sequentially but above Rs 21.18 crore a year earlier. The other businesses segment recorded revenue of Rs 3.34 crore and a segment result of Rs 1.87 crore in the latest quarter.

Total expenses were Rs 995.63 crore, versus Rs 864.22 crore in the June 2026 quarter and Rs 977.18 crore a year earlier. The change in inventories of finished goods, traded goods and work in progress was an expense of Rs 664.36 crore, compared with Rs 529.34 crore sequentially and Rs 671.06 crore in the prior-year period. DBSIL said the seasonal nature of the industry means quarterly standalone results may not be a true reflection of annual profitability.

What changed in DBSIL's working capital and borrowings?

DBSIL generated net cash from operating activities of Rs 1,439.74 crore in the half year ended September 30, 2026, compared with Rs 806.43 crore in the corresponding 2025 period. Its cash-flow statement recorded a Rs 1,262.99 crore inventory-related working-capital movement, against Rs 1,202.13 crore in the prior-year half year, contributing to cash generated from operations of Rs 1,460.45 crore.

Inventories on the standalone balance sheet fell to Rs 429.93 crore at September 30, 2026, from Rs 1,692.92 crore at March 31, 2026. Trade receivables declined to Rs 111.24 crore from Rs 180.30 crore, while bank balances other than cash and cash equivalents increased to Rs 269.55 crore from Rs 4.14 crore over the same period.

DBSIL reported net repayment of short-term borrowings of Rs 1,202.60 crore in the six months ended September 30, 2026, compared with Rs 465.01 crore in the corresponding 2025 period. Current borrowings stood at Rs 77.56 crore at September 30, down from Rs 1,280.16 crore at March 31, while non-current borrowings declined to Rs 420.85 crore from Rs 459.42 crore.

Investing activities used Rs 423.52 crore during the latest half year, including Rs 303.18 crore for net purchases of investments and Rs 88.60 crore for property, plant and equipment. Financing activities used Rs 1,289.16 crore, including short-term and long-term borrowing repayments. Cash and cash equivalents ended the half year at Rs 44.82 crore, compared with Rs 317.76 crore at the start of the financial year.

What do DBSIL's half-year results and disclosures show?

DBSIL reported standalone net profit of Rs 79.18 crore for the half year ended September 30, 2026, compared with Rs 62.58 crore in the corresponding 2025 period. Revenue from operations was Rs 1,909.00 crore, below Rs 1,929.60 crore a year earlier, while profit before tax increased to Rs 106.22 crore from Rs 83.92 crore.

Sugar revenue for the half year declined to Rs 1,404.43 crore from Rs 1,510.04 crore, while sugar segment result increased to Rs 80.71 crore from Rs 64.99 crore. Distillery revenue rose to Rs 614.40 crore from Rs 578.10 crore and its segment result increased to Rs 63.66 crore from Rs 43.61 crore. These segment figures show that earnings improved despite the decline in half-year sugar revenue.

The Board approved the unaudited standalone results on November 3, 2026, after review and recommendation by its audit committee. DBSIL's statutory auditors performed a limited review of the results, which were prepared under Indian Accounting Standard 34, covering interim financial reporting. Standalone basic and diluted earnings per share, not annualised, were Rs 8.72 for the September 2026 quarter.

DBSIL's Board also approved a proposed scheme of arrangement with Hippostores Technology Private Limited on November 3, 2026. The proposal covers transfer of Hippostores' multi-supplier aggregation and technology-led solutions business on a going-concern basis. DBSIL proposes to issue redeemable preference shares with a face value of Rs 10 each to eligible Hippostores equity and preference shareholders under the scheme terms.

Conclusion

DBSIL's September-quarter standalone profit of Rs 70.61 crore reflected the rise in sugar segment result to Rs 79.22 crore, higher sequential revenue and lower sequential finance cost. For the half year, profit increased despite revenue from operations declining by Rs 20.60 crore year on year, while inventories fell by Rs 1,262.99 crore from the March 2026 balance-sheet level.

The next disclosed event is the proposed Hippostores Technology Private Limited arrangement, which has an appointed date of January 1, 2027. The scheme remains subject to applicable stock-exchange observation or no-objection letters, shareholder and creditor approvals where applicable, National Company Law Tribunal sanction and other required regulatory permissions.