Dhampur Sugar Mills Ltd sugar EBIT turns positive in Q2

Dhampur Sugar Mills Ltd reported sugar earnings before interest and tax (EBIT) of Rs 22.44 crore in the second quarter (Q2) of FY27, compared with a Rs 6.07 crore loss in Q2 FY26, as white-sugar realisation rose to Rs 45,608 per tonne from Rs 39,956 per tonne despite lower sugar sales.

How did Dhampur’s sugar business return to positive EBIT?

Dhampur’s sugar business returned to positive EBIT in Q2 FY27 as the increase in realisation coincided with a Rs 28.51 crore year-on-year swing in segment EBIT. Sugar revenue declined to Rs 315.78 crore from Rs 342.01 crore, while sales volume fell to 0.67 lakh tonnes from 0.80 lakh tonnes. The disclosed pricing change was therefore more favourable than the volume trend for segment profitability.

White-sugar realisation increased by Rs 5,652 per tonne to Rs 45,608 per tonne in Q2 FY27. Sugar inventory declined to 0.34 lakh tonnes from 0.48 lakh tonnes, while the stock valuation rate rose to Rs 38,463 per tonne from Rs 37,416 per tonne. Sugar’s share of Q2 revenue fell to 57.25% from 62.38%, showing that its revenue weight narrowed even as its EBIT moved into profit.

The first half (H1) FY27 result also showed higher price realisation alongside lower volume. Sugar EBIT was Rs 29.96 crore in H1 FY27, reversing a Rs 9.17 crore loss in H1 FY26, and revenue increased to Rs 725.39 crore from Rs 707.15 crore. Sales fell to 1.52 lakh tonnes from 1.59 lakh tonnes, but realisation rose to Rs 43,149 per tonne from Rs 39,977 per tonne.

Which segments added to Dhampur’s Q2 FY27 EBIT?

Dhampur’s two largest Q2 FY27 EBIT contributors were sugar at Rs 22.44 crore and ethanol at Rs 17.51 crore. Ethanol EBIT rose from Rs 4.82 crore in Q2 FY26, while chemicals contributed Rs 5.48 crore, up from Rs 3.42 crore. These gains were partly offset by losses in power and others and by lower potable-spirits EBIT.

Ethanol revenue increased to Rs 145.91 crore in Q2 FY27 from Rs 103.92 crore, with sales rising to 166.76 lakh bulk litres from 132.47 lakh bulk litres. Average realisation fell to Rs 65.83 per bulk litre from Rs 66.91 per bulk litre. The sales composition changed, with 45.44 lakh bulk litres of B-heavy ethanol and 18.66 lakh bulk litres of rice-based ethanol sold in Q2 FY27, while C-heavy sales declined to 13.71 lakh bulk litres from 44.04 lakh bulk litres.

Chemicals delivered higher EBIT despite lower revenue and volumes. Chemical revenue was Rs 53.93 crore in Q2 FY27 versus Rs 60.36 crore in Q2 FY26, while sales declined to 58.12 lakh kilograms from 87.53 lakh kilograms and production fell to 59.62 lakh kilograms from 89.96 lakh kilograms. Management identified higher chemical margins as the positive factor behind EBIT increasing to Rs 5.48 crore.

What weakened in Dhampur’s power and potable spirits businesses?

Dhampur’s power business recorded a Rs 2.57 crore EBIT loss in Q2 FY27, compared with a Rs 1.45 crore loss in Q2 FY26. Revenue declined to Rs 12.98 crore from Rs 17.32 crore and generation decreased to 1.16 crore units from 1.21 crore units. Power realisation increased to Rs 4.57 per unit from Rs 4.44 per unit, but that did not prevent the wider reported segment loss.

Power exports were 0.06 crore units in Q2 FY27, while the Q2 FY26 export field was not reported in the operating table. For H1 FY27, exports fell to 0.42 crore units from 0.95 crore units and generation dropped to 3.03 crore units from 4.34 crore units. The H1 power segment moved from EBIT of Rs 4.03 crore to a Rs 1.67 crore loss.

Potable spirits EBIT declined to Rs 1.95 crore in Q2 FY27 from Rs 3.56 crore a year earlier, as revenue fell to Rs 212.15 crore from Rs 230.16 crore. Sales declined to 6.98 lakh cases from 8.18 lakh cases, and production decreased to 6.93 lakh cases from 8.21 lakh cases. The presentation reports potable-spirits revenue net of excise duty.

Did the segment outcome improve Dhampur’s consolidated earnings?

Dhampur’s consolidated earnings improved in Q2 FY27 even though net operating revenue was almost unchanged at Rs 503.16 crore, compared with Rs 504.19 crore in Q2 FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased to Rs 46.77 crore from Rs 11.36 crore, while profit after tax was Rs 12.62 crore against a Rs 7.82 crore loss. EBITDA margin rose to 6.73% from 1.60%.

In H1 FY27, EBITDA increased to Rs 83.89 crore from Rs 42.23 crore and consolidated profit after tax reached Rs 18.71 crore, compared with a Rs 6.91 crore loss in H1 FY26. Net profit attributable to shareholders was Rs 18.60 crore versus a Rs 7.03 crore loss. H1 net operating revenue rose to Rs 1,055.78 crore from Rs 1,025.61 crore.

The EBIT mix changed materially over the half year. Sugar accounted for 41.56% of reported H1 FY27 segment EBIT after posting a loss in H1 FY26, while non-sugar operations accounted for 58.44%, compared with 144.26% when the sugar segment was loss-making. Dhampur also stated that sugar is seasonal and that quarterly performance may not represent its annual performance.

Dhampur’s balance-sheet figures showed net worth of Rs 1,197.38 crore as of 30 September 2026, up from Rs 1,119.30 crore on 30 September 2025. Short-term debt was Rs 171.38 crore, down from Rs 196.84 crore, and net debt to EBITDA was 0.90 versus 5.95. Long-term debt, including current maturities, was Rs 230.79 crore compared with Rs 285.86 crore.

Conclusion

Dhampur’s Q2 FY27 turnaround was led by sugar’s move from a Rs 6.07 crore EBIT loss to Rs 22.44 crore profit, with higher sugar realisation supporting the result despite lower sales volume. Higher ethanol EBIT and chemical margins added to the improvement, while lower power generation, chemical volumes and potable-spirits sales limited the breadth of the recovery.

The disclosed unresolved matters are whether sugar realisation can remain above the H1 FY27 level of Rs 43,149 per tonne and whether ethanol profitability can be maintained with average H1 realisation at Rs 64.32 per bulk litre versus Rs 65.41 per bulk litre a year earlier. Dhampur’s caution on sugar seasonality also makes subsequent operating periods relevant to assessing the full-year outcome.